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Time and Material Billing

Palani Durai
on 7/10/15, 5:31 AM 987 views

Hi Folks,

I have a typical scenario on Project Time and Material Billing, Can someone help me to handle this


Project Type : Supply, Install & Training of Equipment 

Billing should be done at 3 different stages : Supply 50%, Installation 40% & Training 10 %

The Total Value of the Contract is for the Materials only

I have created a Project & Analytic Account on the Sales part i have created Sales Order, if i bill the as per sales order it will 100% billing of Material, is there any way i can bill Proportion of the Contract value with Materials 

Let us the contract Value is $ 150,000 for which i have 10 different products & multiple quantities, in the stage 1 i have to bill for 50% of the Contract though i have supplied the complete material &  stage 2, Stage 3 thereon.

Thanks in advance, your help would be highly appreciable



Alex Black
On 12/19/17, 3:44 AM

When you choose the fixed price, the developer is under a lot of pressure. As they don’t have full picture of the final product beforehand, they can’t be sure how much time and effort it will take to complete it. That’s why they usually overestimate and you end up paying a lot. What’s more, since the developer is not paid extra for each feature and task that could possibly come up during the development, the work can be rushed and of mediocre quality. You can probably already see the deal isn’t really risk-free for the client. The risk is a potentially subpar project that have lost a chance to be improved on the conceptual level during the development.
In most cases, the time and material method undoubtedly makes for a better product. The development team cooperates with you all the way to make the project as great as it could possibly be for your target. The scope of the project can be easily changed without having to modify the agreement. You pay for what you want to pay, prioritize tasks freely and have full access to reports on the development process. The only major shortcoming is that depending on how much time, effort and, well, material will be used, the price will increase accordingly.

On 4/4/17, 4:57 AM

Time and material definition

The Time and material billing is an approach when a client pays for all billing materials and hours, which were spent on the project. If I were a client I would boil over. It could take them an eternity to develop it! And I have to pay for this? No, thank you. Nevertheless, this method is as popular as the Fixed Price. It happens because a client supervises the whole process and sees how much time was spent on every feature and pays only after a thorough discussion. Read more at


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Asked: 7/10/15, 5:31 AM
Seen: 987 times
Last updated: 12/19/17, 3:44 AM