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).
* 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.