Set up time and materials billingLast updated on 03/22/2022
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.
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:
To use this service for time and materials billing, in the Details tab select Time and Materials Service.
When you are finished, click Save.
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:
To create a labor charge item, in the Details tab select Labor Service.
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: 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.
Enter a code, name, description, and any other applicable information. Keep the code on hand, you will need it in a few steps.
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.
When you’re done, click Save.
Next, you will add the material charges SKU to the business units for your company. Go to Settings > Operations > Business Units.
Click Edit next to an existing business unit.
Enter the code for the material charges SKU in the Material SKU field.
When you’re done, click Save.
Step 4: Set up material mark-ups
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Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.