SQUAVA provides a way for you to combine billing types in one project! If you have ever had a project that needed certain tasks or expenses to be billed as Time & Materials (T&M) and other tasks or expenses to be billed as Lump Sum, this is how to perform the magic.
Quick Summary of Step-by-Step Guide:
- See our Help Article: Adding Projects if you are unsure about how to create a project
- Fill in the required information for project task and budget details
- Check the 'Lump' box (if applicable)
- Save when finished
In-Depth Step-by-Step Guide:
- First, you need an open project and budget. If you are unsure about how to create a project, please see our Help Article: Adding Projects. When you are ready to add a budget for your project, click the 'Budget' button, and then the 'Budget' tab (with the unlocked lock icon), and enter task and budget details.
- Currently, all three tasks (in the above image) will be billed based on T&M. (T&M activities are billed based on staff hours assigned to project tasks and you typically budget for them the same way as in these examples).
Since we are talking about combining billing types, in this example, we are going to set the second and third tasks to be billed as Lump Sums. (A Lump Sum activity is usually billed based on effort complete and can be defined and controlled at the time of invoice). To do so, check the box that says 'Lump' next to the task you want to be a Lump Sum. If you want a task total value that is different than you calculated using staff, hours, and rates, you can override the amount for that task as illustrated below on the third task. Be sure to click 'Save' when you are finished.
You can also override an amount for a T&M task if you desire, which will not change how the task is billed on the invoice, it will only change the budget amount.
NOTE: SQUAVA will warn you (with an orange triangle) if the amount you enter or override, is more than 10% different than the total generated based on the hours you estimated for staff. The original total for the third task was calculated from the estimated hours that were entered for Jane Doe. Even though this task is Lump Sum, we encourage users to estimate hours for staff involvement to keep hour estimates close to budget amounts, which will help SQUAVA provide you with more helpful information about staff utilization and other metrics.
- Adding combined billing types within the expense budget is very similar to how we add combined billing types to labor tasks. You will need to have an open project and budget. When you are ready to add expense items to the budget, click the 'Budget' button and then the 'Budget' tab (with the unlocked lock icon) and enter the expense items in the ‘Expenses’ section (below the 'Labor' section).
- Currently, both expense items (in the above image) will be billed based on 'Quantity' and 'Price'. Since we are talking about combining billing types, in this example, we are going to set the first expense item to be billed as a Lump Sum. To do so, check the box that says 'Lump'. If you want a value that is different than you calculated using 'Quantity', 'Price', and 'Markup', you can override the amount for that task as illustrated below. Be sure to click 'Save' when you are finished.
- You have now learned how to set up a project with multiple billing activities in one project!
- If you need to make an adjustment to a labor or expense item after your budget has been contracted, see our Help Article: Labor & Expense Adjustments
- If you have any other questions related to projects, check out our other Help Articles in our Projects 101 Section.
- If you can't find an available Help Article, feel free to give us a call, submit a request, or send us a chat message.