Lesson 2: How Ajera calculates billing amounts
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Start here! |
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Overview
In Ajera, the process of calculating billing amounts as invoiced transactions on a draft client invoice depends on the billing type.
For transactions with the Time & Expense billing type, Ajera uses the project's billing rate table and settings that you select in company preferences, activity setup, and employee setup to determine the billing amounts for you. Ajera adds them as invoiced transactions to the draft invoice.
For transactions with a fee-based billing type, you determine the billing amounts for the invoiced transactions on the draft client invoice. However, Ajera uses the same process that it uses for Time & Expense billing to calculate the nonbillable work-in-progress (WIP) for the time and expense entered to the project. It adds these as noninvoiced transactions to the draft invoice.
Time & Expense billing type
Here's how Ajera uses the billing rate table to calculate billing amounts for the Time & Expense billing type:
Fee-based billing types
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, these billing types require the following information:
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Fee type |
Enter this required information on the Manage tab |
What the information does |
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Percent Complete |
Contract amounts (in the Contract column) down to the lowest-level phase |
All amounts at the lowest level add up to the contract amount. |
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Unit Price |
Total number of units (in the Units column) and unit rate (Unit Rate column) |
Multiplied together, the two values equal the contract amount. |
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Percent of Construction Cost |
Construction cost (in Construction Cost column) and the percent of construction cost that represents your fee (% of CC column) |
Multiplied together, the two values equal the contract amount. |
| Fixed Fee |
N/A - No contract amount is required because you use this billing type for small projects that you bill only once. |
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Here's how Ajera calculates billing amounts for fee-based billing types:
Test your knowledge
Quiz: How Ajera calculates billing amounts
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