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Limited Hours Contract
Limited Hours Contract
S
Written by Sam
Updated over 6 months ago

In a Limited Hours Contract, the client is allocated a set number of hours for which no amount is charged until all the allocated hours are consumed. Once the allocated hours are consumed, any additional labor will be charged, and the client will be billed on hourly basis.

Types of Labor rates

The amount after consumption of limited hours is calculated in either of the three ways:

  • Default Labor Rates:

    Amount is calculated as per the formula: Time spent x Hourly multiplier of Work type x Hourly rate of Billing role

  • Fixed Labor Rate:

    Uses a fixed labor rate to calculate amount. These are set in set in Admin Settings > Labor rates. Formula - Time spent x Hourly rate x Worktype

  • Custom Labor Rate

    Considers a custom labor rate provided in contract. In this type an edit button is present with each Work type and Billing role to customize the rates. The formula to calculate amount against this type is Time spent x Hourly multiplier of Work type x Hourly rate of Billing role

    See here for more about Time Spent entries.

Create Limited Hours Contract

  1. To add limited hour contract, Go to the Add contract screen.

  2. Fill in the Client and Invoicing sections and select "Limited Hours" as the Contract Type.

  3. Define the number of allocated hours for the contract that will be charged 0.

  4. Choose your preferred type of labor from the three.

  5. Choose your preferred coverage Work Type and Billing roles for this contract.

  6. Add the Products and Bundles that you want to charge your customer for each billing cycle.

  7. Click on the "Create" button to complete adding the Limited Hours Contract.

Limited Hours Contract's Time Spent

  1. Go to a ticket and click on Time Spent.

  2. Add your hours spent and ensure you select the Work Type and Billing role that falls under the Limited Hours Contract, or directly select the contract.

  3. Save the Time Spent entry.

  4. The balance hours will be updated in the contract to reflect the hours remaining.

  5. Close the ticket to see it on the Approve and Invoice screen.

View the Ticket on Approve and Invoice Screen

  1. On ticket closure, the ticket can be seen on the Approve and Invoice screen.

  2. The ticket will show in the Waiting to Approve tab with 0 price if the hours spent is within the remaining hours. If the hours spent is not within the remaining hours then time spent will be charged according to the selected type of labor rates in contract.

  3. Upon approving the ticket, the time spent will move to the Complete tab.

Automated Invoice

  • In accordance with the billing terms and dates specified in your Limited Hours Contract, automated invoices are generated on the designated date.

  • These invoices cover charges for the products and bundles included in the contract.

  • Time spent for this contract will decrement the ledger balance but is not subject to additional charges until the allocated hours are fully consumed.

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