How to Adjust Client Time Charges for Value?

BigBillFL · ‎10-21-2018

I bill my clients based on the time I spend on their issues adjusted for value. Is there a way to record these adjustments, which more frequently than not are write ups? Should I create an income account entitled "Client Write Ups" and charge an expense to the client for the write up?

I have been adding a time charge that I back into by dividing my billing rate by the additional amount. This isn't ideal because of the way QB rounds time charges. I get billing amounts that are odd amounts.

I use a credit memo for write downs. Is there a better way to do this?

I don't send clients invoices. I use statement charges to bill my clients.

Thank you.

qbteachmt · ‎10-25-2018

You can use a Service item for the Statement charge, linked to income, for the Time to charge. If that is Gross, and you want to give them clarity of an adjustment, you can use an Other Charge type item linked to one income account that will run Contra- (negative) and put negative qty, and your rate, to get an Negative on their balance= the offset.

Now your Sales reporting will show Positive as Gross, and Adjusted negatives, such as Sales By Customer Summary with Columns by Item Type. You also can run reports on the Other Charge item, to see info on it, such as Sales by Item. And lastly, the P&L will show two income accounts:

Gross Sales

Adjusted Sales <== contra account

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Rustler · ‎10-22-2018

If you are upcharging the client for additional time, there is no expense to be entered.

I have been adding a time charge that I back into by dividing my billing rate by the additional amount.

I'm not sure what that means. You have a rate for your service, it is either a flat rate or hourly. If you use flat rate, then use that and create a new item for "additional services" and use that in addition to the flat rate.

Using a CM for write downs is fine, but I wonder about your customer/client record, run a customer balance report for all dates. Typically a CM is designed to be used to apply to an invoice, and since you are not using one there could be those CM's sitting there unapplied. I don't use statement charges so I have not played with that aspect to know for sure.

qbteachmt · ‎10-25-2018

You can use a Service item for the Statement charge, linked to income, for the Time to charge. If that is Gross, and you want to give them clarity of an adjustment, you can use an Other Charge type item linked to one income account that will run Contra- (negative) and put negative qty, and your rate, to get an Negative on their balance= the offset.

Now your Sales reporting will show Positive as Gross, and Adjusted negatives, such as Sales By Customer Summary with Columns by Item Type. You also can run reports on the Other Charge item, to see info on it, such as Sales by Item. And lastly, the P&L will show two income accounts:

Gross Sales

Adjusted Sales <== contra account

View solution in original post

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How to Adjust Client Time Charges for Value?