How do I add a deduction to my invoice? When my customer pays me they also deduct fuel expense from the invoice. How do I reflect this so my reconciliation is clean?

Hi @mariapaschall,

Let’s add a service item for your invoice so we can deduct that fuel expense. 

Here’s how:

1. Select the Gear icon, then choose Products and Services.
2. In the Products and Services window, select New.
3. Select Service.
4. Enter the service information of the fuel expense.
5. Check the option labeled as I sell this product/service to my customers, then choose the correct expense account for that item under the Income account drop-down.
6. Select Save and close. 

You can then add the newly created fuel expense item to your invoice. Make sure to enter the amount in a negative format to track it as a deduction.

Please check this article for more details: How to Create and Use a Products and Services List.

I’m always here to help if you need other assistance. 
 

@mariapaschall 

DO NOT add an item to a saved invoice, the invoice is a final sale.

create a non inventory item for the fuel fee, and link it to the fuel expense account

use that item on a credit memo for the customer, enter the amount and save

use receive payments, select the invoice, apply the CM and receive the balance paid.
Use make deposits to move the funds from undeposited funds to the bank

then if you use banking downloads, you match the download deposit to the QB deposit.

I have a similar problem. I follow your instructions and the negative amount is deducted from the invoiced amount but it also appears under other expenses in the P & L reporting thereby deducting it twice from earnings.

I'm here to help you, @Paulwshort.

If it shows as an expense on your P & L report the reason for that is the incorrect account you use on your item that is associated with your credit memo.

To edit the account associated with the item, here's how:

1. On the left navigation pane, go to the Sales then select Products and services.
2. Under Products and Services look for the item you created the click on Edit.
3. On the Income account Dropdown choose the correct account

To know more about the Products and Services in Quickbooks online, you can watch this video tutorial: How to Set Up Products & Services: Non-inventory, Service Items, & More.

Let me know if you have further questions, feel free to comment below.