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Separate service fees from supplier charges and collections

Describe service fees clearly, retain supplier bill references, and review the customer balance separately from job profit.

A service business may charge an arrangement fee alongside supplier services. Describe what the client agreed to pay and keep supplier costs separately identified. Review collections against that client charge; do not treat an incoming payment as a new fee. Formal accounting treatment of pass-through amounts depends on the arrangement.

Create invoice

Create a free PDF invoice without an account. In the accounting workspace, Pro includes Daytime, customer records and managed invoices; Business adds costs, payment records and profit reports. Compare workspace plans. For the standalone generator, see invoice plans and availability.

What to record and review

  1. Describe the agreed fee and included supplier services.
  2. Keep supplier bill references separate from client charges.
  3. Apply customer payments to their outstanding balance.
  4. Review direct costs and clarify any overhead excluded from profit.

Worked example

An illustrative job records a USD 300 service fee and USD 900 of supplier services in a USD 1,200 client charge. With USD 900 direct costs, the result is USD 300 before overhead. A USD 500 collection leaves USD 700 outstanding.

Illustrative figures, not a quote or an industry benchmark.

Does collecting a service fee payment change the job's margin?

Collection settles the client's outstanding balance. Calculate the operating result from recorded revenue and costs, and use the payment history to check what remains owed.

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