Ajera's billing amounts

The process Ajera uses to determine billing amounts depends on billing type: Time & Expense or fee-based. A client invoice can contain both billing types.

Time & Expense billing type

With Time & Expense, you bill the client for actual hours worked and expenses incurred on the project.

The billing amounts for Time & Expense transactions are based on the billing rate table selected for the phase. The billing rate table reflects the billing arrangements with your client and indicates how you want to price specific labor, expenses, and consultants for billing. A billing rate table can contain markups, standard rates, or both.

To determine Time & Expense billing amounts, Ajera follows this process:

1. First, it looks for the billing rate in the billing rate table and calculates the billing amount, which it adds to the draft client invoice.
2. If Ajera cannot find the billing rate, it then looks for the cost rate. It multiplies the cost rate by the markup percents in the billing rate table to calculate billing rate. It then calculates billing amount and adds it to the draft invoice.
3. If Ajera cannot determine the billing amount, it adds a zero billing amount to the draft invoice and highlights it so that you know it must be fixed.

This is described in more detail in How Ajera calculates billing amounts.

Fee-based billing types

With fee-based, you bill the client based on the value of the work performed, not for the actual time and expenses expended.

In Ajera, the fee-based billing types include the following:

• Percent Complete
• Unit Price
• Percent of Construction Cost
• Fixed Fee

In the Project Command Center, Percent Complete, Unit Price, and Percent of Construction billing types require a contract amount. Fixed Fee does not require a contract amount because it is usually used for small projects where you bill one time only.

When you enter fee-based time and expense, they do not affect the billing on the draft invoice. Ajera calculates billing amounts and adds them to the invoice as noninvoiced transactions. This information allows you to track the effort expended on the project.

To determine fee-based billing amounts, Ajera follows this process:

1. Ajera adds the contract amount to the draft client invoice.
2. As you enter time and expense to a fee-based project, Ajera uses the same process described for the Time & Expense billing type to determine billing amounts and adds those amounts to the invoice as noninvoiced transactions.
3. When it is time to bill, you determine the billing amounts on the draft invoice and Ajera adds them as invoiced transactions to the draft.

This is described in more detail in How Ajera calculates billing amounts.

If you are billing labor, expenses, or consultants in a fee-based project as Time & Expense (Setup > Projects > Project Info tab > Billing subtab > Bill as Time & Expense check boxes), then Ajera determines the billing amounts using the process described earlier for Time & Expense billing.

Test your knowledge

Quiz: Welcome to billing

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Lesson 2: Key concepts in billing