If you are an engineering, architectural or other professional services firm that works for federal or state agencies, you might have to use Cost Plus contracts. Cost plus billing adds a profit margin or management fee to the bill amount. Web Suite supports Cost + Percentage and Cost + Fixed Fee contracts, including their invoice templates. You can set special bill rates in the SFS or EFS for the direct costs and set the fixed fee or percentage on the Project-General screen.
This contract can be used as a billing arrangement when you want to bill direct costs—time and expense (if expenses are a part of contract)—plus a fixed fee (profit) to the client. The total fixed fee is available in the Project profile. Web Suite adds a portion of the Fixed Fee to the Net Bill before generating the invoice. Web Suite also tracks the fixed fee portion to ensure you do not over-bill.
Fixed Fee Amount = Billable Amount x (Fixed Fee / Contract Amount)
Net Bill Amount = Service Amount + Service Tax + Expense Amount + Expense Tax + Fixed Fee – Discount – Retainer Applied
For example:
Contract Amount = $1000, Fixed Fee Amount = $100, Value of billable time and expenses = $500
Fixed Fee = 500 x (100/1000) = $50
This contract can be used as a billing arrangement when you want to bill direct costs—time and expense (if expenses are a part of contract)—plus a percentage of the costs (profit) to the client. The total fixed fee percentage is available in the Project profile. Web Suite adds the profit percentage to the Net Bill before generating the invoice until the project is complete.
Fixed Fee Amount = Billable Amount x Fixed Fee Percent
Net Bill Amount = Service Amount + Service Tax + Expense Amount + Expense Tax + Fixed Fee – Discount – Retainer Applied
For example:
Contract Amount = $1000, Fixed Fee Percent = 10, Value of billable time and expenses = $500
Fixed Fee = 500 x (10/100) = $50
This is how Billing Review calculates the Fixed Fee Amount. However, you can manually override it with a different amount. It will then re-calculate the Net Bill Amount. However, if you change the Net Bill manually, it does NOT change the Fixed Fee Amount.