Billing Phases

Billing phases are user-defined billing components, defined on the Fees tab of the Billing Terms form. You use billing phases to subdivide a project for billing purposes only, rather than to track expenses and revenue.

Instead of creating a multi-level work breakdown structure for your project, you can create billing phases on the Billing Terms form.

You can post a project’s billing phase fees to another sub-project, phase, or task, without manually adjusting the invoice. Where you can direct the postings depends on the project:

• If a project is the main project in a billing group, you can post billing phase fees to the most granular work breakdown structure level (project, phase, or task) of any associated sub-project.
• If the project is not the main project in a billing group, you can post billing fees to the most granular WBS level (phase, or task) of the project itself.

For projects with fee-based contracts, you can set up fee billing phase terms to allow for partial billing of the total fee based on the amount of work completed.

You can divide a project into an unlimited number of billing phases. You then use these billing phases to bill the client, based on the percent of work completed on that billing phase. You can bill for lump sum or fixed-price contracts. You can also bill flat, stipulated fees. When billing is based on billing phases, the total contract fee is the sum of the billing phase amounts. If you want to bill the phases one time only, you can insert the billing phases on the Fees tab of Interactive Billing.

The billing phases you use to bill fee-based contracts are not necessarily the same phases used in your Work Breakdown Structure (WBS).

Billing phases should not be confused with WBS level phases or labor code phases.