Skip to main content
G
gardenstatefurniture
January 31, 2020
Question

Inventory Tracking Issue when Progress Invoicing in QB Desktop

  • January 31, 2020
  • 1 reply
  • 0 views

Hello! I have QB 2020 Desktop Pro. I am new to progress invoicing and inventory tracking. I do not understand how to properly track my inventory if a customer is paying off a bill in partial payments. For example, if I have quantity 1 of a product and I invoice the customer for $.20, the inventory quantity goes from 1 to .8 since they are only paying for 20% of the item. However, I still need to account for qty. 1 of the item being sold, and not .8. This is very annoying, but hoping someone can help me. I am trying to automate my processes, not make them more manual. 

 

Lastly, if I do have to manually update my inventory instead of have the system do it, how to I make sure both the system and I are not updating it at the same time. For example, if I am manually updating inventory I do not want the invoices to impact the inventory quantities at all. 

1 reply

JessT
JessT
January 31, 2020

Let me shed light on progress invoicing relevant to your situation, gardenstatefurniture.

 

I'd like to clarify that progress invoicing and receiving an invoice payment is different.

 

Progress invoicing for inventory items is normally done by piece, meaning we use quantity (piece by piece count) when turning estimates to invoices. We discourage using amounts unless it's a service item, or items with no definite count like liquids, items sold by weight, etc. You're in control over your inventory, so you have to know when to use quantity or amount when converting estimates to invoice.

 

Example: If you have 1 bag (inventory item) on an estimate, and you turn it into an invoice, you will enter 1 in the quantity field. You won’t enter the amount based on what your customer will pay you, you'll invoice based on the qty you give to your customer which is 1 whole piece of bag. Basically, this will just close the estimate, so progress invoicing is not ideal for 1 piece of item.

 

 

As for the payment, you'll apply it to the invoice. Open the invoice, click Receive Payment, and enter the partial amount.

 

Please feel free to comment below if you have more questions about your progress invoicing.

G
gardenstatefurnitureAuthor
January 31, 2020

I can try this, but when I create the 2nd progress invoice with a quantity of 1, will my inventory of that item decrease by another 1? I only want it to decrease by 1 even if I have 5 invoices for that estimate. 

 

Also, how will I account for the cost? So if for example, my cost is $80 and my sell is $100, and I am billing for $20, will my cost then be $16?

 

Thanks

AlexV
AlexV
January 31, 2020

Let me share more details about progress invoicing, gardenstatefurniture.

 

Everytime you create an invoice from estimate, it'll be deducted into your inventory. Though, it won't deduct as one (1) quantity, just a certain percentage from the total quantity. Once you fully invoiced the estimate, that's the time when a total of one (1) quantity will be deducted.

 

Also, the cost won't be change unless you'll update it. You'll have to record what will happen to the $80 since you've mentioned that only $20 will be charged to your client. Are you going to give discounts, or is their a credit?

 

You can read this guide about setting up and send progress invoices in QuickBooks Desktop.

 

Reply again if you need more help. Have a great day!

Terms & ConditionsAccessibility statement