How to Invoice Computer Repair Parts and Labour: Callout, Markup, Business Rates

Computer repair invoices that bundle callout, labour, and parts into a single amount get queried. Business clients want to see each component separately for budget reconciliation, and residential clients query lump sums when the total feels higher than expected. The correct approach is three line items: callout fee, labour, and parts at sell price.

The three-line IT repair invoice

Every IT callout invoice should have at minimum:

Callout fee — on-site residential: $95.00.

Labour — 1.5 hrs @ $130/hr: $195.00.

Parts — 1TB Crucial MX500 SSD (replaced failed drive): $145.00.

Total is the sum. Simple for the client to read. Easy to reconcile.

How to mark up parts correctly

Your buy price for a part is not the client price. A 25–40% margin on parts is standard:

• Buy: $80.00
• Sell (30% margin): $104.00

Do not show the buy price on the invoice. Show the sell price and describe the part clearly. If a client asks why the SSD costs $145, you can explain it includes sourcing and handling.

Store parts in SMASH with buy price and markup percentage. When you mention a part in your voice description, SMASH calculates and applies the sell price automatically.

Remote support invoicing

Remote support sessions do not include a callout fee:

Remote support — 45 minutes @ $120/hr = $90.00.

If there were no parts, the invoice has a single line. Send it immediately after the session while the client is still on the call.

Business client invoicing

Business clients often have specific requirements:

• NET 14 or NET 30 payment terms
• PO (purchase order) number reference on the invoice
• Description of the system affected, not just the work done
• Sometimes require your ABN and their ABN on the invoice

Set business client profiles in SMASH with their payment terms. The terms appear on every invoice automatically. For PO numbers, add them to the client notes or the invoice notes field.

MSP recurring invoices

For managed service providers with monthly retainer clients:

Monthly managed services — November retainer, Coastal Legal Pty Ltd = $450.00.

Ad-hoc callout — on-site, 14 Nov, server issue, 2 hours @ $160/hr = $320.00.

Total November invoice: $770.00 + GST.

Two line items: retainer and callout. The client can see what is included in the retainer and what triggered additional charges.

Frequently asked questions:

Can I markup parts on IT repair invoices? Yes. 25–40% on parts is standard. Show the sell price on the invoice, not the buy price.

Should remote support have a callout fee? No. Remote support invoices typically have labour only. No callout fee if there was no travel.

How do I invoice MSP clients? Monthly retainer as a line item plus any ad-hoc callouts in the same billing period. One invoice per billing cycle.

Can I require a PO number from business clients? Yes. Add the PO number to the invoice notes field in SMASH.