There are certain standard service rates or prices that you need to enter after setting up new items. After setting up your items, you have to set up custom rates or prices for particular employees/vendors or customers:
- Billing rate levels can be used to set up custom rates for service items processed by a specific employee or vendor.
- Price levels are used to set up custom pricing for a specific customer or job.
Billing rates levels
Important: The billing rate levels feature comes only with the Contractor, Professional Services, and Accountant editions.
The billing rate level allows you to create a custom service item rate for any employee and vendor. You may require this feature to figure out a standard rate for a provided service which is not sufficient. For example, multiple employees working on the same service may lead to the bill at a different rate. Or you may want to charge multiple rates for an employee according to the difficulty of the task.
Once the billing rate levels are created, you can associate them with employees and vendors. Whenever you create an invoice with billable time, QuickBooks will automatically fill in the required rate for each service item as per the work.
To create a billing rate level
- Go to the List menu and then click on Billing Rate Level List.
- Choose Billing Rate Level drop-down and then click on New.
- Provide the billing rate level name and then click on choose the billing rate type.
- Fixed Hourly Rate if you want to set a fixed billing rate. Choosing this option requires you to enter the hourly rate under the Hourly Rate field..
- Custom Hourly Rate Per Service Item if you want to use a custom rate as per the hour your employees have worked on a particular task.
To use billing rate levels
- Set up all the billing rate levels to people under the Employees, Vendors, or Other Names list.
- Go to the list to which the billing rate will be added.
- For employees: Go to Employees > Employee Center.
- For vendors: Go to Vendors > Vendor Center.
- For Other names: Go to List > Other Names List.
- From the available list, double-tap on the name you want to associate a billing rate with.
- From the Additional Info or Payment Settings tab, click on Billing Rate Level drop-down.
- Now, choose the billing rate level you want to add to the name.
- Click on OK.
- You can track the time you want to invoice. While tracking the time, you need to add hours to a customer or job as well. While tracking the time, you can simultaneously use the information for customer invoices, payroll, or both. But, the billing rate levels will only be used for customer invoicing and there is no association with the payroll.
- Create the invoice. Click on Add Time/Cost from the main tab to add the billable time. QuickBooks will use the accurate billing rate for each service item according to who did the work.
Important: QuickBooks Desktop Enterprise Solution comes with an Advanced Pricing option that provides additional power and precision to assign conditions when QuickBooks changes an item price.
Using the price levels, you can set custom pricing for each customer or job. Once the price level is set and connected with one or multiple customers or jobs whenever an invoice, estimate, sales order or credit memo is created for a customer or job. You may have to create price levels, you can use them on sales forms to control item prices.
Customers associated with price levels are used for billable and reimbursable mileage items. However, the price levels are not used for reimbursable items and expenses from purchase transactions.
Technical Help For QuickBooks Desktop
Hopefully, you find this article helpful and you have a clear idea about how to set up custom rates or prices for employees, vendors, or customers. You can also connect with our technical assistance for QuickBooks Desktop by dialing the toll-free QuickBooks Support Phone Number +1800-324-6955 for instant support and solutions for QuickBooks.