Progress Invoice

Note: This feature is available in all the paid plans of Zoho Books. Visit the pricing page to learn more.

Progress invoicing is an invoicing method that allows businesses to invoice and receive payments in smaller, manageable amounts as work is completed or products are delivered rather than waiting for full payment at the end of a project. This approach splits the total agreed-upon price into several payments, helping businesses maintain cash flow throughout the project.

In Zoho Books, you can easily set up and manage these progress invoices, ensuring you get paid incrementally until the full amount is collected. This method helps you avoid financial strain and keeps both the business and the customer on track.

Scenario: Zylker Construction starts a $500,000 office project for Skynet Corp and sends progress invoices at key stages. First, they bill 10% upfront, then 20% after the foundation, 30% when framing is complete, and the final 40% upon completion. This way, Skynet Corp pays Zylker Construction at different stages of the project.

How Progress Invoice Works in Zoho Books

Once you enable Progress Invoice, you can create a quote and choose to invoice a custom amount, a percentage, or for specific amounts for each line item. Once the invoice is created, the quote is marked as Partially Invoiced. You can then keep creating invoices periodically until the entire amount is invoiced.

Enable Progress Invoice in Zoho Books

Notes:

  • Once you enable Progress Invoice:
    • You cannot create an invoice directly from a quote if it has already been converted into a sales order.
    • You can use and associate price lists of type All Items or Individual Items, but the pricing scheme must be set to Unit Pricing only.

Prerequisite: To enable Progress Invoice, make sure Don’t Convert Accepted Quotes Automatically is selected under Automate accepted quotes to invoices conversion in Quote Preferences. If this isn’t set, you can enable it by going to Settings > Sales > Quotes > General > Automate accepted quotes to invoices conversion > check Don’t Convert accepted quotes automatically, and click Save.

To enable Progress Invoice in Zoho Books:

Now, Progress Invoice will be enabled, and you can start creating progress invoices from an accepted quote.

Create a Progress Invoice From a Quote

Prerequisite: The quote must be accepted by the customer or marked as accepted.

To create a progress invoice:

Now, an invoice will be created for the custom amount or percentage you entered, and the quote will be marked as Partially Invoiced. You can create additional invoices from the quote until the full amount is invoiced.

Insight: If you edit an invoiced quote and add more items, the quote status will revert to Partially Invoiced. You will need to create new invoices for the full quoted amount, after which the quote’s status will change to Invoiced.

View Progress Invoice Details for the Quote

After creating progress invoices for the quote, you can view the item details, amounts, and remaining balances for each item. Here’s how:

Now, you can view details such as Item Information, Invoiced Amounts, Discounts, Remaining Balances, and the Total Amount for each item in the quote.

View Progress Invoice Summary Report

You can view the details of quotes for which you created progress invoices. Here’s how:

Now, you can view details like the quotes linked to progress invoices, the customer name, the percentage of the amount invoiced, the invoiced amount, and the remaining balance amount to be invoiced.

Nota: Este recurso de ayuda se tradujo utilizando la herramienta de traducción de Zoho.

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