Work Order Form
Create work orders with labor and parts line items that total automatically, including tax.
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Scope and reference context
Keep original invoices, receipts and approvals. A worksheet records your assumptions and entries; it does not verify delivery, collect payment, enforce a contract or synchronize inventory.
Primary reading context, not an endorsement or evidence that the linked organization reviewed this tool. No independent professional sign-off is claimed.
About the Work Order Form
A work order is the document that turns a service job into a billable, trackable record. For trades like HVAC, plumbing, electrical, and appliance repair, it captures who the customer is, what the job entailed, and how the charge breaks down between labor and parts. Getting that split right matters because labor and materials are often taxed and marked up differently, and customers expect to see exactly what they are paying for.
This form records the customer and job description, then two separate line-item tables: labor priced by hours and rate, and parts priced by quantity and unit price. It totals each section, applies a tax rate to the parts only, and produces a grand total. Because labor is frequently not subject to sales tax while tangible parts are, taxing the parts subtotal alone keeps the invoice compliant in most jurisdictions.
How the Work Order Form works
Each labor line's total is hours multiplied by rate, and the labor subtotal is the sum of those lines. Each parts line's total is quantity multiplied by unit price, and the parts subtotal is the sum of those. Tax is calculated only on the parts subtotal: parts total multiplied by the tax percentage divided by 100. Labor is left untaxed.
The grand total is labor subtotal plus parts subtotal plus tax on parts. This structure reflects a common rule in many U.S. states, where charges for repair labor are exempt from sales tax but the materials installed are taxable. If your jurisdiction taxes labor too, or exempts parts, you would need to adjust the rate or move charges between the two tables to model it correctly.
Worked example
The default work order is for Acme Corp, an HVAC system maintenance and repair job. Labor has three lines: a diagnostic inspection at 1.5 hours times $95 ($142.50), a compressor repair at 3 hours times $110 ($330.00), and system testing at 1 hour times $95 ($95.00), for a labor total of $567.50. Parts list a capacitor (2 at $18.50 = $37.00), refrigerant (4 lb at $22.00 = $88.00), and an air filter (1 at $14.99 = $14.99), a parts total of $139.99.
Tax applies only to parts at the default 8 percent: $139.99 times 0.08 is about $11.20. The grand total is labor $567.50 plus parts $139.99 plus tax $11.20, which comes to roughly $718.69. Notice the labor $567.50 carries no tax, so the entire $11.20 tax derives from the $139.99 in materials.
Tips & common mistakes
- Keep labor and parts in their own tables; the tax applies to parts only, so mixing a materials charge into the labor list would wrongly escape tax.
- Enter labor time in decimal hours (1.5 for ninety minutes, 0.75 for forty-five) so hours times rate lands on the right amount.
- Confirm your state's rule before trusting the default; some states tax repair labor, in which case you must adjust the setup since this form taxes parts alone.
- Price parts at your billed unit price including any markup, not raw cost, since the tax and customer total are built from these figures.
- Use a clear job description; it is the record that justifies the labor hours if a customer questions the invoice later.
Work Order Form: frequently asked questions
Why is tax only applied to parts and not labor?
The form follows a widespread U.S. rule where installed materials are taxable but repair labor is exempt. Tax equals the parts subtotal times the rate, and labor is added to the grand total untaxed. In the sample, only the $139.99 in parts is taxed.
How is the grand total built up?
It is labor total plus parts total plus tax on parts. With $567.50 labor, $139.99 parts, and about $11.20 tax at 8 percent, the grand total is roughly $718.69. Labor contributes to the total but never to the tax.
How do I enter labor hours?
Use decimal hours: ninety minutes is 1.5, forty-five minutes is 0.75, and a quarter hour is 0.25. Each labor line multiplies hours by the rate, so a 1.5-hour diagnostic at $95 becomes $142.50.
What if my state taxes labor too?
This form taxes only the parts subtotal, so you cannot tax labor directly. As a workaround, either raise the tax rate to approximate a blended figure or list a taxable service charge in the parts table, and check local rules to stay compliant.
Should parts prices include my markup?
Yes. Enter the price you actually bill the customer per unit, markup included. The parts total, the tax, and the grand total all flow from these figures, so using raw cost would undercharge the job and understate the tax.