A labor and materials invoice lists labor as hours × the agreed hourly rate, and materials as quantity × the customer unit price. Add applicable taxes and other agreed charges separately, then deduct payments actually received to show the balance due. Use separate labor lines when tasks or rates differ.
Give each charge a reference the customer can check
- Your business and customer details, invoice number, issue date and payment due date.
- Job location, service dates and the estimate or work-order reference.
- Labor descriptions, billable hours and the agreed rate for each category.
- Parts or materials, quantities, units and the price charged to the customer.
- Approved travel, equipment rental or subcontracted work, where separately billable.
- Subtotal, applicable tax, any agreed discount, received payments and balance due.
- Payment instructions and relevant supporting records.
Keep daily time entries and delivery records as supporting documents when the invoice would otherwise become difficult to read. A work order records the job instruction; the invoice requests payment for the billable work.
A $400 service job, with $300 left to pay
In this illustrative USD invoice, the customer agreed to the hourly rate and the following material prices. The work was completed and a $100 deposit had already been received.
| Description | Quantity | Rate / unit price | Amount |
|---|---|---|---|
| Replace valves and test connections — labor | 3.5 hours | $80.00 | $280.00 |
| Replacement valves | 2 each | $45.00 | $90.00 |
| Connectors | 4 each | $7.50 | $30.00 |
| Subtotal before tax | $400.00 | ||
| Deposit received | $100.00 | ||
| Balance before any applicable tax | $300.00 | ||
This example leaves tax outside the calculation. For a real transaction, apply the required treatment to the relevant lines and show the final tax-inclusive balance. Do not deduct a promised deposit until you have actually received it.
Enter decimal hours and the selling price
Three hours and thirty minutes is 3.5 hours, not 3.30. At $80 per hour, entering 3.30 would charge $264 instead of $280. Use the timesheet calculator to total recorded time, and explain any agreed minimum call-out or rounding rule.
The material price on the invoice is what the customer pays. If a valve costs you $36 and the agreed selling price is $45, enter $45. Do not add the same margin again elsewhere. When billing at cost plus an agreed markup, make that method clear and retain purchase records. An employee's wage is similarly different from the customer labor rate.
For several workers, make clear whether the hours are total person-hours. Two people working three hours is six person-hours. Different hourly rates need separate lines. See invoicing for hours worked for more detail.
Confirm changes before adding them to the bill
A signed time sheet can confirm attendance or recorded hours without confirming every price or additional task. Check what the customer actually approved. For unexpected materials, extra visits or work beyond the original scope, record the change, its pricing basis and approval date.
Link the final invoice to that approved version. On a fixed-price job, the agreed price remains the billing basis unless a change is approved; a time-and-materials table should not silently replace the contract price.
Use the online invoice editor for the finished document
- Add business and customer details, a unique invoice number and service reference.
- Enter labor and materials on separate lines, putting “hours”, “each” or another unit in the description.
- Check quantities, customer prices and the required tax treatment.
- Add the actual amount paid, payment instructions and a note identifying approved changes.
- Preview the totals and export the PDF for the customer.
Common questions
Can I combine labor and materials on one invoice?
Yes. Use separate lines and units so the customer can distinguish hours from parts. Separate invoices are useful only when the agreement or billing process calls for them.
Is a time-and-materials invoice the same as an estimate?
An estimate describes expected work and cost before completion. The invoice charges for billable work and materials under the agreement. Keep the estimate reference and explain approved differences.
Reference
Invoice Maker: labor and materials invoice template, checked October 5, 2026. The calculation above is an illustrative example, not a published trade price.