Hello there, Anthony.
If the estimate is added to the invoice, it will not be shown as credit because it is not a payment. That's why the invoice amount will increase. The transaction can be used as credit for invoices to lessen the amount deposited, Journal Entry (JE) posted in A/R or credit memo.
Just confirming, is the estimate intended for use as a credit for the customer? If so, the recording is incorrect. The estimate should not be classified as such because it cannot be used as credit. However, if you created the invoice first and then the estimate, you're unable to link the two. You'll want to delete the invoice and recreate it from the estimate.
You can convert that one directly into an invoice. When you do that, the estimate and invoice are linked. The steps below will show you how to connect them:
- Go to the Sales menu and choose Customer.
- In the colorful bar, select Estimate and find the estimate you need invoice attached.
- In the Action column, click Create Invoice.
- Make any updates to the invoice, if needed.
- Select Save and Close.
Also, if you want to create a partial invoice from the estimate, you can set up and send progress invoicing.
Lastly, I've got this helpful article about managing customer transactions: Income and Expenses.
Let me know if you have any other questions by using the Reply button below. I'll be here to help out.
