I noticed when I ran Profit and Loss Report that my Job Materials is not accurate, it is showing them as a true expense when I have manually entered them in bank register from purchases at stores for our customers jobs. However, on the invoices billed it's showing -$ (I'm completely at a loss to why its deducting it from 'materials expense'. I wanted to simply see the entire expenses added up for me. (now I have to manually add them up until I can fix this for 2019 at least)
When I created the product list items, I did check it as non-inventory AND clicked on 'job materials-expense' under the 'income account'.
What I thought would happen was when creating an invoice to bill customer, I just click on the product list items which usually consists of "labor income" and then charge the customer the "expense". Obviously I'm not doing something correct, but have no idea how to correct and what I'm supposed to do. This is just ONE of my problems, definitely have other accounting mess-ups for tracking. That's all I use this software for tracking and being able to invoice customers.
Help pleeeease :)
Invoices are transactions which bring income to your business. This is the reason why your invoices billed to customer's job shows a negative (-) amount and records to your accounts receivable. Even if you recorded it as an expense.
Instead of creating an invoice, create an expense which will add up to the total expenses for your customer's job.
Also, if you can give me more details about this will be much appreciated.
Please let me know by leaving a comment below and if you have any other concerns. I'll be glad to help.
So how do I bill a customer for a specific job performed then if I don't create an invoice?
I need labor (which is income) + all the materials (which is expenses) to show up on invoice.
Now I'm confused.
We are in construction and get work orders from one of our customers so we must bill them separately for each job performed. Isn't there one simple step?
Thanks for the quick response, @JenPDX.
I’m here to clarify why the job materials are showing as expenses in the Profit and Loss report.
This can happen when the category used to track the Expense account is sale. You’ll have to open the item’s setup to check if this is the case.
However, if account used is correct, I suggest sending us a screenshot of the report. This way, we'll have a better picture of what happened.
In regard to charging your customers, you still have to create an invoice to record the sale. To help manage your business, click on the topic found in this article: Income and expenses.
Keep me posted on how things go once you've tried the steps. I'd be waiting for your response. Wishing you the best.
@Rasa-LilaMI'm just now revisiting this issue, thanks for your direction. I did follow it, but feel I am missing something. I do have job materials in expense, however I do have labor under "service" and it is listed under 'income'.
I did attach my screenshots, maybe it will help you to see what i'm doing wrong.
Thx and I will review the link you sent as well.
Hello there, @JenPDX.
Thank you for coming back and providing more details. Allow me to chime in and share more insights.
When creating an invoice, only the income will show but not the expense. It's only on the Transaction Report that the expense and income both show.
If you want to bill your customers for the labor and materials expenses, you need create billable expenses and add the name of the customer.
To have a better view on how your business is doing, you can run the Profit and Loss report. It summarizes your income and expenses in a set date period.
Let me know if you have other follow-up questions, JenPDX. I'm still here to help you further. Have a good one!