Writing off time in Core

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Sometimes you need to write off time entries due to various reasons, such as if you exceed a fixed fee contract. You cannot bill for that written-off time, but still need to know what actual time entries were incurred by the project.

There are several ways to write off time in Core prior to generating invoices.

Mark Billed: 
Mark Billed option is essentially writing off a time entry resulting in no revenue, but there is a cost involved. It is not included on detailed invoices nor the Gross Margin reports because they are not tied to the invoices.

  1. On the Invoices screen, select the Batch Invoice mode.
  2. Select the relevant billing record in the grid and click Time Details.
  3. Now select the time entries on the grid that you want to write off. Click Actions > Mark Billed.

Non-Billable:
Making items non-billable is recommended than marking them as billed. Non-billable time entries can be associated with an invoice and show as ‘No Charge’. They also display on the Gross Margin reports. If you mark the time entries as non-billable, they show on the cost side of your reports but not on the revenue side.

  1. On the Time Entries screen, filter the data to view the relevant entries.
  2. Un-check the Billable box for those time entries. You can also select multiple entries on the grid and use Actions > Batch Update to set the billable status to False.

Check Update Time Entries for details.

Write-Up/Write-Down:

Writing off time entries can also be handled using the Write-Up/Down feature in the Invoices screen. In this case, you can change the bill amount of the selected time entries to $0. Doing this keeps the entries tied to the invoice, thus making them a part of WUD as well as Gross Margin reports.

  1. On the Invoices screen, select the Batch Invoice mode.
  2. Select the relevant billing record in the grid and click Time Details (or Expense Details).
  3. Now select the time entries on the grid that you want to write off. Click Actions > Batch Write-Up/Down.
  4. Enter the WUD value in amount or percentage. Click Save.

Check Write Up or Write Down Time for details.

For profitability reporting, all these scenarios should be considered. Mark Billed and Non-Billable options both involve costs charged to a project; thus when reporting profitability for clients, projects and employees, all costs charged to projects should be included. WUD is reflected in the net invoice amounts totaling to 'Billed' (for profit reports showing billed work). This results in an accurate measure of profitability.

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