how do we build the clients for progress that we made on the estimates that we
created in the previous video we do that by recording the invoices from those estimates
if you have any questions about this topic you can leave them in the comment section below and I'll
do my best to help you and of course if you feel the video helped you I hope you will click like
and don't forget to subscribe to get updates on new videos that come out all the time estimates
are what we predict we will do across the entire job then as we make progress we are allowed to
invoice the client and request payment for the progress made according to the contract that we
made with the client before we started doing the work for example let's imagine on January 3rd we
finished five of the 25 service items listed on the January 1 estimate for the Hansen place
job how would we record that in QuickBooks Online well it's very simple you go to the top left and
click new and then choose invoice now again I'm going to allow QuickBooks Online to enumerate the
invoices this way without changing it myself but you can change it if you want to but the
most important thing to look at is right here at the moment we choose the invoice not only
for brown company but specifically for the hands in place job or project look what happens in the
right panel you get a list of everything else that was recorded that was associated with that
particular customer and job and in this case it's the estimate that we recorded on January 1 now if
we click Add QuickBooks is going to ask us should we make the same percent of each line or should
we put a custom amount for each line well if you look at the numbers we could put just 20% and that
would show you that QuickBooks would simply build the client for 20% of each of the items that were
listed on the original estimate and that's the way we'll do this one the way we do the next one
I'll show you more detail and make this choice but for now look let's learn what happens if we
do this make it 20% because it could be exactly 20% of each of the service of items listed on the
original estimate then we click copy to invoice and look it shows us a quantity of five for each
of the items that were listed on invoice number one because five as we know is 20 percent of the
25 that we estimated we would do when we finally finish the job make sure you put the date of the
invoice according to the contract and according to the date that you actually finish the work and in
our example it was January 3rd so let's leave the invoice number the way it is put the date January
3rd and you should have exactly these results on the on the invoice we can click Save and
close save a new save and send I'm going to click Save and close now you may well ask where are the
results of the invoice that we just recorded well of course the report estimates progress
and invoice summary will change as a result of making the invoice for that estimate so if we
click reports and we click estimates and progress invoicing summary by customer what's a really
long name what you see is for this particular job once you make the invoice it changes the status of
the estimate to the word accepted and notice the invoiced amount is 20% of the original amount and
it shows you that there is 20% of the progress made on this estimate that's what QuickBooks
assumes if you have billed for 20% well where else will you see the result well transaction list by
customer everything in a list if you excuse me if you click reports and go down to transaction list
by customer you can see that under brown company specifically for Hanson place we have the original
estimate and the invoice they're not affecting each other number wise it's just simply a list
where else can you see the results of making an invoice for a customer well the open invoice
report helps you track the amount that is owed from each customer at any given moment and the
amount that was paid or owed for any particular invoice so you can click reports and you can click
open invoice and you can see they currently at this moment after January 3rd owe you a balance
of 1,350 and if you want you don't have to do any more work until they pay this invoice at least if
that's the arrangement in the original contract the one more place that you can see the results
of an invoice is the trial balance and that's because an invoice is a transaction and an invoice
will change the numbers in your chart of accounts so if you click reports and click trial balance
you can see that we've earned $1,350 specifically from the heating repair and that's because all of
the items on that estimate and invoice were items that were tracked into income from heating repair
an accounts receivable represents the total money that is owed from every client together as of
this moment now let's do the next invoice for the same job let's imagine on January 6th we finished
another five out of the twenty five service items listed on the January one estimate for the Hanson
Place job now if you put a custom amount for each line you must know the money amount not the
quantity so it makes it a little more challenging when you put it in so I'll remind you carpentry
will be 300 out of the total electrical work will be 400 out of the total replacement parts 375 and
steam-cleaning 275 let's take a look at how to make the invoice the alternative way again in the
top left we click new then we go down to invoice and of course we put the date that we finished
the next piece of the job January 6 and then we choose the job itself hands in place notice the
original estimate is still open and waiting for us in the right panel now this time when we click
Add I'm going to teach you what it looks like when we choose this choice custom amount of each line
click copy to invoice and when it goes to the invoice we're not able to change the quantity
we're only able to change the money amount so carpentry will be 300 push tab to save the
field click in the next line the electrical work will be 400 400 dollars good click the next line
and replacement parts will be 375 and the last one steam cleaning will be 275 so these are the
same numbers as the original invoice because it's the same percent complete the only difference is
that we had to put in the money amount a custom money amount for each line instead of a percent
of everything when we click Save and close we can check the results here ports and click estimates
and progress and so forth now you notice that the the the Hansen place job only the Hansen place
job is now forty percent complete because 40% of the total has been invoiced if you click reports
transaction list by customer you can see that here's the estimate and here are the two invoices
if this one is simply a list of the document and amount if you click reports open invoice you can
see that both of these invoices have not been paid and you can see the entire amount of each
remains payable by the client and of course if you click reports trial balance you will see that now
the income from heating repair has accumulated further and we now have more income from heating
repair because each of those items were connected to the income from heating repair account you