We use 2007 Pro, contractor edition. Many of our jobs are paid in thirds.
Could you tell me the correct way to handle the money taken in before the
job is complete and the final payment is made? Thanks. -Allen Thompson
To start, unfortunately I do not have contractor edition, but I have
2007 qb pro. However, you should have an option to create progress
invoicing. IN qb pro i think its 'edit:preferences: jobs and
customers' then company preferences. it works ok.
One thing I found with qb anyway is that their editions, like qb PRO
and qb ONLINE or in your case perhaps qb contractor they all do the
same thing but the specifics are called different things, like in your
version customer job may be called something else.
Best of luck.
Robert is right, you can do progress invoicing. You'll enter the full
amount and then tell QB what % you want to invoice/bill. OR--simply
invoice the full amount. Then when you 'receive payments' that are
partial payments, QB will just keep track on the amount still owed. I
hope that helps!
Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
(Amazon.com product link shortened)-...
Advanced Certified QuickBooks ProAdvisor
Member of Intuit's Certified Trainer Network
We use the same edition of QB. The answer to your question is... it depends.
For many of our jobs we use estimates and progress billing. At the time the
customer makes the required deposit, we create a progress invoice direct
from the estimate. We made a template for this one, called 'Deposit
Application' and we memo the bottom to show that this invoice was to 'Apply
deposit for proposal # xxx'. Most often, the customers do not see this
invoice, but some require some sort of 'receipt' for deposits.
Once the progress invoice has been created for the amount of the deposit, go
to the 'receive payments' window and apply the payment to the invoice.
When it comes time for the next payment, go back to the estimate, and create
a 2nd progress invoice. Again, we've made a separate invoice template for
this, showing the percent billed and the remaining amounts.
The advantage to using progress billing, is that an open balance report will
show a 'balance' of the unbilled amount on the estimate. This helps in
making sure we've billed the final third.
Now -- for the 'depends'. If you haven't issued an estimate, and are perhaps
doing a job on T&M billing, or if you don't use progress estimates, then you
could simply receive the payment against the customer account. This would
leave a credit to the customer that you would apply, using the 'receive
payments' window, to any invoice you create later. You can memo the payment
'Deposit toward T&M work'. We've found that it is important to create a
'job' under the customer and to apply payments to that job. That way, you
will be able to separate out deposits, etc., in statements to the customer.
When you apply the payments to the customer account, instead of the
customer:job, the payments will show on reports under 'other'.
Oh, to be able to use progress billing, you need to set the company
preferences under jobs & estimates to read that you create estimates and do
BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here.
All logos and trade names are the property of their respective owners.
Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee
neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.