Setting up billing for insourced labor

When you accept an insourced ticket, you agree to do the work for a specific flat rate, or an hourly rate proposed by the lead partner. It is quite possible that the lead partner has different billing rates for labor. This becomes an issue when it is time to bill the lead partner for the labor and possible charges. You can choose one of two approaches:

  • You can edit each individual time entry and charge when you approve and post the billing items associated with the insourced ticket
  • You can set up specific work types for insourced labor that you apply when you assign the ticket

How to...

NOTE  This method works well if you generally don't work for a flat rate. When it is time to approve and post, you simply edit your prices to match the lead partner's terms.

To make it easy to bill for insourced tickets, we recommend that you create a widget on the Billing tab of the dashboard that shows pending revenue by lead partner. Here is how you create one:

Wizard Step Directions
Do Start with new widget or copy Pending Revenue by Customer
Entity Pending Billing Items
Widget Type Chart
Visualization Type Pie, Bar or Table
Report on / Also report on -
Group data by / Secondary Grouping Organization (Revenue)
Filters Organization (Revenue) - In list - Select all organizations that are lead partners
Options -
Layout any

To approve and post billing items for a lead partner, do the following:

  1. In the widget, click the name of a lead partner.
  2. Click the Item Description to open the completed insourced ticket. Review the Authorized Charge, Authorized Hours and Total Authorized information in the Instructions section of the ticket. Keep the ticket open for reference.
  3. On the Revenue by Lead Partner list, fine the first billing item and navigate to the context menu > Adjust Prices window.
  4. Modify the Unit Price of each billing item to meet the terms of the lead partner.
  5. Select the billing items and click Approve & Post.

NOTE  This second method works well for flat rate and hourly billing. It also allows you to pick the correct billing rates right after you accept the ticket, and does not require a separate process to approve and post insourced tickets.

If you accept a ticket for a flat rate, the charge is not added automatically to your ticket. You must add a billable charge to your ticket for the amount of the flat rate in order to bill the lead partner.

To bill the lead partner a flat rate, do the following:

  1. Navigate to > Admin > Features & Settings > Finance, Accounting & Invoicing > Billing Codes and set up a Material Code for Insourced Ticket - Flat Rate. Leave Unit Cost and Unit price at 0.0000. Select a tax category. Refer to Work types.
  2. On the same page, create a new Work Type called Insourced Ticket - Flat Rate. Under Billing Rate and Hours Modifiers, click Non-Billable - Do not show on invoice. Refer to Material codes.
  3. Right after you accept the insourced ticket, add a charge in the amount of the flat rate to the ticket, using the Insourced Work - Flat Rate material code.
  4. On the Ticket, select the Insourced Ticket - Flat Rate work type.

Your resources can track their labor using any role rate.

To bill the lead partner by the hour, do the following:

  1. Navigate to > Admin > Features & Settings > Finance, Accounting & Invoicing > Billing Codes and set up a Work Type for Insourced Ticket - [Lead Partner Name].
  2. Enter a custom rate that corresponds to the hourly rate the lead partner usually offers.
  3. Make sure the work type is billable.
  4. Add additional rates for the same partner or other lead partners, as required.
  5. When you accept the insourced ticket, select the appropriate work type for the lead partner.
  6. Approve and post billing items for insourced tickets using your normal workflow.

The lead partner is invoiced at the hourly rate stated in the terms.

NOTE  You may want to use a widget anyway to make sure that the total billing amount does not go above the Total Authorized.

NOTE  If you insource a lot of tickets from lead partners at a specific rate, you should use workflow rules to assign the correct work type to the insourced tickets.