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Billing Rates

Billing Rates are used to charge time at different hourly rates based on the type of work being completed. 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 apprentice and another for your tradesman.

 

Contents:

Adding a new Billing Rate

Setting your Default Billing Rate

 

 

Adding a new Billing Rate

Click on Settings > Billing Rates > New Billing Rate​.

 

Note: The following fields displayed in the screenshot below are mandatory: Display Name, Description, Hourly Cost, Hourly Rate (associated to your pricing levels). If these fields are left blank, you won't be able to save the Billing Rate. The only exception to this is if you set your pricing method to "Let me enter the price later" - in doing so will allow you to save without entering an Hourly Rate to your relevant pricing levels.

 

 

The following breakdown explains the purpose of each field:

Display Name - Enter a name for the Billing Rate.This appears on an invoice or quote under the relevant line item Item Code.

Description - Enter a description for the Billing Rate. This appears on an invoice or quote under the relevant line item Description.

Note: If you've selected to use the Timesheet Notes as the Line Item Description (under Settings > Invoice) then the Timesheet Note will appear as the line item description on the invoice and/or quote.

Estimated Hourly Cost - Enter the cost per hour for the Billing/Labour Rate.
Important Note: The billing rate Hourly Cost is only used on Quotes. When invoicing timesheets and scheduled appointments, the Hourly 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.

Tax Rate - Select the tax rate that applies to this billing rate. If left blank, Tradify will assign the default tax rate. For more details on tax rates, click here. 

Account Code - Select the account code that applies to this billing rate. If left blank, Tradify will assign the account code which has been assigned to "Sales of Labour" within your accounting integration settings. 

Note: If you're not integrated with an accounting system, please leave blank.

Billing Rounding - This gives you the ability to set a rounding interval for your billing rate. For example, if you set your rounding to 60mins, Tradify will always round timesheet entries to the nearest hour when calculate Job charge out rates.

Billing Minimum - This gives you the ability to set a billing minimum.

Note: The billing minimum is only applied once to each billing rate on a Job. For example, if your billing minimum is 1 hour, but your combined labour on the Job equals more than 1 hour, then the billing minimum becomes invalid (as it's already over 1 hour). 

Hourly Rate - Enter the Hourly Rate to be charged out to the customer for time entered on a Job using the billing rate.

Other Options:

  1. 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.  
  2. Amounts include tax -  Select this option if the Hourly Charge Out Rate is inclusive of GST.
  3. Archive this Billing Rate - Select this option to remove the billing rate for use/view.

 

Once you've added all the necessary details, click "Save" to create your new billing rate.

Screen_Shot_2018-09-27_at_9.06.04_AM.png 

 

 

Setting your default Billing Rate

The Default Billing Rate will be assigned to new Staff Member records as the default. This will then be used as the default billing rate when timesheet entries are created for the individual staff member.

To change the default Billing Rate click on Settings > Billing Rate> click the drop down under Default Billing Rate.

Billing_Rate.png

 

 

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