--- title: "Set up time and materials billing" slug: "set-up-time-and-materials-billing" tags: ["Area - Pricebook", "Focus - Construction", "Focus - Service Replacement", "Role - Accountant", "Role - Admin", "Type - Commercial", "Type - Residential"] updated: 2026-10-16T02:29:51Z published: 2026-10-16T02:29:51Z canonical: "help.servicetitan.com/set-up-time-and-materials-billing" --- > ## Documentation Index > Fetch the complete documentation index at: https://help.servicetitan.com/llms.txt > Use this file to discover all available pages before exploring further. # Set up time and materials billing ## Overview You can bill customers for time and materials, in addition to flat rate billing. With time and materials billing, you can: - Charge customers separately for labor and material charges - Set material mark-up rates - Use time and materials to create invoices or estimates - Set up Pricebook for both flat rate billing and time and materials billing. Before you begin using time and materials billing, you’ll need to complete the following setup. > [!NOTE] > **Note:** Depending on your account's configuration, you might see one or more of the following: > > - *Items and Pricing* instead of *Pricebook*. > - *Customer* instead of *Homeowner*. > - *Procurement* instead of *Inventory*. > > The names are different, but everything works the same way. For more, see [Commercial Personalization Platform - FAQ](https://help.servicetitan.com/commercial/docs/commercial-personalization-platform-faq). --- ### #### Who uses this feature - Accountants, managers, and office employees - Account configuration is required to use this feature. To update your account, please contact your success or implementation manager for details. ## Things to know - When a Time and Materials Invoice is exported to QuickBooks, the materials appear as a single Material SKU task. - Make sure you have different Material SKU tasks set up per Business Unit so they can map to the correct General Ledger account. ## Step 1: Add services for time and materials billing You can create time and materials services in the Pricebook. These services let ServiceTitan know that a Job will be billed using time and materials. What this means: When you bill the customer, you will first add the time and materials service to the invoice. Then, you will add the labor charges and material charges to the invoice. To create time and materials services in your Pricebook, complete the following: 1. [Add a service to your pricebook](/commercial/docs/add-services-to-your-pricebook). 2. To use this service for time and materials billing, in the *Details* tab select **Time and Materials Service**. 3. When you are finished, click **Save**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/set-up-time-and-materials-billing-image-llp76hyt.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A17%3A17Z&se=2026-11-09T12%3A17%3A17Z&sr=c&sp=r&sig=orJFb35Bta%2F38gsb9C7GuQVDQmzOty5IF3FDn1LebgI%3D) ## Step 2: Set up labor chargers in the pricebook In order to charge customers for labor, you’ll set up invoice line items to bill for time. When you bill the customer, these labor charges will be attached to the time and materials service. You may set up your labor charges in whatever way you choose. These are the most common ways to set up labor charges in the Pricebook: - **Bill for a specified number of hours**. For example, your Pricebook could contain the following labor charge items: “Labor Charge - 1 Hour,” “Labor Charge - 2 Hours,” “Labor Charge - 3 Hours.” - **Set up for different billable rates**. For example, your Pricebook could contain the following items: “Labor Charge - Technician,” “Labor Charge - Helper.” This setup is useful if you charge different billable rates for different technicians and/or technician helpers. To set up a labor charge item in your Pricebook: 1. [Add a service to your pricebook](/commercial/docs/add-services-to-your-pricebook). 2. To create a labor charge item, in the *Details* tab select **Labor Service**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/set-up-time-and-materials-billing-image-6dk86wrn.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A17%3A17Z&se=2026-11-09T12%3A17%3A17Z&sr=c&sp=r&sig=orJFb35Bta%2F38gsb9C7GuQVDQmzOty5IF3FDn1LebgI%3D) 3. When you are done, click **Save**. ## Step 3: Set up material charges SKU in the pricebook In order to charge customers for materials, you must set up a material charge SKU in your Pricebook. The material charges SKU will be attached to a business unit. > [!NOTE] > **Note:** On the customer invoice, all material costs will be aggregated under the material charges SKU. The customer will not see a breakdown of material prices or costs, only the total materials charge as aggregated under the materials SKU. 1. [Add a service to your pricebook](/commercial/docs/add-services-to-your-pricebook). 2. Enter a code, name, description, and any other applicable information. Keep the code on hand, you will need it in a few steps. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/set-up-time-and-materials-billing-image-bwvo74n1.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A17%3A17Z&se=2026-11-09T12%3A17%3A17Z&sr=c&sp=r&sig=orJFb35Bta%2F38gsb9C7GuQVDQmzOty5IF3FDn1LebgI%3D) > [!NOTE] > **Note:** You may enter any name and description you choose. Keep in mind that this is the invoice SKU item that all material costs will appear under on customer invoices. 3. When you’re done, click **Save**. 4. Next, you will add the material charges SKU to the business units for your company. Go to **Settings** ![A simple icon representing a settings gear.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/icon-gnav-settings-inactive.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A17%3A17Z&se=2026-11-09T12%3A17%3A17Z&sr=c&sp=r&sig=orJFb35Bta%2F38gsb9C7GuQVDQmzOty5IF3FDn1LebgI%3D) > **Operations >** **Business Units**. 5. Click **Edit** next to an existing business unit. 6. Enter the code for the material charges SKU in the **Material SKU** field. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/set-up-time-and-materials-billing-image-27v9yx5i.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A17%3A17Z&se=2026-11-09T12%3A17%3A17Z&sr=c&sp=r&sig=orJFb35Bta%2F38gsb9C7GuQVDQmzOty5IF3FDn1LebgI%3D) 7. When you’re done, click **Save**. ## Step 4: Set up material mark-ups - See [Set material mark-ups for details](/commercial/docs/create-a-dynamic-pricing-rule#step-3-markup). ## FAQ --- ### #### Where do I find the Labor Rate Calculator? The Labor Rate Calculator is a free tool on the ServiceTitan website that helps you calculate a labor rate to bill for your work. It isn't part of the ServiceTitan product, so you don't need to log in to use it. To open it, go to servicetitan.com/tools/labor-rate-calculator. You can also reach it from the ServiceTitan homepage: 1. Go to [servicetitan.com](http://servicetitan.com). 2. In the navigation bar, click **Resources**, then click **View Toolbox**. 3. Click **Tools**. 4. Click **Labor Rate Calculator**. 5. Select your industry, business focus, and area of focus from the dropdown menus. 6. Enter your company name. 7. Click **Get Started**. ## ServiceTitan's product and service catalog where all items, tasks, materials, and pricing are defined and maintained. **What it does:** Ensures pricing consistency across all technicians and CSRs and enables fast, accurate estimate and invoice generation. **Also called:** Price list, Service catalog **Tags:** Core [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) The finalized billing document sent to a customer after work is completed, generated from job records in ServiceTitan. **What it does:** Records all work performed and charges for accurate payment collection, financial reporting, and accounting integration. **Also called:** Bill, Work order invoice **Tags:** Core [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) An internal division within ServiceTitan used to segment work, reporting, and accounting — for example, “Resi HVAC” vs. “Commercial Plumbing.” **What it does:** Lets multi-trade or multi-division businesses track performance, capacity, and financials separately per division. **Where to find it:** Settings › Business Units. **Also called:** Trade division, Service line, BU **Tags:** Core [Learn more →](https://help.servicetitan.com/docs/add-and-edit-a-trade-or-division) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) The core work record in ServiceTitan representing a service request, containing appointments, invoices, estimates, and notes. **What it does:** Acts as the operational and financial center of gravity for all work performed — everything is tied to a Job. **Also called:** Work order, Service ticket **Tags:** Core [Learn more →](https://help.servicetitan.com/docs/servicetitan-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)