How to Create Invoice in QuickBooks Desktop & Online

Benefits of creating an invoice in QuickBooks

Before knowing how to create invoice in QuickBooks Online and Desktop, you have to read a few of the reasons why you should in the first place.

You can create invoice in QuickBooks that has many benefits that increase your invoicing process and overall financial management, such as:

  • Time-saving: You can generate invoices that appear professional while saving a lot of time and effort with features like item lists, pre-filled customer information, and customizable templates.
  • Accuracy: QuickBooks greatly lowers the chances of errors in your invoices by automatically calculating amounts based on predefined settings.
  • Customization options: QuickBooks offers a range of customizable invoice templates to fit your branding. With the help of these templates allow you to customize the look and format of your invoices. To create a unified and eye-catching design, you can add your corporate logo, select fonts and colors, and add personalized messages.
  • Improved organization and tracking: QuickBooks keeps track of your invoices automatically, which makes it simpler to check payment history, reconcile accounts, and monitor outstanding payments. 
  • Collaboration: With cloud-based accessibility provided by QuickBooks Online, you may create, view, and submit invoices from any location with an internet connection. Also, real-time collaboration on invoicing is possible.  

Integrations: QuickBooks may be integrated with additional features and add-ons (via apps.com), like customer relationship management, inventory management, and expenses, to provide you with a comprehensive view of the business health.

Create invoice in QuickBooks Online

Send your customers an invoice if you plan to get payment for the goods and services you sell in the future. You can email your customer an invoice that includes the good or service you are selling.

You will learn how to make new invoices and how to check bills that haven’t been paid. Also, we will provide you with information about how to handle situations when you use an external payment processing platform or how customers can pay their invoices online if you have QuickBooks Payments.

Step 1: Create and send an invoice

If you’re using the new layout

In QuickBooks, there are multiple ways to create an invoice. You can turn your estimate into an invoice if you send it and the customer approves it. From scratch, you can also create a new invoice.

Follow the steps that are mentioned below:

  • Click on Select +New.
  • Then you have to select Invoice.
  • Now you have to select Add Customer and from the dropdown menu, you have to choose a customer. Now ensure that all of their information is correct, especially their email address.
  • Review the Terms, Due Date, and Invoice Date. If necessary, enter new terms or dates. Tip: The days until the payment is due are indicated by the term “Net” in the Terms box.
  • Then you have to select Add product or service and then you have to select a product or service from the dropdown menu.
  • Now you have to select how you want to calculate the charge amount- flat rate, by hour, or by item. If required you can enter a quantity and rate. 
  • You can choose Manage to customize the information or appearance of your invoices. Next, choose your choices from the side panel. Your selections are stored by QuickBooks and are applied to all current and future invoices.
  • Once you are done, you can share or save the invoice using a few different methods:
    • Select Review and send an email to the invoice to your customer when you are ready to send it. If necessary, edit the email, then choose Send invoice.
    • You may also use text messaging to send invoices; just pick Text and follow the instructions. Note that only clients with payment authorization are able to use the text invoice feature at this time.
      • To send your customers invoices by text, you must first get their permission before allowing text notifications. 
  • To send the invoice later, you have to select Save and Close.
  • If you want to print a paper invoice, you have to select Print and Download.
  • Select Receive Payment if you have received a payment from the customer.
  • You can select Share link to send your customer a link to their invoice through text message.

If you are using the old layout

  • Click on Select +New and then you have to select Invoice.
  • Select a customer from the customer dropdown menu. You have to be sure that all you information is correct, especially their email address.
  • Now you have to review the Invoice date. You can change the due date in the Terms dropdown if you want to. Note: Net will refer to the number of days until your payment is due. The default is 30 days, but if require you can change the due date.
  • Then you have to go to the product/service column, and then you have to select a product or service.
  • If required then enter a quantity, rate, and change amount.
  • If you want to charge sales tax then you can select the Tax checkbox.
  • There are several options for saving or sharing the invoice when you are done:
    • You can select Save and send to email the invoice to your customer if you are ready to send the invoice. You can make changes to the email if required, then you can select Send and Close.
    • If you want to send the invoice later, then you can select Save and Close.
    • Then to print a paper invoice you can select Save. Then you can select Print or Preview.
    • You can select the Save and Share link when you have to send your customer a link to their invoice through a text message.

Step 2: Review unpaid invoices

Unpaid invoices are added to your accounts receivable account by QuickBooks. This account appears on various financial reports and your balance sheet.

To see your invoices at any moment, navigate to Sales and choose Invoices. To find out where your invoices stand in the sales process, you can check the Status column.

Below are a few common statuses that you can see:

  • Due in [days]: The invoice is not emailed yet.
  • Due in [days] Sent: The invoice is emailed to the customer.
  • Due in [days] Viewed: Invoice is opened by the customer.
  • Deposited: Customer has paid the invoice.
  • Overdue [days]: The invoice is past due and unpaid.
  • Overdue [days] Viewed: The customer has opened but hadn’t pay the past due invoice.
  • Delivery issue: The invoice was not delivered. You can check the email address and then resend.
  • Voided: In QuickBooks the invoice was voided.

Step 3: Receive payments for invoices

Customers can pay their invoices directly using credit card, PayPal, Venmo, or ACH transfer if you use QuickBooks Payments. Everything is processed and taken care of by us. QuickBooks puts transactions into the correct accounts when you get paid.

If you process payments using an external platform, QuickBooks allows you to keep track of such payments. 

Create an invoice in QuickBooks Desktop

The invoice is used to document sales transactions from clients that pay nothing or only a portion of the total amount due at the time of sale. You may manage your accounts receivable by using invoices. There are various ways in which you can create an invoice in QuickBooks Desktop, depending on the nature of your transaction with a customer.

Create an invoice from scratch

Your A/R workflow begins with creating the invoice if your company does not need to create estimates or sales orders.

  1. Begin by going to the Home screen or the Customers menu and then you have to select Create Invoices.
  2. From the Customer: Job dropdown menu, you can select a customer or customer job. You can choose Add New if the customer or job is not yet on the list.
  3. Enter the necessary data at the top of the form, such as the Terms, Bill to/Sold to, and Date Invoice #.
  4. Choose the item or items from the detail area. Note: Based on the description and unit cost entered when it was set up, the amount and description immediately appear when you pick or add an item. This can be changed or removed when creating invoices.
  5. (Optional) You must create a discount item to apply for a discount.
    1. Go to the Lists menu from the Home screen.
    2. Then you have to select the Item List.
    3. Now you have to right-click anywhere, and then you have to select New.
    4. After choosing the Type drop-down, choose Discount.
    5. Add the item’s name or number and a succinct description.
    6. Enter the amount or percentage of the discount in the Amount or % field. You might choose to enter the discount amount directly on your sales forms and leave the Amount or % field empty if your discount amounts vary.
    7. Select the income account you want to use to track the discounts you offer to customers using the Account drop-down menu.
    8. Choose the relevant tax code for the item.
    9. Then you have to select OK.
  6. Click Save & Close.

Also Read: QuickBooks Connection Diagnostic Tool

Create an invoice for a Sales Order

You must create an invoice if you have created a sales order and fulfilled it. To do this, there are two methods:

From the Sales Orders window

  1. Select the Create Invoice button located on the Sales Orders main tab.
  2. On the prompts that appear, you have to choose:
    1. To include every item from the sales order in the invoice, you have to select Create Invoice for all of the sales order(s).
    2. If you would like to include only a portion of the items on the invoice, then you have to select Create Invoice for selected items.
  3. Make the required changes to the invoice. Note: For each item you have to enter a quantity in the To Invoice (Or Invoiced) column, in the items lists. Enter 0 (zero) as the quantity if you do not wish to invoice any of the items on the list.
  4. Lastly, you have to select Save and Close.

From the Invoice window

  • You have to select Create Invoice in QuickBooks Home screen or the Customer menu.
  • On the Customer: Job dropdown window, you have to select a customer or customer job. Then on your screen available Sales Order window will appear.
  • Now you have to choose one or more sales orders that are having items that you want to include in the invoice.
  • After that, you have to make the changes that are necessary.

Note: In the list of items, you have to enter a quantity in the To Invoice (Or Invoiced) column for each item. You can enter 0 as the quantity if you don’t want to invoice any of the listed items.

  • Lastly, you have to select Save and Close. 

Create an Invoice for an Estimate

You can turn your estimate into an invoice in its entirety if your customer has accepted it and decided to pay a fixed amount (instead of for actual time and expenditures).

From the Estimate window

  • You have to open the correct estimate.
  • On the Estimate form, select Create Invoice at the top.
  • You might receive a prompt asking what products and quantities to include on the invoice if you have progress invoicing enabled. As asked, specify what you want to add.
  • Make any necessary edits to the information when the invoice appears.
  • Click Save & Close. 

From the Invoice window

  • Choose Create Invoices from the Customer menu or the QuickBooks Home page.
  • On the Customer: Job dropdown menu, you have to select a customer or customer job. The window for available estimates opens.
  • Select the estimate that you like to have on the bill. Keep in mind that you can only choose one estimate to invoice in QuickBooks. Note: You could receive a prompt asking for information to be included on the invoice if you have progress invoicing enabled. When asked, you can easily indicate what to include.
  • Make any necessary edits to the information when the invoice is displayed on the screen.
  • Click Save & Close lastly. 

Conclusion!!

Creating an invoice in QuickBooks is a straightforward process that can significantly streamline your billing and accounting operations. By following the steps outlined, you can ensure that your invoices are accurate, professional, and sent to your clients promptly. QuickBooks offers various customization options, allowing you to tailor your invoices to match your brand identity and specific business needs. With QuickBooks, managing your finances becomes more efficient, giving you more time to focus on growing your business. If you face any issue then you can take the help of customer service.

Frequently Asked Questions (FAQs):

Q1: How do I customize my invoice template in QuickBooks?

Ans. To customize your invoice template in QuickBooks you have to

  • Go to the Gear icon.
  • Then you have to select “Custom Form Styles,” and choose “New Style.” 
  • Here, you can adjust the layout, add your logo, and change the color scheme to match your branding.

Q2: Am I able to send invoices directly from QuickBooks? 

Ans. Yes, you can send invoices directly from QuickBooks via email. 

Q3: Can I include sales tax on my invoices in QuickBooks Online?

Ans. Yes, you can include sales tax. Make sure that sales tax is enabled in your settings. When creating an invoice, select the appropriate tax rate from the “Sales Tax” dropdown menu to apply it.

Q4: Is it possible to accept online payments through QuickBooks Desktop invoices?

Ans. Yes, if you have QuickBooks Payments set up, you can accept online payments. Your invoices can include a payment link for customers to pay using credit cards or bank transfers.

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