how do I track non billable items and labor by item on my invoice

Hi there, @junnabug.

I've got a couple of alternatives to track non-billable items and labor by item on your invoice in QuickBooks Online.

First, we create a non-inventory item. I'll show you how: 

1. Go to the Sales menu, then click Product and Service.
2. From there, tick New and choose Non-Inventory.
3. Fill in the details needed.
4. On the Income account, you can select an Expense account.
5. Once done, hit Save and close.

Then, go to the Account and Settings from the Gear icon. From the Time section, turn on the Show Service field, Allow time to be billable, and tick Show billing rate to users entering time.
 

From there, enter a single-time activity timesheet. Once done, you can create an invoice with the non-billable item and billable time entered.

Also, please know that it isn't possible to post the proper expenses against the correct item, on the invoice to see them by line item on what is spent and what is left to spend. It's because the invoice is for sales and is used to track items purchased by their customer. As a workaround, you can utilize the Memo field on your invoice to fill in those details.

You can also pull up a Product/Item Profitability by Customer to track the transactions. You can learn more insights about pulling up reports by checking out this article: Run reports in QuickBooks Online.

Also, here's a handy resource to help you if you want to record billable expenses in the future: Enter billable expenses.

Please let me know if you have further questions about your sales transactions. Please let me know. I'd be delighted to work with you again. Keep safe.