Chapter
4
Chapter 4
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Estimates and Sales Orders
75
Chapter
4
1.
2.
3.
4.
5.
6.
7.
8.
9.
Objectives
Create Estimates
Create Invoices from Estimates
Progress Bill Customers using Estimates and the
Progress Billing Feature
Create Purchase Orders from Estimates
Create Reports to Track Estimates
Create Sales Orders
Create Invoices from Sales Orders
Create Purchase Orders from Sales Orders
Track Open Sales Orders and Back Ordered Items
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75
Chapter
4
Objective
1. Create Estimates
Chapter
4
1.
Creating Estimates
Entering Estimates into QuickBooks is
similar to entering Invoices
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2.
Select the Customers menu and then select
Create Estimates
Alternatively, click Estimates on the Customer
navigator
Enter the Estimate just as you would enter an
Invoice
You can print Estimates for your prospects and
then use QuickBooks reports to help you follow
up with each prospect during the sales process
Estimates do not post to the General Ledger
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Chapter
4
Objective
2. Create Invoices from
Estimates
Chapter
4
Creating Invoices from
Estimates
When a prospect becomes a customer, you can
import the information from the Estimate into an
Invoice for the customer and not re-enter the details
again in the invoice
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From the Customers menu, select Create Invoices
Alternatively, click Invoices on the Customer navigator or
press CTRL+I
Enter customer and job name in the Customer:Job field
and press TAB
QuickBooks displays the Available Estimates window
Select the Estimate and click OK
QuickBooks transfers the information from the Estimate
onto the Invoice
You can then make any necessary changes to the Invoice
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Chapter
4
Objective
3. Progress Bill Customers
using Estimates and the
Progress Billing Feature
Chapter
4
1.
2.
Progress Invoicing
Progress invoicing allows you to charge your customers a
portion of the total Estimate for each stage of the Job
QuickBooks can track how much of the Estimate has been
invoiced, and how much remains to be invoiced
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To use this feature, turn on progress billing in Company
Preferences for Jobs & Estimates
Create an estimate for the customer
Create an invoice for the customer from the estimate, QuickBooks
displays the Create Progress Invoice Based on Estimate window
Select Create invoice for a percentage of the entire estimate and
enter the percentage in the % of estimate field
QuickBooks displays the Create Invoice window and
automatically reduces the quantities for products and services to
percentage of the estimated amount
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78
Chapter
4
Objective
4. Create Purchase Orders
from Estimates
Chapter
4
1.
2.
3.
4.
5.
6.
7.
8.
9.
Creating Purchase Orders
from Estimates
From the Customers Navigator, click Estimates
and create an Estimate
Select Purchase Order from the Create Invoice
button drop-down menu
QuickBooks displays the Create Purchase Order
Based on the Sales Transaction window
Select Create purchase order for selected items
QuickBooks displays the Specify Purchase Order
Quantities for Items on the Sales Transaction
window
Select the items to order
QuickBooks creates a Purchase Order items
selected
Edit the description to include the order number
Click Save & Close to save the Purchase Order
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81
Chapter
4
Objective
5. Create Reports to Track
Estimates
Chapter
4
Viewing and Tracking
Estimates
QuickBooks provides tools that enable you
to quickly view the details of an existing
Estimate or to re-print an Estimate
2. QuickBooks also provides reports that help
you to manage your prospects (potential
customers to whom you have issued an
Estimate) and to determine the accuracy of
your estimating
1.
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83
Chapter
4
1.
2.
3.
4.
5.
6.
7.
8.
Viewing Estimates
In the Customer:Job List, you can see each Job that has an
outstanding Estimate
If you need to see the details of the Estimate, you can access
the Create Estimates window directly from this list
Select the Lists menu and then select Customer:Job List (or
press CTRL+J)
Right-click the customer Job and select Show Estimates
QuickBooks displays the Estimates by Job report, detailing all
of the Estimates for the customer job
Double-click the customer Estimate, in the Estimates by Job
report
QuickBooks displays the Create Estimates window for the
Estimate
You can modify, email, or print the estimate as necessary
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Chapter
4
Tracking Estimates
There are several reports that help you to
track Estimates and to analyze the accuracy
of your estimating
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Estimates by Job report
Job Estimates vs. Actuals Summary report
Progress Invoices vs. Estimates report
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Chapter
4
Estimates by Job Report
If you want to see a list of Estimates for all
your Jobs, create the Estimates by Job
Report
2. Select the Reports menu, select Jobs,
Time & Mileage, and then select Estimates
by Job
1.
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Chapter
4
The Job Estimates vs. Actuals
Summary Report
Use the Job Estimates vs. Actuals Summary
report to see the total estimated amount
compared with the actual charges for Jobs
2. Select the Reports menu, select Jobs,
Time & Mileage, and then select Job
Estimates vs. Actuals Summary
1.
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85
Chapter
4
Job Progress Invoices vs.
Estimates Report
If you progress bill customers, you can use
the Job Progress Invoices vs. Estimates
report to track your progress billing
2. The report shows the amount of the original
Estimates, the total of the progress invoices
and the percentage of the Estimate you
have currently billed the customer
3. Select the Reports menu, select Jobs,
Time & Mileage, and then select Job
Progress Invoices vs. Estimates
1.
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86
Chapter
4
Objective
6. Create Sales Orders
Chapter
4
Sales Orders
Sales Orders are available in QuickBooks
Premier Editions and Enterprise Editions
2. Before you can create sales orders, you
must activate them in company preferences
of Sales & Customers
1.
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Chapter
4
Sales Order Preferences
Select the Edit menu and then select
Preferences
2. Select Sales & Customers and click the
Company Preferences tab
3. Check the boxes to enable Sales Orders
1.
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87
Chapter
4
1.
Creating Sales Orders
Entering Sales Orders into QuickBooks is very
similar to entering Estimates
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

2.
3.
From the Customer navigator, click Create Sales Orders
Enter the Sales Order
If QuickBooks displays the Price Levels window when you
enter the Rate column, click OK
Click Save & Close to record the Sales Order
You can print Sales Orders for use as pick lists
and/or packing slips
You can also use QuickBooks reports to keep track
of open sales orders and back ordered items
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88
Chapter
4
Objective
7. Create Invoices from
Sales Orders
Chapter
4
Creating Invoices from Sales
Orders
When you are ready to ship or deliver the products
to your customer, you can transfer the information
on the Sales Order to an Invoice
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From the Customers navigator, click Create Invoices
Select customer from the Customer:Job drop-down menu
and then press TAB
QuickBooks displays the Available Sales Orders window
Select the Sales Order
QuickBooks displays the Create Invoice Based on Sales
Order window
Confirm that Create invoice for the entire sales order is
selected
QuickBooks creates the Invoice
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89
Chapter
4
Objective
8. Create Purchase Orders
from Sales Orders
Chapter
4
1.
2.
3.
4.
5.
6.
7.
Creating Purchase Orders
from Sales Orders
Select the Customers menu and then select
Create Sales Orders
Enter the Sales Order
Select Purchase Order from the Create Invoice
button drop-down menu
QuickBooks displays the Create Purchase Order
Based on the Sales Transaction window
Select Create purchase order for selected items
QuickBooks displays the Specify Purchase Order
Quantities for Items on the Sales Transaction
window
Select the items and enter quantity in the Qty
column QuickBooks displays the purchase order
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90
Chapter
4
Objective
9. Track Open Sales Orders
and Back Ordered Items
Chapter
4
Tracking Sales Orders and
Back Orders
There are several reports that help you to
track Sales Orders and to analyze the
accuracy of your ordering
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
Open Sales Orders by Customer Report
Sales Order by Item Report
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95
Chapter
4
1.
2.
Open Sales Orders by
Customer Report
This report shows a list of all open Sales Orders for
all your customers
It shows the total ordered amount, even if you have
shipped/delivered part of the Sales Order

Select the Reports menu, select Sales, and then select
Open Sales Orders by Customer
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Chapter
4
1.
2.
Sales Order by Item Report
This report allows you to track the details of partially
invoiced Sales Orders (i.e., Sales Orders that
include back ordered items)
Select the Reports menu, select Sales, and then
select Open Sales Orders by Item
This report shows the total orders for the 106Slider and the amount that is already shipped
(invoiced). According to this report, Academy
Glass has back ordered 3 106-Sliders for Carl
Nelson.
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96
Chapter
4
1.
2.
3.
4.
5.
6.
7.
8.
9.
Chapter Review
Create Estimates
Create Invoices from Estimates
Progress Bill Customers using Estimates and the
Progress Billing Feature
Create Purchase Orders from Estimates
Create Reports to Track Estimates
Create Sales Orders
Create Invoices from Sales Orders
Create Purchase Orders from Sales Orders
Track Open Sales Orders and Back Ordered Items
Page ref.
97