Handling Fixed Price Jobs
Many fp. users have work they perform for a fixed price. We recommend that these kinds of Jobs be set up in a way that enables your staff to track time to this work, even if you will not be charging for hours logged.
Please review this article to learn one method by which you can set up and create fixed price Jobs in your system.
Create the Fixed Price Item
We'll land on a list view of any past and current Internal Expenses within the system. Let's add a new one for our fixed price service of a Logo Redesign. Click Add Expense in the top right.
You will land on a new expense form. Required fields are marked in blue:
- Give the new fixed price item a name. A code name will be generated that you can change as needed.
- Mark the Status as "Active".
- Leave the cost blank for now, as that will be completed in another step.
- Choose to add a description. This will populate the Estimate line when you add this item to an Estimate.
- Associate any applicable taxes to this item, as needed.
Click Create Expense when done.
Organize into a Service Group
Whenever you add a new Service or expense to your fp. system, you should organize it into one of your Service Groups. Doing so will make the new Service or expense available for use on Estimates and Jobs.
From the Admin menu choose Service and Expense Management > Service Groups.
Choose the Service List tab.
Click New Services.
Select the expense we just created and then the Add Services & Expenses button.
The expense is now organized into this Service Group. Use the up/ down arrows on the far left to drag/ drop into a different order within the list.
Set the Price
We'll now want to set the fixed price for this item. Navigate to the Admin menu, Rate & Staff Management > Service Rates and Markups.
Enter the fixed price amounts for your fixed price items across all your rate cards. Click Save (bottom of the page) when ready.
Building an Estimate for a fixed price Job
On the Estimate Add/ Edit page, I want to pick both the fixed price item, as well as time trackable Services I can put timesheets against.
On the Services tab, I can pick the 1 x Logo Redesign. This pulls in the value I entered in the price setup step. I can leave the Estimate hours fields for the time trackable items blank.
Click Save when ready.
Mark the Estimate as "Approved" and click Add Job when the client signs off on the proposed pricing and game plan.
Invoice the Job
The Job can be invoiced by choosing the Add New button, and the Add Invoice option.
Base the Invoice on the Estimated values.
Please review this article to learn more about Invoicing: Create an Invoice Using Estimated Values
Viewing the Financials
As time is tracked, you can easily see the "health" of this fixed price Job. Both the Job level Summary tab, and Financials tab provide insight into the numbers by comparing estimated, actual, and invoiced dollars.
You have the additional option on the Financials tab to filter the actual values by a date range, so you can (for example) better assess when a Job went over budget.