You can bill the Time and Expenses spent on a project.
For every project you can decide if the project will be billed as a fixed price, or on an Hourly basis.
You can choose the Billing Model as a project setting to be either Fixed price or Hourly based.
Fixed Price
In a Fixed Price billing model, the tasks you undertake and bill for are for a fixed pre-defined price. When you opt for this model, the ‘billable’ option for expenses and time entries in the project is not checked, by default.
To see the value of Fixed Price, click on the Advanced tab on project.
As an example, you may decide to paint a wall for a fixed price of say 20k, so the billing is fixed irrespective of the number of hours spent on it.
Hourly
In an Hourly billing model, the billing is based on the number of hours spent. When you opt for this model, the ‘billable’ option for expenses and time entries in the project is checked, by default. The applicable billing rate depends on the company level setting and can either be User based or Time code based.
When the time or expense is approved, billable amount is automatically updated for a task. Billable amounts of individual tasks are rolled up to the summary task and eventually to the project level.
| Code Block |
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Amount (Act, Billable) of project = Amount (Act, Billable) of all topsmost task.
Amount (Act, Billable) of task = Hours (Act, Billable) + Approved expenses marked as billable. |
User based
When the billing is user based, you can define a per user per hour bill rate that can include regular and overtime. Billing amounts are computed based on the number of hours of approved time and the user's bill rate.
As an example, for the wall painting project, when you decide to opt for the hourly user based billing model, for each of your resource you can decide a billing rate and arrive at the billable amount of this task.
User Billing Rates
If the Company billing model is User based, these user bill rates are used to calculate the Estimated Billing and Actual Billing of tasks. You can specify either a Regular rate or an Overtime rate. Rates defined at a company level can be overridden at a project level.
When you change the User Bill rate
• Estimated Billing is recomputed for all projects that are Not Archived and for tasks which are not 100% complete.
• New rate is applied to all time entries that are in "Saved" state after they are submitted for approval.
• Those in "Pending approval", "Approved" or "Invoiced" continue to show the old rate. The manager can edit the time entry to change that rate if required
• Actual Billing remains the same
Time code based
You can define time codes that represent a service or activity performed on a task. Billing amounts are computed based on the number of hours of approved time and the time code's bill rate.The rates are defined at the Company level and can be overridden at every project level. Only time-entries and expenses marked as 'Billable' when approving are accounted towards the task or project's Bill Amount.
As an example, for the wall painting project, when you decide to opt for the hourly time code based billing model, you decide on a price for this service and arrive at a billable amount.
Once you mark a Project time code as Non-Project time code, you CANNOT convert it back to a project code.
• Editing a Time Code
Name – If you edit the name of the time code, all time entries (new and existing) will reflect the new name.
• Costable – If you mark the time code as costable, all new time entries will reflect it, but the old ones will not.
• Deleting a Time Code – All time entries in "saved" and "rejected" states will be cleared of that time code and moved to the 'Default' time code
Time code Billing Rates
If the company billing model is Time-code based, the bill amounts are computed from the rates defined against the Time codes. You can specify either a Regular rate or an Overtime rate. Rates defined at a company level can be overridden at the project level.
When the rate on a Time code is changed, it is applied to all new and saved time entries. Any time entries that are in pending approval, approved, or invoiced are not changed.
Once you mark a Project time code as Non-Project time code, you CANNOT convert it back to a project code.