Methods for Calculating Billing Amounts
The Billing application provides numerous ways to calculate billing amounts to accommodate different contractual arrangements. You can select from multiple methods for billing fees, labor, and different types of expenses. You can also apply limits above which a component will not be billed.
You can apply these settings in the following ways:
- At the project level for a project with or without phases or tasks
- At the phase level for a project with or without tasks
- At the task level
- To a group of projects related through billing groups
This table describes some key settings:
| Setting | Description | Tab on Billing Terms Form |
|---|---|---|
| Fee Method | Establish how the fee is calculated, whether the fee is based on percent complete billing or a fixed fee, and whether you are billing by billing phase or as a lump sum. | Fees tab |
| Labor Method | Establish how employee labor billings are calculated. For example, you can bill at a labor rate times a multiplier, or by using a labor rate table. | Labor tab |
| Consultant Method | Establish how reimbursable consultant expenses are billed, with or without markups, either by account, vendor, user-defined categories, or combined with other reimbursable expenses. | Expenses/Units tab |
| UnitExpense Method | Establish whetherunit expenses are billed. | Expenses/Units tab |
| Add-On Fees | Apply a markup to any combination of fees, labor, consultant, reimbursable, unit, or add-on fee amounts. | Add-Ons tab |
| Retainage | Hold a portion of the invoice for billing at a later date. | Misc tab |
| Invoice Override Accounts | Override the revenue accounts specified on the Accounts tab in Billing Settings. | Misc tab |
| Billing Limits | Set not-to-exceed amounts (upset limits) for labor, consultant, reimbursable, units, and/or add-on fee billings, either individually or in aggregate. | Misc tab |
| Interest Terms | Use this method to apply interest on overdue amounts. | AR & BTD tab |
| Tax Billing | Use this method to apply up to three predefined sales taxes (from an unlimited list) to the invoice total. | Misc tab |
| Scheduled Billing | Use this method to establish milestone dates that, when reached, trigger the automatic generation of an invoice. | Fees tab |