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How to Add a Deduction to an Invoice in Thera

If you need to apply a deduction to a contractor’s invoice in Thera, you can do so directly from the invoice details view. Here’s how

Step 1: Navigate to the Contract

  1. Go to Payroll > Team in your Thera account.

  2. Select the contractor whose invoice you need to update.

  3. Open the Contracts tab and select the relevant contract.

Step 2: Locate the Invoice

  1. Inside the contract view, switch to the Approved tab.

  2. Find the invoice you want to edit and click on it to open the Invoice Details view.

Step 3: Add a Deduction

  1. In the invoice details window, locate the Deductions section.

  2. Click Add Deduction.

  3. Enter the deduction details (such as description and amount).

  4. Save your changes.

Thera does not automatically calculate unpaid leave when using manual deductions, so you will need to input the details manually. This method is ideal for quick adjustments or when unpaid time off policies are not in use.

Once saved, the deduction will reflect on the total invoice amount. You can then proceed with payment as usual.

Method 2: Unpaid Time Off Policy

For fixed-rate contractors, you can create an unpaid time off policy to automate deductions based on unpaid leave. Here’s how:

  1. Create an Unpaid Time Off Policy in Thera.

  2. Ensure that "Contractor" is selected under the Add policy for section.

  3. Thera will calculate deductions based on:

    • The contractor’s invoice amount.

    • The number of working days in the pay period.

    • The number of unpaid days submitted and approved.

  4. Record half-days as 0.5 or use custom hours (e.g., 4 hours = 0.5 day).

  5. To keep company holidays paid, do not assign the contractor to a holiday policy. This method is ideal for organizations that want to streamline the process and reduce manual adjustments.### Key Considerations

  • Manual vs. Automated: Choose the method that best fits your organization’s workflow and contractor agreements.

  • Holidays: Company holidays are only deducted if the contractor is assigned to a holiday policy. To ensure holidays remain paid, avoid assigning a holiday policy.

  • System Limitations: While Thera supports unpaid time off policies, manual deductions remain a flexible alternative for unique scenarios.

Need more help?

If you’re having trouble adding a deduction or can’t find the invoice, please reach out to use via the in-app chat at the button right or email our support team at [email protected] and we’ll assist you.

For more information, you can also explore related topics such as setting up contractor payment policies and managing holiday policies for contractors.

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