Billing and cost rates
Billing rates and cost rates follow a hierarchy, where the most specific rate takes priority. A rate set on a user's profile can override a project rate, and a per-entry override can adjust the rate for a specific time entry, so every entry picks up the correct rate automatically without manual adjustment.
Billing rates vs cost rates
Billing rates determine what clients are charged for tracked time. Cost rates track the internal cost of that same time, such as what a contractor or team member is paid per hour. Both rates are stored on each time entry, so the timesheet can show client-facing totals alongside internal cost totals for the same set of hours.
The rate hierarchy
Rates can be set at multiple levels, from broadest to most specific:
- Project rate: a billing rate set on the project applies to all entries on that project unless overridden.
- User rate: a per-user billing and cost rate set on each team member's profile. When no project rate is set, or when overriding the project rate, this rate applies.
- Category rate: category-specific rates on a user's profile override the user's default rate when that category is selected on a time entry.
- Per-entry override: rates can be manually adjusted on individual time entries by users with the appropriate permissions.
How rates flow into invoices
When time entries are converted into invoice line items, the billing rate on each entry calculates the line item amount (hours multiplied by rate). Because the correct rate is already attached to the entry via the rate hierarchy, invoice line items arrive pre-calculated with the right amounts. The hierarchy eliminates manual rate lookups, so a contractor working across projects at different rates has every entry priced correctly from the moment it's logged.
