Manager can directly invoice billable time.
This Guide uses an example from another Guide, in which Sample Consulting has recorded billable time for services to its customer, ACME Distributing. Read that Guide first.
When you first record an instance of billable time, its status will be set to Uninvoiced.
In the Billable Time tab, Sample Consulting sees the uninvoiced billable time amount of 350 for ACME Distributing:
To invoice billable time to a customer, go to the
Uninvoiced column, click the amount for the customer you are invoicing.
Sample searches for ACME Distributing, then clicks the uninvoiced balance:
Select the items you want to bill to the customer, then click New Sales Invoice.
If you have also entered billable expenses for the customer, these will appear in the same list and can be selected for invoicing along with billable time.
Sample selects the billable time entry for 350 and clicks the button:
A sales invoice will be created instantly.
Sample’s sales invoice lists the date and description for the billable time, the hours spent, and rate (as unit price):
If you wish to modify the invoice, especially to add additional line items, offer discounts, or mark up the billed time for extra profit, click Edit, make any changes, and click Update. When you go back to the Billable Time tab, you will see the status of your uninvoiced items has changed to Invoiced.
Sample verifies the status in the Billable Time tab:
If you click the Edit button for the time entry in Billable Time, you will see the newly created sales invoice has been automatically added to the
Sample clicks to see the original time entry, which shows both the change of status and the relevant sales invoice:
Creating a sales invoice with billable time transfers the value of the time from the Billable time asset account to the Billable time - invoiced account.
Sample Consulting’s financial statements show the result of invoicing:
You cannot add billable time to an existing sales invoice. Generate a sales invoice from the Customers tab first. Then add any other necessary line items.
Discounts and markups of billable time on a sales invoice from their recorded value have no effect on the Profit and Loss Statement besides changing the balance of Billable time - invoiced. Nor do they change the value of the time recorded on the billable expense transaction. This is because billable time does not represent an actual financial transaction until it is invoiced. It is only carried in Billable time - movement as imputed income. If that imputed income is modified by a discount or markup during invoicing, its value in Billable time - movement is still zeroed out by the act of invoicing. This is distinctly different from billable expenses, which have real costs, and for which discounts or markups are reflected in a difference between Billable expenses - invoiced and Billable expenses - cost.
Likewise, the value of a billable time entry in the Billable time asset account will be zeroed out when the underlying time entry is invoiced, regardless of any discount or markup. Similar to income recognition, the value of billable time in the Billable time account is only an imputed asset until it is invoiced. Then, it is transferred to Accounts receivable at the amount actually invoiced. Thus, before invoicing, the value of a billable time entry is the same in Billable time and Billable time - movement. After invoicing, its value is the same in Accounts receivable and Billable time - invoiced.