Progress Invoicing for QuickBooks Online - Part 1

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It's taken a long time.  An eternity, or so it seems for some people, but Progress Invoicing has finally arrived to QuickBooks Online.  Oh sure, some of you may not have it just yet, but it's getting rolled out over the next few weeks. In this 2-part mini-series we will look at this exciting new capability and the various progress invoicing options it provides.

QBO Progress Invoicing allows users to Invoice work in installments and improving cash flow. Progress Invoicing is also key to companies who require a percentage or partial payment at onset and balance at a given finish point.

The QBO Progress Invoicing has several options which allows for invoicing a percentage, custom or remaining open balance. Since there are multiple options, let’s take a look at many scenarios to demonstrate what’s available.

To Start Progress Invoicing create an Estimate in QBO with an accepted status.  

1) In QBO, create an Estimate

2) The status of the invoice needs to be Accepted

3) Click Create Invoice to open options

4) QBO will pop-up a window asking you to specify 'How much you want to invoice' using 3 possible options:

  • Total of all estimate lines = $ (the estimate total)
  • Calculated percentage of each estimate line
  • Custom amount for each estimate line (this works great when there are multiple phases of work and each line represents a different phase).

Create Invoice Based on Calculated Percentage of each Estimate line.

For example, if we wanted to invoice for 25% of each line on our Estimate we would complete the 2nd option by filling in 25% (as shown below). QuickBooks will calculate the values and provide a total representing 25% of the total estimate amount.

We've spotlighted and enlarged the 'middle option' so you can see it a little better. In response to this selection, QuickBooks generates a progress invoice for 25% of the original amount, as shown below.

Note the new 'Due' column pointed to by the black arrow (above), this highlights how much of the estimate is being invoiced. 

Editing Options Preserve Estimate Integrity

Progress Invoicing also gives us the ability to delete lines from a progress invoice yet retain the integrity of those line items on our estimate.  In other words, if I remove one of my 25% invoiced lines from the above invoice, the full value of that line remains as billable on my original estimate.

1) To 'delete a line' from an invoice (using the above invoice as our example), click the trash-can icon at the right end of the line item.

2) Trashing the line will allow you to remove it from this Invoice but it remains billable on your estimate at a future date.

And there is more

By clicking in the new 'Due' column, a hidden dialog box opens that gives you additional editing options.

  • Percent can be edited
  • Amount can be substituted in lieu of percent

Estimate Balance Remains Open for Invoicing

The balance of any Estimate remains open until full payment is received (or you close the estimate manually).

Partial invoices are linked to each estimate allowing for easy tracking, as shown below.

  1. The original estimate
  2. The amount(s) invoiced (notice the new columns reflecting Remaining amount and Invoiced amount)
  3. Linked transactions (with hyperlink to each progress invoice)

In part 2 of this mini-series we will be look at additional options and features related to this new and exciting Progress Invoicing capability in QuickBooks Online.

NOTE: Progress Invoicing will be rolling out for US QBO Plus user during November and December of 2017.