Lesson 6-3: Create an invoice. This free QuickBooks tutorial will show you how to create an invoice. I will use the default QuickBooks invoice: Intuit Product Invoice. Prior to creating an invoice, the items that your company sells should already be created. Refer to Chapter 4 to learn how to create items. To create a new invoice, follow the steps in the video below:
1. We will begin by placing information in the header. Select the customer by clicking the arrow next to the Customer: Job field, or you can type the customer’s name in that field.
2. Enter the date of the transaction in the Date field.
3. Enter the address to where the invoice will be mailed to. If you have entered the address a Bill To address when you added the customer to your customer list, the Bill To address will automatically populate when you choose the customer. It is important that you get the correct mailing address before you mail out the invoice.
4. If you are going to ship the items, enter the shipping address in the Ship To field. As previously stated, if you have already entered a Ship To address when you added this customer to your customer list, then this field will automatically populate. If there are more than one Ship To addresses for this customer, then you can choose a different address by clicking the drop-down arrow just above the Ship To field.
5. If you received a Purchase Order from your customer, put their purchase order number in the P.O. Number field.
6. Choose the terms that will dictate when your company expects payment.
7. The Ship field is where you will enter the date the items were shipped, if applicable.
8. The Via field is used for selecting the method in which the items were shipped, or the carrier.
9. Enter the F.O.B. options in the F.O.B. field (F.O.B. is an acronym for Free On Board). There are two primary options for F.O.B. Choose the proper option that bets fits your business needs:
a. F.O.B. Shipping Point means that the buyer accepts ownership when the goods depart the seller’s place of business. The buyer is also responsible for paying shipping costs and is bears the risk of loss or damage while the goods are in transit.
b. F.O.B. Destination: means ownership of goods transfers to the buyer when the gods arrives at the buyer’s place of business. In this scenario, the seller is responsible for paying shipping charges and bears the risk of damage or loss in transit.
10. Now that you have entered the information in the header section, it’s time to create the line items.
11. In the Quantity column, enter the number of items that you have sold to your customer.
12. In the Item Code column, select the name of the item that you have sold. You can also create an item by clicking Add New.
13. If you wrote a description for the item when it was originally created, then it will automatically appear in the Description field. If you didn’t, then you can type in a description here.
14. The Price Each field will display the price of each item.
15. QuickBooks wills automatically calculate the Amount field, which is Quantity X Price Each = Amount. On some invoices, you will see the column name “Extended” which shows the total.
16. The Tax field is for you to determine if an item is taxable or non-taxable. Collectively, the information listed in al of the columns is called a Line Item.
17. The Tax field towards the bottom of the invoice is where you will determine which tax rate should be charged.
18. The Customer Tax Code field is for you to choose if the customer will be taxed or not.
19. Click Save and Close to save the invoice.