Can you send me a quote or estimate for your services? Not every service quote is a 20-page proposal, with extensive details on how project work will be delivered. What if the majority of your service quotes is related to smaller (lower-value) jobs for a few days of work? Or if they relate to repeat or extra work orders? As a service provider you want to quickly build and communicate such quotes and estimates to your client without any hassles. We made some enhancements that will not only help you to save time, but also will help you to seamlessly manage the handover from sales to delivery and finance.
Posts Tagged ‘fixed price projects’
When working with fixed price projects, the registration of labor hours will not lead to a sales invoice for these realized hours, because the invoices are generated via project terms. This document explains how customers can register the costs related to these labor hours, independently from the sales revenue process.
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.