So if i receive a check for $1500, what formula do I use to track that the first $1000 of that payment covers material, and then the remaining $500 of that payment goes toward my designation for labor?
Just for the record here, there is no single formula for this kind of thing. In Excel there are always several different routes from Point A to Point B, from input to output. So very much depends, in a situation such as you describe, on the bigger context. For example, you are probably in a setting where you have multiple clients, each of whom may be making payments, and payments over time. So how are you tracking those multiple payments from multiple clients against this set of priorities? Do you charge a fee or interest if the payments are spread over time? And so forth.
I've attached a spreadsheet I created to show but one possible way to track such payments. Play around with different payments and see how it does. It was fun creating this, thinking through how it might proceed. Again, though, this is just one possible way. And you'll note that there are several formulas involved. Here's what it looks like with serial payments of $500 each.
It also handles your $1,500 payments.
