Project Billing Types

In NetSuite, project billing types refer to the methods used to invoice customers for project-based work. These billing types are crucial for managing cash flow and profitability, especially for businesses that engage in long-term projects with specific outcomes and deliverables.

Types

1. Time-and-Materials Billing: Under this billing type, customers are billed for the actual time spent on a project and the materials used. It offers flexibility for projects where the scope is not fully defined or is expected to change.
2. Fixed Bid Milestone Billing: Billing occurs when predefined milestones within the project are reached. For example, in a construction project, billing might happen after the completion of foundational work, framing, or final inspection.
3. Fixed Bid Interval Billing: This involves billing at regular intervals, such as monthly or quarterly, which can help with consistent cash flow throughout the duration of the project.
4. Charge-Based Billing: Charges are based on specific activities or deliverables, and customers are billed for each chargeable event.

Each billing type can be embedded within different stages of project billing, such as target revenue, actual billing, and estimate at completion. The billing schedule provides details on when and how to bill the customer over time. NetSuite allows for customization of project billing to suit the agreement between the service provider and the customer. NetSuite’s project billing capabilities are designed to accommodate various billing needs, providing flexibility and control over the billing process. 

Note: project billing is distinct from project revenue recognition. While billing focuses on invoicing and collecting payment, revenue recognition pertains to recognizing revenue in the financial statements according to accounting principles