How estimates convert to invoices and invoices convert to purchase orders
Understanding the document chain from estimate approval through to purchase orders and client payment.
Written By Gemma DeMasi
Last updated About 1 month ago
Indema automatically connects estimates, invoices, and purchase orders into a linked financial workflow. This helps keep client approvals, billing, and purchasing organized throughout the lifecycle of a project.
The workflow generally follows this sequence:
Estimate approved by client
Invoice automatically created
Invoice reviewed, sent, and paid
Purchase orders generated by vendor
Estimate Approval Creates an Invoice
When a client approves an estimate, Indema automatically generates an invoice using the approved estimate items.
The invoice includes:
Approved products and services
Client information
Project association
Pricing and totals
The invoice number is assigned sequentially. The estimate title does not automatically carry over to the invoice.
If an estimate is only partially approved, only the approved items convert into the invoice.
Review the Invoice Before Sending
Automatically generated invoices become visible immediately, so it is important to review the invoice before requesting payment from the client.
Always confirm:
Client-facing display settings
Line item visibility
Markup visibility
Payment schedules
Terms & Conditions
Internal memo visibility
You can edit the invoice at any time before finalizing or sending it.
Client Approval and Signatures
Invoices can include client approval and signature workflows.
When a client approves and signs an invoice:
The approval action is audit tracked
Signature activity is recorded
IP and user activity data are captured in the invoice history
Designer signatures can also be added from the invoice Actions menu.
Recording Payments
Payments can be recorded directly against the invoice.
Invoices support:
Partial payments
Multiple payment methods
Manual payment recording
Client credits
When the invoice balance reaches zero, the invoice status updates automatically to Paid.
Creating Purchase Orders from Invoices
Once invoice items are ready for procurement, you can generate purchase orders directly from the invoice.
Open the invoice
Open the Actions menu
Select Create Purchase Order
Indema automatically groups invoice items by vendor and creates separate purchase orders for each vendor.
If a product does not have an assigned vendor, a purchase order will not be created for that item.
Linked Financial Records
Estimates, invoices, and purchase orders remain linked throughout the project workflow.
The Linked column and linked record views allow you to quickly navigate between related financial documents.
This makes it easier to:
Track project billing history
Review approved items
See which invoice generated a purchase order
Navigate between connected records
Typical Workflow Example
Client approves estimate
Invoice is automatically created
Team reviews invoice settings and visibility
Invoice is sent to client
Client signs and pays invoice
Purchase orders are generated by vendor
All records remain linked for project tracking
Important Limitations
Only approved estimate items convert into invoices.
Purchase orders must be manually created from invoices.
Products without vendors will not generate purchase orders.
What Happens Next?
After an estimate converts into an invoice, teams commonly:
Review invoice visibility settings
Send the invoice to the client
Collect signatures and approvals
Record payments
Create purchase orders grouped by vendor