I work for a Painting Company. We bid jobs. Currently we put an invoice in QB for the bid amount when we start the job. As I assign costs to the job such as paint or labor it increases the amount QB thinks is due. Is there a way to have it subtract those costs from the original invoice amount since we had them figured into the bid? We need it to be accurately tracking actual expenses and labor just wondering if we are doing it the hard way having to go manually adjust the amount due.
If you had costs figured into the bid, then of course you should not be adding them to the invoice. You can assign Expenses, Checks or Bills to the job, without billing them to the job, by entering the customer in the Customer column, and NOT clicking the Billable box. Assigning labor is tricky; you can only do that with a Journal Entry. it's probably easier to use a spreadsheet. (edit: I see that the question is for Desktop where you can assign labor )
Hello there, @Nisly.
Let me share an additional information to ensure you’re able to track the actual expenses and cost of labor for a job performed by your company.
For starters, QuickBooks Desktop uses estimates to create a bid or proposal.
Once the project or job is approved, you can start with creating a sales order. This will help you track the materials you need to complete the job.
As the job progress, you can now create an invoice which contains the actual cost of labor and total amount of the materials used for it.
That should do it! By following the proper workflow in recording account receivables in QuickBooks Desktop, you’ll not miss any transactions.
If you’re having difficulty tracking your actual expenses and cost of labor, I’d recommend reaching out to our Technical Support Team. A specialist will be able to further assist you via secured remote access.
Here’s how you can reach them:
Don’t hesitate to leave a comment below if you have follow-up questions about tracking the actual cost of expenses and labor for a job or project. I’m always here to help.
You do not use Invoice to document the contract. That is the Dated Sale. You use Estimate, to list the Scope of Work and your contract or price agreement. This is Nonposting, and you use two sided items here, if you incur these and charge them to the customer. Examples:
Subcontractor services and Noninventory Materials and even Other Charge Type items. Items are linked to your one income account; but each is linked to the appropriate Expense account. Subcontractor service items, such as Electrician and Drywall Hanger are linked to one Subcontractor Expense account; Noninventory items such as Drywall, Plaster, Paint, Floor Stain, etc, are linked to one Job Materials expense account and to sales income. Other Charge item, such as Permit or Mileage, are also linked to expense, and to sales income.
You list the item on the purchase details, such as the Check to pay for the building permit and the Check or Credit Card Charge to buy materials, you job track it as direct for that job. This is Not Billable, if you are working under a Bid Contract. They are Billable, in status, if you are working under a Time & Costs + markup agreement.
When you Invoice, that is the Date of sale. That is Gross Revenue. You would charge a Flat Fee Service Item, if the bid was Fixed. You would use Add Time & Costs, from the top of the invoice, if this is T&C+Markup, to select the Billable entries.
And the Job reporting shows the Gross Revenue and Gross Costs. One never deducts from the other. What you are asking about is Estimates Vs Actuals reports, so that you can see that you Expected to spend $x in Paint, and so far, you spent $y for Paint. The Profitability reporting and the P&L shows the Net = the difference from Gross Revenue and Gross Expense.
Please see my attachment.