Customer Billing Methods in Project Management

There are two ways to bill the customer:

  1. Project Hourly Rate
  2. Hourly Billing Rate

1. Project Hourly Rate

  • This is a field on the Project.
  • Used to calculate the bill amount for customers based on the project’s hourly rate.
  • Formula:
    Bill Amount = Project Hourly Rate × Time Worked
Example:
  • If the Project Hourly Rate is $100, and a user has worked 10 hours, the total billable amount will be:
    10 × 100 = $1000

2. Hourly Billing Rate

  • This is a field on the TT User object.
  • If a Project Hourly Rate is not defined, the Hourly Billing Rate of each user is used for billing.
  • Formula:
    Bill Amount = Hourly Billing Rate × Time Worked
Example:
  • User John → Hourly Billing Rate = $50
  • User Jessica → Hourly Billing Rate = $55
  • Both worked 10 hours on Neon Consulting.
  • The total billable amount:
    • John: 50 × 10 = $500
    • Jessica: 55 × 10 = $550
    • Total Billable Amount: $1050 + Taxes

If No Hourly Billing Rate is Specified for Users

  • The Project Hourly Rate is used by default.
  • Example:
    • If the Project Hourly Rate is $100 and the users worked for 20 hours,
      Total Billable Amount = 20 × 100 = $2000