Creating Billing Classes
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Go to Setup > Accounting > Billing Classes > New.
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On the Billing Class page, enter the name of the billing class.
For example, enter Junior Partner or Senior Partner.
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If you use Multiple Units of Measure and Charge-Based Billing, you can select a Price, Units Type, and Sale Unit to use custom interval billing rates. For more information, see Custom Interval Billing Rates.
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Click Save.
After you have created billing classes, they appear in the billing class lists on service item records and employee records.
If you use Project Management and Charge-Based Billing for projects, you can also enable billing rate cards to define different billing rates for groups of billing classes. These rate cards can then be used to set billing rates on charge-based projects using time-based charge rules. For more information, see Using Billing Rate Cards. If you use rate cards, billing class records will no longer contain a field for defining rates. You must define rates for billing classes used for projects on billing rate cards. A default billing rate card is automatically created after the feature is enabled with your existing billing classes and default rates.
Next, you can select the default billing class to determine the rate billed for each employee.
Specify Billing Classes on Employee Records
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Go to Lists > Employees > Employees.
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Click Edit next to an employee.
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Under Classification, in the Billing Class field, choose a billing class.
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Click Save.
Now, when billable time is entered in Time Tracking for this employee, the default rate charged is the rate set for the billing class on the service item record.
On service item records, enter rates for each billing class to determine pricing.
Track Billing Class Pricing on Service Items
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Go to Lists > Accounting > Items.
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Click Edit next to a service item. The item type must be Service for Sale or Service for Resale.
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On the item record, click the Sales/Pricing subtab.
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Under Sales, select a billing class.
For example, select Senior Partner to set up senior partner rates.
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Under Pricing, verify that you have entered default prices on your base currency subtab.
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Enter the appropriate pricing for that billing class.
Billing classes cannot have negative rates.
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Click Add.
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Set additional billing classes and rates as necessary.
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Click Save.
When the service item is entered in Time Tracking for an employee with a billing schedule, the appropriate pricing defaults.
For more information on invoicing customers for billable time, read Billing Time to Customers.
Because the Billing Classes feature is not compatible with the Quantity Pricing feature, you cannot use both features at the same time. If both are enabled, then billing classes replace quantity pricing on service item records.