Service companies sell their services and are paid for that. It is inevitable that you will encounter hour registration and the invoices that arise from that. Put simply, you set an hourly rate per employee and invoice the hours worked. In reality, however, there are different interpretations of this flow. This is also the case in Teamleader. We will briefly explain how you can use hourly rates.


Step 1: select the hourly rate.

First you must determine how an hourly rate must be determined. You have three choices with regard to this:

A. Price per employee

A price can be set for each employee in the organization. This is often used to distinguish between, for example, a junior and senior profile.

An example:

John works for 80 EUR an hour, while Martin works for 100 EUR an hour.

Both are designers and each has worked for five hours. Naturally, you want to invoice the client for the time worked. The invoice will be provided with two invoice lines:

DescriptionPrice excl. VATQuantitySubtotal
Design805400
Design1005500


You can set the price per employee through the employee module under "Settings" in Teamleader. When editing an employee, you are given the option to set a fixed rate.

B. Price per task type

You can also choose to calculate not per employee but per type of task. This will ensure that you can invoice development as more expensive than analysis.

Another example:

In the business you calculate 65 EUR an hour for analysis, while development has an hourly rate of 85 EUR.

Say ten hours were spent on analysis and five hours on development. The invoice will be provided with the following two invoice lines:

DescriptionPrice excl. VATQuantitySubtotal
Analysis6510650
Development855425


The hourly rate per task type can be set in Teamleader through "Settings" on the "Planning" tab. When adding or editing the types of task, you can define an hourly rate.

C. Fixed price

Finally, it may be that the organization has one valid rate regardless of the task type or the employee.

The business has one rate of 90 EUR an hour. Say 10 hours were spent on analysis and 5 hours on development. The invoice will be provided with two invoice lines:

DescriptionPrice excl. VATQuantitySubtotal
Analysis9010900
Development905450


A fixed price can be set at customer or project level in the invoice preferences.

Step 2: different hourly rates per customer or project

First and foremost: you can set a default hourly rate for your organization when you go to Settings < Invoices < Set default hourly rate.
However, it may be that the organization chooses to deviate from the standard method for a specific customer or project. This is why there may be exceptions.


A. On customer level

At customer level you can set whether a customer is charged according to the three principles discussed above: price per employee, price per task type or a fixed price. For a contact or company, go to the top to "invoicing conditions" where you will see the following options:


Therefore, at customer level there are three options:

1. Price per employee: the pre-determined price per employee will be used when invoicing.
2. Price per task type: the pre-determined price per task type will be used when creating the invoice.

These are default values that always apply. This cannot be altered.

3. Fixed price: this can be set per customer. If you change the hourly rate, the system will always ask if the unbilled time should be changed as well. You can also choose whether timetracking only applies as from a specific date. This can be handy with, for example, an index adjustment at the beginning of the new year.

B. On project level

At project level you can also set whether a project is calculated according to the principle of price per employee, price per task type or fixed price.

However, there can also be additional exceptions.

1. You decide to use an hourly rate per employee but the hourly rate deviates for this specific project.

John normally always works for 80 EUR an hour, but for this project you agree that his rate will be 85 EUR an hour. You adjust this in the project itself, in the "Employees" box. If you click the pencil, you can enter an adjusted hourly rate.


2. The hourly rate per employee changes during the course of the project

John works for 85 EUR an hour in project A. This rate, however, changes as of 1 January to 90 EUR per hour because of, for example, an indexation.

From now on, all of John's work for project A will be billed at 90 EUR per hour. Before you start implementing changes, you will also be asked what must be done with the unbilled work. In other words, should the work from the past also be changed or only the work performed in the future?


3. You decide to use a fixed rate and this changes during the course of the project

Usually you bill all work in project B at 100 EUR an hour. However, because of the complexity of the project, you arrange with the customer to invoice all unbilled work at 110 EUR.

You can then set the new rate and indicate that all work from the past that has not yet been billed may be adjusted. You do this through the invoice preferences at the top in the project.

C. Changing the type of hourly rate

Say you have changed the type of hourly rate for a customer or project. For example, from price per employee to fixed price. The system will also ask if the unbilled time from the past should be adjusted, either all of it immediately or as of a specific date.

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