In NetSuite, “Charge-Based” billing type is a method of billing clients for projects. Charge-Based billing is used when billing clients for actual costs incurred, plus a markup. This billing type is commonly used for projects with variable costs, such as consulting or professional services. In NetSuite, you can set up charge-based billing at the project level, and specify the billing rate cards, markups, and other billing options. When you enter time and expenses against a project, NetSuite calculates the total costs and applies the markup to determine the billable amount. The billable amount is then reflected on the invoice, along with the applicable taxes and other charges.
Benefits:
- Accurate billing: Automatically captures actual costs and applies markups, ensuring accurate billing.
- Flexibility: Supports various billing scenarios, including time-and-materials, fixed-price, and cost-plus billing.
- Streamlined invoicing: Automates the invoicing process, reducing errors and saving time.
In NetSuite, we need to enable Charge based billing feature to use this feature in project.
Go to Setup -> Company -> Enable Features -> Transactions -> Billing -> Charge Based Billing.
We can then create a project for a particular template by choosing billing type as charge based.