Yes I would

We're looking at creating a new line 'Item Type' called 'Fees', which is an addition to the current 'Parts' and 'Labor'.

This will allow you to create any custom item you want and assign the new item type. You can then create a custom item for 'Shipping', or any other fees that are not parts or labor, such as 'Permits' or credit card 'Convenience Fees'.

With this approach it's more universal, it will leverage the existing Taxable/Tax Exempt functionality and will appear in the financial summary as a new line alongside Parts and Labor.

It could be nice to have it function with the same options as 'Labor' and just be able to manipulate if it shows line item, rate, qty, total, etc.

Also, I don't charge sales tax on shipping, so there needs to be a way to manipulate that feature since some states may charge sales tax on it.

This is huge and time waste we have to readjust all numbers for our invoice software there should absolutely be category separate to add s&H that shows below and not grouped into parts

Some states charge tax on shipping and others don't, so having this set up properly would help to price things appropriately.

Agreed, need a Shipping line in the Financial Summary instead of having to create an area . It's not a part & or a service so custom items aren't ideal for this.