Updated 27th December 2023
Fixed Fee contract line in detail
In the short interactive tour below, you will find an overview of what a Fixed Fee contract line is and how it differs from a T&M contract. This includes insights into budgeting, time entries, and invoicing.
For a detailed explanation of a Fixed Fee contract line, please take a look at the whole article.
A contract line is defined with a Name and a Line ID and it is always part of a Group. You can also further define your contract line with a description which will appear on the invoice.
PSOhub support four types of contract lines: Fixed Fee, T&M (Time and Material), Expenses and Retainer.
A contract line defined as a Fixed Fee will allow you to book time towards the contract line whilst invoicing a pre-defined fixed amount.
Fixed Fees are also used to track time that is not billable; i.e. when the Amount field is left at zero, PSOhub will still track time booked but exclude the contract line when invoicing the project.
The financial information of a Fixed Fee contract line will be displayed in the following fields: Amount, Budget (Sales), Budget (Costs) and Total value.
Field | Description |
Amount | You will define here the amount to invoice your client. |
Budget (Sales) | Represents your budget based on your selling rate. In the case of |
Budget (Costs) | Represents your budget based on your cost rate. The Budget (Costs) represents your internal budget based on your cost rate. |
Total value | This field is leveraged in the calculation of the Total Project Value (General information section of your project page). It represents the value of the contract line, i.e. it equals the value in the Amount field.
Note, that the value of hours booked towards a Fixed Fee contract line is always displayed in the column Used of the Contract tab. In the case of a Fixed Fee, the time booked will have no influence on the amount to be invoiced. |
Budget used alert
You will be able to define one or two budget alerts:
Once the value of hours booked towards the contract line reaches the percentage of budget defined for the first alert, a message will show in the Activity feed of your project. Same process will occur for the second alert, if you have set one up.
If you have checked the Alerts box for any team member of your project, the alert will show up as a notification in PSOhub and/or an email:
The overrun budget alerts are highlighted in the contract. The Fixed Fee icon will become orange if the first budget alert has been reached. When the second alert has reached, the icon will become red. If you are only using one budget alert, the icon will become red once reached.
Deactivate line on budget overrun
In addition to the alerts, you can also check the function Deactivate the contract line on budget overwrite which will prevent anyone from booking time once there is no budget left on the contract line.
An Active or Inactive contract line
The Active option will only appear once your project is set to Active.
As soon as you change the status of your project to Active, your contract line will also be set to Active and this box will be automatically checked. This will allow time entries to be made towards the contract line.
If you wish to prevent team members from booking time or expenses towards a contract line, simply uncheck this box and this contract line will no longer be available for entry.
Note: If you deactivate a Fixed Fee contract line defined as a recurring or installment, it will no longer be invoiced.
Add as task list in tasks
This option will allow you to add this contract line as a task list to your project's task board if it's not already included in your project's task board template, or if you plan on creating your task board without any existing template.
Discount line
Discounts can be added to a project's contract and triggered for invoicing. Please refer to this article for more information: Add a discount to an invoice.
Invoicing details
The Invoicing tab will allow you to define how to invoice the contract line, whether manually or automatically (100% used, Recurring fixed fee or Installments).
If you need PSOhub to use a specific tax category or revenue account for this contract line, you will select it here.
When integrated to an accounting software, you can overwrite the default revenue account defined in the My Organization settings. You can select an alternative option in the GL Name / Article / Item / Service /Product drop-down list.
Related article