What is a Back Charge?
A Back Charge is used when a subcontractor causes damage or makes a mistake. It ensures the subcontractor responsible pays for fixing it.
For example, if a plumber causes a leak that damages the kitchen cabinets, the cabinetry subcontractor fixes the damage and invoices you. Instead of showing this as a loss on your job budget, you create a Back Charge to recover the cost from the plumber.
Create a Back Charge
Navigate to the relevant Job and open the bill that has been Approved for payment. Click 
in the top right corner to create.
⚠️The bill must be approved before you can create a back charge.
In the Back Charge screen, choose the subcontractor or supplier you’re issuing it to. Tick the option to email them a copy if needed, and then enter the reason for the back charge.
Use the drop-down menu to select the bill items you want to back charge. Enter the quantity and unit price to calculate the total amount. When you're ready, click
. This creates a credit against the selected items in both the Job budget and Xero, and, if selected, sends the invoice directly to the subcontractor.