Learn how to set up estimates in QuickBooks Online.
Create an estimate when you want to give your customer a quote, bid, or proposal for work you plan to do. The form looks similar to an invoice, but has a different purpose - it helps you start discussing details with your customer.
When the work is done and you're ready to invoice your customer, you can convert the estimate to an invoice so you don't enter it twice. Here's how to create a brand new estimate, convert it, or attach it to an existing invoice.
Step 1: Create an estimate
- Select + New.
- Select Estimate.
- Select a customer from the Customer dropdown.
- If the work has already started, select a status from the Pending ▼ dropdown. This is optional.
- Set the Estimate date and the Expiration date.
- Enter the products and services you plan to sell.
- Enter any other info you need.
- When you're ready, select Save and close.
Step 2: Update an estimate's status
When your customer accepts the work, or decides they don't want to continue, update the estimate's status. This keeps your accounts accurate and up-to-date:
- Go to All Sales.
- Find the estimate.
- In the Action column, select the dropdown▼ and then Update status.
- Select Accepted or another status. Then select OK.
Tip: Estimates aren't considered transactions on your books until they're accepted.
Step 3: Convert an estimate to an invoice
Convert the estimate to an invoice so you can bill your customer:
- Go to All Sales.
- Find the estimate.
- In the Action column, select Create invoice.
- Make any changes to update the invoice.
- Check the customer field and make sure the invoice is going to the right person.
- Make sure there's a linked Estimate link on the invoice. This shows the converted estimate. QuickBooks won't create a separate transaction.
- When you're ready, select Save and close.
Add an estimate to an existing invoice
Instead of converting estimates, you can also add them to existing invoices:
- Select + New.
- Select Invoice.
- Select the customer from the Customer dropdown. This opens the Add to invoice window.
- Select Add to add the estimate to the invoice.
- Select Add all if you want to add more than one estimate at a time. If you want to individually add multiple estimates, a message is displayed giving you options either to copy all the estimate item lines or to create a new invoice.
- Select Copy the lines or Create a new invoice.
- Complete and save the invoice.
Tip: If you have more than one open estimate for a customer, you can add them all at once. However, your customer may prefer separate invoices for each one.
Step 4: Review open estimates
- Go to All Sales.
- Select the Filter ▼ dropdown.
- In the Type dropdown, select Estimates.
- You can use additional filters as needed and select Apply.
You can also run a report to get more details:
- Go to Reports.
- Look for and open the Estimates by Customer report.
- Select your date range and select Run report.
This gives you the customer name, estimate number, status, and Invoice No. if it's been converted.
Delete an estimate
If a client decides they don't want you to do work anymore, it's better to close the estimate rather than delete it. This keeps the record on your accounts for good bookkeeping.
If you created a estimate by mistake, then you can simply delete it:
- Go to All Sales.
- Find and open the estimate.
- Select More.
- Select Delete, then Yes to confirm your changes.
