Billable Hours Spread

How SmartMoving Distributes the Billable Hours for a Job with Multiple Hourly Charges

Holly avatar
Written by Holly
Updated over a week ago

When a job is performed that includes multiple hourly charges, SmartMoving must distribute the billable hours among the services that were performed. Once the job is finalized, SmartMoving will go through a process of distributing the billable hours across the hourly rated services that were performed.
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The first hourly charge added to the job will be treated as the primary charge and any others added to the job will be treated as the secondary charges. Starting with the first of the secondary billable charges, SmartMoving will distribute the billable hours to each service on the job, then apply anything left to the primary charge.

SmartMoving will begin the process of distributing the billable hours amongst the hourly charges by looking at the secondary charges. SmartMoving will deduct the amount of time that was originally estimated for that service and allocate it to the charge. This amount of time will then be deducted from the billable hours. This process will continue if there are additional hourly charges on the job until only the primary charge remains. The number of hours that are left after the other services have been deducted from the total billable hours, will be allocated to the primary service.
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How Does this Work?

Let's take a look at an example scenario. When initially creating an opportunity, I have one job that contains an hourly moving charge and an hourly packing charge. The moving charge is estimated to take 6.5 hours and the packing charge is estimated to take 3.5 hours. In total, 10 hours is the estimated time for this job.

When finalizing the job, I entered that the total labor time for the job was 9 hours. This means that it took my crew 9 hours to perform all charges included in that job.

Now, SmartMoving will take the total billable time of 9 hours and distribute the hours among the hourly charges. First, the packing labor will be distributed 3 hours and 30 minutes, as this was the time that was originally estimated for that hourly charge.

That means of our 9 hours of total billable time, 5 hours and 30 minutes remain. There are no other hourly charges associated with this job and so SmartMoving will distribute the remaining time to the moving labor charge.

FAQs

  • What Happens with an Hourly Charge that is Overwritten?

    • Once the billable time on an hourly charge has been overwritten, this logic will no longer apply. If you enter in the billable time manually, the total billable hours will not adjust to account for the manual override.

  • What Happens if I Edit Times for the Billable Hours?

    • If the times are edited, SmartMoving will go through the billable hours spread process again and distribute the billable hours among the hourly charges, using the logic explained above.


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