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Additional T&M invoicing on a fixed-price project

Written by Remco Kroes on . Posted in Exact Online

Fixed price and time-and-material (T&M) are the two primary ways professional services firm can charge for their services. Exact Online supports both methods* by specifying one invoice method per project. Firms may also charge their services using a combination of fixed-price and time & material (T&M) invoicing.  For example, an IT consultancy firm may agree to implement a new software system for  a fixed fee, but the additional work not initially planned or more risky work is sold against T&M to minimize the risks for the service supplier.  Exact Online Project Management now supports both invoicing methods on a single project.

How does it work? On a fixed-price project specify whether you want to allow additional invoicing on a T&M basis. Using the work-breakdown structure (WBS) you can scope your project and specify per project activity or expense whether you want to generate additional T&M invoices.  Time entries made on these activities will automatically generate invoice proposal lines. Purchase invoices received and booked against these expenses  also generate invoice proposal lines (with or without mark-up percentage).

additional invoice

* A  fixed-price project is invoiced using scheduled installments. E.g. 50% on the 1st of March and 50% on 1st of June.  A time & material project is invoiced based on actual time & costs entries made.

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