This is where you create additional Pricing Levels and Billing/Labour charge out Rates to be used on Jobs.
To set up Pricing Levels & Billing Rates, click on Settings > Pricing Levels & Billing Rates.
Numerous Pricing Levels can be created which can then be allocated individually to each customer record. This then determines the selling price of materials and labour charged on a Job.
While the Pricing Level defaults from the customer record, it can be changed on each Job.
Each Pricing level added allows another selling price to be set against each price list item. Simply by changing the Pricing Level on the Job the price of Items entered on a Job, invoice or quote is changed accordingly. So if you wanted to offer certain customers better prices than others, you can do so by using Pricing Levels.
When creating a customer in Tradify, you choose a Pricing Level to use when creating jobs, invoices or quotes for this customer. NOTE: The Pricing Level can be changed on an individual job, quote and invoices if needed.
Tradify is setup with a Default Pricing Level called Standard. If you want to use the same prices for all customers, there is no need to create additional Pricing Levels.
Pricing Level Settings
Default Pricing Level – the pricing level that is assigned to new customer records by default.
Adding a new Pricing Level
1. Click on "New Pricing Level" button.
2. Enter a description for the Pricing Level in the Display Name field.
3. Enter the Markup percentage to be used when calculating selling prices on price list items that are using the pricing method, "Calculate prices using purchase cost + markup". You can find out more about pricing methods here.
4. Click "Save".
Billing Rates are used to charge time at different hourly rates based on the type of work done.
For example, you might choose to charge out an apprentice at a lower rate than a tradesman. To achieve this in Tradify you can set up two Billing Rates. One for your apprentices at $30.00 per hour and another for your tradesman at $50.00 per hour.
When setting up a Staff Member in Tradify, you set a Default Billing Rate that is applied by default to time entered on a Job for the staff member.
However, Staff Members can choose to use a different Billing Rate when entering time on a Job if required.
Billing Rate Settings
Default Billing Rate – the default billing rate assigned to new staff member records.
Adding a new Billing Rate
1 - Click on New Billing Rate.
2 - Display Name - Enter a name for the Billing/Labour Rate. This appears on the lines of an invoice or quote screen under the Item Code.
3 - Description - Enter a description for this Billing/Labour Rate. This appears on the lines of an invoice or quote screen under the Description. NOTE: If you have selected to use the Timesheet Notes as the Line Item Description under Settings > Invoice Quote & Purchase Settings, then the Timesheet Note will appear on the invoice or Quote lines instead.
4. Hourly Cost - Enter the cost per hour for the Billing/Labour Rate. NOTE: This Hourly Cost is only used on Quotes since the Actual Cost is derived from the Staff Member record. We recommend entering either an average hourly cost or the maximum cost of what you pay staff per hour so that the Quote profit will display correctly. This Hourly Cost is also used to calculate the estimated labour cost on the job financial report and is NOT visible to anyone without Office or Admin access.
5 - Tax Rate - Select the tax rate to use when invoicing this Billing/Labour Rate, if it is different to the default that applies. Click here to find out more about tax rates.
6 - Account Code - (Optional) Enter the Account Code to post the labour revenue to in your Accounting System if it is different to the default set under Settings > Accounting System.
7 - Billing Rounding - (Optional) You have the option to set the rounding interval to use when invoicing the time entries where the Billing Rate is used. NOTE: The rounding applies to the sum total of the uninvoiced time entered on a Job, when producing a Time & Materials based Invoice. e.g. 2hrs 5mins will round to 2hrs 15mins if 15 minutes Rounding is selected.
8 - Billing Minimum - (Optional) You have the option to set the minimum time to use when invoicing the time entries entered on a Job where the Billing Rate is used. NOTE: The Billing Minimum only applies, when producing a Time & Materials based Invoice, if the sum total of the uninvoiced time entered on a Job, where this Billing Rate is used does not exceed the Billing Minimum selected. e.g. total uninvoiced time with the Billing Rate = 20mins will become 30mins if 30 minutes Billing Minimum is selected.
9 - Hourly Rate - Enter the Hourly Rate to be charged out to the customer for time entered on a Job using the Billing/Labour Rate
10 - Click "Save" to complete the process.
There are two other options that can be selected:
- Let me enter the price later - Select this option if you wish to zero the Hour Charge Out Rate so this can be entered at the point of invoicing.
- Amounts include tax - Select this option is the Hourly Charge Out Rate is inclusive of GST.