Time and materials
Bill approved hours at their rate, with an estimate or a not-to-exceed amount, and gather them into one invoice line per role.
3 min readUpdated
A Time and materials scope line bills every approved hour logged to it as billable. Each entry is one billable item: its minutes at its rate, rounded to the cent once. An hour and twenty minutes at $185.00 is $246.67. It's ready to bill the day it's approved.
Which rate applies
- The scope line's own Rate per hour, when it has one: one rate for everyone on the line.
- Otherwise the rate negotiated for the person's billing role on the client's engagement.
- Otherwise the rate card as it stood on the day of the work.
If none of these gives a rate, the entry can't be approved, and Approvals says what's missing.
An estimate, or not to exceed
The line's amount is an estimate unless Not to exceed the amount is on. With it on, what's already invoiced counts first, then what's waiting, oldest first. An entry that would take billing past the amount is held whole, and says by how much. A change order that raises the amount releases it.
When some room is left under the amount, an entry held this way can still be billed for what fits: open its menu and choose Bill the amount left under the cap. The rest of that entry is recorded as written down.
On the invoice
When you prepare an invoice, time is gathered into one line per role and rate for each scope line, such as “Design support: Designer, 12.5 h at $165.00”. Turn that off to list every entry. Either way, each line is the sum of the entries behind it, to the cent.
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Related
- Campaigns for agenciesLog time and have it approvedLog the hours you worked on a campaign, submit them, and have someone else approve them so they can be billed.
- Campaigns for agenciesBilling roles, hourly rates and staff costSet what an hour of each role bills at, give each person a billing role and a cost rate, and see what staff time costs a campaign.
- Campaigns for agenciesBillable items and preparing an invoiceEvery installment, retainer period, cost and media line is an item first. Invoices are made from the items that are ready.
- Campaigns for agenciesChange orders, closing a campaign, and engagementsChange an approved scope with a second approval, and the client's. Close a campaign once it's billed. Group campaigns under engagements you can renew.
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