An allowance is an allocated amount of dollars that you want to charge your customer for. This can be a product you know you need but aren't sure which model yet (65" 4k TV for $3000) or it can be an amount of products that you don't feel the need to specify, but know you should charge them for ($1000 for blinds in each room). 

To create an allowance, you will go into the catalog, and locate the allowances tab in the navigation. From the allowance tab, click the New Allowance button in the upper right. You can give it a category to associate category rules (like a product), give it a description, and a cost and price. 

You can use calculated allowance to have a calculation based on a variety of factors. You can have it be a percent, fixed amount, or based on the square foot area of the location. You can also base off the total project, the product or labor total, or based on the labor type amount. This gives you flexibility to make the appropriate allowance for the item you are quoting. 

You can also set the allowance based on the length a set or calculated length of the project. You might use this for creating an allowance for wire in the project.

You can also set the labor as taxable so you can make sure the customer pays the tax too.