Effortlessly Manage Billable Hours with Our Invoice Template for Enterprises

Billable hours invoice template for enterprises

so today's content is to cover what is enterprise our expert and we'll talk about some of the other recommended events that I'm involved with and they'll be about five minutes and then the demonstration on billable timing materials in QuickBooks Enterprise will be about 40 to 45 minutes and then we'll leave it open to Q&A so what is enterprise that expert we're a community of experts in the enterprise level technology we congregate in this monthly webinars also in the website and blog which is basically HTTP colon slash slash Enterprise expert no wwe.com that's the actual domain name and her price dot expert and in the Facebook group so if you haven't joined the Facebook group Search Enterprise expert in the Facebook group great place to continue the conversation and and ask other asking share are there experts on your knowledge on enterprise technology now what is Enterprise expert this is all about medium-sized businesses that need your PC software hardware technology in order to run their businesses so we're going to be focusing on that for about a year and a half now but now about a year that we've had enterprise expert monthly webinars we've been a hundred percent dedicated to QuickBooks Enterprise and we will and we will run out of topics probably in the next two to three months on QuickBooks Enterprise and we'll start shifting over to other technologies maybe some competitors in the QuickBooks world or some add-ons on that and we are actively recruiting people that are experts in other technologies or add-ons to QuickBooks or other ERP accounting technologies contact me if you want to present or you have some ideas about the stuff that we should be presenting now about the webinar series itself this is monthly every third Wednesday of each month you register once you get invited to all the episodes we may have a special episode every once in a while that's created or sponsored content so we're talking to other companies other than into it you know they want to promote the product in this webinar and discuss the differences between the different products out there we do not provide CPE this is not a CPE webinar so this is not directed towards accountants or pro advisors however you know obviously accountants or advisers are very much welcome to join the webinar and share your experiences and ask questions etc etc now we're gonna have a strong focus on core enterprise level technologies like accounting and ERP software this is why we are featuring QuickBooks underpriced we've done it for the last 11 episode and will probably do it for three to three more episodes then we're gonna have a secondary focus on other hardware add-ons apps that integrate with accounting technology and we may cover other non software but had technology that also affects the accounting I mean the the medium-sized businesses like database software and things like that all right about myself the host I'm Hector Garcia I'm a CPA I'm a CEO I'm the CEO of active CPA which is an accounting an integrated technology consulting practice firm we have offices in Miami and I have a partner in Los Angeles helping me on the west coast so we do all sorts of QuickBooks integration data conversion and add-ons mostly to enterprise level clients midsize level clients there's my email Hector at Garcia CPA account if you have any questions comments again we're recruiting other enterprise experts that want to join the team add some value add some content maybe present something in the webinar or maybe work with some of the projects that we can do because of geographic location or expertise so if you're an expert in fishball database manipulation reporting contact me and we're very interested getting you involved in the enterprise expert world anyway we have other recommended webinars I will I will circle back to this slide when we finish that way we don't cut too much from the enterprise presentation the software but just keep in mind that there's another webinar at 2:00 p.m. so literally two hours from now called data conversion Pro which is a webinar about manipulating data in preparation for importing into accounting system so we talked about converting from PDF to excel manipulating Excel before we convert into quickbooks uploading to quickbooks and other accounting systems that's a type of topics that we cover on that webinar so if you want to join us at 2:00 p.m. today two hours from now go to Hector Garcia comm forward slash webinars and you'll be able to join that webinar that one's free as well now I'm involved in other webinars which I'll mention at the end anyway so let's jump straight into the topic which is QuickBooks Enterprise billable time and materials so first we'll cover preferences and we'll talk about the different preferences that there are different things you can change in QuickBooks Enterprise to handle time and materials we're going to talk about billable expenses with and without markup so we're kind of we're gonna take a look at how that works and how that looks like in an invoice we're going to talk about billable time we're going to talk about batching so batching billable time and expenses and materials into invoices based on a time period and then we'll talk about billing levels which is specific to billable time based on the employee or subcontractor that did the work okay so let's go into the demo and I'm going to go ahead and launch QuickBooks Enterprise here and let's start by talking about what is billable time and costs so billable time and cost means that we engage into some sort of transaction with the customer and the expenses that we incur along the way were unexpected or they were contractually agreed upon that we're going to pass them through to the client or maybe the sale of the service wasn't very defined in terms of how much time we were going to spend in the project and we were going to build them the time as time goes by so that's kind of a few examples of what billable time and cost is in a concept in a nutshell so let's go into the Edit menu so edit and then preferences and then we're gonna go down all the way down to time and expenses and again this is QuickBooks Enterprise 2017 however all other versions of enterprise will work just as well because this hasn't really changed major in the last couple of years and even if you working with Pro and premier or accountant at the lower versions most of these things should be identical anyway so we went to the Preferences menu we went to time and expenses and then we went to company preferences and there's a couple of really important key elements here we have the you track time right so there's a yes or a No so if I hit yes I will be able to have them some time tracking by employee or by vendor not necessarily have to have payroll turn on to be able to track time that's a really good thing so I don't have to have payroll turned on to be able to track time also a billable time is not based on paychecks is based on timesheets so you have to have a time sheet or a billable event in terms of time logged into QuickBooks before we can actually charge our our customer for it so you don't have to have payroll you don't have to run payroll in order to do billable time so that's basically a yes or no question so we're gonna do yes because obviously we're gonna be doing some billable time now here we choose whether the week starts on Monday or on Sunday so that could be either either way whatever it's better for you so that basically says when I'm looking at a timesheet and I'm entering time what's the first column I want to see Sunday Monday or whatever and typically people do that based on the payroll schedule so if people get paid I don't know Wednesday through Tuesday they normally will put Wednesday as the first day of the week just a bit consistent with any other processes then we have a little check mark here that says mark all time entries as billable so if you track time and the main purpose of tracking time is for you to build your client for it so the primary purpose for you to before you to track time is to charge your client for it again if that is your primary then you want to mark them all billable now if you track time and 8090 percent of the time is you're not going to build your client for it because you know it's services that we're already pre quoted on the invoice or the estimate and you're not really gonna send your client an itemized time-based invoice then we don't want to mark them billable and then we just want to check one by one the ones that we do when a mark billable so I'm gonna unmarked that just like I cannot show you how that works now under invoicing options I got a couple of options one says create invoices from a list of time and expenses so by checking that option QuickBooks is going to enable a function for batching so we'll talk about batching a little bit later as we cover everything else so again if you want to be able to batch your time and expenses you hit that check box and that would basically give you that or open that option then we have tracked reimbursed expenses as income so the purpose of that is if you resell an expense this is business on the expense side not the time tracking site if you resell an expense do you want the resell that expense to show up as an income item and then the expense itself show up as an expense or custom solve that way you split off what you charge versus what you paid or if you uncheck that basically what you want to do is you wanna you want the income to offset the expense that way they zero out so it's up to you it's up to you what you want to do if you hit that Mike expenses as my reimburse expenses income then this is going to use my two-sided item rules to know when to use it in income and when to use it as an expense so we'll talk about that in a second so just remember that piece track reimburse expenses that's income for when we cover double-sided items so we can understand what does that mean so we'll do an example of that as well and then there's mark all expenses as billable basically what that does is by default every time you create an expense and you add a customer job to that expense QuickBooks will mark it as billable assuming that the purpose is for you to market billable and invoice your client separately for it so I'm gonna uncheck that because that's kind of annoying for me so I'm gonna uncheck that and I'm going to manually choose which of the expenses that I'm job costing are gonna be marked as billable then there's a default markup percentage and that's assuming that I am going to mark up my expenses and I picked that and that can be changed on the fly every time you add it on an invoice so you're not stuck to that particular percentage and then the account is well where do you want to document the markup on reimbursable charges so just to make it very clear I'm going to create a new income account called markup on reimbursements okay and the reason for that is I want to see it on my financial statement I want it to be very clear very obvious of that percentage there so that's the whole screen in a nutshell so I believe it or not it doesn't seem like there's that much here but yeah there is a lot of good options here of things you can change and they're under my preferences there's nothing so there's only under company preferences those options okay so let me hit OK and it will close and reopen the QuickBooks file so let's start by talking about what a double-sided item is and that's crucial especially whenever we're dealing with you know the a cost side versus the income side of any item so let's for example create a new item so I went into list item list I'm going to create a new item I'm gonna call this FedEx okay I'm gonna make this a service item and then I'm gonna call it FedEx and then basically if I have to overnight a document to a client I'm gonna document the fact that I paid for that overnight of the document but I'm also gonna charge my client for that and maybe in some cases I will I will make something on it or maybe in some cases I won't make something it's really up to you but this little checkbox here is crucial it says this service is used in assemblies or performed by a subcontractor or partner which actually has nothing to do we're doing here but because we marked that now we can have an expense account independently from the income account so I call this shipping so you shall I create a custom good solve account called shipping and this is for all the documents that have to ship to my customer that again these are extraordinary beyond the day-to-day operations that we do this is something that surprised us and then on the purchase description I'm going to put a shipping to client and then on the sell side I'll put reimbursement for shipping docks to client okay so that way he shows up in there and then on the income account in this case I'm going to create a separating from a town called shipping reimbursements so this is different than a markup accountable we'll discuss that in a second but I'm creating an isolated income account called shipping reimbursements and then there's shipping on the left side as a matter of fact let me change the name of that and I'm going to call it shipping costs that way it's just really really obvious that were worth of the name of the accounts and then on the cost and sales price that should in the most part that should be blank because that's going to vary each time so we can leave those blank or leave them at zero we actually don't need to mess with those someone rather hit OK okay so let's say for example that I'm gonna go ahead and estimate my customer a job they say I'm gonna do a tax return for them I cuz I'm an accounting from so I'm gonna have a customer here called Carlos and then I'm gonna estimate them item one for let's say $1,000 and then I'm gonna put on the estimate I'm going to put in the estimate this does not include incidental expenses we will build those separately okay just to kind of give you some context in terms of you know how would a transaction like this go buy will basically you know quote the product right we won't quote the shipping we actually don't know how much is shipping is gonna cost we code the product ask the service and that's it and then we're gonna basically stumble upon an incidental expense which is going to be us having to you know FedEx overnight something to a customer so again this is only for when I don't pre estimate or pre charge my client for it this is where when I add it on top of the original invoice so there's the invoice for a thousand bucks I'm gonna hit save and close and there's my estimate I sell it to my client let's say the job is approved and then I'm doing the work and then again I stumble upon an expense which is I have to pay FedEx let's say twenty seven dollars for four overnighting a document so I'm gonna go ahead and go to write checks and type here FedEx and and this could be something I paid maybe with a debit card with a credit card not necessarily a cheque right there's FedEx typically doesn't accept checks but but I'm gonna put it in QuickBooks as a check because that's how QuickBooks records all of my bank transactions I'm gonna put it as a check I won't put a check number of course because let's say I paid it with my debit card and it was $27 so what I'm gonna do here where's this account I'm gonna put this on there shipping costs as we mentioned we were gonna have an account called shipping cost and then in the memo I'm gonna put here overnight Docs to Carlos for signing okay and then on the customer job really really important probably the single most important or this whole thing it's hard to select my customer job or my customer related to that project that without selecting the customer we can't have any billable time and cost it is crucial it is the first most important element of billable time and cost is to be able to assign an expense to a customer or a job which is what we're doing now now if I were to save this as is and not mark this billable basically the $27 is going to be a cost that I internally pay for and he gets assigned to the job but then QuickBooks won't prompt me to charge my client by the $27 so I have to mark it as billable by hitting that little check mark I wanna purposefully and intentionally I want to build this to my customer so I need to market billable in order for me QuickBooks to remind me when I go in with the client that I'm supposed to get this 27 dollars back and in some cases I will also get you know even a a markup right so let me go ahead hit I say that close and then I'm gonna now invoice my customer so let me in with my customer as I normally would by selecting my customer at the top by selecting the estimate here okay and then QuickBooks is gonna have a pop-up window that says hey wait a second you got billable time and costs you know do you want to add it to this invoice or do you wanna exclude it okay so this is really important right if I if I exclude it and hit okay then nothing happens right so if I exclude a hit okay nothing happens then I have to go back into the button here that says item time and cost add time and cost I have to click on that and prompt that screen again so that screen shows up again so again let me just do this again because this goes a little fast for certain folks that just getting started but when this window pops pops up I can choose exclude them or include them right so I'm gonna hit include them because that's maybe what I want to do so I'm gonna hit OK and then this pops up I get multiple types of time expenses mileage items okay because that particular check let me pull it up here for a second so I'm gonna hit cancel and I'm gonna pull up that check so because that check was using the expenses tab then that's naturally gonna come up on the expenses tab on the billable time and cost if I were to put this on their items that word has shown up under the items tab if I would have done a timesheet that would have shown up on the on the time tab and if I would have done mileage that would have showed up on the mileage tab okay so again there's four total tabs in which I can add billable time and cost the customer for now the only thing I have is expensive so let's continue with this example I'm gonna go ahead and select that expense notice that there's a memo in there and there's a couple of options here this one says am i marking anything up so notice it says markup amount markup account if I am marking it up and it will do all the examples so if I'm marking it up I'm not gonna charge my client 27 dollars I'm gonna charge my client 29 7 I said as the state said here clearly if I click on print selected time and cost in US one invoice item basically if I had multiple shipping expenses that would both combine or concatenate into one before I here okay let me do that example real quick let's say for example that I also had to go to let's say UPS just to kind of change this a little bit so let's say I also have to get ups and I had to overnight a document to someone else for the same customer though and let's say that $17 I'm going to put this here on their shipping cost okay and then I can put here send dogs to partner okay let's say for example I have to send some dogs a partner I'll put that into the same job and also market billable so I'm doing basically another transaction altogether this time is 17 instead of 27 so I'm doing two billable time and expenses just to kind of show you when I go back into my invoice and my two items are there so if I were to select the two items without hitting that little box that says print selected time and cost as one invoice item with that 10% something interesting is going to happen let me hit OK so you can see so what QuickBooks is gonna do is gonna break him down and it's gonna put okay so I'm getting two items reimbursed $44 and I'm getting a markup of four dollars and 40 cents so I'm getting a total of 48 40 now a lot of people freaked out about the presentation of this because maybe they don't want the customer to see that is a markup now if you don't want the customer to see that there's a mic up then you may want to do it a little bit different okay so we'll discuss that in in a second but this is the way we look if you have a markup on it so you basically explicitly telling your customer that you are going to get a markup now anytime that you mark something up so let me get clear here so I don't want to save it and I'm gonna go back to time and costs me select here Carlos again other time and cost so anytime you mark something up if I select all the items and click here where it says print selected time and cost as one invoice item and then I hit OK you will see that this is going to look different now and I hit preview ok so this basically bundles all up together including the mark-up into it's broken down internally into different items but then the customer doesn't see it ok so then at that point you can just on your own go down to the description which I believe it's using this description here so I'm gonna put here Fed Ex and UPS right because I'm not again because I'm not breaking them down by item I may even need to whoops let me take our email later from here so because I'm not breaking them down by item and they have to explicitly put that description in that reimbursements portion so it shows up let me see maybe maybe it's not here maybe it's down here it's kind of hard to know exactly where it said that this is gonna show up under on the printout so I'm gonna try the bottom one yeah there it is so I'm gonna basically have to add those add them in the description side because we chose not to break them down by item with the marker now let me hit clear here for a second and let me just delete this okay and let me try try it again and then show a different option here so what I'm gonna do is okay so really important I I added them I saved it and then I deleted the invoice if you do that you cannot get those billable time and cost back so you actually have to go back into each of the execs a good thing that's happened and you have to now override that little box there that box says that has been much billable before now because I deleted the transaction then that transaction there's no link anymore so I may have to click on that and then click yes and market billable again to be able to recover it again this is if I mark something billable save the invoice and then believe the invoice and if I wanted to if I wanted to show up again in that screen I have to reform our kit billable by hitting the little check mark that's important that's a good thing that that happened where I deleted the those items just to kind of show the example of that so let's mark both of these and let's not put any markup percentage I'm going to put 0 there and I'm gonna hit OK and then basically this is going to look similar to the first invoice you're gonna get them broken down by item with the original descriptions from the from the from the checks themselves the checks are the credit card charges and or the bills which is great so those pass through and they're broken down side I have to type their you know UPS FEDEX whatever and and those are broken down by item and I'm not making anything on these so there's no markup so let me go ahead and hit save and close let me remove that email later checkbox hit save and close and then I'm gonna pull up a financial statement just to kind of see what happened here so I'm gonna pull up a financial statement for today and notice that there's just a big zero there now that's zero it's on the shipping cost if I double click on that you see how the income and the expenses get reversed into themselves because I basically didn't have any markup right so you got the expenses coming in you got the reimbursement coming back that nets out to zero it doesn't show up as two different items now if I were to do it differently where and let's let me go back into that invoice again and delete that invoice I'm gonna hit delete okay and then I'm gonna go to each check and my kid billable again again twice we had to do the same thing because I was delaying the invoice Mike those billable again and then I'm gonna show you with the mark-up what that will look like okay so I'll select Carlos select the billable time and cost select the two items I'm gonna keep the mark up there right and then I'm gonna hit okay let's say I want to hide them so I'm gonna click on print time and cost because I don't want the customer to see it so I'm gonna hit the check box so I'm gonna hide them from a customer but I'm still gonna internally book it so that's kind of the example we're going to do and then we hit OK so then there's the broken down with the mark up with the reimbursements and that will hit save hit save without emailing it and then we'll pull up that report again and see how it looks different so now notice with the report we have shipping costs again they reverse into themselves but then I'm gonna see the markup on the reimbursement as four dollars and forty cents separate okay now let me check something real quick here in the settings so I'm gonna go into the preferences and take a look at this okay so here's all the different settings and this is where we picked that reimbursement default reimbursement account and this is where we pick the default percentage that we could have changed okay now if I if I click on mark all expenses as billable and then I'm gonna hit OK I'm gonna show you something that's gonna be a little bit different so let's say for example for the same customer I had to let's say pay a pay parking to go to the office ok so I'm gonna put here Miami is called miami-dade Expressway Authority who I pay for parking and let's say I pay $10 for parking and I'm gonna put this on the enough parking account let's say I have an ex account called so my expense account core parking and there's my $10 and then I'm gonna select Carlos market billable and then notice that I so noticed I didn't have to market billable okay let me just hit clear to show you again so let's say I put ten dollars here and then I select my account automobile explains parking whatever it is the minute I select my customer and I hit tab I didn't have to mark billable it actually marked itself bill about us with that option was for so I'm gonna mark that and then let's talk about mileage okay so let's say for example that I had to drive down to court to represent the customer and whatever service I'm doing so I'm gonna go into the company menu and click on enter vehicle mileage now I do have to create the vehicle so you can just if you only have one just create one vehicle or one vehicle per employee so let's just call it here Hector's car okay and let's say for example that today I had to drive let's say 35 miles there's an option there for you to put Auto Meter or start and end but you don't have to you can just put the straight mileage now if you had if you had to put the odometer reading you can do that as well and QuickBooks will calculate the miles for you so again you don't have to do the odometer reading you can just manually put the miles or you can put your downloader and QuickBooks will do that for you so the only notes I'm going to put here drive to court to represent client in IRS audit whatever whatever type of work we're getting reimbursed for and then customer job will select our customer here and then item that's really important is you know how are we gonna how are we gonna build for this right so this we can pick an account so there's no possibility to pick an account because this mileage is not costing us cash flows and so it's not something coming out of the bank it's something that we're measuring separately right yes we pay for gas yes we paying for the vehicle but there's no direct account that this is coming from so I have to actually create an item just for this so I'm going to call this mileage and and by the way it could be a service or it could be an other charge I mean most people will use other charge to not confuse services with that but you can do whatever you want so I'm gonna call this mileage or we can call it reimbursable mileage okay and we can put here the item is a reimbursable charge so if I were to pay for the mileage that would go into my automobile expense account however I'm never really ever gonna pay for mileage unless I'm actually reimbursing an employee or reimbursing a vendor as a whole nother story but for this particular purpose let's say we're using the mouth of like internal vehicle so we're not really paying an employee or a vendor but assuming I was going to pay an employee your vendor I'm going to put here whatever the mileage rate is and then let's say that to my clients I charge them let's say 75 cents a mile and then I'm gonna put this on the dollar count called markup on reimbursements or we can just create its own account called reimbursed reimbursed mao's whatever whatever whatever I want to do okay so let's say I'm going to call it reimburse miles and again if I pay for it to my vendor or employee would be 54 cents when I charge my client there will be 75 cents okay perfect so and then I'm gonna hit save and close and let's say I'm gonna now go in with my customer again okay select billable time and cost hit okay and then I got my parking right and let's say for example I'm not gonna make any markup on the parking and then we got the mileage which I'm gonna hit the check box here and that's already calculating on 75 cents a mile so then I'm going to hit OK and that's gonna bring both of them in there now one really important thing is notice that when I brought in the ten dollars no description or memo came in now why is that that's because when I paid for it I put no description or memo so it's really important that you don't leave them blank like that because customers are not gonna pay you back if they don't understand what what you're being reimbursed for and it's really annoying that to sit there and type again what you could have done that you can done it on the original charge or service so I'm gonna go ahead and clear that and then I'm gonna go into my expense I'm gonna put here me the parking and I'm also going to put in the same description they date that I did it and this is I know this is kind of annoying but this is look the only real way of doing it so I'm going to put Miami Dade parking you know 12:15 and I'm gonna put it court date or something like that so I'm literally putting that at the expense level and because we're marking available I want that to then be transcribed into the invoice now I can't put that description up here if you put it up here it doesn't help it has to be in the line item level I can't stress that enough you can't put it here it has to be in the line item level otherwise you won't translate okay so it has to be at a line item level I hit save and close and then I'm gonna add those billable expenses again and where are you expenses perfect and then I'm gonna hit okay and actually I don't want to mark them up so I'm just I just want to get reimbursed a hundred percent so let me select the customer again hit okay don't mark this up okay and also get my miles from your bursts and then I hit OK and perfect so now I got description in both of these so this is perfect so now when I go look at my invoice okay I got my light items in the description very explicit it's gonna be a lot easier to get reimbursed from my customer now when I hit clear here for a second and technically I could also pull up my original estimate okay so let me pull up my original estimate I'm gonna hit here exclude I'm gonna pull up my original estimate first okay where where's my estimate let me go here create estimates go back let me close that invoice sorry about that I'm gonna pull up my original estimate and I'm going to click on create invoice I'm gonna start from the estimate create the invoice and then I'll delete this line that it doesn't include incidental expenses and I'll manually click on add time and costs and add them in addition to the original estimate okay so I don't necessarily have to invoice them separately I can do an in addition of the original estimate and I can I can have my invoice with my original estimate items plus the additional reimbursed time and cost okay so I'm gonna hit save and close go back to that profit and loss again to see what that looks like with all the activity that we did today there it is so there's my reimburse mile at miles there's my markup on the reimbursement on the FedEx and there's the thousand dollars that we invoiced okay let me take a quick break to see what questions I have a sure there's a couple of questions so if I can answer some I will answer them let's see does this work in any version of QuickBooks desktop like Pro premier or accountant the answer is yes it will work in all of them including that stuff QuickBooks Enterprise nothing that I have covered it's unique to QuickBooks Enterprise as far as I know what happens if you put a memo on the cheque on the top line and the line item as well it would so the answer is it will only take it from the line item so again you know going back to that check here okay whatever you put here is not gonna translate into the reimbursable charge in the invoice only when you what you put down there is what translates it let's say for example you're using accounts instead of items what happens if you use items okay yeah so definitely going to talk about items because items are going to be a little bit different but I want to show you everything with with the expense account instead of item so we're gonna use items in a second right so because those actually act differently somebody says would you advise to have a negative expense when you put in an invoice or as a separate invoice item so this is what I advise if the reimbursement happens on the same period in my opinion the reimbursements don't have any markup should cancel the expense out if they happen in a different period so for example let's say I have the expense of November and I don't get to get I don't get reimbursed until January it would be kind of odd to have a negative expense in January and no positive expense to offset it so then it will probably make more sense to have it as income instead of a negative expense so again I would say in my opinion you know if it's the same period just have exactly as the example we use just have them cancel each other out okay perfect let me close that and again going to the handout section right there and they go to webinar screen there's a couple of really really useful PDFs that you can follow along and kind of follow it step by step on job costing and billable time and materials it's gonna be crucial for you to go through those and understand the different options that they are there okay so let me do I know another example let's say for example I went to again I went to FedEx again and instead of using an expense I account I'm gonna use an item now the problem with FedEx the problem with using items it's it's always the issue the problem with using items is it depends on whether your item is a service or another charge if your item is a service it's going to be susceptible to something called billing levels which we'll cover in a second you know so that's a that's a that's an issue if there's a billing level because a service is tied to a vendor and depending on that vendor you can have a different fee that you charge your client but if this if the item is another charge then it's going to be completely attached to the to the default item cost okay so let's discuss that so let's say for example I went to FedEx and I spent let's say $60 in FedEx overnighting some documents I'm gonna and I'm gonna put here overnight 1040 return ok so I'm putting that description they're called overnight and 40 returned and I'm using that FedEx which is a service item for $60 now I'm going to create another service item called let's call it FedEx - okay the way I don't leave the check itself and I'm gonna make this an other charge and I'm gonna put this on there shipping costs as well and I'll mark it there that this is a reimbursable charge so I'm gonna put the shipping costs and then the shipping reimbursements on the sale side now for this I'm gonna buy a stake I'm gonna actually put a sales price of $10 and a cost of five so actually explicitly gave the item a cost and a sales price you're gonna see how these behave differently so let's say for example that I actually ended up paying $7 not $5 for that item and in $60 for the first FedEx item and notice that let me put here a 1040 return and then I'm gonna call this one overnight let's call it payroll forms okay then we have two different descriptions here and I'm gonna pick the same customer I'm gonna pick Carlos both times and and notice that they're being marked billable automatically now one really important caveat if when you use items no matter what type of item you use and you jump custom QuickBooks will always matically marked them billable even if I'm gonna hit save here okay even if in the preferences I tell it don't mic and billable if I actually go in there and say don't market billable don't track reimbursed expenses whatever if I uncheck everything and then I hit okay okay and then I try to create a check with those items let's I'm gonna do it one more time maybe with different items here but I'm gonna use items so I'm gonna try one more time and I'll put here let's say 80 on this one and I'll put Carlos notice it's marked billable so no matter what no matter what up should have checked on or off if I use items QuickBooks will always mark it billable there's no way there's no option there's no work around to get QuickBooks to not mark items as billable which is a really huge annoyance and in my opinion a programming flaw but this is what you have okay so that's a really really important piece to keep in mind so that's why I tend to use expenses instead of using items because I don't want to be forced to mark this items available especially for inventory parts it becomes even more confusing okay so but for now let's just leave like that that's mark billable maybe that's what we wanted to do in the first place I'm gonna go ahead and hit OK and then I'm gonna put this one overnight let's call it W 2 whatever so i'm creating a description on each one and hit save and close now when I go invoice my client let me go invoice them for this billable services okay now this is under the items tab and each of these have default descriptions so notice that the the other charge actually had the actual description that I typed in the check but the two services did not carry over the description from the check so that's a really important piece if I use a service ID the description on the invoice will be the default description from the item if I use an other charge the actual description written on the check will carry over so that's a really important piece on on choosing whether it's a service item or a other charge so we're gonna go ahead and hit OK and there it is so notice the only custom description that came in was the one from the other charge and then these random descriptions you see here those are actually from my item list the descriptions are here so they can no no custom descriptions pass through whenever you use a service item but they do pass when you use another charge but they do have sort of a pro and a con so the pro of using all the charges is that the descriptions pass through the con is that I can't use billable levels so we'll talk about billable levels in a second and hit clear here for a second and let's go ahead and write a check now let me write a check to let's say Steve my contractor okay and I say for example I am paying Steve let's say a couple of hours to do some work for me related to this Carlos job okay so I'm gonna put here hours so I'm going to create an item called hours and then I'm going to make this a service and I'll give it let's say I give it a default service price of $75 and let's say I normally pay him 45 so I'm gonna put the item in the subcontractor expense account and then I'm gonna put the income account into let's say consulting income whatever okay and then I hit OK so let's say for example I'm gonna now pay Steve let's say I'm gonna pay him 40 hours okay twelve hours was spent at the Carlos job and let's say that the other 28 hours was spent at the Mary job so I created a whole different job altogether and let's say for the Mary job I'm not gonna mark available but for Carlos I am so in other words I planned to invoice my client for Steve's hours separately and explicitly now if I wasn't charging my client for the hours because it was already part of the let's say the thousand dollars that we estimated then I don't market billable I stood job cost it which is a sign a customer job so I know internally what I'm paying for but I'm gonna mark this billable and then hit save and close now if I go invoice my client now for Carlos and I go into items I now I can now select let's say hours and then hit OK and then pass that through okay I what price do I pass it through I'm gonna pass it at the price that was set up on the item by default okay so the price I was set up on the item by default is 75 but sometimes what happens is depending on who I contract I may be charging different rates so for example and hit clear here and then I'm gonna go write a check and I'm gonna pay a different contractor let's say I'm gonna pay Jose my other contractor okay I notice I'm using vendors contractors because I want to get too much into payroll but that's a little bit more complicated so let's say Jose the other contractor worked let's say 8 hours on the Carlos job ok let's say I still paid him 45 but I'm gonna bail him out at a different rate okay and let's say he worked let's say 12 hours are they married job okay and again let's say I'm not gonna build Mary out but Jose we're gonna build him out at a different rate that that Steve is let's lower the rate let's make it 37 dollars to just make it realistic myself why we're charging the client less for Jose's work so I'm gonna lower that and hit save and close so if I were to then choose my customer and then add the billable time and cost and select josé's and Steve's ours nor this is a flat $75 so that's if that's what I want to do that's fine but that's not what I'm trying to do then I should do it in a different way so let me hit clear here and it should work differently so the way this works is I need to enter them as a time item so I'm gonna go into employees enter time I'm gonna I'm gonna click on enter single activity so instead of putting them in a check with an item I'm gonna put it in a timesheet okay so let's say I got Steve my contractor working on the Carlos job service item hours that's key and then I forgot what it was twelve hours okay and then I'm gonna put here worked on last year's return whatever whatever that time is okay someone hit save a new and then select my other contractor which was Jose and this was the Carlos job same item hours item and let's say this was eight hours and put here assisted with cold tax return whatever it is okay so I'm putting different things in here so I got both of my time entries setup time entries these are not these are not coming from bills or checks these are from time entries and then I'm gonna go into the list menu and click billing rate level list so I'm going to click billing rate level list and then I'm going to create a new billing rate so I'm gonna call this my Jose billing rate okay and then it says you know same hourly rate based on all the people that perform it or I can do a custom so let's say for example for hours let's say Jose is going to be at a billing rate of 60 and then I'll create another billing rate we'll call this who was Steve and we'll have his billing rate would be 90 and then I hit okay so each of them have a different billing rate right this is these are not tied to the vendors themselves but they're just named billing rates so then when I go let's say for example I got invoice my customer and I select my billable time in this case where is my billable time did I not build it already I think I let me just make sure that I didn't already build it you hit clear Carlos hmm that should be here let me just double check that these were marked billable so let me go into enter time not this one enter time single activity go back okay yep so I forgot to mark him billable that's not gonna work if I don't mark available so I'm like this one billable and Mark two to Steve billable and without marking them billable this is not gonna work okay let's try that again so I got both my billable time and cost now these are gonna go by default at $75 okay but these have different billing rates okay these have different billing rates and the billing rates are set at the customer level so for example let me go ahead and clear here and then go into my customer and go into Carlos hit edit and go down into whoops not customer at the vendor level sorry what am I thinking so I'm gonna go into each vendor I'll go to Jose and he should have a billing rate level there we go so he uses the Jose billing rate level level and then I'm gonna go to Steve and he uses the Steve being rated level notice has a little question mark there where it could take you to the help menu and kind of explain how these work okay really important and tells you step by step how you do these okay and then we hit okay and then go back into that invoice again select the customer and select the each of them here perfect and then I hit OK and then notice that each of these come in at their own rate based on that billing rate level now there's probably a lot more things I want to cover but I think I got to where I needed to go by the top of the hour so let's talk about some other announcements Enterprise expert will skip it's a monthly webinar but we will skip march okay extremely busy with tax returns so I can't do much but we'll have a special treat for you in April April 19th and we'll do lesser-known functions for power users I'm actually researching all of the hidden little nooks and crannies of QuickBooks Enterprise and I'm going to make a whole episode about that I'm probably about halfway through I would definitely welcome if anyone has any really hidden tricks here from the people that watch the videos to watch the webinars email me email me them I welcome any suggestions maybe you want to WoW me with something I'll give you credit I will recognize you as a person that gave me that tip and trick and if you're not watching this life then you definitely want to register Enterprise dot expert go to the website so you can get invitations to all of them now as I mentioned to you an hour from now exactly an hour from now two p.m. Eastern we'll have another webinar called direct conversion probe which is data manipulation data preparation before importing so we'll talk about manipulating data that's in PDF or Excel that we need to prep it before importing into an accounting system and that's a bit today and then tomorrow cubed power hours another webinar that I'm involved with I'm actually not doing tomorrow's presentation my partner Michelle is gonna do it tomorrow 12:00 p.m. Eastern same time as this one it's called managing accounts payable in QuickBooks Online plus a third-party app called mineral tree so I recommend you check that out is a comparable calm it's compared it's it's good for you to see the differences between build or comment that up and then on the first of March will have tax power hour at noon and these are small business and self-employment tax Tips & Tricks and we'll talk about taxation across different entities C Corp S Corp LLC partnership sole proprietorship that sort of thing and then at the same day March 1st that would be an hour an hour later at 2:00 p.m. will have Excel Power Hour where we're going to talk about V lock vlookups and pivot tables so this is definitely certainly a busy month from me in the world of webinars anyway stay connected check out the website join our Facebook group you know there's our Twitter handle email me if you're interested on suggesting topics being involved maybe yourself you're an expert then you want to share what you know or maybe you know someone that knows not just QuickBooks Enterprise but other similar applications work we're open to that email me we're actively recruiting other people to to work with us so that's it thank you very much for joining us