When should you create an invoice in QuickBooks?

Creating an invoice in QuickBooks is appropriate when a customer purchases goods or services but does not pay at the time of the sale. This situation is crucial for tracking accounts receivable, as the invoice records the sale and signifies that the customer owes you money. Invoices allow businesses to maintain accurate financial records and help ensure that payments are followed up on, enabling efficient cash flow management.

When a customer pays in cash at the time of sale, it is typically recorded as a sales receipt, reflecting that the transaction is complete and payment has been received immediately. Similarly, transactions completed by check or credit card at the point of sale would also be recorded with a sales receipt. In cases where a business prefers not to consider the sale final, it indicates uncertainty or pending adjustments; however, a standard invoice is still the correct tool to document the transaction in situations of non-payment at the moment of sale.