Invoicing Customers From Timesheets

Turning Logged Hours Into an Invoice

When a project's Billing Method is set to Timesheets rate (see the Projects course), every hour logged against it becomes billable at the rate configured on the linked Sales Order line.

The Flow

1. A Sales Order with a time-and-materials service product is confirmed — this creates/links the project.
2. Employees log hours against the project's tasks as work happens.
3. From the Sales Order, click Create Invoice → choose Timesheets (or "Delivered quantities") to pull in all uninvoiced logged hours at the agreed rate.
4. Review the invoice — individual timesheet descriptions can appear as invoice line detail, which is often exactly what a client wants to see for a T&M engagement.

Billable vs Non-Billable

Not every hour on a billable project should necessarily be charged to the client (e.g. internal rework, a goodwill fix). Mark individual timesheet lines as non-billable so they're excluded from the invoice while still counting toward the project's true internal cost and profitability.

Fixed-Price vs Time-and-Materials

On a fixed-price project, timesheets still matter for internal cost tracking and profitability even though they don't directly drive the invoice amount — compare logged hours × cost against the fixed fee to see whether the project is actually profitable, separate from what gets billed.