Advertise here    

QuickBooks Forums      

Go Back   QuickBooks Forums > QuickBooks Software Support > QuickBooks Pro Forum

Reply
 
Thread Tools Rate Thread Display Modes
  #1  
Old 10-24-2002, 08:57 PM
MarleneMcCall MarleneMcCall is offline
Registered User
 
Join Date: May 2002
Location: Berkeley, CA
Posts: 52
2-tier pricing based on payment status

Hi all:

Background: One of the clients for whom I do bookkeeping is an engineer who invoice his clients on an hourly basis. He periodically emails me his QB timer and I prepare and mail the invoices. Most of his clients are law firms or insurance companies, and although they all sign retention agreements agreeing to pay within 30 days, they rarely do so. Providing a 2% discount for net 10 payment and assessing finance charges after 30 days seems to have little effect.

The client has asked my opinion about changing to a 2-tier pricing structure - $175.00 per hour when billed against a pre-paid amount and $275 per hour when work is done in advance of payment. Apparently he has an associate who successfully invoices this way.

My quandary: In order to answer his inquiry, I must decide not only the effect I believe this pricing structure will have on getting his clients to pay sooner than later, but also the additional amount of bookkeeping time this will take, since he pays me by the hour as well. To figure out how much time it will take, I need to figure out how the procedure would work.

All his work is recorded under only one Item -- Engineering Services -- and creating 2 Items for the 2 rates (for instance EngSvc Prepay @$175 and EngSvc Paylater @$275) is no problem. The problem is that the choice of Item must be made in the QB timer at the time he is doing the work, not at the time I do the invoice. Since I do his bookkeeping and maintain his QB file (and therefore know the payment status of his clients), and he wants no part of it, it would seem that he must use one item only (let's say the $175 item) and that I would need to manually change each line item on the invoice to $275 if, at the time I prepare the invoice, I determine that on the day service was rendered, client had insufficient retainer to cover the fees.

This seems very time-intensive (his invoices often have 10-20 line items, each with extensive comments), and it seems there should be a more efficient way to do this.

Any thoughts?

Marlene McCall
Creative Office Services
2054 University Ave. #500
Berkeley, CA 94704
Reply With Quote
  #2  
Old 10-28-2002, 10:47 PM
brecor brecor is offline
Registered User
 
Join Date: Oct 2002
Location: Upstate New York
Posts: 566
Have you considered doing via a price level list? Drawback there is has to increase a % and not $ amount.
Reply With Quote
  #3  
Old 10-29-2002, 01:16 AM
MarleneMcCall MarleneMcCall is offline
Registered User
 
Join Date: May 2002
Location: Berkeley, CA
Posts: 52
Brecor:

Thanks for the suggestion.

The percentage is no problem, as this client only has two service items -- I can easily calculate the second level as a percentage above the first level. I wasn't familiar with price levels and did some reading up on it. It seems that I couldn't use the second price level based on who the customer is (because for the same customer, some hours might be at the lower rate and some at the higher, depending on how much they've pre-paid), but would still have to "assign" the higher price level at each line item on the invoice.

Is that how you see it?

Marlene
Reply With Quote
  #4  
Old 10-29-2002, 08:00 AM
brecor brecor is offline
Registered User
 
Join Date: Oct 2002
Location: Upstate New York
Posts: 566
Yes indeed if you are going to have different billrates per customer then the price level will not work. I would think you would want to just overide the line rate on the invoice if their can be no seperation of the item code in the time entry.
Reply With Quote
Reply

Bookmarks
Bookmark and Share
Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is On

Forum Jump


All times are GMT -5. The time now is 10:17 AM.


 

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
All contents copyright (c) by AccountingUsers Inc.
You Rated this Thread: