Different invoicing rates for multiple clients based one one subcontractor rate

Hi jmfc -

I would use QuickBooks' Customer Price Level to achieve your desired result.

Step 1. Make sure Price Levels are enabled at Edit>Preferences>Sales & Customers>Company Preferences - check the checkbox at the top of the right side of the page.

Step 2. Set up the Service Item you will use to purchase services from the subcontractor. Be sure to check the checkbox in the middle of the page that says "This service is...performed by a subcontractor..." Then, set the Sales Price at the maximum you intend to charge for the service - say $30.

Step 3. Set up 2 or more Price Levels. Price Levels can be set up at Lists>Price Level List. Let's name this Price Level "$20 per Hour". Choose the Service Item created in Step 2 above, then make entries in the "Adjust Price" fields to reduce the Standard Price by 33.33%. You will then use this Price Level in creating Invoices for your Customer B. (You may have to use the "Rounding" feature to get to the exact amount you desire.)

Create another Price Level. Let's name this one "$15 per Hour". Use the "Adjust Price" to reduce the Standard Price by 50%. You will then use this Price Level in creating invoices for your Customer A.

Create as many additional Price Levels as you may need for this particular Service Item.

Step 4. On the Customer Record for Customer B, under the "Additional Info" tab, select the "$20 per Hour" Price Level in the Price Level field.

On the Customer Record for Customer A, under the "Additional Info" tab, select the "$15 per Hour" Price Level in the Price Level field.

If you are going to use Price Levels for two or more of your Items, you will need to be aware that you can specify only one Price Level for each Customer. However, if you use generic naming for your Price Levels (Say Price Level I, Price Level II, Price Level III, etc.), you may create a Price Level I for each Item, a Price Level II for each Item, a Price Level III for each Item, and so on. Then Customer A might use Price Level I, and that Price Level would apply to every Item for which a Price Level I has been defined.

I believe you will find that following these steps will now allow you to create invoices which charge Customer A $15 per hour, Customer B $20 per hour and pay your subcontractor $10 per hour, all using the same Service Item.

If you need clarification or further expanation, you can respond here or through my web site, and we can continue from there.

I am a QuickBooks Advanced ProAdvisor and a QuickBooks Enterprise ProAdvisor, with years of experience in Construction/Contract accounting.

Curt Trahan