Billing rate levels let you set custom service item rates for different employees and vendors. You might want to use them if you find that one standard rate for a given service is not always sufficient. For example, different employees doing the same service might bill at different rates based on experience level or labor burden costs. Or you might charge different rates for an employee based on the difficulty of the task.
Once you create billing rate levels and associate them with employees and vendors, each time you create an invoice with billable time, QuickBooks automatically fills in the correct rate for each service item based on who did the work.
Create your service items as usual.
Billing rate levels do not replace your service items. They are custom prices that override the standard rate you set for service items, based on who did the work.
Create your billing rate levels.
Each billing rate level will be used to set custom service rates for one or more employees or vendors.
- Go to the Lists menu and click Billing Rate Level List.
- Click the Billing Rate Level button at the bottom of the list and then click New.
- In the Billing Rate Level Name field, enter the name.
For example, you might name the billing rate level after a specific employee or category of employees who will use it (for example, Apprentice or Journeyman).
- To use the same hourly rate on invoices for all service items performed by people with this billing rate level:
- Click Fixed Hourly Rate and enter the hourly rate in the Hourly Rate field.
- Click OK.
- To use a different hourly rate for each service item performed by people with this billing rate level:
- Click Custom Hourly Rate Per Service Item. All of your service items are displayed.
- Click the rate to use and then enter the custom hourly rate for each service item in the Billing Rate column.
- (Optional) To adjust a billing rate level to a set percentage lower or higher than your standard or current billing rates, click the service items to adjust (or click Select All) and then click the Adjust Selected Rates button.
For example, if you have a billing rate level for your most experienced employees, you might want to adjust all their rates to be 10% higher than your standard rates.
- Click OK.
Assign each billing rate level to your lists
- Open the list to which you want to add a billing rate level:
- For employees, click the Employees icon.
- For vendors, click the Vendors icon.
- For Other names, choose Lists > Other Names List.
- In the list on the left, double-click the name to which you want to associate a billing rate level.
- Click the Additional Info tab.
- Click the Billing Rate Level drop-down arrow and then click the billing rate level you want to associate with the name.
You can also click Add New to add a billing rate level.
- Click OK.
Track the time you want to invoice by using Time Sheets.
When you track the time, assign the hours to a customer or job.
Note: When you track time, the time information can be used for customer invoices, payroll, or both. Billing rate levels are used only when invoicing your customers; they have nothing to do with payroll.
Invoice your customers for time, materials &/or expenses.
When creating the invoice, click Add Time/Costs on the Main tab at the top of the form to add your billable time. The appropriate billing rate will then be used for each service item, based on who did the work.