Billing and cost rates
Billing rates and cost rates run on a hierarchy, where the most specific rate always takes priority. A rate set on a task overrides a rate set on a user, which overrides a project rate, which overrides the workspace default, so every time 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 four levels, from broadest to most specific:
- Workspace default: applies to all time entries unless overridden at a lower level.
- Project rate: overrides the workspace default for all entries on a specific project.
- User rate: overrides workspace and project rates for a specific team member's entries.
- Task rate: the most specific level, overriding all other rates for entries logged on that task.
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 hierarchy, invoice line items arrive pre-calculated with the right amounts. The rate 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.
