Billable Time

July 05, 2026 19 views admin

Billable Time Unbilled Asset Hourly Rate Uninvoiced Status Invoiced Status Written Off Status

Billable Time — Complete User Guide — Two Accounts Web

Comprehensive guide covering Billable Time entry, the unbilled asset lifecycle, status transitions, invoicing, write-offs, the Billable Time Summary report, and accounting regulation validation — with sample data and output.

Prerequisites — Enabling via Customize Menu
System Overview
Billable Time Model
Navigation and Setup
Creating a Billable Time Entry
GL Posting and Lifecycle
Status Transitions
Billable Time Summary Report
Sample Data
Edge Cases
Accounting Regulation Validation

Billable Time is not visible by default and requires Sales Invoices to be enabled first.

How to Enable

Go to Customize Menu (click the Customize button from navigation bar)
Ensure Sales Invoices is enabled (it is on by default)
Find Billable Time and toggle it on
Click Save — the Billable Time tab will now appear

Prerequisite: Sales Invoices must be enabled for Billable Time to function, as billable time entries are ultimately invoiced through Sales Invoices.

1. System Overview

The Billable Time module allows you to track time spent on customer work and recognise the value of unbilled work as an asset on the Balance Sheet. When the work is later invoiced to the customer, the asset is reversed and revenue is recognised through the Sales Invoice. This follows the accrual basis of accounting — revenue is recognised when the work is performed (as an unbilled asset), and confirmed when invoiced.

1.1 Key Concepts

Concept	Description
Billable Time	Time spent on customer work that will be billed at a later date. Each entry records hours/minutes worked and an hourly rate.
Unbilled Asset	When billable time is recorded, the system creates a Balance Sheet asset representing the value of work performed but not yet invoiced.
Hourly Rate	The rate per hour charged to the customer. This is pre-filled from the customer record but can be overridden.
Uninvoiced Status	The default status when a billable time entry is first created. The time is recorded as an unbilled asset.
Invoiced Status	When the time is added to a Sales Invoice, the status changes to Invoiced. The unbilled asset is reversed and revenue is recognised.
Written Off Status	When time will not be billed (e.g., goodwill, internal work, or dispute), the entry is written off. The unbilled asset is expensed.

1.2 GL Accounts Used

Account	Type	Purpose
Billable Time Unbilled	Balance Sheet (Asset)	Records unbilled time as an asset (increases when time is entered, decreases when invoiced or written off)
Billable Time — Movement	P&L (Contra)	Contra entry that offsets the asset movement (nets to zero overall)
Billable Time — Invoiced	P&L (Revenue)	Revenue account used on Sales Invoice lines when invoicing billable time

2. Billable Time Model

2.1 All Fields

Field	Required?	Description
Date	✅ Yes	The date the work was performed.
Customer	✅ Yes	The customer the work was performed for. Once selected, the Hourly Rate is pre-filled from the customer record.
Description	❌ No	A description of the work performed. This appears on the invoice when the time is billed.
Hourly Rate	✅ Yes	The rate per hour charged to the customer. Pre-filled from the customer's configured rate, but can be overridden.
Time Spent (Hours)	❌ No	The number of whole hours spent. Combined with minutes to calculate the total time.
Time Spent (Minutes)	❌ No	The number of additional minutes spent. Converted to decimal hours (minutes / 60) and added to the total.
Division	❌ No	Operational division for reporting.
Exchange Rate	❌ No	Foreign exchange rate if the customer's currency differs from the base currency.
Exchange Rate Is Inverse	❌ No	Whether the exchange rate is in inverse format.
Status	✅ Yes (auto-set)	Uninvoiced (default), Invoiced (when linked to a Sales Invoice), or Written Off.
Sales Invoice	❌ No	When invoiced, the Sales Invoice this time entry is linked to.
Written Off Date	❌ No	When written off, the date the write-off was approved.

2.2 Calculated Values

Value	Formula	Description
Total Hours	`Hours + (Minutes / 60)`	Total time in decimal hours, rounded to 2 decimal places.
Amount	`Round(Total Hours × Hourly Rate, decimalPlaces)`	The monetary value of the time entry. This is the amount that posts to the unbilled asset account.

2.3 List View Columns

Column	Description
Date	The date the work was performed.
Customer	The customer the work was performed for.
Description	Description of the work performed.
Hourly Rate	The hourly rate charged to the customer.
Time Spent	Formatted as "Xh Ym" (e.g., "3h 30m").
Amount	The monetary value of the time entry.
Status	Uninvoiced (red warning), Invoiced (green success), or Written Off (neutral).

3.1 Enabling the Tab

The Billable Time menu is controlled by Customize Menu → Sales Invoices → Billable Time. It is disabled by default. To enable it:

Customize Menu  → Sales Invoices
  → Billable Time = On  (requires Sales Invoices tab to be enabled)

3.2 Enabling Billable Expenses (Optional)

If you also need to track billable expenses (not just time), enable the billable expenses feature:

Settings → Billable Expenses
  → Enable Billable Expenses = On

This enables additional features on transactions (Payments, Receipts, etc.) to mark lines as billable expenses.

3.3 Navigation

Billable Time → New Billable Time

Or from a customer's record, click the Uninvoiced amount to see all unbilled time and create new entries.

3.4 Prerequisites

A customer record must exist with an hourly rate configured (optional, can be entered manually)
Sales Invoices must be enabled in Tabs
Billable Time must be enabled in Tabs

4. Creating a Billable Time Entry

4.1 Step-by-Step

Step 1 — Open the form:

Billable Time → New Billable Time

Step 2 — Enter the details:

Date:          15/01/2026 (the date the work was performed)
Customer:      ABC Corporation
Description:   Website development — homepage layout
Hourly Rate:   150.00 (pre-filled from customer, can be overridden)
Time Spent:    3 hours, 30 minutes
Division:      Web Development (optional)

Step 3 — Save: Click Save. The system calculates the amount (3.5 hours × 150.00 = 525.00) and creates two GL entries: Dr Unbilled Asset 525.00 / Cr Movement (contra) 525.00.

4.2 OnSource Behaviour

When creating from an existing Billable Time entry (via copy), the OnSource method copies all fields from the source entry into the form.

4.3 View Page

The Billable Time view shows:

Customer information (code, name, address, email)
Date
A table with: Description, Hourly Rate, Time Spent (formatted as "Xh Ym"), and Amount
Status badge — Uninvoiced (red), Invoiced (green), or Written Off
Division (if set)
Customer custom fields

5. GL Posting and Lifecycle

5.1 Creation — Uninvoiced Status (Default)

When a Billable Time entry is saved with Status = Uninvoiced, two GL entries are created:

Asset Recognition:
  Dr  Balance Sheet — Billable Time Unbilled     525.00    (unbilled asset increases)
  Cr  P&L — Billable Time Movement               525.00    (contra entry)

Net P&L impact: 0.00 (debit + credit offset)
Balance Sheet impact: Unbilled asset increases by 525.00

The unbilled asset represents the economic benefit of work performed but not yet invoiced. The contra entry in P&L ensures no profit is recognised until the work is invoiced.

5.2 Invoicing — Status Change to Invoiced

When the time entry is included in a Sales Invoice (from the customer's Uninvoiced view), two things happen:

A. The Sales Invoice creates its own GL entries:

  Dr  Accounts Receivable                        525.00
  Cr  P&L — Billable Time Invoiced               525.00    (revenue recognised)

B. The Billable Time entry's status changes to Invoiced, triggering reversal entries:

Asset Reversal:
  Dr  P&L — Billable Time Movement               525.00    (reverse the contra)
  Cr  Balance Sheet — Billable Time Unbilled     525.00    (unbilled asset decreases)

Net effect of reversal: Asset decreases by 525.00, P&L contra is reversed.
Combined with Sales Invoice: Revenue of 525.00 is now in P&L. ✅

Overall net effect across both documents:

Balance Sheet:
  Dr  Accounts Receivable                        525.00
  Cr  Billable Time Unbilled                     (525.00)  (reversed)
  Net BS impact: 0

P&L:
  Cr  Billable Time Invoiced                     525.00    (revenue)
  Net P&L revenue: 525.00 ✅

5.3 Write-Off — Status Change to Written Off

When the time entry will not be billed, set Status = Written Off and provide a Written Off Date:

Write-Off Entries:
  Dr  P&L — Billable Time Movement               525.00    (expense recognition)
  Cr  Balance Sheet — Billable Time Unbilled     525.00    (unbilled asset decreases)

Net P&L impact: 525.00 expense (reduces profit)
Balance Sheet impact: Unbilled asset decreases by 525.00

5.4 Complete Lifecycle Diagram

Create Time Entry (Uninvoiced):
  Dr Unbilled Asset     +525
  Cr Movement (contra)  −525

When Invoiced:
  Sales Invoice GL:
    Dr AR               +525
    Cr BillableTimeInvoiced  −525

  Time Entry reversal:
    Dr Movement (contra)  +525    (reverses creation contra)
    Cr Unbilled Asset     −525    (reduces asset)

  Net: Revenue = 525 in P&L. AR = 525 on BS. Asset = 0. ✅

When Written Off:
  Dr Movement (contra)  +525    (expense)
  Cr Unbilled Asset     −525    (reduces asset)

  Net: Expense = 525 in P&L. Asset = 0.

6. Status Transitions

6.1 Status Lifecycle

                         ┌──────────┐
                         │Created   │
                         │Uninvoiced│
                         └────┬─────┘
                              │
              ┌───────────────┼───────────────┐
              │               │               │
              ▼               ▼               ▼
        ┌──────────┐   ┌──────────┐   ┌──────────┐
        │Invoiced  │   │WrittenOff│   │Uninvoiced│
        │(via SI)  │   │(no bill) │   │(no change)│
        └──────────┘   └──────────┘   └──────────┘

6.2 How Invoicing Works

From the Customers tab, the Uninvoiced column shows the total unbilled amount per customer. Clicking this amount opens a view where you can select which time entries to include in a new Sales Invoice. When the invoice is saved:

Each Billable Time entry's status changes to Invoiced
A Sales Invoice line is created with Account = Billable Time Invoiced
The Billable Time entry is linked to the Sales Invoice
The asset reversal entries are created

6.3 Cash Basis Accounting Note

Billable Time transactions are excluded from cash-basis conversion. They remain on the accrual basis because they represent non-cash timing entries that track unbilled work. The unbilled asset is a timing difference between when work is performed and when it is invoiced and collected.

7. Billable Time Summary Report

7.1 Navigation

Reports → Billable Time Summary → New Report

7.2 Report Input

Field	Description
From Date	Start of the reporting period.
To Date	End of the reporting period.
Description	Optional memo for the report.

7.3 Report Structure

The report queries the General Ledger filtered by the Billable Time Unbilled account. It groups transactions by currency, then by customer, and computes the following columns:

Column	Description	Calculation
Opening Balance	Unbilled time balance at the start of the period	Sum of amounts before the From Date
New Billable Time	Time entered during the period (positive amounts)	Sum of positive amounts between From and To Date
Invoiced	Time invoiced during the period (negative amounts linked to a Sales Invoice)	Sum of negative amounts WITH a Sales Invoice reference
Written Off	Time written off during the period (negative amounts without a Sales Invoice)	Sum of negative amounts WITHOUT a Sales Invoice reference
Closing Balance	Unbilled time balance at the end of the period	Opening + New − Invoiced − Written Off

7.4 Report Output Example

Billable Time Summary
Period: 1 Jan 2026 to 31 Mar 2026

Customer            Opening    New Time    Invoiced    Written Off    Closing
─────────────────────────────────────────────────────────────────────────────
ABC Corporation      0.00      1,575.00     525.00       0.00        1,050.00
XYZ Ltd            500.00      1,200.00   1,700.00       0.00            0.00
Customer DEF        0.00        800.00       0.00     800.00            0.00
─────────────────────────────────────────────────────────────────────────────
Total              500.00      3,575.00   2,225.00     800.00        1,050.00

8. Sample Data

8.1 Scenario

Customer	ABC Corporation
Hourly Rate	150.00 per hour
Period	1 January 2026 to 31 March 2026

8.2 Billable Time Entries Created

Date	Description	Hours	Minutes	Total Hours	Rate	Amount	Status
15 Jan	Website development — homepage layout	3	30	3.50	150.00	525.00	Invoiced ✅
10 Feb	Database optimisation	5	0	5.00	150.00	750.00	Uninvoiced
5 Mar	API integration — payment gateway	2	0	2.00	150.00	300.00	Uninvoiced

8.3 Amount Calculation Verification

Entry 1 (15 Jan): 3h 30m = 3 + 30/60 = 3.50 hours
  Amount = Round(3.50 × 150.00, 2) = 525.00 ✅

Entry 2 (10 Feb): 5h 0m = 5.00 hours
  Amount = Round(5.00 × 150.00, 2) = 750.00 ✅

Entry 3 (5 Mar): 2h 0m = 2.00 hours
  Amount = Round(2.00 × 150.00, 2) = 300.00 ✅

Total unbilled: 525.00 + 750.00 + 300.00 = 1,575.00

8.4 GL Posting for Each Entry (Creation)

Entry 1 (15 Jan) — Created with Uninvoiced status:

Dr  Balance Sheet — Billable Time Unbilled     525.00
  Cr  P&L — Billable Time Movement              525.00
DR = CR ✅

Entry 2 (10 Feb):

Dr  Balance Sheet — Billable Time Unbilled     750.00
  Cr  P&L — Billable Time Movement              750.00
DR = CR ✅

Entry 3 (5 Mar):

Dr  Balance Sheet — Billable Time Unbilled     300.00
  Cr  P&L — Billable Time Movement              300.00
DR = CR ✅

8.5 Invoicing Entry 1 (15 Jan)

When the 15 Jan entry is included in a Sales Invoice for ABC Corporation:

A. Sales Invoice GL:

Dr  Accounts Receivable (ABC Corporation)      525.00
  Cr  P&L — Billable Time Invoiced             525.00
DR = CR ✅

B. Billable Time status changes to Invoiced — reversal entries:

Dr  P&L — Billable Time Movement               525.00  (reverses creation contra)
  Cr  Balance Sheet — Billable Time Unbilled     525.00  (reduces asset)
DR = CR ✅

C. Net effect across all accounts:

Balance Sheet:
  Billable Time Unbilled:    0   (created +525, reversed −525)
  Accounts Receivable:     +525
  Cash:                      0

P&L:
  Billable Time Movement:    0   (contra created −525, reversed +525)
  Billable Time Invoiced:  −525  (revenue)

Net revenue recognised: 525.00 ✅

8.6 Billable Time Unbilled Account Movement

Date	Event	Debit	Credit	Balance
15 Jan	Entry 1 created (Uninvoiced)	525.00	—	525.00 Dr
15 Jan	Entry 1 invoiced (reversal)	—	525.00	0.00
10 Feb	Entry 2 created (Uninvoiced)	750.00	—	750.00 Dr
5 Mar	Entry 3 created (Uninvoiced)	300.00	—	1,050.00 Dr

8.7 Balance Sheet Impact (as at 31 Mar)

Balance Sheet (Extract):
  Assets:
    Accounts Receivable (ABC Corporation)        525.00  (from Sales Invoice)
    Billable Time Unbilled                     1,050.00  (Entry 2 + Entry 3)

Profit & Loss (Extract):
    Billable Time Invoiced                      525.00  (revenue recognised)

8.8 Billable Time Summary Report Output

Billable Time Summary
Period: 1 Jan 2026 to 31 Mar 2026

Customer         Opening    New Time    Invoiced    Written Off    Closing
──────────────────────────────────────────────────────────────────────────
ABC Corporation     0.00   1,575.00     525.00         0.00     1,050.00

Total              0.00   1,575.00     525.00         0.00     1,050.00

8.9 Verification of Closing Balance

Opening:                              0.00
+ New Time (15 Jan + 10 Feb + 5 Mar): +1,575.00
− Invoiced (15 Jan):                   −525.00
− Written Off:                             0.00
                                        ──────────
Closing:                             1,050.00

Cross-check with GL:
  Billable Time Unbilled balance: 1,050.00 ✅

9. Edge Cases

Scenario	What Happens
No hours or minutes entered	Amount = 0. No GL entries are created (amount rounds to 0).
Time Spent = 0 with a rate set	Amount = 0. Same result — no GL entries.
Hourly Rate = 0	Amount = 0 regardless of hours entered. No GL entries.
Minutes = 0 but Hours > 0	Total hours = the whole number. Works correctly.
Minutes = 59 (not 60)	59 / 60 = 0.9833... rounded to 0.98. Amount calculated correctly.
Customer not set	The view page returns minimal data — no customer info displayed.
Sales Invoice deleted after invoicing	The Billable Time status remains as Invoiced. The reversal GL entries are also reversed when the Sales Invoice status changes.
Written Off without a date	The status validation requires both Status = WrittenOff AND WrittenOffDate.HasValue. Without a date, the status shows as Uninvoiced.
Foreign currency customer	The exchange rate field appears. Amounts are calculated in the customer's currency and converted to base currency for GL posting.
Division set on entry	The division is passed to the GL transactions for reporting.
Cash basis accounting enabled	Billable Time transactions are excluded from cash-basis conversion — they remain on accrual basis.
BillableTime tab disabled	The tab and all Billable Time features are hidden from the UI.

10. Accounting Regulation Validation

Standard	Requirement	Compliance
IAS 38 / Conceptual Framework	An asset is a resource controlled by the entity as a result of past events from which future economic benefits are expected.	✅ Unbilled time is recorded as a Balance Sheet asset because the work has been performed and the entity expects to invoice and collect payment.
IFRS 15 — Revenue from Contracts with Customers	Revenue is recognised when control of goods or services transfers to the customer. Performance obligations satisfied over time can be recognised based on progress.	✅ Billable time tracks the progress of work. Revenue is only recognised (via Billable Time Invoiced) when the Sales Invoice is created — which is when the customer is formally billed.
IFRS 15 — Transaction Price	The transaction price should reflect the amount the entity expects to receive.	✅ The hourly rate represents the agreed rate with the customer. The amount is calculated as hours × rate.
IAS 1 — Presentation of Financial Statements	Assets and liabilities must be presented separately. Revenue and expenses must be presented separately.	✅ Unbilled time is presented as a separate asset account. Revenue is recognised in a separate P&L account when invoiced.
IAS 36 — Impairment of Assets	Assets should not be carried at more than their recoverable amount.	✅ Written off status provides a mechanism to impair unbilled time that will not be collected.
DR = CR — Double-entry bookkeeping	Every transaction must balance.	✅ Each Billable Time entry creates 2 GL entries (Dr Unbilled / Cr Movement) that net to zero. Status changes create 2 additional entries that also net to zero.

10.1 Pre-Save Checklist

[ ] Customer is selected
[ ] Date reflects when the work was performed (not when it is entered)
[ ] Hourly rate is correct (pre-filled from customer, verify before saving)
[ ] Time Spent (Hours) and Time Spent (Minutes) are accurate
[ ] Division is set if required for reporting
[ ] Description clearly describes the work performed (appears on invoice)
[ ] Foreign exchange rate is set if customer currency differs from base currency
[ ] Status is Uninvoiced unless intentionally changing to Invoiced or Written Off

10.2 Complete User Workflow

From Time Entry to Invoiced Revenue:

Step 1 — Create Billable Time Entry:
  Billable Time → New Billable Time
  Date:           15/01/2026
  Customer:       ABC Corporation
  Hourly Rate:    150.00
  Time Spent:     3 hours 30 minutes
  Description:    Website development — homepage layout
  Status:         Uninvoiced (default)
  → Save

  GL Impact:
  Dr  Billable Time Unbilled     525.00
  Cr  Billable Time Movement     525.00

Step 2 — Invoice the Time (when ready to bill):
  Customers → ABC Corporation → Click "Uninvoiced" amount
  Select the time entry (15 Jan — 525.00)
  Click "New Invoice" → Sales Invoice is created

  GL Impact (Sales Invoice):
  Dr  Accounts Receivable          525.00
  Cr  Billable Time Invoiced       525.00

  GL Impact (Time Entry reversal — automatic):
  Dr  Billable Time Movement       525.00
  Cr  Billable Time Unbilled       525.00

Step 3 — Verify:
  Billable Time Unbilled account:   0.00  (returned to zero for this entry)
  Accounts Receivable:            +525.00
  Revenue (Billable Time Invoiced): 525.00 ✅

End of Billable Time User Guide