Invoicing your work can be done in multiple ways. As mentioned earlier, this is a crucial point when setting up a project's structure.
Before we get started on the different invoicing options, it is worth having a look at the different invoicing preferences of a project and its milestones.
When setting up a new project, you can choose between multiple invoicing preferences. These will determine how your budget usage will be calculated, as you'll need to enter an hourly rate first. The tracked time will then be added up and you'll be able to see how much of your budget is still available. Even if you work with a fixed budget and don't invoice tracked time as such, these budget calculations can still be useful - be it for internal reporting, or checking whether the budget you set out initially was realistic.
Invoicing preferences for the entire project:
- Price per user: in this case, what matters is who performs a task, and not what task is performed. You can set an hourly rate for each user by navigating to Settings > HR.
- Price per task type: if you select this invoicing preference, your price will be based on the task and not who completes the task. To set the hourly rate per task type, simply go to Settings > Planning.
- Fixed price per hour: this allows you to set a fixed hourly rate for this specific project, regardless of who performs which task.
Do note, however, that you not only have the option to specify invoicing settings for the entire project. You can also determine your invoicing preferences for single milestones. Would you like to invoice a particular milestone? Will you work with a fixed budget for that milestone, or does your fee depend on the amount of time and materials you need to invest? These questions will all need to be answered when you create your milestones.
Invoicing preferences for the milestone:
- Invoiceable: This means that the milestone as such is invoiceable and can be invoiced to your client.
- Non-invoiceable: You also have the option to set the entire milestone as non invoiceable, which means that all timetracking for that milestone is non invoiceable by default.
- Fixed price: Here, the set budget is the important value. It doesn't matter how much time or money you actually spend on the project, you simply invoice the budget you set out initially.
- Time & material: if you choose this option, you will invoice the actual internal and external cost. The invoicing preferences for the entire project will have an impact here.
Last but not least, you also have to choose for every individual task or meeting whether it should be invoiceable or not. This, of course, is of more importance in case you do track time in order to invoice it to your client.
Invoicing preference for a task or a meeting:
- Invoiceable: if you choose this option, tracked time linked to this tasked or meeting will be added to the budget spent, deducted from the budget of your milestone and you'll be able to invoice the task/meeting to your client.
- Non-invoiceable: this means the related timetracking of this task or meeting cannotb e invoiced to your client. However, it will be added to the budget spent in order to create a clera overview of the resources used.
Once you've defined all possible invoicing preferences, you can start invoicing. To do so, Teamleader offers two options: either invoice your original deal or create an invoice based on the project and your milestones.
You invoice the deal and link the invoice to the project:
You can invoice a fixed budget with the detailed description of your quotation. The invoice can be linked to your project and will be treated as an advance invoice if you invoice additional services based on the milestones of your project at a later stage.
You invoice from within the project based on a milestone:
When you navigate to invoices within the project and click on the plus sign, you can create an invoice based on a milestone. Just choose “Invoice based on milestone” as type of invoice. You will then see the name of the milestone on your invoice but, of course, you still have the option to edit it afterwards.
You invoice from within the project not based on milestone but created by yourself:
You can always create an invoice yourself, in case you'd like to simply invoice a certain amount to your client that isn't based on budget or actual costs. This can be used as an advance invoice. In this case, all registered invoiceable timetracking will remain open and seen as not invoiced. In case you want to delete all open timetracking, you either need to set single tasks/meetings or the entire milestone as non-invoiceable.
Click here to read the next part on projects: Getting started: How can you manage a project?
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