An estimate is termed as a quote that is given to the client for any services/product. When accepted by customers, these estimates get converted into sales orders or invoices in the QuickBooks system. Estimates are not included in the income; it’s a non-posting entity. In QuickBooks, you need to enable the estimate function to work with estimates. You can even import estimates from other applications like Microsoft Excel into QuickBooks. If you are looking for step-wise information to convert estimates in QuickBooks online, the below article is helpful. Let’s proceed with it:
How to Convert Estimates into Invoices in QuickBooks Online?
Before getting started with the conversion of estimates into invoices, firstly locate the estimates. For this, here are the steps:
- Open QuickBooks
- Hit on the Estimates menu
- Click on it to start creating a new estimate in QuickBooks
Steps to Convert an Estimate into an Invoice:
Follow the mention steps to convert an estimate into an Invoice:
Step 1: Setup an Estimate
Users can make an estimate when you need to give your customer a bid, quote, or work proposal they are planning to do. The estimate appears similar to the invoice with a different objective. They need to create a brand new estimate, convert it, or link it to an existing invoice. Here are the steps involved during setup an estimate:
Step 2: Make an Estimate
- Open QuickBooks online
- Click on the +New option
- Choose Estimate button
- Click on a customer drop-down to choose customer
- Once you are having started the work, choose a status from the drop-down which says Pending.
- Adjust the Expiration Date and the Estimate Date
- Enter the products & services you plan to sell
- Fill in any other additional information you required
- Once you are prepared, click on Save and Send
Step 3: Update status of Estimates
Once the customer accepts the proposal or plan, they don’t need to proceed; start updating the estimate’s status. It helps to retain the account’s update and accuracy. Follow the instructions:
- Click on the Sales option
- Choose All Sales button
- Discover the estimate
- Click on the column named Action, choose the drop-down button, and then click Update Status.
- Hit Accepted or another status
- Choose OK button
Note: Make sure that the customer accepts the estimates. If not, then they are not treated as transactions on the accounting books.
Step 4: Convert Estimates into Invoice
- First of all, click on the Sales option
- Choose All Sales button
- Discover and open the desired estimate
- Give a click to the Action column
- Choose “Create invoice”.
- Click on the Remaining total of all lines button if you need to create an invoice on the total estimate amount.
- Click create invoice
- Add any additional details to the invoice if needed
- Ensure that there is a linked estimate link appears on the invoice. This display the converted estimate
- Choose Save and Close button
The things to note:
- You can only invoice an estimate with pending or accepted status. For a status update of the estimate, click on the drop-down below the customer name.
- QuickBooks permits the import of estimate show as closed status in QuickBooks Online.
- Now you are ready to convert an estimate into an invoice
Step 5: Estimates Review
- Locate Sales option
- Choose the All Sales button
- Click on the drop-down named Filter
- In the drop-down which says Type, choose the Estimates option
That’s all for today! Hopefully, the information about converting estimates into QuickBooks online is helpful for you in handling estimates. Stay tuned here to get updated with the available trends and tips for import, export, and other concepts advantageous in finance management. Meanwhile, check out the Dancing Numbers tool available to perform import, export, and delete certain items into QuickBooks. Exploring more about the perks of the tool, frequently views this website and gets productive tips and ideas.
How can I Run a Report to Explore more Details?
• Click on the Reports option.
• Search for the open estimates by customer report
• Choose the date range and click run report
How to View the Estimated Number, Invoice no or status of the Estimates in QuickBooks online?
You can run a report to see the details of the estimate.
Is there any Option Available to Delete an Estimate in QuickBooks?
Yes, here are the steps:
• Click on Sales Menu
• Choose All Sales option
• Discover and open the desired estimate
• Click on More
• Choose Delete tab
Is there any Alternative to Converting Estimates in QuickBooks?
Yes, you can add estimates to the existing invoices. Here are the steps:
• Click on the +New option
• Choose Invoice
• Click on the customer drop-down to choose the customer
• It will prompt Add to invoice window
• Choose “Add” to attach estimates to the invoice
• Click on the Remaining total of all lines button if you need to make an invoice for the whole amount of the estimate.
• Hit Create invoice
• Wait till it complete and start sending the invoice
Can I add Multiple Estimates to an Existing Invoice?
Yes, you can effortlessly add multiple estimates. However, the customer may need the particular invoice.
How can I turn on the Estimate Function in QuickBooks?
• Go to the top menu bar
• Click on the Edit button
• Hit preferences, jobs & estimates, or company preferences