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Lesson 2: Key concepts in billing

Start here!	Overview
	Billing type
	Billing rate and amount
	Cost rate and amount
	Billing rate table concepts: markup, standard billing rate, pass-through cost
	Test your knowledge

Overview

You will learn some terminology and important accounting concepts that will help as you set up your billing workflow in Ajera.

To learn about more concepts and general processing in Ajera, be sure to see How Ajera Works.

Billing type

Concept

Description

Where does it come from?

Time & Expense

Fee-based

The method for handling billing, which must meet the contractual agreement with the client.

Billable billing types available in Ajera are Time & Expense and fee-based types including Fixed Fee, Percent Complete, Unit Price, and Percent of Construction:

With Time & Expense, the project or phase is contracted to bill for the actual time and expenses expended.
With fee-based, the project or phase is contracted to bill for the value of the work performed, not for the actual time and expenses expended.

Different information is printed on an invoice depending on the billing type of the project. For example, a Time & Expense billing type prints actual transaction detail, and a fee-based billing type prints an amount to bill that may not be based on actual work performed.

The billing types are in Ajera by default and cannot be changed.

When you create an invoice format in Setup > Invoice Formats, you must select a billing type. An invoice format can contain Time & Expense, fee-based, or both types.

When you set up a project in Setup > Projects, you must also select a billing type. In this way, you indicate the way the client is billed according to the contract. You can change the billing type at any time during the project lifecycle.

Billing rate and amount