Invoice Customers based on Employee Experience


Many service-based companies, Invoice Customers based on Employee Experience.  For example, companies who provide electrical services may have an apprentice billed out at one rate, journeyman at another rate, and finally a master electrician at the highest rate.  Billing rate levels let you set custom service item rates for different employees and vendors.  Billing rate levels are available only in the Contractor, Professional Services, and Accountant editions.*

Using billing rate levels (process overview)

  1. Create your service items  Billing rate levels do not replace your service items. They are custom prices that override the standard rate you set for service items, based on who did the work.
  2. Create your billing rate levels.  Each billing rate level will be used to set custom service rates for one or more employees or vendors.
    1. From the “Lists” menu select, “Billing Rate Level List”.
    2. From this form, click on the “Billing Rate Level” drop-down box and select, “New”.
    3. Enter the Name of the Billing Rate Level.  For example, “Journeyman”.
    4. Select which type of rate you would like to set up:
      Fixed Hourly Rate:  This rate will always be used for any service performed by the “Journeyman”.BillingRateLevelList_Fixed
      Custom Hourly Rate Per Service Item.  Although more complicated, each service item can be assigned a specific rate for our Journeyman example.BillingRateLevelList
  3.  Assign each billing rate level.   Now that you have created your billing rates, you can assign them to the respective Employees, Vendors, or people on your Other Names list.
    Example for Employees:

    1. Go to the employee center.
    2. Click on the employee that you would like to set the billing rate level for.
    3. Click on the “edit” button next to the paperclip (or double-click on the employee from the list view).
    4. Select the, “Additional Info” tab on the left..
    5. Change the, “BILLING RATE LEVEL” to the level you are billing this employee at.
  4. Set your Time Preferences.  You will want to set up your preferences in QuickBooks prior to start using the timing features.  This is done by:
    1. Go to the Edit menu.
    2. Click on “Preferences”
    3. At the bottom of the left-hand panel, click on, “Yes” in the “Time tracking” section and select which day of the week you want to have as your “First Day”.
    4. Determine which settings you want for the invoicing options and set those accordingly.Time and Expense Preferences
  5. Track the time you want to invoice. When you track the time, assign the hours to a customer or job.  When you track time, the time information can be used for customer invoices, payroll, or both. Billing rate levels are used only when invoicing your customers; they have nothing to do with payroll.
  6. Invoice your customers for cost plus or time and materials. When creating the invoice, use the Time/Costs window to add your billable time. The appropriate billing rate will then be used for each service item, based on who did the work.
  7. Invoice your clients for time and expenses. When creating the invoice, use the Time/Costs window to add your billable time. The appropriate billing rate will be used for each service item, based on who did the work.

For more answers on how to set up your QuickBooks company file, please call QB Services at (952) 232-6388


*Upgrade your edition of QuickBooks:

From QuickBooks Pro to QuickBooks Premier
       From QuickBooks Pro/QuickBooks Premier to QuickBooks Enterprise

 

 

 

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