transactions in cash basis

Welcome to the Community, darcyjane.

I appreciate the detailed information you provided. I'm here to provide some insights about the invoicing and payments set up in QuickBooks Desktop. 

The setup is correct for your cash-based system. The invoice should be debited to accounts receivable (A/R) and credited to sales because you have yet to receive payment. Once you receive payment for the invoice, the A/R account will be credited, and the asset account will be debited.

You can visit this article for more information about setting up and sending progress invoices in QuickBooks Desktop: Set up and send progress invoices in QuickBooks Desktop.

If you need help with invoice setup, please don't hesitate to reply below. I'm more than happy to assist you in any way I can.

Thanks so much for the reply.  So will by job income be correct at year-end?  Since it was credited when the invoicing happened and we are on cash basis, would it be overstated at year end due to invoices that are still open for payment?

@darcyjane2020 

"Currently, the entries for invoicing are a debit to AR and a credit to Job Income. When payments are rec'd, credit to AR and debit to cash. My question is....since this is cash basis, is the credit to job income wrong when invoicing?"

As long as you're using invoices to bill customers (not journal entries), QB will ignore open invoices when you run reports on cash basis.  If you run reports on accrual basis, then open invoices will show as income.  QB cannot differentiate cash vs. accrual using journal entries.