Billing methods in Core

Core offers various billing methods with flexible options. You can choose any method according to your project type and situation.

  • Fixed Billing

    Fixed or flat fee billing occurs when a client is billed a portion of the total contract amount over a number of months. The project's contract type is fixed but the bill amount can be the same or vary in each billing cycle. When the project contract or company policy defines a different billing amount, you can use a billing schedule to define the billing records and amount.

  • Hourly Billing

    This is the most common billing practice across service industries. It involves dynamic generation of billing records based on time and expenses logged to projects with an hourly contract. Only approved time and expenses (work-in-progress) are included in the selected date range. The invoice amount is the total of the bill amount for time entries and charge amount for expenses after any adjustments made during the billing process.

    Depending on your settings, Core applies taxes to individual time and expense entries (Tax 1/2/3). It also applies a second level of tax (MST/MET) to the total billed services and expenses.

  • Recurring Billing

    Recurring billing involves pre-defining amount billed to the client on a set frequency such as biweekly, monthly, quarterly, and so on. The billed amount is the same regardless of the hours expended. Core allows you to reduce the expenses on the recurring bill or to add them to the invoice (in addition to the recurring amount). This depends on the type of recurring contract the project has.

    Frequency of billing for a project starts from the date of the invoice. When you select a recurring contract for a project, Core generates the billing record according to the frequency and amount set in Projects screen. It does not automatically create an invoice but notifies you that bills need to be processed.

  • Cost Plus Billing

    If you are an engineering, architectural or any professional services firm that works for federal or state agencies, you might have to use Cost Plus contracts. Cost plus billing adds a profit margin or management fee to the bill amount. You can set special bill rates in the fee schedules for the direct costs and set the fixed fee or percentage on the Projects screen. You can manually override it with a different amount in the Invoices screen, upon which Core then re-calculates the net bill amount. However, if you change the net bill manually, it does not change the fixed fee.

    Cost + Fixed Fee contract can be used when you want to bill direct costs—time and expenses (if expenses are a part of contract)—plus a fixed fee or profit to the client. The total fixed fee is set in the Projects screen. Core adds a portion of the fixed fee to the net bill before generating the invoice. Core also tracks the fixed fee portion to ensure you do not over-bill.

    Fixed Fee Amount = Billable Amount x (Fixed Fee / Contract Amount)

    Net Bill = Service Amount + Service Tax + Expense Amount + Expense Tax + Fixed Fee – Discount – Retainer Applied

    Example: If the Contract Amount = $1000, Fixed Fee Amount = $100, value of billable time and expenses = $500

    Fixed Fee = 500 x (100/1000) = $50

    Cost + Percentage contract can be used when you want to bill direct costs—time and expenses (if expenses are a part of contract)—plus a percentage of the costs or profit to the client. The total fixed fee percentage is set in the Projects screen. Core adds the profit percentage to the net bill before generating the invoice until the project is complete.

    Fixed Fee Amount = Billable Amount x Fixed Fee %

    Net Bill = Service Amount + Service Tax + Expense Amount + Expense Tax + Fixed Fee – Discount – Retainer Applied

    Example: If Contract Amount = $1000, Fixed Fee % = 10, value of billable time and expenses = $500

    Fixed Fee = 500 x (10/100) = $50

  • Progress Billing

    In Core, you can bill your clients as required even if the time and expenses are not yet ready and approved. You can send a progress bill or your monthly invoices with the projected value of the work done. Later, you can associate the time and expenses to the relevant invoices via batch update. When progress billing your clients, Core adjusts the difference in the value of time entries by generating a write-up/down. Similarly, for expense entries, it generates a markup automatically. Progress billing helps to improve your cash flow by sending invoices on time even though your staff has not completed their time and expense sheets.

    Progress billing helps you to improve your cash flow by sending invoices on time even though your staff has not completed their time and expense sheets. This feature enables you to bill time and expenses in advance and later associate the recorded entries to already processed invoices. Your job cost and profitability information are updated. Moreover, if you need to reprint the invoice, the items you added will be there.

  • Percent Complete Billing

    '% Complete' in Core is the subjective determination of how far along a project is. Throughout the life of a project, the manager tracks and updates this value in the Projects or Invoices screen. You can calculate this percentage based on the contract amount spent and then bill the client accordingly. Percent Complete billing supports both single project and joint invoicing. You can bill project phases using % Complete values from each phase.

    Note: If you enter an amount instead, Core reverse calculates the percentage value. You can use the $ symbol or key to enter amount for all currency values.

  • Joint Billing

    You can bill different phases of a project or different projects of the same client on a joint invoice (also called a combined or consolidated invoice). For joint billing, Core groups the projects based on a common client. In case of phased projects, it groups the phases based on a common parent project. You can decide to generate a joint invoice before billing by specifying that rule in the Clients or Projects screen, or as part of the billing process in the Invoices screen.

  • Automatic Billing
    Core simplifies the billing process for you by allowing you to define an automatic billing schedule at the project level. You can set the frequency and processing mode (manual or automatic) in the Project screen. This process releases the associated time and expenses automatically and does the write-up/write-down, as needed.
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