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Invoicing based on time and materials

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Invoicing based on time and materials bills a customer for the actual hours worked and materials used, rather than a fixed price. It suits projects where the scope is unclear or likely to change. Odoo Sales supports this through the Project and Accounting apps.

Before you start

  1. Install the Project and Accounting apps from the Odoo Apps dashboard, alongside Sales.
  2. In Accounting > Configuration > Settings, enable Analytic Accounting.
  3. In Project > Configuration > Settings, enable Timesheets under Time Management. Click Save after each change.

How to set up a service product for time invoicing

  1. On the product form, set the Invoicing Policy to a time based option, and set Create on Order to either Project & Task (to create both automatically) or Task (linked to an existing project).

This ensures a project and its tasks are created automatically once the sales order is confirmed.

How to log and invoice time

  1. Create a quotation using the configured product and confirm it to generate the linked project and task.
  2. Open the task, go to the Timesheets tab, click Add a line, and select the Employee, Date and Hours Spent.
  1. Go back to the sales order and click Create Invoice > Regular Invoice > Create Draft Invoice. The invoice includes all billable hours logged on the task.
  2. Check the Analytic Distribution field on the invoice, which links it to the correct project for accurate accounting.

Customer related expenses and purchases can also be added to the same sales order for invoicing, alongside the billed hours.

Frequently asked questions

Which apps are needed for time and materials invoicing?

Project and Accounting alongside Sales, so that timesheets and analytic accounting can link hours worked back to the sales order.

Does the invoice update automatically as time is logged?

Logged hours update the task in real time, but an invoice is only created when you click Create Invoice on the sales order.

Can expenses also be billed to the customer this way?

Yes, customer related expenses and purchases can be reinvoiced on the same sales order alongside billed time.

Need help?

Need help setting up time and materials billing in Odoo Sales? Contact support@thoughtlogik.com or see our Odoo implementation services.

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