Creating an Invoice in QuickBooks

Posted by on Jan 19, 2011 in Customers Module | 2 comments



Now that you have added your Customers and Items into QuickBooks, let’s have a look at the types of transactions you will come across. As you can see from your Home page, you can create invoices, receive payments, create statements and statement charges, do refunds and credits and also Add Credit Card Processing and Enter Time.

Working with the example of a consulting service, let’s begin with entering an invoice. From your Home screen click on the Create Invoice icon which will open the Create Invoice screen. Before I go any further, I would like to draw your attention to the right side of the screen where the word Template is. Below that is a drop down box with an arrow.

If you click on the arrow it will default to Intuit Product Invoice but since you are selling a service you will need to change it. You can choose from either Intuit Professional Invoice or Intuit Service Invoice, whichever suits you.

These templates can be customized to fit your company’s look by adding logo’s, addresses, different fonts, placement of the columns on the invoice, extra fields, etc. This can be quite time-consuming for the inexperienced user so I would suggest that you contact your QuickBooks Trainer to set it up.

For now we will use the template Intuit Professional Invoice for our example tabbing once to select it. Now return to the Customer:Job field and use the drop down arrow to choose a Customer to invoice. In this example you will use ABC Customer .

The next tab will place you on the template field which we have already chosen, and the next tab should take you to the date field. Your entry here should be the date that you provided the consulting service unless the service has been over a period of days or weeks.

I will approach this for both a one-time and a multi-date invoicing method. First the one-time.

Key in the date of the service and tab to the Invoice # field. You will see a default number which is 1. This can be changed to any number that you would like to start with, such as the start of your fiscal year — e.g. 2011, the month – 01, and the first invoice – 01. Your number should look like this 20110101.

After that, when creating any new invoices, the QuickBooks system will arbitrarily assign a new number in sequential order. DO NOT change this order.

Tab once to the Invoice To field and you will see the Customer that you chose from the Customer:Job field. If for some reason you forgot to set the Customer’s info up, then you can do it now.  Tab to the Terms field, click on the drop down arrow and choose one of these selections.

Your choice will depend on the terms that you have set up with this Customer. It could be Net 30 or if you offer a discount for early payment 1 or 2% 10 Net 30. This would indicate that your Customer would receive one or two percent off their invoice amount if paid within ten days, otherwise the full amount is due in 30 days.

You may also consider Due on receipt for a new customer that you have never dealt with before, then any further business could be Net 30.

In this example we will choose Net 30 and tab to the Item field. Click on the drop down box and choose Consulting – Off Site. QuickBooks will now fill in the information for the Description (Consulting – Off Site) Rate (60.00) and Amount (60.00) field. Place your cursor just behind the last letter in the Description field, space once, and type a hyphen, then a space and the date January 4, 2011 and tab once.

What you need to fill in is the quantity of time in the Qty field. Let’s use five for this example, so key in the number 5 and tab once. You will now see that the figure in the Amount field has changed to 300.00. Tab once to the Rate and again to the Class field. In this example we will track the Class or type of Customers.

Before you click on the down arrow button we have to check to see it was setup for use in Preferences. Go to the menu bar, click on Edit and on the bottom of the list will be Preferences which you will choose.

Click on Accounting then Company Preferences.  In this screen you will see a line that says Use class tracking and if the box does not have a check mark in it, then click on the box. This will also mark the box below it that says Prompt to assign classes. If you do not want to be prompted every time you come to the class field then uncheck it. For now we will leave it checked.

Choose OK to save your choice and take you back to the Create Invoice screen. If your cursor is not on the Class field then move it there and click on the drop down arrow and <Add New>, type in Info Tech which we will use as the short form for Information Technology (IT) and click on OK to save it and return to the Create Invoice field.

Tab twice to the Tax field and make sure the appropriate Tax code is chosen. In this example I am using H for the 12% that BC charges. The next tab takes you back underneath the first line that you have created.  If that was all the information that you needed and there is no further consulting type then you would Save & Close.

I did say I would show you how to create an invoice for more than one date of service, so for that click on the Item field and choose Consulting Off Site.  In that Description field, behind the last letter hit your space bar once, type a hypen, space once and type January 10, 2011. Follow the same steps as you did for line one (Consulting – On Site), use the same number of 5 for Qty, Info Tech for Class, the Amount field will now show 225.00 and the Tax code will be the same as the first line (H).

You could add a sub-total line if you like but that would have to be done in the Template section and would be best done by the QuickBooks Trainer. On your Create Invoice screen you will now see in the Tax box at the bottom 63.00, and below that a figure of 588.00 as your Total.

On the right hand bottom of your screen you will see To be printed checked off. If you are going to email this invoice to your customer then check the box To be e-mailed then click on Save & Close. If you have not set up your company’s or your customers’ email addresses then a screen called Information Missing Or Invalid will open. Don’t panic, just fill in the missing info and click on OK.

Before you finish go create another invoice for Hart Printing in the amount of 480.00 (8 hrs) plus tax for On-Site Consulting, using the same date as ABC Customer. Create a new Class called Printers, with the terms of  Net 30. Then the final invoice for Last Renovations, date – January 20, $270.00 (6 hrs) plus tax, Off-Site Consulting, Class – Builders and terms due on receipt. Don’t forget to click on to e-mail and print.

I will carry on with the printing and emailing of the invoice that you created in the next segment.

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2 Responses to “Creating an Invoice in QuickBooks”

  1. hi, i have Quickbook Premier: Contractor Edition 2009-2010 and was wondering how I can a data field when creating an invoice. For example, i’ve entered details in the item and description, and say I put quantity as 3 and Unit as square metres, which than calculates the rate per item in price ($), however i want this rate to be shown in total square metres, i have already inputed the square metres per single quantity?
    sorry if this is confusing, hope you can help me out, thanks

    • Larry Johnson says:

      Sorry for responding so late, very busy. To add a field you would go into Templates, highlight your invoice, right click on mouse and Edit Template. At the bottom you will see Additional Customization. Click on columns and choose one from the list on the left hand side that is not being used (maybe Other 1 or Other 2). Change the name to whatever you want and Order of appearance.
      From there click on the Layout Designer where you can resize it to whatever width you need.
      That’s the easy part, the hard part is going back to your unit of measure and setting up a New Item and then click on Multiple U/M Per Item. Your Unit of Measure Type will be Area, so click on that button, Next, the Square metre and sort it out from there.

      Hope this helps.

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