CNC machine shops, job shops, and independent machinists send invoices for custom parts, prototypes, and short production runs made on mills, lathes, routers, and multi-axis machines. Most invoices bill for setup, programming, machine time, material, outside processing like anodizing or heat treat, and inspection. Customers are usually engineers, product companies, fabricators, and other shops who expect part numbers, revisions, and PO references on every document.
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Invoice_1001_Client_2026-10-14.pdf
Most shops price per part for a quoted quantity, built up from setup time, programming or CAM time, cycle time multiplied by a machine hourly rate, material cost with markup, and any outside services. Setup is usually billed as a one-time charge per job, so unit price drops as quantity rises. Prototype and one-off work is often billed as a flat price per part or by the hour of machine time plus material. Machine rates vary by equipment: a 3-axis mill costs less per hour than a 5-axis machine or a Swiss lathe. Material is normally passed through with a 10-25 percent markup, and outside processing such as plating, anodizing, heat treat, or powder coating is passed through with a handling markup. Add-ons like first article inspection reports, material certifications, and rush fees are listed as separate lines. Repeat customers may get blanket POs with scheduled releases and volume pricing.
| Service | Priced | Typical range |
|---|---|---|
| 3-axis CNC milling machine time | per hour | $60-120 |
| CNC lathe / turning machine time | per hour | $55-100 |
| 4- or 5-axis machining | per hour | $100-175 |
| CAM programming / fixture design | per hour | $65-125 |
| Job setup (fixturing, tool load, first part proof) | per setup | $75-400 |
| Simple prototype part (aluminum, small) | per part | $40-200 |
| First article inspection report (CMM or manual) | per report | $75-300 |
| Rush / expedited fee | percent of job | 25-100% |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Bracket, P/N 4410-B Rev C, 6061-T6 aluminum, machined per drawing | 50 each | $38.00 | $1,900.00 |
| Job setup and fixturing, 2 operations | 2 setup | $150.00 | $300.00 |
| CAM programming | 3 hour | $85.00 | $255.00 |
| Type II clear anodize (outside processing, includes handling) | 50 each | $6.50 | $325.00 |
| First article inspection report with material cert | 1 report | $150.00 | $150.00 |
| Total | $2,930.00 | ||
Notes: PO 78231. Net 30 from invoice date. Material certs and inspection report attached. Parts shipped UPS Ground, tracking 1Z999AA10123456784; freight billed separately. Late balances accrue 1.5% per month.
Accounts payable usually will not pay without a matching PO, and the revision proves which version of the drawing you built to.
Over- and under-runs are common. Billing only for what shipped, with the balance noted, avoids short-pay disputes.
Aerospace, medical, and defense customers need traceability, and cert references let them tie the invoice to the shipment.
Itemizing one-time charges explains why a small run costs more per piece and makes reorders easier to price.
First article reports, CMM time, and certs of conformance are real labor. Listing them keeps them from being treated as free.
Proof of shipment supports your claim for payment, and a separate freight line avoids confusion about who paid carriers.
Rules vary by state. Noting the customer's resale or exemption certificate on file protects you in an audit.
Established commercial customers commonly pay net 30, and larger manufacturers sometimes require net 45 or 60. For new customers, prototype work, and individual buyers, many shops ask for 50 percent down with the balance due before shipment, or full payment up front for small jobs. Material-heavy jobs often require a deposit that covers raw stock and outside processing. Late fees of 1 to 1.5 percent per month are typical if stated on the quote and invoice. Payment is usually by ACH, check, or card, with card payments sometimes carrying a surcharge where allowed. Parts are often held until payment on first orders.
If setup is buried in the unit price, customers expect the same price on a reorder of 10 pieces. A separate setup line keeps quantity pricing honest.
You carry the cost and the risk of scrap, rejected plating, and price swings in aluminum or titanium. A 10-25 percent handling markup is standard and should be shown on your quote.
A PO number and drawing revision in writing prevent disputes when a customer later says the part was wrong. Do not start without them on production work.
Parts sitting on your shelf are not billable on most terms. Invoice the day they ship, and attach certs so the invoice is not held up in receiving.
Revisions to the drawing, new fixtures, or reprogramming after approval should be billed as separate lines at your programming rate.
Usually yes, unless you kept the fixtures and programs and the setup is truly shorter. Many shops charge a reduced repeat setup fee. State the policy on your quote so it is not a surprise.
Generally not when the fault is yours. If scrap comes from bad material supplied by the customer or a drawing error, you can bill for the lost machine time and material, ideally with a written note on the quote that covers this.
Many shops state a tolerance, such as plus or minus 10 percent on production runs, and bill for the quantity actually shipped. Put the tolerance on the quote and the PO acknowledgment.
It depends on the state and the customer. Parts sold for resale or for use in manufacturing are often exempt with a valid certificate, but rules differ. Keep certificates on file and check with your state tax agency or an accountant.
Invoice each release when it ships, referencing the blanket PO number and release number. This keeps cash flowing instead of waiting until the whole order is complete.
Send a CNC Machining estimate for approval, then turn it into an invoice when the work is done.
CNC Machining estimate template