A Project billing method is a way in which your project costs will be calculated and invoiced to your clients.
You can choose or change a project billing method on the “Update Project” page.
Note: You will not be able to change the project billing method after the creating an invoice based on this project’s expenses (more details here).
There are four types of billing methods:
- Hourly Task Rate: Amount of logged hours multiplied by task rates
- Hourly Staff Rate: Amount of logged hours multiplied by staff rates
- Hourly Project Rate: Amount of logged hours multiplied by project rate
- Flat Project Amount: Fix price of a project (doesn’t depend on the number of hours logged)
- Task/Staff Day Rate: You charge you client in day rates
Hourly Task Rate
Choose this method and you manage tasks rates in the tasks list as it follows:
By default, it’s the task price which is taken from the Update Task pages (Sales -> Products List -> My Tasks -> “Price” field on the Update Task page). However, you can manually edit it here – just enter a new rate instead of the default one. This project’s price will be calculated as logged hours (by project members) multiplied by related tasks rates. To learn more about “How to invoice the project”, click here.
Hourly Staff Rate
When you choose this method, you will see your project members’ rates in the member’s list:
By default, it’s a rate taken from the “Edit Staff” pages (Contacts -> Staff -> “Rate” field on the “Edit Staff member” page), but you’re free to manually edit it at any time – just enter a new staff rate instead of the default one.
This project’s price will be calculated as logged hours (by project members) multiplied by related members’ rates. Read here more about “How to invoice the project”.
If you want to change the hourly rate, without changing the rate in already tracked time, follow these steps:
The hourly rates affects all hours which are not billed (invoiced). You need to create an invoice that includes all hours that shouldn’t be affected by the new rate. Whether the invoice will be sent immediately or you set a longer due date – it is your decision. The last invoiced (billed hours) is the moment for the rate change.
- All hours already charged keep the old hourly rate.
- All hours not charged will receive the new hourly rate.
- If you delete or cancel an old invoice, the hours will be released again and charged to the current (new) hourly rate.
Hourly Project Rate
This method will allow you to enter one rate for each of the hours logged to this project:
A project’s total price will be calculated as a sum of logged hours (for this specific project) multiplied by the project’s rate.
Flat Project Amount
When choosing this method, you can enter the final price for a project.
In other words, your project’s price no longer depends on the amount of logged hours or on any rates.
You just have the final project price agreed with your client, which will be invoiced to them.
You can still mark hours as billable or non-billable for reporting reasons. Please note that if you create an invoice for a project with flat amount all tracked hours for that project will be marked as billed.
Flat Amount for Tasks
This is similar to Flat Project Amount but you set the flat amount for each task in your project. This amount will not depend on the number of hours logged to tasks. You can still mark hours as billable or non-billable for reporting reasons. Please note that if you create an invoice for a project with flat amount for tasks all tracked hours for that project will be marked as billed.
If you add “total project cost” as budget method, the task “flat amount” will be summed up and will create the total budget automatically:
Staff Day Rate
The “staff day rate” interacts as a full day rate or half day rate. The billing is based on the daily rate of the staff. Find more infos here.
Task Day Rate
This billing method interacts as a full day rate or half day rate. The billing is based on the daily rate of a daily Task summary . Find more infos here.