Billable Time Summary — Complete User Guide — Two Accounts Web

Comprehensive guide for the Billable Time Summary report — enabling, creating, reading, and validating the movement of unbilled client time for a period

Table of Contents

1. What Is the Billable Time Summary Report?
2. Prerequisites — Enabling via the Customize Menu
3. Navigating to the Report
4. The Report List
5. Creating a Summary — Field-by-Field
6. Report Output Columns
7. How the Summary Is Calculated
   • 7.1 Which Transactions Are Included
   • 7.2 Opening Balance
   • 7.3 New Billable Time
   • 7.4 Invoiced
   • 7.5 Written Off
   • 7.6 Closing Balance
   • 7.7 Currency and Customer Grouping
8. Related Settings and Configuration
9. Sample Data and Report Output
   • 9.1 Sample Setup
   • 9.2 Report Output
   • 9.3 Calculation Verification
10. Reporting and Accounting Impact
11. Accounting Regulation Validation
12. Common Notes and Best Practices

1. What Is the Billable Time Summary Report?

The Billable Time Summary report shows the movement of unbilled client time over a date range you choose. For every customer it displays how much billable time was carried in, how much was entered during the period, how much was invoiced, how much was written off, and the unbilled balance remaining at period end.

Billable time is the work logged against a customer that has entered the General Ledger as a Billable Time, Unbilled asset — it has not yet been turned into an invoice. This report is the roll-forward of that asset:

Closing = Opening + New Billable Time − Invoiced − Written Off

2. Prerequisites — Enabling via the Customize Menu

The report appears under Reports only when the Billable Time area is enabled for the business. Billable Time is not shown by default in a brand-new company.

How to Enable

1. Open the Customize Menu from the navigation bar (the hamburger / menu icon).
2. Turn on the Billable Time tab. (This also enables the Billable Time list and the entry form that logs client hours.)
3. Optionally enable Billable Expenses if you also track reimbursable out-of-pocket costs (a related but separate feature).
4. Once enabled, the report is available under Reports → Billable Time → Billable Time Summary.

3. Navigating to the Report

From the main navigation bar:

1. Open Reports.
2. Go to the Billable Time category.
3. Click Billable Time Summary.

This opens the report list — every summary you have created (and saved) for the business appears here, sorted by its From Date.

4. The Report List

The list shows one row per saved summary, with three columns:

Each row is clickable:

• Click the row to open the summary output (the unbilled-time roll-forward).
• Edit opens the summary form to change the dates or description.

A New Report button at the top creates a fresh summary.

5. Creating a Summary — Field-by-Field

Click New Report to open the summary form. It contains three fields:

1. Enter a From Date and a To Date.
2. Optionally enter a Description.
3. Click Save.
4. The report opens showing the summary output for that period.

6. Report Output Columns

The summary opens with a subtitle:

For the period from {From Date} to {To Date}

One row is shown per customer, grouped under the relevant currency, followed by a Total row. Five columns are displayed:

7. How the Summary Is Calculated

The report reads the General Ledger transactions posted to the Billable Time, Unbilled balance-sheet account, up to and including the period's To Date. It groups them by currency and then by customer.

7.1 Which Transactions Are Included

• Every General Ledger transaction on the Billable Time, Unbilled account, dated on or before the To Date.
• Each must reference a customer (transactions without a customer link are not shown).
• Transactions are grouped by customer and split into opening, new time, invoiced, and written-off.

7.2 Opening Balance

The sum of the customer's transactions recorded before the From Date (including any opening-balance entries). This is the unbilled time carried into the period.

7.3 New Billable Time

The sum of the customer's positive transactions dated within the period (excluding opening-balance entries). When billable time is entered, the system debits the Unbilled account, so the new time appears as a positive increase.

7.4 Invoiced

The sum of the customer's negative transactions dated within the period that are linked to a Sales Invoice (excluding opening-balance entries). When time is invoiced, the system reverses it off the Unbilled account, reducing the unbilled asset.

7.5 Written Off

The sum of the customer's negative transactions dated within the period that are not linked to a Sales Invoice (excluding opening-balance entries). This is time written off without billing — it reduces the unbilled balance and is recognized as a movement in profit or loss.

7.6 Closing Balance

Closing balance = Opening + New Billable Time + Invoiced + Written Off
                = Opening + New − |Invoiced| − |Written Off|

This equals the customer's net balance on the Unbilled account at the period end.

7.7 Currency and Customer Grouping

The report groups by currency first, then by customer. When all customers share the same currency, the report displays the customer rows directly with a single Total row. When more than one currency has unbilled activity, the report shows a currency group header (the currency code) with its own customers beneath it, and a Total row is shown for each group alongside the overall total.

8. Related Settings and Configuration

9. Sample Data and Report Output

The following example uses the same billable-time setup as the Billable Time — Complete User Guide sample (base currency BDT) and runs the summary for the first quarter of 2026: 1-Jan-2026 to 31-Mar-2026.

9.1 Sample Setup

Billable time is charged at 150.00 per hour for ABC Corporation. Three customers have activity: ABC Corporation, XYZ Ltd, and Customer DEF.

15-Jan: 3h 30m = 3.50 hours × 150.00 = 525.00
10-Feb: 5.00 hours × 150.00          = 750.00
05-Mar: 2.00 hours × 150.00          = 300.00

9.2 Report Output

For the period from 1-Jan-2026 to 31-Mar-2026

9.3 Calculation Verification

ABC Corporation:

Opening balance  = 0.00
New Billable Time = 525.00 + 750.00 + 300.00 = 1,575.00
Invoiced         = (525.00)   (15-Jan time transferred to Sales Invoice)
Written Off      = 0.00
Closing balance  = 0 + 1,575.00 − 525.00 − 0 = 1,050.00  ✓

XYZ Ltd:

Opening balance  = 500.00   (01-Dec-2025, before the period)
New Billable Time = 1,200.00
Invoiced         = (700.00) + (1,000.00) = (1,700.00)
Closing balance  = 500.00 + 1,200.00 − 1,700.00 = 0.00  ✓

Customer DEF:

New Billable Time = 800.00
Written Off      = (800.00)
Closing balance  = 0 + 800.00 − 0 − 800.00 = 0.00  ✓

Total verification:

Opening balance  = 500.00              ✓
New Billable Time = 1,575 + 1,200 + 800 = 3,575.00  ✓
Invoiced         = 525 + 1,700 = (2,225.00)         ✓
Written Off      = (800.00)                          ✓
Closing balance  = 500 + 3,575 − 2,225 − 800 = 1,050.00  ✓

GL verification (ABC Corporation, 15-Jan entry that is then invoiced):

When entered:
  Dr  Billable Time, Unbilled         525.00
      Cr  P&L — Billable Time Movement        525.00
                                               DR = CR ✅

When invoiced (reversal):
  Dr  P&L — Billable Time Movement     525.00
      Cr  Billable Time, Unbilled              525.00
                                               DR = CR ✅

Unbilled account (ABC Corporation):
  +525 (entered) − 525 (invoiced) + 750 + 300 = 1,050 debit  ✓ matches the summary

10. Reporting and Accounting Impact

• Balance Sheet: Unbilled time is an asset (work performed but not yet billed). The total closing balance in this report equals the Billable Time, Unbilled account balance at the period end.
• Profit & Loss: When time is entered, a Billable Time Movement credit offsets the asset (revenue work in progress). When it is invoiced, a Billable Time Invoiced P&L account recognizes the revenue. Written-off time reduces the unbilled balance and is reflected through the movement account.
• Accounts Receivable: Invoicing billable time creates the Accounts Receivable on the Sales Invoice — the Invoiced column of this report corresponds to time that has flowed into AR.
• Cash Flow Statement: Unbilled billable time is non-cash work-in-progress; cash arises only on the later receipt against the invoice.

11. Accounting Regulation Validation

12. Common Notes and Best Practices

• Run the summary at period end. Log all billable-time entries and process all invoicing and write-offs for the period before generating the report so the closing balance is complete.
• Use it as an unbilled-work-in-progress control. The total closing balance should tie to the Billable Time, Unbilled account on the Balance Sheet.
• Invoice promptly. Time sitting in the unbilled account is an asset but has not yet produced revenue or cash — short unbilled balances mean faster billing cycles.
• Distinguish invoiced from written off. Time that is genuinely billed moves to the Invoiced column (linked to a Sales Invoice); time you will never bill should be written off so the unbilled asset reflects only realistic revenue.
• Check the currency grouping. If customers use different currencies, the report groups by currency code first — review each group separately.
• Watch the sign. New Billable Time is positive (asset build-up); Invoiced and Written Off are negative (asset reduction). A customer's negative closing balance would indicate an over-reversal — investigate.

End of Billable Time Summary Guide