Project Billing

Project billing manages client invoicing, revenue recognition, and financial tracking for project-based work. This guide covers billing methods, invoicing, and revenue management.

Overview

Project billing enables you to:

• Invoice clients for project work
• Manage multiple billing methods
• Track billable and non-billable time
• Recognize revenue appropriately
• Handle retainers and advances
• Generate billing reports

Accessing Billing

Navigate to Projects → [Project] → Billing or Projects → Billing for overview.

Understanding Project Billing

Billing Methods

Method	Description	Best For
Fixed Price	Set total, billed at milestones	Well-defined scope
Time & Materials	Hourly rates + expenses	Variable scope
Retainer	Monthly recurring fee	Ongoing services
Cost Plus	Actual cost + markup	Cost recovery
Milestone	Payment at deliverables	Phased projects
Progress	% completion billing	Long projects

Billing Cycle

Work Performed → Time/Expense Logged → Approved →
Invoice Generated → Sent to Client → Payment Received

Billable vs Non-Billable

Type	Description	Examples
Billable	Charged to client	Client work, deliverables
Non-Billable	Internal cost	Admin, training, rework
Write-Off	Waived charges	Goodwill, errors

Setting Up Billing

Project Billing Configuration

1. Open project
2. Go to Billing tab
3. Configure:

Setting	Options
Billing Method	Fixed/T&M/Retainer
Billing Rate	Hourly/daily rate
Invoice Frequency	Monthly/milestone
Payment Terms	Net 30/60/etc.
Revenue Account	GL account

4. Set up rate cards
5. Configure approval workflow

Rate Cards

Define billing rates:

Role	Standard Rate	Client Rate
Project Manager	$150/hr	$175/hr
Senior Developer	$125/hr	$150/hr
Developer	$100/hr	$120/hr
Designer	$110/hr	$130/hr

How-To Guides

How to Set Up Project Billing

Fixed Price Setup

1. Set billing method: Fixed Price
2. Enter total contract value
3. Create billing milestones:

Milestone	%	Amount	Due
Kickoff	20%	$20,000	On signing
Design Complete	30%	$30,000	Week 4
Development Done	40%	$40,000	Week 10
Final Delivery	10%	$10,000	Week 12

4. Link to project milestones
5. Configure invoice automation

Time & Materials Setup

1. Set billing method: Time & Materials
2. Configure rates:
   • Project-specific rates
   • Role-based rates
   • Client rate card
3. Set expense markup (if any)
4. Configure billing frequency
5. Set up approval workflow

How to Create Project Invoices

Invoice Generation

1. Go to Projects → [Project] → Billing
2. Click Create Invoice
3. Select invoice type:
   • Time & expense invoice
   • Milestone invoice
   • Progress invoice
   • Ad-hoc invoice
4. Review line items:
   • Time entries
   • Expenses
   • Fixed charges
5. Adjust if needed
6. Generate invoice

Invoice Contents

Standard project invoice:

• Client details
• Project reference
• Service period
• Time breakdown
• Expense details
• Total due
• Payment terms

How to Manage Revenue Recognition

Recognition Methods

Method	When Recognized	Use Case
On Invoice	When billed	Simple projects
On Payment	When paid	Cash basis
Over Time	Spread evenly	Long contracts
% Complete	Based on progress	Fixed price
Milestone	At completion	Deliverable-based

Revenue Recognition Setup

1. Go to Settings → Projects → Revenue
2. Configure:
   • Default method
   • Recognition rules
   • Deferral accounts
   • Schedule templates
3. Apply to projects

Recognition Process

For % completion:

1. Determine total contract value
2. Assess % complete
3. Calculate recognizable revenue
4. Create journal entry
5. Track deferred revenue

How to Handle Time & Materials Billing

T&M Workflow

1. Track Time

   • Team logs hours
   • Mark billable/non-billable
   • Apply correct task

2. Track Expenses

   • Submit expenses
   • Attach receipts
   • Code to project

3. Review Period

   • Review unbilled time
   • Review unbilled expenses
   • Make adjustments

4. Generate Invoice

   • Select billing period
   • Include approved items
   • Add markup if applicable
   • Send to client

T&M Rates

Rate application priority:

1. Task-specific rate
2. Project rate card
3. Employee rate
4. Default role rate

How to Process Milestone Billing

Milestone Invoice

1. Complete milestone work
2. Get client acceptance
3. Go to Billing → Milestones
4. Select completed milestone
5. Generate milestone invoice
6. System creates invoice for milestone amount

Acceptance Process

Before billing:

• Deliverable review
• Client sign-off
• Documentation complete
• Milestone marked complete

How to Manage Retainers

Retainer Setup

1. Create retainer agreement:
   • Monthly amount
   • Included hours
   • Overage rate
   • Term dates
2. Set up recurring invoice
3. Track usage against retainer

Retainer Tracking

Month	Retainer	Used	Remaining	Overage
Jan	40 hrs	35	5	-
Feb	40 hrs	45	-	5 hrs
Mar	40 hrs	38	2	-

Rollover Rules

Configure unused hours:

• Expire (use it or lose it)
• Rollover (accumulate)
• Cap (max accumulation)

How to Handle Billing Adjustments

Types of Adjustments

Type	Reason	Process
Credit	Error correction	Issue credit memo
Write-Off	Uncollectible	Write-off entry
Discount	Client negotiation	Apply discount
Rate Change	Contract amendment	Update rates

Creating Adjustments

1. Go to Billing → Adjustments
2. Select adjustment type
3. Enter details:
   • Original invoice
   • Adjustment amount
   • Reason
   • Approval
4. Process adjustment
5. Notify client

Advanced Features

Multi-Currency Billing

International projects:

• Invoice in client currency
• Track in base currency
• Exchange rate management
• Currency gain/loss

Billing Automation

Streamline billing:

• Auto-generate invoices
• Scheduled billing runs
• Approval workflows
• Auto-send capability

Unbilled Analysis

Track unbilled revenue:

• Unbilled time
• Unbilled expenses
• Aging analysis
• Collection follow-up

Revenue Forecasting

Predict future revenue:

• Pipeline analysis
• Booking forecast
• Recognition schedule
• Cash flow projection

Best Practices

💵 Billing Accuracy

• Timely time entry
• Proper coding
• Rate verification
• Invoice review

📊 Revenue Management

• Correct recognition
• Period matching
• Audit compliance
• Documentation

💼 Client Relations

• Clear agreements
• Transparent invoices
• Prompt responses
• Regular communication

📋 Process

• Regular billing cycles
• Approval workflows
• Collection follow-up
• Aging management

Configuration

Billing Settings

Navigate to Settings → Projects → Billing:

• Default Method - Standard billing type
• Invoice Template - Format and branding
• Payment Terms - Default terms
• Tax Settings - Tax handling

Rate Settings

• Rate Cards - Standard rates
• Markup Rules - Expense markup
• Discount Limits - Maximum discounts
• Override Permissions - Who can adjust

Integration Settings

• Accounting - GL integration
• Invoicing - Invoice system
• Payment - Payment processing

Troubleshooting

Common Issues

Time not appearing on invoice

• Check approval status
• Verify billing period
• Review billable flag
• Check task billing settings

Revenue not recognized

• Verify recognition method
• Check completion %
• Review schedule
• Run recognition job

Invoice amount wrong

• Audit time entries
• Verify rates applied
• Check expenses
• Review adjustments

Cannot invoice milestone

• Verify milestone complete
• Check acceptance
• Review billing setup
• Confirm permissions

Next Steps

Learn about Time Tracking to capture billable hours accurately.