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kathryn-sterryro
Level 1

How do I add deductions for the labour element on my invoice

 
2 REPLIES 2
ReymondO
QuickBooks Team

How do I add deductions for the labour element on my invoice

Good day, @kathryn-sterryro.

 

The option to add deductions to an invoice is unavailable in QuickBooks Online (QBO). However, you can create a service item for the labour element. Then, enter it as a negative amount to your next line item when creating sales. This way, it will be deducted from your invoice totals and tracked on your financial reports.

 

Let me show you how. 

 

First, follow these steps to set up a new service item for the labour element. 

 

  1. Click New and select Non-stock or Service.
  2. Add a name. 
  3. From the Category ▼ drop-down, select the category that best describes the labour element.
  4. Select the I sell this product/service to my customers checkbox. If you don't sell the item, you can leave it unchecked.
  5. Enter a description. This is what your customers will see on their sales form.
  6. Enter an amount in the Sales price/rate field.
  7. Click the Income account ▼ drop-down menu and choose the account you want to use to track the labour element. You can also ask your accountant for further guidance in choosing the correct account. 
  8. If you need to track sales tax, select tax from the Tax▼ drop-down list and click Save and close.

 

When you're done, you can now add an additional line on the invoice and enter the deduction amount with a minus figure, i.e. - 5.00. You'll then see this deducted from the total of the invoice.

Additionally, you can send this suggestion to our developers to make the program better. Here's how:
 

  1. Select the Gear icon at the top and click Feedback.
  2. Enter your comments or product suggestions. Then, select Next to submit feedback.

 

Your valuable feedback goes to our Product Development team to help improve your experience in QBO.

 

Moreover, you can run reports to see your sales and stock status in QuickBooks. 

 

Don't hesitate to touch base with me here if you need any additional assistance working on your invoices. I’ll be glad to help and get this taken care of for you.

paul72
Level 8

How do I add deductions for the labour element on my invoice

Hi @kathryn-sterryro 

 

Although your question doesn't specify, I guess this is Construction Industry Scheme (CIS) Deduction?

 

You need to turn on CIS, then QBO should do all the deduction calculations for you (after a bit of setting up).

Have a look at https://quickbooks.intuit.com/learn-support/en-uk/help-article/receive-payments/cis-guide-quickbooks...

 

Hope this helps.

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