How To Create An Invoice In Quickbooks (Desktop And Online)

An invoice is an essential component of any business and is a minimum requirement if you want to develop your business. It keeps track of the cash flows and can help in creating strategies for better resource management.

Thankfully, QuickBooks also allows you the option to create invoices so that you can manage your business in a better way. If you are looking for a guide on how to create invoices in QuickBooks software, then you are at the right place.

We will provide you with a complete guide covering every aspect of the feature. Let’s start without any delay!

Table of Contents

Why Do You Need To Create Invoices In QuickBooks?

If you were not aware of the invoice feature in QuickBooks, then there are plenty of benefits of creating an invoice in QuickBooks. These benefits are:

Maintenance of sale records.
Easy and direct sharing of invoices via email to your customers from QuickBooks.
Update your financial statements in real-time.
Track payments from the end of the seller as well as the buyer.
Gather essential data related to your business.
Provision of legal safety.
All the sale invoices guarantee a correct amount of payment with a simple tax filing and recording process.

How To Create An Invoice From Scratch In QuickBooks?

If you are looking to create an invoice without requiring sales orders or estimates, you can follow these instructions:

Hover over the “Customers” menu and select “Create Invoices.”

Select the “Add new” option if you can not find the customer or job on the list. If the option is available, then select the “customer or customer job” from the drop-down menu.

Follow it up and fill in the necessary information, which includes invoice number, date, terms, and bill to/sold to.
Select the “Items” and “Delete or modify” any information you want to change while creating an invoice.

You can also create a discount item if you want to apply for a discount. However, doing so is not mandatory.
- Visit the “Lists” menu from the home screen.
- Use right-click and then select “New” from the menu.
- Now, select the “Type” drop-down menu and then go to “Discount.”
- After selecting “Discount,” enter the information such as the name & number of the item, description, etc.
- Enter the discount amount in the “Amount or %” option. Leave the option blank if the amount of discount varies and instead add the amount on your sales form directly.
- Go to the “Account” drop-down and select the amount of income to track the customer’s discount.
- Finally, select the appropriate Tax Code for the item and click “OK.”

“Save and close” to finish creating an invoice from scratch.

How To Create An Invoice For A Sales Order

For a business that has already created a sales order and fulfilled it, there are two ways to create an invoice.

From The Sales Order Window

Choose the “Create Invoice” button on the sales orders main tab.
Then you will come across a prompt where you have to select:
- “Create invoice for all of the sales order(s)” so that you can add sales order items to the invoice.
- “Create invoice for selected items” so that you can select specific items to add to the invoice.
Finally, make changes in the invoice as per the necessity and “Save & Close” to conclude.

From The Invoice Window

On the software’s home screen, select “Create invoices.”
Then select a “customer or customer job” from the “Customer: Job” drop-down. A sales order window will appear.
In that window, select the items from the sales orders which you want to add to the invoice.
After making modifications to the invoice, select “Save & Close.”

How To Create Invoice For An Estimate?

When a customer agrees to pay an amount after accepting the estimate, you can send the estimate via an invoice. Let’s see how you can do so.

From The Estimate Window

Open the estimate and then select the option “Create invoice.”
For the users who have their progress invoicing enabled, they may come across a prompt. It will ask you about the items you want to include, as well as the quantities of those items, in the invoice.
Then you will see the invoice on your screen, where you can make relevant changes wherever needed.
Finally, select “Save & Close.”

From The Invoice Window

Select “Create Invoices” from the customer menu on the home screen.
From the drop-down option of “Customer: Job, select the customer or customer job, which will bring the estimates window on your screen.
Now, choose one estimate that you want to add to the invoice. Also, note that you will only be able to add one estimate to the invoice.
Then you can make changes to the details in the invoice wherever you think are needed.
Conclude the process by selecting “Save & Close.”

How To Create Invoices In QuickBooks Online In 3 Steps?

QuickBooks Online also offers the feature of creating an invoice providing you with a convenient way to add products to an invoice. It also allows easy sharing via email with the customer.

There are many ways of creating an invoice in QuickBooks. You can either create an invoice from scratch or convert an estimate into an invoice after the customer approves the estimate.

From Scratch

For the users using the new layout, the process of creating an invoice in QuickBooks online is as follows:

Step 1: Create and send an invoice

First, select “New” and then “Invoice” from the home screen.

Then click on “Add customer” and then choose your customer using the drop-down menu.

Review all the important details of the invoice, such as invoice date, due date, terms, etc. Edit any details as needed.
Now, select “Add product or service” to choose the product or service you want to add.

Then choose the process by which you want the charge amount to be calculated. You can also customize the info and design of your invoice by clicking on “Manage” and then using the side panel options. QuickBooks will automatically remember and save your choices and apply them to every future invoice.
After completion, you can save or share the invoice using the following options:
- Review and send; when the invoice is ready to send, you can email it to your customer.
- If you want to send the invoice at a later date, then select Save and Close.
- You can also print paper invoices using Print and Download.
- Select Receive payment for a payment you have already received from the customer.
- The share link option will allow you to create a link to the invoice and send it to your customer through text.

Step 2: Review Unpaid Invoices

Your QB accounts receivable account will contain the unpaid invoices. The account will be visible on your balance sheet.

To review your invoices, follow these steps:

Visit “Get paid & pay” and select “Invoices” from the menu.
You will see the status column, which contains the sales process invoices.
Review your invoice and check the status. The following are some of the common statuses:
- Due in [days], which means you have not sent the invoice to the customer.
- Due in [days] sent means that the email of the invoice has been sent.
- Due in [days] viewed means that the invoice has been opened by the customer.
- Deposited if the customer paid the invoice.
- Overdue [days] means that the invoice is unpaid and past due.
- Overdue [days] viewed status implies that the customer has seen the invoice but has not paid the past due.
- If the invoice is not yet delivered, then the status would be Delivery Issue. You can send the invoice again after checking the email address.
- The invoice can also get voided in QuickBooks, which will show the status of Voided.

Step 3: Receive Invoice Payments

You can receive payments from the customers directly if you use QuickBooks payments. Customers can pay directly via PayPal, credit card, Venmo, etc. The complete transaction process is handled by QuickBooks, so you won’t have to worry about anything.

Thus, the process of creating an invoice and receiving payments using QuickBooks online is complete.

How To Create An Estimate And Convert It Into An Invoice?

There are many benefits of creating an estimate, as it allows your customers to have a clearer picture of the proposal. You can create an estimate as well in QuickBooks, which can be converted into an invoice after the customer’s acceptance.

The process also saves you time by double entry of the information by using the details to create an invoice.

Step 1: Create Estimate

Go to “New” on the home screen and select “Estimate” from the options.

Now select “Add customer” and choose the customer from the drop-down menu or click on “Add new” to add a new customer.

“Save and close” after entering the customer’s info (if you click on the “add new” option).
There will be an automatic display in the “Amount” column if you have a saved rate for the service or product. You can also make changes to the amount wherever they are needed.

“Pending” will remain as the default status of a new estimate. You can also make changes to this status by using the drop-down menu.

Customize the estimate by choosing the “Estimate settings” from the side panel if you want to change the info displayed on the form.

“Save” to complete the estimate creation and send it to the customer by selecting the “Review and send” option.

Step 2: Update Status

The customer can accept or decline the estimate directly after receiving it via email. The status will be automatically updated in QuickBooks. However, you can also manually update the status of the estimate as well. Here’s how:

Go to the “Bookkeeping” option and then click on “Transactions.”
Select “All sales” and follow it up by clicking on the “Estimates” option.

Search for the estimate that you want to update.
Update the status by selecting “Update status” in the drop-down menu of the “Action” column.
Lastly, select “Accepted” and then click on “OK.”

Step 3: Convert The Estimate Into An Invoice

Search for the estimate in the “All Sales” option in the “Transactions.”

Click on “Create Invoice” in the “action” column.
Edit the invoice by making any relevant changes.
You can also customize the invoice fields by selecting the “Manage” option and using the drop-down menu.
Click on “Save” once the invoice is ready to save.

Review the estimates and run edits wherever you see fit.

How To Delete An Estimate?

In case your customer declines the proposal and does not want you to do the work, then you can change its status to “Declined”; however, if the estimate was created by mistake, then it is better to delete the estimate.

Go to “Bookkeeping” and select “All sales” under the “Transactions” option in the menu.
Visit the “Estimates” tab and search for the estimate.
Now, select “More actions” and pick “Delete,” then click on “Yes” to confirm.

Create An Estimate And Convert It Into An Invoice In The Old Layout

You can also create an estimate and convert it into an invoice, even if you are using the old layout of QuickBooks. Here’s how you can create and convert:

Step 1: Create Estimate

Select “New” and then go to “Estimates.”
Using the “customer” drop-down menu, select the customer.
Now, select the status from the drop-down “Pending” menu if the work has started already.
Then set the “Estimate date” and “Expiration date” (optional).
Add the products or services which you are planning to sell.
Insert any other relevant information wherever needed.
Click “Save” when it is ready.

Step 2: Update The Status Of The Estimate

Go to “Bookkeeping,” then select “Transactions,” and then click on “All Sales.”

Find the estimate and go to the drop-down menu in the “Action” column and then select “Update status.”
Now, select the required status and click “OK.”

Step 3: Converting The Estimate Into An Invoice

Find the estimate in the “All Sales” option.
Click on “Create invoice” in the “Action” column.
You can now choose the amount you want to invoice if progress invoicing in your software is turned on.
- Select “A remaining total of all lines” for an invoice of the whole estimated amount and then “Create an invoice.”
- You can also create an invoice on a portion of the estimate by selecting the option to add a custom amount.
After the changes are complete, select “Save and send” to send the invoice to the customer or select “Save and close.”

Add Estimate Into An Existing Invoice In Old Layout

Apart from creating an estimate and then adding them to the invoice, you can also add estimates to your existing invoices. Here’s how:

Select “New” and then click “Invoice.”
Using the customer drop-down menu, choose the customer, which will open the “Add to Invoice” window.
In that window, select “Add” on the estimates to which you want to add the invoice.
In case of progress invoicing, you can create an estimate on the entire amount or a part of it.
Now, click “Save” after making updates to the invoice.

Review Open Estimates And Run A Report

In the transactions menu, select “All Sales.”
Now, select the “Filter” drop-down menu and select “Estimates” from the “Type” drop-down.
Lastly, select “apply” to complete the review.

After the review is complete, you can run a report as well for more details:

Choose “Reports” in the “Business Overview” menu.
Open the “Estimates by customer” report.
Choose the date range and then select the “Run report” option.

Customize Invoices And Estimates

QuickBooks also allows you to customize your invoices and estimates to update and personalize your forms as much as possible. The option is available in new as well as old layout.

New Layout

In the QuickBooks dashboard, go to the “Sales” option and select the option you want to customize. If you want to customize invoices, then click on “Invoices” and on “Estimates” if you want to customize estimates.
Now, select Create an Invoice or Create an Estimate option, which will create a new form. You can also edit an existing form by selecting the “Edit” option.
Use the “Edit Company” option and then update the company info on the form; finalize those changes by clicking “Save.”
Click on the logo of the form to change the company logo. Then browse through the image you want to add as the logo and update the logo by clicking “Open” at the bottom right of the window.
You can also add or remove relevant fields, change the color scheme, or enable the option of payments on invoices. Click on “Manage” settings to make those changes.
Click on “Invoice settings” or “Estimate settings” on the side panel and then click on the drop-down menu.
It will get you to the customization options where you can select what information is displayed on the form. You can click on those options to make the relevant changes.
Customize the payment options by clicking on “Deposit” or “Payment methods.”
There is also an optional selection of the “Automation” option for the setup of a “Recurring invoice.”
Hit “Save” when you complete the customization.

Old Layout

There are many ways of customizing your sales forms in the old QuickBooks layout.

Option 1: Create A New Template

In the settings menu, go to “Custom form styles.”

Click on “New Style” at the top right of your screen and select the type of form.

Option 2: Appearance Customization

Next is to customize the appearance of the sales form to change the way it looks.

Go to the “Design” in the “Edit” option of the form.

Name the template and then click on “Change up the template.”
Select the layout and move on to the “Make logo edits” option.

Select “Add” to change the logo.

Change the size and placement of the logo by clicking on the relevant icons.
Select the “hide logo” option to hide the logo.
Click on “Try other colors” to select the color scheme you want to add. There are various options for customization of colors as well.

Now, click on “Select a different font” to make changes to the font and size.
You can also change the print settings by clicking on “Edit print settings.” This option will allow you to adjust the margin according to your requirements.

Option 3: Customize The Form’s Information

You can also customize the content of the form’s header, footer, table, etc., which can also change the way the form appears.

Select “Content,” and then you will be able to edit the different sections of the form separately.

Then select the part you want to customize using the sample form on your screen.
There will be checkboxes on each part of the form, which you can add or remove by clicking on them. You can see the changes instantly on the sample form.

Option 4: Personalize Your Email Message

You can also make customization to the email that is sent to the customer. There is also the option of QuickBooks default messaging if you want to skip the personalization. The process is as follows:

Go to “Emails” and then select whether you want to display “Full details” or “Summarized details.”
Choose the “PDF attached” checkbox if you want to attach PDF to the email providing a full pricing breakdown.
Also, you can make changes to the greeting, subject, and body of the message by entering customized text.

Option 5: Select Default Custom Template

QuickBooks has a default template for invoices, estimates, and sales receipts. However, you can change the template as well.

Select “Custom form styles” in the “Settings” menu.
Select the template you want.
In the “Action” column, click on the drop-down menu.
Click on “Make default,” and your selected template will be on display.

Option 6: Select Template For Sales Forms

You can also select templates apart from the default ones for your sales forms.

Open the form where you want to change the template.
Choose the option “Customize,” which will be available in the footer.
Now, there will be a list of custom templates from which you can select the one for your sales form.
Finally, hit “Save and close.”

The edit option in the forms will also let you edit the custom templates you have selected so that you can change them in the future.

How To Turn On Progress Invoicing And Add Project Estimate Summaries To Invoices?

In order to add estimate summaries to invoices, you need to turn on progress invoicing first.

Turn On Progress Invoicing

In the “Settings” menu, click on “Account and settings.”
Now, select the “Sales” option in the menu.
Click on “Edit” in the “Progress Invoicing” section.
Then enable the “Create multiple partial invoices from a single estimate” option.
Select “Update” after you see the following window: “Update your invoice template.”
Finally, click on “Save” and then “Done” to finish the process.

After turning on the progress invoicing, you can initiate the process of adding an estimate summary to invoices.

Turn On Estimate Summary

The first step is to enable the estimate summary on your preferred template for progress invoicing.

Select “Custom form styles” in the settings.
Click on “Edit” on the template that you are using.
Go to the “Content” section and then click on “Edit,” which is available in the form’s third section.
Then finally, select “Estimate summary” and click “Done.”

Add Estimate Summaries To Invoices

Click on “New” and then the “Invoice” option.
Select the customer in the “Customer” drop-down menu for which you have an estimate.
Now, click on “Add” from the “Add to Invoice” option in the menu of the estimate.
Then select “Copy to invoice” on the option of the invoice amount.
Finally, select “Customize” for the progress invoicing template and click on “Save.”

Create Progress Invoice Template

You can also create a template for progress invoices after turning it on. To create a new template, follow these steps:

Select “Custom form styles” in the settings and then select “New Style.”
Click on “Invoice” to create a new template for your invoice. You can also edit an existing one using the “Edit” option.
Name the template and move on to the “Design” tab. Click on “Change up the template” or “Dive in with a template.” However, know that the only template that works for progress invoices is the “Airy new” template.
Now, click on “Edit print settings” or the option “When in doubt, print it out” and ensure to leave the following box unchecked: “Fit window envelope” or “Fit printed form with pay stub in a window envelope.”
After that, go to the “Content” section and click on “Edit” on the form’s table section.
Then select the footer section’s “Edit” option and make the relevant changes.
Click “Done” after it’s complete.

How To Create A Progress Invoice From The Estimate?

There are two ways to create a progress invoice from the estimate. You can either create it from the estimate or connect it to a new invoice. Let’s look at both:

Create Progress Invoice From The Estimate

Navigate to Bookkeeping > Transactions > All Sales or Sales > All Sales in QuickBooks.
From the list of estimates, look for your estimate.
Now, select “Create invoice” from the action column for the invoice.
Then select the amount you want to have an invoice for and then click on “Create Invoice.”

Complete the rest of the invoice and finally select “Save and close.”

Connect An Estimate To A New Invoice

Choose “New” and click on “Invoice.”
After you select the customer from the drop-down menu and if the customer has an open estimate, then there will be an “Add to invoice” bar on the side.

Click on “Add” after you find the estimate and then decide the amount of the invoice.
Now, select “Copy to invoice” and fill in the rest.
Conclude by clicking on “Save and close.”

This concludes the guide to create invoice in QB desktop and online. We hope that we were able to help you with all the processes involved through this guide.