How can I set up Tradify to Charge a Minimum Rate for the 1st Hour On-Site?
There are two ways to achieve this depending on how your first-hour charge is calculated.
- Set a minimum time that is invoiced per Billing/Labour Rate
- Create a Call Out or Travel charge to add to each site visit
Setting a Minimum Billing/Labour Rate
You can either create a new billing rate for this purpose or edit an existing one. To edit an existing Billing Rate, simply click on it under Settings > Pricing Levels & Billing Rates, and then follow steps 7 and or 8 below to configure it accordingly.
1 - To create a new Billing Rate, click on New Billing Rate under Settings > Pricing Levels & Billing Rates
2 - Display Name - Enter a name for the Billing/Labour Rate. This appears on the lines of an invoice or quote screen under the Item Code.
3 - Description - Enter a description for this Billing/Labour Rate. This appears on the lines of an invoice or quote screen under the Description. NOTE: If you have selected to use the Timesheet Notes as the Line Item Description under Settings > Invoice Quote & Purchase Settings, then the Timesheet Note will appear on the invoice or Quote lines instead.
4 - Hourly Cost - Enter the cost per hour for the Billing/Labour Rate. NOTE: This Hourly Cost is only used on Quotes since the Actual Cost is derived from the Staff Member record. We recommend entering either an average hourly cost or the maximum cost of what you pay staff per hour so that the Quote profit will display correctly. This Hourly Cost is also used to calculate the estimated labour cost on the job financial report and is NOT visible to anyone without Office or Admin access.
5 - Tax Rate - Select the tax rate to use when invoicing this Billing/Labour Rate, if it is different to the default that applies. Click here to find out more about tax rates.
6 - Account Code - (Optional) Enter the Account Code to post the labour revenue to in your Accounting System if it is different to the default set under Settings > Accounting System.
7 - Billing Rounding - (Optional) You have the option to set the rounding interval to use when invoicing the time entries where the Billing Rate is used. NOTE: The rounding applies to the sum total of the uninvoiced time entered on a Job, when producing a Time & Materials based Invoice. e.g. 2hrs 5mins will round to 2hrs 15mins if 15 minutes Rounding is selected.
8 - Billing Minimum - set the minimum time to use when invoicing the time entries entered on a Job where this Billing Rate is used. The Billing Minimum only applies, when producing a Time & Materials based Invoice, if the sum total of the uninvoiced time entered on a Job, where this Billing Rate is used does not exceed the Billing Minimum selected. e.g. total uninvoiced time with the Billing Rate = 20mins will become 30mins if 30 minutes Billing Minimum is selected. To meet your requirements in this instance, set the Billing Minimum to 60 minutes.
9 - Hourly Rate - Enter the Hourly Rate to be charged out to the customer for time entered on a Job using the Billing/Labour Rate
10 - Click "Save" to complete the process.
Configuring a Billing Rate in this way will ensure that a minimum of 60mins will be invoiced if the sum total of time entries on a Job where this Billing Rate is used, amounts to less than 60mins.
Create a Call Out or Travel charge to add to each site visit
We recommend using this option as a work around, if you are looking for a way to set a Billing Rate that charges a rate for the first hour and then a different rate per hour thereafter, e.g. $100 for 1st hr and $65 per hour thereafter, since there currently isn't a straight forward way to do this.
This will produce two lines on the Invoice, one for the time and one for the call out fee, however, the line details can be manually manipulated when the invoice is generated to display it as needed. The time is charged out at your normal hourly rate and the Call Out or Travel charge is for the difference between the normal hourly rate and the 1st hours charge. For example, using the figures mentioned above, the time will be billed at $65 per hour, with a minimum set of 60mins on the Billing Rate, and the Call Out or Travel Charge will be an additional fixed charge of $35.00, totaling $100 for the 1st hour.
Set a Billing Minimum charge of 60mins on an existing Billing Rate or create a new one with this minimum as outlined in the steps in point 1 above.
Create a "New Price List Item" for the Call Out or Travel charge under Settings > Price Lists & Kits
Enter the required information, Item Code and Description as shown below. You can enter here whatever suits you for this charge
We recommend creating a Price List Category called "@Favourites" and allocating this to the Price List item. Allocating this category to price list items that you use most often will make it easier to find and add these items to a Job from either the Web Console or the Mobile App. We also recommend creating a fictitious Supplier called "Service Charges", or anything else you deem relevant, and then allocate it to the Price List Item.
Select the Pricing Method, "I want to enter the price". This will allow you to set a fixed price per unit on the Price List item. NOTE: The Buy Price is optional and if there is a cost associated with the Price List item, enter it in the Buy Price field
Enter the Sell Price as required.
Click "Save" to complete the process.
The following images show how the Billing Rate and Call Out Fee will appear on a Job and an Invoice.
Notice how the time entry is for 45mins, yet the charge is $65.00 due to the Billing Minimum set on the Billing Rate.
On the same Job, the Call Out fee is added to the Materials tab. Notice the Price List item is easy to add by expanding the Price List Category, "@Favourites" and selecting the item listed there. Notice also the fixed charge of $35.00 is added to the Job.
This is how the 1st hours charge will appear on an Invoice when the job is invoiced. Notice how 1hr is charged on the time entry even though only 45mins is spent on site.
Below is what the printed invoice looks like in this instance.