Try the QuickBooks Online Course for Free!

Create an Invoice in QuickBooks Online- Instructions

/ / Latest, Quickbooks Online
Create an Invoice in QuickBooks Online- Instructions: A picture of a user selecting products and services when creating an invoice in QuickBooks Online.

Create an Invoice in QuickBooks Online: Overview

            To create an invoice in QuickBooks Online, click the “Create Invoice” link under the “Action” column for the customer’s row in the “Customers” page. Alternatively, click the “+ New” button in the Navigation Bar and then click the “Invoice” link under the “Customers” heading in the drop-down menu that appears. In the “Invoice” window that then opens, enter the information needed to invoice the customer.

            To choose a customer, select one from the “Customer” drop-down in the upper-left corner of the window. If selecting an existing customer’s record, their information then populates the other fields within this form, based on what you entered when you created the customer’s record. Alternatively, you can type a customer’s name or select the “Add new” choice from this drop-down to quickly add a new customer.

            To the right of the “Customer” drop-down is an “Email” field. This field is populated with the customer’s email address, if you entered it when creating the customer’s record. You can enter an email here if you didn’t enter it when you created the customer or if adding a customer “on the fly.” If needed, to send copies of this invoice to others, click the “Cc/Bcc” link by this field to show additional “Cc” and “Bcc” fields in a drop-down menu. Then enter the email addresses into these fields, as needed, and click the “Done” button. To mark this invoice as an invoice to save but email later, check the “Send later” checkbox below the “Email” field.

            If you already enabled online payments for invoice in QuickBooks Online, check the “Cards” and/or “Bank transfer” checkboxes under the “Online payment” label to the right, as needed, to enable the respective online payment method. Note that you must first have online payments enabled through QuickBooks Online before you can use these. If interested in enabling online payment in QuickBooks Online, you can click the adjacent “Get set up” link to set this up with QuickBooks Online.

            The “Billing address” field is populated with the customer’s address. If creating a new customer, you can enter their billing address here. To the right, the customer’s default terms appear in the “Terms” drop-down, and you can change this, if needed. The “Invoice date” field shows the current date, by default. If needed, you can click this field to select another date from the calendar drop-down that appears. The “Due date” field is calculated based on the selected “Terms” you chose. However, you can also click into this field to select a date, if needed.

            Below these fields, if you have shipping enabled, enter the shipping information into the “Shipping to,” “Ship via,” “Shipping date,” and “Tracking no.” fields that appear. The “Shipping to” field shows the customer’s default shipping address, if you entered that when you created the selected customer’s record. If you enabled custom fields, then enter any custom field data into those fields in the invoice, if needed.

            At the far-right side of the window, the “Invoice no” field shows the next highest available invoice number. If you enabled custom transaction numbers in sales forms, then you can change this, if needed. If you enabled location tracking, a “Location” drop-down also appears here. If you enabled class tracking on a transaction level, then a “Class” drop-down also appears here. The “Location of sale” field shows your company’s default sales address. You can change this, if needed.

            To add a tag to this transaction, click into the “Tags” field and then select a tag from the menu of tag choices. Repeat, as needed, to apply tags from any relevant tag groups you have created. Alternatively, to add a new tag, type the tag’s name, select it from the “+ Add” choice in the drop-down menu, and follow the onscreen prompts to add it to a new tag group for reporting purposes.

            The next area is the line items area where you enter the products and/or services to invoice. If you enabled services dates in sales forms, you can select the service date of services provided from the “Service date” column. To select an existing item from the “Products and Services” list, click into the “Product/Service” column and then select the item from the drop-down menu. If SKUs are enabled, the item’s SKU appears in the “SKU” column. Its description appears in the “Description” column. You can also type a description here, if desired.

            Enter the quantity of the product bought or service provided by typing it into the quantity field, labelled “Qty.” The rate for the product or service, per quantity unit, appears in the “Rate” field. You can change it, if needed. The “Qty” field is multiplied by the “Rate” field to show the total amount for the line item in the “Amount” field. If entering a product or service without a rate or quantity, you can simply enter the total amount into the “Amount” field, if needed.

            If the product or service is taxable, ensure the “Tax” field checkbox for the line item is checked. If classes are enabled and assigned by one to each row in transactions forms, then you can select a class from the “Class” drop-down. After entering the first line item, continue adding line items until you enter all the line items needed for the invoice.

            At the left end of each line item row is a selection handle. To change the order of the line items, roll your mouse pointer over this handle until it turns into a four-pointed, crossed arrow. Then click and drag the line item up or down and release it to reorganize the line items, if needed. To delete a line item, click the “Delete” button at the right end of the line item row to delete.

            To add a new line item row, click into the bottom line item row to automatically add a new row. Alternatively, to add 4 new rows at once, click the “Add lines” button under the line items area. To delete all line items, click the “Clear all lines” button in this same location. To add a subtotal to the invoice, select the row above where you want to insert the subtotal row. Then click the “Add subtotal” button to add a subtotal line below the currently selected row. You can add as many subtotal lines as the invoice requires.

Create an Invoice in QuickBooks Online- Instructions: A picture of a user selecting products and services when creating an invoice in QuickBooks Online.
Create an Invoice in QuickBooks Online- Instructions: A picture of a user selecting products and services when creating an invoice in QuickBooks Online.

            To enter a message to show on the invoice, type it into the “Message on invoice” field. To enter a message that appears for this invoice in the customer’s statement, type it into the “Message on statement” field. In the lower-left corner of the invoice is the “Attachments” field, which lets you attach a file to the invoice. You can drag and drop files onto the field or click the field’s name or icon to open a “File Upload” dialog box that you can use to browse for, and then select, the file to attach. Note the 20MB file attachment size limit.

            In the lower-right corner of the invoice is the subtotal, taxable subtotal, sales tax, discount, shipping and tax on shipping, total, deposit, and balance due field information, depending on which sales form features you enabled. The “Select tax rate” drop-down lets you select either the default “Based on location” choice if using the “Auto” sales tax feature or select a custom sales tax rate, if you created those. Based on your selection, the sales tax to collect appears to the right.

            If using the “Auto” sales tax and the “Based on location” choice, then you can click the “See the math” link under the sales tax amount to see the sales tax information and calculations and correct it, if needed, in the “Let’s calculate your tax rate” pane that appears at the right side of the window. We’ll discuss this pane in detail in a later lesson in this chapter. For now, note that if you need to override the automatic sales tax calculation you can click the “Override this amount” link in this pane’s lower-right corner to open a section at the bottom of the pane that lets you enter either a new “Rate” or “Amount” to charge for sales tax and then select a “Reason” from the drop-down. Then click the adjacent “Confirm” button to confirm the override. You can then close the pane by clicking the “Close” button in its lower-right corner.

            Alternatively, to apply a custom sales tax rate if you created one, select the sales tax rate from the “Select tax rate” drop-down. The amount of sales tax to collect then appears in a field to the right, which you can change, if needed.

            On a related note, if you enabled a “Discount” field in your sales forms, you can use the “Discount” drop-down that appears next to the “Select tax rate” drop-down to select either the “Discount percent” or “Discount value” choice. Then enter the percentage or amount into the field to the right. The discount is related to sales tax because you can click the button that looks like “up” and “down” arrows in a blue circle to the left of the sales tax rate and discount fields to switch the order of the two fields in the invoice each time you click it. Doing this changes whether the discount is applied after sales tax is calculated or before sales tax is calculated, based on the order in which the fields appear in the invoice.

            If shipping is enabled, you can enter the amount of shipping into the “Shipping” field. The “Tax on shipping” field, if enabled, shows the sales tax on the shipping. The “Total” field shows the invoice total amount. If enabled, to record an amount paid as a deposit at the time of invoicing, enter the amount into the “Deposit” field. The “Balance due” field below that shows the remaining balance due, less the deposit.

            The toolbar at the bottom of the invoice lists the actions you can perform on an invoice. You will see different options here when creating a new invoice versus opening an existing invoice. When creating a new invoice, you will see “Cancel” and “Clear” buttons at the left side of the toolbar. Clicking “Cancel” cancels the invoice creation. Clicking “Clear” clears all the fields but keeps the window open.

            In the middle of the toolbar are the “Print or Preview,” “Make recurring” and “Customize” buttons. Clicking the “Print or Preview” button shows a pop-up menu that lets you check a “Print later” checkbox or click either the “Print or preview” or “Print packing slip” commands. Checking the “Print later” checkbox lets you filter by that delivery method if you batch print invoices later. Clicking the “Print or preview” command saves the invoice and opens a window that shows the invoice as a PDF and lets you preview or print it. Clicking the “Print packing slip” command saves the invoice and creates a packing slip from the invoice and shows it as a PDF so you can print it.

            Clicking the “Make recurring” button opens the “Recurring Invoice” window. This window lets you create a create a recurring invoice, which is discussed in a separate lesson. You can click the “Cancel” button in the toolbar to cancel the recurring invoice and return to the main invoice screen.

            Clicking the “Customize” command in the toolbar lets you select a different invoice template to use, edit the current invoice template, or create a new invoice template by selecting a command in the pop-up menu that appears. Creating form templates is discussed in a separate lesson.

            After creating the invoice, you can click the “Save” button in the toolbar to save it. You can also directly click the “Save and send” button at the right end of the toolbar to save and send the invoice by email or click its drop-down arrow and then click either the “Save and new,” “Save and close,” or “Save and share link” commands. Clicking the “Save and new” command saves the invoice and creates a new invoice. Clicking the “Save and close” command saves the invoice and closes the “Invoice” window. If enabled, clicking the “Save and share link” command saves the invoice and sends a link to the online invoice by email to the customer’s email address. Note that this command only appears if you selected the “Online delivery” choice from the “Additional email options for invoices” drop-down within the “Online delivery” section of the “Sales” menu category within the “Account and Settings” window, as shown earlier in the course.

            After saving an invoice, a new “More” button also appears in the toolbar at the bottom of the invoice. Clicking this button shows commands for “Copy,” to copy the invoice; “Void,” to void the invoice; “Delete,” to delete the invoice; “Transaction journal,” to open a report that lists the accounts and credit and debit amounts for the invoice; and “Audit history,” which shows an audit history of the invoice. You can click any of these actions to perform the related activity.

Create an Invoice in QuickBooks Online: Instructions

  1. To create an invoice in QuickBooks Online, either click the “Create Invoice” link under the “Action” column for the customer’s row in the “Customers” page or click the “+ New” button in the Navigation Bar and then click the “Invoice” link under the “Customers” heading in the drop-down menu that appears.
  2. In the “Invoice” window that then opens, enter the information needed to invoice the customer.
  3. To choose a customer, select one from the “Customer” drop-down in the upper-left corner of the window.
  4. If selecting an existing customer’s record, their information then populates the other fields within this form, based on what you entered when you created the customer’s record.
  5. Alternatively, you can type a customer’s name or select the “Add new” choice from this drop-down to quickly add a new customer.
  6. To the right of the “Customer” drop-down is an “Email” field. This field is populated with the customer’s email address, if you entered it when creating the customer’s record. You can enter an email here if you didn’t enter it when you created the customer or if adding a customer “on the fly.”
  7. If needed, to send copies of this invoice to others, click the “Cc/Bcc” link by this field to show additional “Cc” and “Bcc” fields in a drop-down menu.
  8. Then enter the email addresses into these fields, as needed, and click the “Done” button.
  9. To mark this invoice as an invoice to save but email later, check the “Send later” checkbox below the “Email” field.
  10. If you already enabled online payments for invoice in QuickBooks Online, check the “Cards” and/or “Bank transfer” checkboxes under the “Online payment” label to the right, as needed, to enable the respective online payment method. Note that you must first have online payments enabled through QuickBooks Online before you can use these.
  11. If interested in enabling online payment in QuickBooks Online, you can click the adjacent “Get set up” link to set this up with QuickBooks Online.
  12. The “Billing address” field is populated with the customer’s address. If creating a new customer, you can enter their billing address here.
  13. To the right, the customer’s default terms appear in the “Terms” drop-down, and you can change this, if needed.
  14. The “Invoice date” field shows the current date, by default. If needed, you can click this field to select another date from the calendar drop-down that appears.
  15. The “Due date” field is calculated based on the selected “Terms” you chose. However, you can also click into this field to select a date, if needed.
  16. Below these fields, if you have shipping enabled, enter the shipping information into the “Shipping to,” “Ship via,” “Shipping date,” and “Tracking no.” fields that appear.
  17. The “Shipping to” field shows the customer’s default shipping address, if you entered that when you created the selected customer’s record.
  18. If you enabled custom fields, then enter any custom field data into those fields in the invoice, if needed.
  19. At the far-right side of the window, the “Invoice no” field shows the next highest available invoice number. If you enabled custom transaction numbers in sales forms, then you can change this, if needed.
  20. If you enabled location tracking, a “Location” drop-down also appears here.
  21. If you enabled class tracking on a transaction level, then a “Class” drop-down also appears here.
  22. The “Location of sale” field shows your company’s default sales address. You can change this, if needed.
  23. To add a tag to this transaction, click into the “Tags” field and then select a tag from the menu of tag choices.
  24. Repeat, as needed, to apply tags from any relevant tag groups you have created.
  25. Alternatively, to add a new tag, type the tag’s name, select it from the “+ Add” choice in the drop-down menu, and follow the onscreen prompts to add it to a new tag group for reporting purposes.
  26. The next area is the line items area where you enter the products and/or services to invoice.
  27. If you enabled services dates in sales forms, you can select the service date of services provided from the “Service date” column.
  28. To select an existing item from the “Products and Services” list, click into the “Product/Service” column and then select the item from the drop-down menu.
  29. If SKUs are enabled, the item’s SKU appears in the “SKU” column.
  30. Its description appears in the “Description” column. You can also type a description here, if desired.
  31. Enter the quantity of the product bought or service provided by typing it into the quantity field, labelled “Qty.”
  32. The rate for the product or service, per quantity unit, appears in the “Rate” field. You can change it, if needed.
  33. The “Qty” field is multiplied by the “Rate” field to show the total amount for the line item in the “Amount” field.
  34. If entering a product or service without a rate or quantity, you can simply enter the total amount into the “Amount” field, if needed.
  35. If the product or service is taxable, ensure the “Tax” field checkbox for the line item is checked.
  36. If classes are enabled and assigned by one to each row in transactions forms, then you can select a class from the “Class” drop-down.
  37. After entering the first line item, continue adding line items until you enter all the line items needed for the invoice.
  38. At the left end of each line item row is a selection handle.
  39. To change the order of the line items, roll your mouse pointer over this handle until it turns into a four-pointed, crossed arrow.
  40. Then click and drag the line item up or down and release it to reorganize the line items, if needed.
  41. To delete a line item, click the “Delete” button at the right end of the line item row to delete.
  42. To add a new line item row, click into the bottom line item row to automatically add a new row.
  43. Alternatively, to add 4 new rows at once, click the “Add lines” button under the line items area.
  44. To delete all line items, click the “Clear all lines” button in this same location.
  45. To add a subtotal to the invoice, select the row above where you want to insert the subtotal row. Then click the “Add subtotal” button to add a subtotal line below the currently selected row. You can add as many subtotal lines as the invoice requires.
  46. To enter a message to show on the invoice, type it into the “Message on invoice” field.
  47. To enter a message that appears for this invoice in the customer’s statement, type it into the “Message on statement” field.
  48. In the lower-left corner of the invoice is the “Attachments” field, which lets you attach a file to the invoice. You can drag and drop files onto the field or click the field’s name or icon to open a “File Upload” dialog box that you can use to browse for, and then select, the file to attach. Note the 20MB file attachment size limit.
  49. In the lower-right corner of the invoice is the subtotal, taxable subtotal, sales tax, discount, shipping and tax on shipping, total, deposit, and balance due field information, depending on which sales form features you enabled.
  50. The “Select tax rate” drop-down lets you select either the default “Based on location” choice if using the “Auto” sales tax feature or select a custom sales tax rate, if you created those. Based on your selection, the sales tax to collect appears to the right.
  51. If using the “Auto” sales tax and the “Based on location” choice, then you can click the “See the math” link under the sales tax amount to see the sales tax information and calculations and correct it, if needed, in the “Let’s calculate your tax rate” pane that appears at the right side of the window.
  52. If you need to override the automatic sales tax calculation, you can click the “Override this amount” link in this pane’s lower-right corner to open a section at the bottom of the pane that lets you enter either a new “Rate” or “Amount” to charge for sales tax and then select a “Reason” from the drop-down.
  53. Then click the adjacent “Confirm” button to confirm the override.
  54. You can then close the pane by clicking the “Close” button in its lower-right corner.
  55. Alternatively, to apply a custom sales tax rate if you created one, select the sales tax rate from the “Select tax rate” drop-down.
  56. The amount of sales tax to collect then appears in a field to the right, which you can change, if needed.
  57. If you enabled a “Discount” field in your sales forms, you can use the “Discount” drop-down that appears next to the “Select tax rate” drop-down to select either the “Discount percent” or “Discount value” choice.
  58. Then enter the percentage or amount into the field to the right.
  59. To change whether the discount is applied after sales tax is calculated or before sales tax is calculated, click the button that looks like “up” and “down” arrows in a blue circle to the left of the sales tax rate and discount fields to switch the order of the two fields in the invoice each time you click it.
  60. If shipping is enabled, you can enter the amount of shipping into the “Shipping” field. The “Tax on shipping” field, if enabled, shows the sales tax on the shipping.
  61. The “Total” field shows the invoice total amount.
  62. If enabled, to record an amount paid as a deposit at the time of invoicing, enter the amount into the “Deposit” field.
  63. The “Balance due” field below that shows the remaining balance due, less the deposit.
  64. The toolbar at the bottom of the invoice lists the actions you can perform on an invoice. You will see different options here when creating a new invoice versus opening an existing invoice.
  65. When creating a new invoice, you will see “Cancel” and “Clear” buttons at the left side of the toolbar.
  66. To cancel the invoice creation, click “Cancel.”
  67. To clear all the fields but keep the window open, click “Clear.”
  68. In the middle of the toolbar are the “Print or Preview,” “Make recurring” and “Customize” buttons.
  69. To show a pop-up menu that lets you check a “Print later” checkbox or click either the “Print or preview” or “Print packing slip” commands, click the “Print or Preview” button.
  70. To filter by the “Print Later” delivery method if you batch print invoices later, check the “Print later” checkbox.
  71. To open a window that shows the invoice as a PDF and lets you preview or print it, click the “Print or preview” command.
  72. If you want to create a packing slip from the invoice and show it as a PDF so you can print it, click the “Print packing slip” command.
  73. To open the “Recurring Invoice” window, click the “Make recurring” button.
  74. You can click the “Cancel” button in the toolbar to cancel the recurring invoice and return to the main invoice screen.
  75. To select a different invoice template to use, edit the current invoice template, or create a new invoice template by selecting a command in a pop-up menu that appears, click the “Customize” command in the toolbar and then select your desired choice.
  76. To save an invoice after creating it, click the “Save” button in the toolbar.
  77. Alternatively, click the “Save and send” button at the right end of the toolbar to save and send the invoice by email or click its drop-down arrow and then click either the “Save and new,” “Save and close,” or “Save and share link” commands.
  78. Clicking the “Save and new” command saves the invoice and creates a new invoice.
  79. Clicking the “Save and close” command saves the invoice and closes the “Invoice” window.
  80. If enabled, clicking the “Save and share link” command saves the invoice and sends a link to the online invoice by email to the customer’s email address. Note that this command only appears if you selected the “Online delivery” choice from the “Additional email options for invoices” drop-down within the “Online delivery” section of the “Sales” menu category within the “Account and Settings” window.
  81. After saving an invoice, a new “More” button also appears in the toolbar at the bottom of the invoice.
  82. Clicking this button shows commands for “Copy,” to copy the invoice; “Void,” to void the invoice; “Delete,” to delete the invoice; “Transaction journal,” to open a report that lists the accounts and credit and debit amounts for the invoice; and “Audit history,” which shows an audit history of the invoice.
  83. You can click any of these actions to perform the related activity.

Create an Invoice in QuickBooks Online: Video Lesson

            The following video lesson, titled “Creating an Invoice,” shows how to create an invoice in QuickBooks Online. This video lesson is from our complete QuickBooks Online tutorial, titled “Mastering QuickBooks Online Made Easy.”

TOP
Sale! 50% OFF! 0 Days 15 Hours 32 Minutes 9 Seconds      Quick Reference Guides
See Deals