Invoice descriptions

[brmax]

I would appreciate some information on listing and or separating material and labor.
This has come up yesterday in conversation to me with relatives.
How is it in your business setting and is it different or required in say a service task being done.
I am curious with my fabricating a new "anything" cover or if different repairing/recovering a seat. This is primarily a focused conversation in work between a business and my discussion to another Agriculture business.
Its to my recent knowledge an additional new proposed law change in listing labor. As this is being required for deductions as materials and labor differences and any allowance of the two.
This is brief I know, and myself have not yet searched all the posting here in the forum.
So the question is without homework study.
Thanks, have a good lunch
Floyd

[SteveA]

I don't separate out those charges to the end consumer.  I am permitted to deduct some materials costs and I keep track of the expenses for the Acct year end.
Are you needing to post rates for a tariff or something similar ?  The relatives refuse to pay for anything lol
SA

[Mojo]

There have been discussions on this in the past Floyd but they could have been loss along with alot of other threads on this site during a crash.

The discussions centered around  listing material costs and listing them on invoices. I can remember some saying that they do NOT include them because they give customers another point on the invoice to argue about.

I subscribe to this strategy. We never list material costs. Ever. We give a total bill and never separate out labor or materials. 1.) It is less confusing to the customer 2.) There is less to argue over 3.) The customer is typically focused on the total anyways.

We do have a materials worksheet that we include on the production order. We know exactly how much labor and cost of materials goes into every single order. But the customer never sees this. They get a total bill which is separated out for each awning.

I could see and hear it now if everything was itemized. " I can get snaps cheaper at Lowes. I could get that fabric on sale cheaper at Joann's. I found that stuff cheaper on E-Bay. It doesn't take 2 hours to sew that.   ".

We are slammed with orders and barely keeping our head above water and do not have time to argue over thread or fabric costs with customers. Here is the bill....Pay it........ :)

Chris

[brmax]

Thanks guys, I'm picking it up a little at a time, staying ahead is the ticket for sure.

Steve, thanks im curious whats new in the works here, the state pdf's on it wont open.
  To your questions
Ok,  you dont seperate the two to consumers, sounds good.

Some stuff you can and do deduct,   I guess you mean supplies according to a certain number slot on schedule c, Ok I'm picking that up.

No not a tarif,  Just service or labor listing concerns brought up in conversation with typical standard  repairs being done or requested by a Company and or the typical Farming business operation.
They were told some new changes here in the State and like many, States all have their own rules.

Im probably thinking to far into the abiss but was told somethings new, and i suspect why the particular pdf's wont open here in my state concerning this maybe just rate chart changes who knows.

It might be in your answer at the start: "Consumer", just as myself in business supplies or sew machine cover? or some other items. If I'm going to use it to do work of some sort, There are some ways and possibly good opportunity deductions. If not then all taxed as usual.

And I almost forgot yep same here relatives? whaa me pay whaa huh, me Yep!

My recent project were some coverings in Agriculture so the manufacture idea was brought up, as hearing maybe some changes to the listing of.
a brief official description follows
*
Labor used to fabricate a product that will be sold at retail is subject to tax. A fabricator cannot separately state the labor and claim an exemption on that labor as the sale of a non-taxable service.

Service labor provided in conjunction with selling tangible personal property as a part of the service that is not separately stated on the invoice to the customer is subject to tax.  If the labor is separately stated it is not subject to tax.

*
Chris, thanks I looked a bit at lunch, and many good articles, I have read some, and with continued plans.
I agree with your assessment on invoice listing, I should have got closer in my question say biz to biz buying stuff.
So if you or I can get something to use and it be in a deductible slot or as capital investment all the better. Like many of the places we go in to buy from, business to business
Thanks again headed to the archive books ; )
Floyd

[MinUph]

I've run business in Ny and now Florida. I don't separate labor and materials on an invoice and all is sales taxable unless the customer is a church or something non profit, or another company that I have a tax number on file for them. They then collect an pay the sales tax.
  From your description I am taking it as sales tax not income tax. So the above fits the bill.
  If I were to do strictly labor there would be no sales tax liability. If I drive a staple in something or use a piece of thread then the job becomes taxable. So in reality all my work is taxable.

[brmax]

Paul, thank you Sir. yes I did mean sales tax and really curious with most Ag operations.
I have many friends in past working relationships in this business. Both young and way older than us, very sharp in their dealings. Some of if not all the things they buy are in a class for that specific tax "type" as the government declares Agriculture. It as you know has lots of rules and an equal amount of places specific to each part, tractor, storage, etc. as all them policies.
Anyway they aren't non profit but are in a clear separate filing similar in being a producer.
As just another business plus the total separate tax structure. They might very well see labor differently than most, crazy as that sounds, their not afraid to chat about it all actually welcome it.
Appreciate the help
Floyd

[Mojo]

Floyd:

I misread your post. I thought you were talking about itemizing an invoice for customers rather then for tax purposes.

Opp's,

Chris

[brmax]

Not any problem with that Chris I was reading many post in archives to great benefit and many were yours, so thanks. Its tough changing myself I was use to putting all that stuff plus, on invoices in mechanical trade work, and just got use to it from work orders being one write up. And it was promoted because so many parts "the company" had inventory on and so refilling the empty was critical also. Its a crazy scenario in some ways and just opposite the other I found as someone kinda mentioned, customers don't bother or want to bother with that information. I fully understand and easy for myself to write way to much down.
In some others mind as managers they do the relating to customers with that knowledge in their hand so they not only want it but expect it, as the get commission on the work being done out there.
I'm just glad the information is available here for myself and others, maybe I can benefit someone later with a good bit.
here two a pair I been working up, these for some very respectfull owners they like to come out in bitter cold a lot, drink coffee turn a switch and load out a truck or 3 as price warrants, birds make havoc in the enclosure and these will train them to nest elsewhere, because broken parts in bitter cold and trucks waiting is nota good. and it actually is bird re-training when they come back here soon and I know it works. (like I know they fly)
maybe items could be depreciated?

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