What is the best way to handle billable time that needs to be written off? For example, I currently have a time-and-expenses project that was capped at 7 hours. I wound up spending 8 hours on the project, but I can bill my client only 7 hours per our agreement. On the other hand, I want to record my time accurately, both for record-keeping purposes and also to make it clear on the invoice so the client knows that I put in more work than I could bill for.
Should I record my actual 8 hours under Billable Time and then put in an additional Billable Time entry for negative 1 hour (I’ve verified that the form will indeed accept a negative time entry) with the notation “excess time, written off”? Or should I record a Billable Time entry for 7 hours and then a separate Billable Time entry for 1 hour and choose “written off” from the
Status drop-down for the latter? (If I do that, I think the entry never actually appears on the invoice.) Or do I bill the full 8 hours and then discount my fee by one-eighth? Or is there a better way to handle this in Manager?
And from an accounting perspective, does the extra hour just never get included in my revenue, or should the extra hour be credited normally to the
Billable time - invoiced revenue account and then debited against an Expense account called something like
Billable time - written off? In other words, does the non-income-producing hour create an hour of revenue and an hour of expense, or does it just never create any revenue to begin with?