In this article you will learn how to create an estimate and the ways convert an estimate to invoice
An estimate should provide a clear understanding of the services or products you will provide your client along with cost break up and the total cost including any taxation information. An accurate estimate helps your client to budget for cost incurred and plan for making your payment on time.
Your account comes with multiple estimate formats already built in.
- The same format used to create an invoice can be reused to create an estimate
You can reuse an existing invoice format to create your estimate or choose and customize a new estimate format as per your business requirements.
Select estimate format
Navigate to Collect Payments -> Create Estimate and select the invoice format of your choice and hit Select
Add customer details to your estimate
Estimate title helps to set the title for your estimate, by default it is set as Performa Invoice you can change this to "Estimate" or "Proposal" or a terminology that suits you. In the Estimate Information section select the customer you want to send the invoice to. Your customer data like customer name, email id, mobile number and other customer information is automatically fetched from your customer database
Setup estimate billing details
In the Estimate Information section you need to set your bill date, due date and other fields you would have added in your invoice format. Bill date field is the date the invoice is issued. Due date field helps in sending timely reminders to your customers. Invoice payment reminders are configurable and can be setup as per your requirement
Include items of sale in your estimate
Items of sale indicate the goods or service you are billing your client. You can add multiple items of sale or particulars in one estimate. Every particular at a minimum needs a description and amount. The amount field Absolute cost in your particular items is summed up and which makes up the Grand Total along with taxes.
You can add new particulars by clicking the Add new row button
New products or services can be added right here in your invoice
Add taxes to your estimate
There are two ways to add taxes into your estimate:
- Estimate level taxes — Taxes which are common for all the items in your estimate
- Item level tax — Tax which is relevant only for an item within your estimate
Estimate level taxes
In the Add taxes section under Tax label select the relevant taxes as per your business category. Set the Applicable on values and the tax amounts are auto calculated and added into the Grand Total of your invoice
Item level tax
In case where there are multiple items at different tax values you set the GST at an item level. Once you have added your particulars with their respective taxes the Add taxes automatically reflects the selected taxes as per your particular entries. Here is the corresponding Add taxes section for the items shown above.
Send your estimate via email and SMS
Your invoice is now ready. Using the Notify patron button you could either Save this invoice or Save & Send this invoice. In the Save & Send option the invoice will get sent to your client over email and SMS. The client receives your invoice on their email id and mobile number as saved in your customer database.
Convert your estimate to an invoice
Automatic conversion of estimate to invoice
The estimate sent to your customer has an online payment option. If your customer pays your estimate online it is automatically converted into an invoice. A copy of the invoice is sent to your customer and the invoice is stored in your account.
Manually convert the estimate to invoice
To convert your estimate to an invoice, navigate to Requests -> Invoices / Estimates and click on the Action button and select Convert to Invoice
In the next window select whether you would like to send this invoice your customer and hit Submit
With this your estimate is converted to an invoice and saved in your account.