QBO Sales and Receivables Workflow 3 — Questions and Answers
Question 1: A QBO user converts an Estimate to an Invoice but the customer only wants to be billed for work completed so far. Which feature supports this?
- Recurring Invoices
- Progress Invoicing (Correct answer)
- Delayed Charges
- Batch Invoicing
Correct answer: Progress Invoicing
Progress Invoicing lets you bill a percentage or specific line items from an Estimate across multiple invoices as work is completed.
Question 2: Where in QBO Settings must you enable the ability to add a Discount field to invoices and sales receipts?
- Account and Settings > Advanced > Automation
- Account and Settings > Sales > Sales form content (Correct answer)
- Account and Settings > Expenses > Bills and expenses
- Chart of Accounts > Add account
Correct answer: Account and Settings > Sales > Sales form content
The Discount field on sales forms is enabled under Account and Settings > Sales > Sales form content by toggling on the Discount option.
Question 3: A customer's invoice is paid via ACH bank transfer. In QBO, which Payment Method should be selected when recording the Receive Payment?
- Check
- Credit Card
- ACH or e-check (Correct answer)
- Cash
Correct answer: ACH or e-check
ACH or e-check is the appropriate payment method for direct bank transfers, keeping the deposit records accurate and audit-ready.
Question 4: In QBO, what does the 'Balance Forward' statement type show customers?
- A detailed list of every open invoice line item
- Only the outstanding balance owed without transaction detail (Correct answer)
- All transactions in a date range plus the running balance
- Only credits applied during the period
Correct answer: Only the outstanding balance owed without transaction detail
Balance Forward statements show only the total amount owed without itemizing individual transactions, unlike the Open Item statement.
Question 5: Which QBO tool lets you see all sales activity for a single customer on one screen, including invoices, payments, and credits?
- Transaction Detail by Account report
- Customer page (customer ledger) (Correct answer)
- A/R Aging Detail report
- Profit & Loss by Customer report
Correct answer: Customer page (customer ledger)
Opening a customer's record in QBO displays their full transaction history — invoices, payments, credits, and the running balance — all on one page.
Question 6: A QBO company uses classes to track sales by department. Where do you assign a class when creating an invoice?
- In Company Settings before saving the invoice
- On each line item or in the header of the invoice form (Correct answer)
- Only through a journal entry after the invoice is saved
- In the customer profile under Payment and billing
Correct answer: On each line item or in the header of the invoice form
When class tracking is enabled, a Class column appears on each line item of the invoice (or in the header if set to one class per transaction).
Question 7: What is the correct sequence to record a sale when a customer pays at the time of service in QBO?
- Invoice → Receive Payment → Bank Deposit
- Estimate → Invoice → Receive Payment
- Sales Receipt (single step) (Correct answer)
- Delayed Charge → Invoice
Correct answer: Sales Receipt (single step)
A Sales Receipt combines the sale and payment into one transaction, making it the correct single-step form when payment is collected immediately.
QBO Sales and Receivables Workflow 3
A QBO user converts an Estimate to an Invoice but the customer only wants to be billed for work completed so far.
Which feature supports this?