Converting Estimates to Invoices

Once a client accepts your estimate, converting it to an invoice in Factumo is seamless. This guide covers the complete workflow from accepted estimate to finalized invoice, ensuring compliance with Spanish invoicing requirements.

Understanding the Estimate-to-Invoice Workflow

The estimate-to-invoice process follows a clear path:

1. Create Estimate - Provide quote to client (presupuesto)
2. Client Reviews - Client evaluates your proposal
3. Client Accepts - Client agrees to pricing and terms
4. Convert to Invoice - Transform estimate into legal invoice
5. Send Invoice - Deliver compliant Spanish invoice (factura)
6. Track Payment - Monitor payment status

This workflow helps you maintain professionalism while ensuring proper financial documentation.

When to Convert an Estimate

Convert an estimate to invoice when:

Client Formally Accepts

Verbal acceptance: Client says "yes, let's proceed"

• Confirm in writing before converting
• Email confirmation creates paper trail
• Protects both parties from misunderstandings

Written acceptance: Client emails acceptance or signs estimate

• Best practice for professional services
• Required for high-value projects
• Recommended for all B2B transactions

Digital acceptance: Client clicks "Accept" on shared estimate link

• Automatically tracked in Factumo
• Timestamp recorded
• Email notification sent to you

Work Is Completed (or Started)

Spanish invoicing timing:

• Services: Issue invoice when service is completed or partially completed
• Products: Issue invoice when products are delivered
• Advance payments: Can issue invoice for deposits before work starts
• Recurring work: Invoice according to agreed schedule (monthly, quarterly, etc.)

Important: Don't convert estimate to invoice until you're ready to create a legal payment obligation. Once an invoice is finalized, it's a formal document subject to Spanish legal requirements.

Payment Terms Are Agreed

Before converting, confirm:

• Payment amount - Matches accepted estimate
• Payment terms - When payment is due (Net 30, etc.)
• Payment method - Bank transfer, card, etc.
• Deposit requirements - If partial payment required upfront
• Payment schedule - For large projects with milestones

How to Convert an Estimate to Invoice

Method 1: Direct Conversion (Recommended)

The simplest way to convert an accepted estimate:

Step 1: Open the Estimate

Navigate to Estimates and click on the accepted estimate you want to convert.

Step 2: Click Convert to Invoice

Click the Convert to Invoice button at the top of the estimate detail page.

Step 3: Configure Invoice Details

Factumo opens the invoice creation form with pre-populated data:

Automatically copied from estimate:

• Client information
• All line items (descriptions, quantities, prices, VAT rates)
• Delivery information
• Client notes
• Currency and exchange rate

Set new invoice-specific fields:

Invoice Date

• Default: Today's date
• Custom: Select appropriate date

Spanish requirement: Invoice date should be the date work was completed or products delivered, or today's date if invoicing immediately.

Due Date / Payment Terms

Choose when payment is due:

• Due on receipt - Immediate payment
• Net 15 - Payment due in 15 days
• Net 30 - Most common for B2B (30 days)
• Net 60 - Maximum for B2B in Spain (see note below)
• Custom date - Specific due date

Spanish B2B Law: The legal maximum payment term for B2B transactions in Spain is 60 days unless explicitly agreed in writing. Exceeding 60 days can be challenged.

Payment Terms (Days)

Enter the number of days until payment is due (e.g., 30 for Net 30). Factumo calculates the due date automatically.

Step 4: Review Line Items

All estimate line items copy automatically. Review and adjust if needed:

When to adjust:

• Prices changed since estimate was created
• Scope was modified after acceptance
• Client requested additions or removals
• Discount negotiated after initial estimate

What NOT to change:

• Don't significantly alter what was quoted without client agreement
• Major changes should trigger a new estimate or amendment
• Document any changes in invoice notes

Important: If you make significant changes, communicate them to the client before finalizing the invoice to avoid payment disputes.

Step 5: Add Invoice Notes

Update notes for the invoice context:

Remove from notes:

• "This estimate is valid until [date]" (no longer relevant)
• Estimate-specific language
• "Please accept by [date]"

Add to notes:

• Payment instructions (bank details, payment methods)
• Invoice-specific terms
• Project reference numbers
• Thank you message

Example invoice notes:

Gracias por su confianza en nuestros servicios.

Proyecto: Rediseño completo del sitio web
Referencia: WEB-2025-045
Presupuesto original: EST-2025-032

Forma de pago:
- Transferencia bancaria a IBAN: ES12 1234 5678 9012 3456 7890
- Concepto: Factura [INVOICE_NUMBER]

Fecha de vencimiento: [DUE_DATE]

Step 6: Create the Invoice

Click Create Invoice with status Finalized.

What happens:

1. Invoice assigned sequential invoice number (mandatory for Spanish compliance)
2. PDF generated automatically with all legal requirements
3. Invoice added to your official invoice register
4. Estimate status changes to Converted to Invoice
5. Link created from estimate to invoice (for tracking)

Spanish compliance: The invoice now becomes a legal document subject to Spanish invoicing regulations. See Spanish Requirements for details.

Method 2: Manual Invoice Creation

If you prefer more control or need to make substantial changes:

Step 1: Create New Invoice

Navigate to Invoices and click Create Invoice.

Step 2: Reference the Estimate

While creating the invoice:

1. Select the same client as the estimate
2. Manually enter line items from the estimate
3. Add estimate reference in notes: "Based on estimate EST-2025-032"
4. Set invoice date and payment terms

Step 3: Mark Estimate as Converted

After creating the invoice, return to the estimate and update status to Converted to Invoice (or link the invoice manually if your system supports it).

When to use manual method:

• Significant changes from original estimate
• Invoicing only part of the estimate (partial invoicing)
• Complex projects requiring custom adjustments
• Multiple invoices from one estimate

After Converting to Invoice

Send Invoice to Client

Once converted, send the invoice to your client:

Email invoice (recommended):

1. Open the invoice
2. Click Send Email
3. Review email message
4. Click Send

Download PDF:

1. Click Download PDF
2. Save locally
3. Send via your preferred method (email, postal mail, etc.)

Share link:

1. Click Share Link
2. Copy secure link
3. Send link to client via email, WhatsApp, etc.

Track Payment

Monitor payment status:

Mark as Paid:

• When payment received in full
• Enter payment date and reference
• Invoice status changes to Paid

Record Partial Payment:

• For deposits or split payments
• Track outstanding balance
• System shows amount still due

Set Reminders:

• Automatic reminders as due date approaches
• Follow up on overdue invoices
• Professional reminder templates

See Managing Invoices for detailed payment tracking guidance.

Update Estimate Status

After successful conversion, the estimate automatically updates:

• Status: Converted to Invoice
• Link: Shows related invoice number
• Archive: Estimate moves to historical records

You can view the original estimate anytime by clicking the link from the invoice or browsing Estimates → Converted.

Managing Estimate Status Changes

Status Progression

Estimates flow through these statuses:

Draft → Sent → Accepted → Converted to Invoice

Or alternative paths:

Draft → Sent → Rejected Draft → Sent → Expired

Accepting Estimates

Client acceptance via shared link:

• Client clicks "Accept Estimate" button
• Status automatically changes to Accepted
• You receive email notification
• Ready to convert to invoice

Manual acceptance: If client accepts via email/phone:

1. Open the estimate
2. Click Mark as Accepted
3. Status changes to Accepted
4. Proceed with conversion

Rejecting Estimates

Client rejection via shared link:

• Client clicks "Decline Estimate" button
• Optional rejection reason
• Status changes to Rejected
• You receive notification

Manual rejection:

1. Open the estimate
2. Click Mark as Rejected
3. Status changes to Rejected
4. Archive or delete estimate

Handling Expired Estimates

When estimate passes expiry date:

Automatic expiration:

• Status automatically changes to Expired
• Can no longer be converted without updating

Extending expired estimates:

1. Open the expired estimate
2. Click Extend Validity
3. Set new expiry date
4. Status returns to Sent
5. Resend to client with updated expiry

Creating new estimate from expired:

1. Open expired estimate
2. Click Duplicate
3. Update expiry date and any pricing changes
4. Save as new estimate
5. Send to client

Special Conversion Scenarios

Scenario 1: Partial Invoicing (Milestone Billing)

For large projects, invoice in phases:

Estimate structure:

Phase 1: Design - €2,000
Phase 2: Development - €5,000
Phase 3: Launch - €1,500
Total: €8,500

Invoicing approach:

Invoice 1 (after Phase 1 completion):

Description: Website project - Phase 1: Design (as per EST-2025-032)
Amount: €2,000

Invoice 2 (after Phase 2 completion):

Description: Website project - Phase 2: Development (as per EST-2025-032)
Amount: €5,000

Invoice 3 (after Phase 3 completion):

Description: Website project - Phase 3: Launch (as per EST-2025-032)
Amount: €1,500

Important: Reference the original estimate on each invoice to maintain audit trail.

Scenario 2: Estimate with Deposit

Client pays deposit before work starts:

Step 1: Create deposit invoice

Description: Deposit for website project (50% of EST-2025-032)
Amount: €2,500 (50% of €5,000)
Notes: Remaining €2,500 due upon project completion

Step 2: Create final invoice after completion

Description: Website project final payment (balance of EST-2025-032)
Amount: €2,500
Notes: Deposit of €2,500 paid via Invoice FAC-2025-101

Or combine on one invoice:

Subtotal: €5,000
Less: Deposit paid (Invoice FAC-2025-101): -€2,500
Balance due: €2,500

Scenario 3: Scope Changes After Acceptance

Client requests changes after accepting estimate:

Minor changes (within 10% of original):

1. Document changes in writing
2. Adjust line items on invoice
3. Add note: "Includes modification from original estimate: [describe change]"

Major changes (over 10% or significant scope):

1. Create new estimate for additional work
2. Get client acceptance
3. Convert original estimate to invoice
4. Create separate invoice for additional work

Best practice: Always get written approval for scope changes before invoicing to avoid payment disputes.

Scenario 4: Currency Fluctuations

For estimates in foreign currency:

Exchange rate locked at estimate creation:

• Rate fetched from European Central Bank
• Stored with estimate
• Applied when converting to invoice

If rate changed significantly:

1. Discuss with client before converting
2. Options:
   • Honor original rate (absorb difference)
   • Update to current rate (explain to client)
   • Split difference (negotiate)

Spanish invoicing: Final invoice must show clear currency and amount. If invoiced in EUR but quoted in USD, show both clearly.

Best Practices

Communicate Clearly

Before converting:

Subject: Presupuesto Aceptado - Siguiente Paso

Hola [CLIENT_NAME],

Gracias por aceptar el presupuesto EST-2025-032.

Procederé a emitir la factura oficial y comenzar el proyecto
esta semana.

Recibirá la factura por correo electrónico en los próximos
días. El pago es a 30 días desde la fecha de factura.

Si tiene alguna pregunta, no dude en contactarme.

Un saludo,
[YOUR_NAME]

When sending invoice:

Subject: Factura FAC-2025-145 - Proyecto Web

Hola [CLIENT_NAME],

Adjunto la factura oficial para el proyecto de desarrollo web
acordado en el presupuesto EST-2025-032.

Detalles de factura:
- Número: FAC-2025-145
- Importe total: €5,000.00
- Fecha de vencimiento: [DUE_DATE]

Forma de pago: Transferencia bancaria
IBAN: ES12 1234 5678 9012 3456 7890
Concepto: FAC-2025-145

Gracias por su confianza.

Un saludo,
[YOUR_NAME]

Maintain Proper Documentation

Keep records of:

• Original estimate PDF
• Client acceptance (email, signed document, digital acceptance)
• Any scope change agreements
• Final invoice
• Payment confirmation

Why this matters:

• Tax audits require supporting documentation
• Dispute resolution
• Professional accountability
• Internal financial tracking

Factumo automatically stores estimate and invoice links, making audit trails seamless.

Set Clear Payment Expectations

During estimate phase:

• Specify payment terms clearly
• Mention deposit requirements if applicable
• State when invoice will be issued
• Explain payment methods accepted

Example estimate terms:

Condiciones de pago:
- 30% de señal al aceptar el presupuesto
- 40% al completar la fase de desarrollo
- 30% restante a la entrega final

Todas las facturas son pagaderas a 30 días desde la fecha de emisión.

Métodos de pago aceptados:
- Transferencia bancaria (preferido)
- Tarjeta de crédito (comisión del 2.5%)

Invoice Promptly After Acceptance

Timing matters:

• Same day: Ideal for maintaining professionalism
• Within 3 days: Acceptable for most projects
• Within 1 week: Maximum delay before client forgets

Spanish practice: Prompt invoicing is expected. Delays can signal disorganization and may delay payment.

Tip: Set reminder to convert estimate within 24 hours of acceptance.

Handle Rejected Estimates Professionally

When estimate is rejected:

1. Ask for feedback (optional but valuable):

Gracias por revisar el presupuesto.

Si no le importa, ¿podría compartir qué factores influyeron
en su decisión? Su feedback nos ayuda a mejorar nuestros
servicios.

2. Leave door open for future:

Entiendo que en esta ocasión el presupuesto no se ajusta
a sus necesidades. Si en el futuro necesita nuestros
servicios, estaré encantado de ayudarle.

3. Update internal notes with reason (if known):

• Too expensive (consider pricing strategy)
• Chose competitor (analyze competitive positioning)
• Project delayed/cancelled (follow up later)
• Didn't understand value (improve estimate clarity)

Common Issues and Solutions

Issue: Client Accepted Old Estimate

Problem: Client accepts estimate after expiry date

Solution:

1. Thank client for acceptance
2. Verify pricing/scope still valid
3. If changed: "We'd be happy to update the estimate with current pricing"
4. If valid: Extend expiry date and convert normally

Issue: Estimate Amount Changed

Problem: Need to invoice different amount than estimate

Solution:

• Small difference (<5%): Adjust invoice, note change
• Large difference: Create new estimate, get acceptance
• Always communicate changes before invoicing

Example note:

Nota: El importe final refleja los cambios acordados por
correo electrónico el [date]:
- Añadido: Integración de newsletter (+€200)
- Eliminado: Sección de blog (-€500)
Diferencia neta: -€300 desde presupuesto original

Issue: Lost Estimate Acceptance Record

Problem: Client accepted verbally but no written record

Solution:

1. Send confirmation email before invoicing:

Gracias por aceptar el presupuesto EST-2025-032 durante
nuestra llamada del [date].

Para nuestros registros, ¿puede confirmar por correo que
desea proceder con el proyecto según los términos discutidos?

Procederé con la factura una vez reciba su confirmación.

2. Wait for written confirmation
3. Then convert and invoice

Prevention: Always use Factumo's estimate sharing feature for automatic acceptance tracking.

Issue: Multiple Invoices from One Estimate

Problem: Need to create several invoices for one estimate (milestone billing)

Solution:

1. First invoice: Convert estimate normally (partial amount)
2. Subsequent invoices: Create manually, reference estimate
3. Track in estimate notes which invoices have been issued
4. Keep running total to ensure full amount invoiced

Example estimate note:

Invoices issued from this estimate:
- FAC-2025-145 (Phase 1): €2,000 - Paid
- FAC-2025-167 (Phase 2): €5,000 - Outstanding
- Remaining to invoice (Phase 3): €1,500

Compliance Considerations

Spanish Invoice Requirements Apply

Once converted, the invoice must comply with all Spanish legal requirements:

Mandatory fields:

• Sequential invoice number
• Your company tax ID (NIF/CIF)
• Client tax ID
• Detailed descriptions
• Correct VAT rates
• All totals calculated properly

See Spanish Requirements for complete compliance guide.

Sequential Invoice Numbering

Important: Invoices require strict sequential numbering regardless of estimate numbers.

Example:

EST-2025-032 → FAC-2025-145 ✓
EST-2025-033 → FAC-2025-146 ✓
EST-2025-031 → FAC-2025-147 ✓ (estimate number order doesn't matter)

Factumo automatically assigns the next sequential invoice number when converting.

VAT (IVA) Compliance

Verify VAT rates before converting:

• Tax regulations may have changed since estimate
• Different rules for EU vs. non-EU clients
• Special reverse charge scenarios

If VAT rate changed since estimate:

1. Update line items to current rate
2. Communicate to client
3. Document reason in notes

Retention Requirements

Keep for 7+ years:

• Original estimate
• Client acceptance record
• Final invoice
• Payment records
• All correspondence

Factumo automatically stores all documents with unlimited retention.

Next Steps

Now that you understand estimate-to-invoice conversion:

• Creating Invoices - Learn invoice creation in detail
• Managing Invoices - Track payments and manage invoice lifecycle
• Spanish Requirements - Understand legal compliance requirements
• Creating Estimates - Master estimate creation

Need help converting estimates to invoices? Contact support at support@factumo.com