Invoicing Customer Job using class

FMW · ‎October 13, 2021

Good afternoon,

I'm not sure how to enter customer job information for billing and reporting. Here is the situation:

1. We manufacture asphalt materials.

2. We contracted with customer (CONTRACTOR); we are their Vendor in this case

3. Job is a lump sum ($200,000), includes all labor and material) I am invoicing Contractor for this amount.

4. We subcontracted the the work to our vendor--will call our vendor VENDOR Co.

I've created a customer job for CONTRACTOR, named Contractor Job 1.

So, I need to set up a class, first of all.

The vendor is going to bill us for $50,000.00, as agreed.

The materials used are already in our COGS.

I'm invoicing CONTRACTOR-Job 1 for the lump sum of $200K.

I'm getting a vendor bill for $50K that I need to pay..

The materials that the vendor picked up from us (but reminder: already included in the Contractor's lump sum amount).

I need to account for the materials (tonnage) without it doubling what we already have in COGS.

Also need to input the additonal G/L insurance cost required of us.

What I am trying to do is enter information so that I can run reports to see the cost of the job and the profit (or loss) we incurred.

Do I set up an offset account?

All new to me.

Please help.

Thank you,

QBDT Premier 2019

RCV · ‎October 13, 2021

Thank you for posting here in the Community. I'm here to help record the transactions in QuickBooks Desktop (QBDT).

The scenario you have provided is a two-sided item. Where we can write a check or create a bill and link the correct invoice to that check or bill so your vendor can easily see which invoices you are paying them for. Just edit your Service item and on the left side, put a checkmark on that box. Then, link the left side to Subcontractor Expense and the right side is Income. Then press Save and Close. For more details about this one, you can refer to the recommended steps provided by qbteachmt in this link: https://quickbooks.intuit.com/learn-support/en-us/payments/re-paying-a-vendor-from-a-customer-paid-i....

To track account balances using different classes in QuickBooks Desktop, see the Set up and use class tracking in QuickBooks Desktop article or the steps and details. Then, follow the steps in the Tracking job costs in QuickBooks Desktop article to make sure that you have an accurate record of your job costs. Once done, utilize Job Reports to identify which job is profitable and which is not. It will help you create better estimates, analyze how well each job is progressing financially, and identify problem jobs before it's too late to be saved.

To access various job reports:

Go to the Reports menu.
Select Jobs, Time, & Mileage.

On the other hand, QuickBooks Premier Contractor Edition and Accountant Edition offer a wider range of job costing reports, you can find them here:

Go to the Reports menu.
Select Industry Specific, then select Contractor Reports.

For additional G/L insurance required by your company, I'd suggest consulting your accountant about another option. They can also provide you with detailed information on how to handle invoicing customer jobs using class.

Feel free to visit our Sales and customers page for more insights about managing your company's income and customers.

I want to make sure everything is taken care of for you, please let me know how it goes or if you have any other issues or concerns. Just leave a comment below and I'll get back to you. You have a good one.

FMW · ‎October 13, 2021

Thanks for reply. It was helpful. However, the main question remains:

How would I enter the materials (tons of asphalt) used by Vendor and used at the CONTRACTORs job site?

I have dozens of non-inventory items, do I need to set up duplicates and use "this is a service item?"

JessT · ‎October 13, 2021

Hi FMW!

I'm glad you got help from my colleague, @RCV. Let me take care of your concern about the materials and other items, but I'll also clarify the record for VENDOR Co.

Since you're providing the construction materials, I assume the $50k is just payment for VENDOR Co's services. Therefore, you can write them a check and make it billable to Contractor Job 1, as shown below.

About your clarifying question, you won't need to duplicate the materials used on the construction site. You'll only need to add them to the customer's invoice, including the insurance, labor cost, and the billable service performed by VENDOR Co. Everything should sum up to $200,000 like what you've agreed. You can refer to the sample invoice below.

After recording your transactions, you can run the Profit and Loss by Job or Profit and Loss by Class.

Finally, if you want to see some references for QuickBooks Desktop, just press F1 to launch the Help window and search for the topics you like, or go to the main support page and click +More topics.

We're always available should you need more help with recording transactions in your manufacturing business. Take care always!

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Invoicing Customer Job using class