How VOGSY determines Billability

When you submit your timesheet, VOGSY automatically determines if your hours are billable or non-billable. This is crucial for creating accurate reports, generating correct invoices, and understanding project profitability.

While some activities like "Sick Leave" are always non-billable, even typically billable work can be marked as non-billable in certain situations (for example, when working on an internal project with no sales value).

The rules VOGSY uses depend entirely on the Invoice Method set for the project deliverable you are working on.

The Rules of Billability by Invoice Method

Here is how your hours are calculated for each type.

1. For "Time & Materials" Deliverables

The rule is very simple. Your hours are considered billable if:

• The activity you worked on has a sales rate greater than $0.

These hours will be directly invoiced to the customer.

2. For "Fixed Price" and "Subscription" Deliverables

For these deliverables, hours are used to track progress against the budget. Your hours are considered billable if BOTH of these conditions are met:

• The deliverable you are working on has a price/value greater than $0.

• Your submitted time falls within the number of hours allocated for that activity.

What about overages?

Any hours you submit beyond the allocated budget are automatically marked as non-billable. These non-billable hours will reduce the project's profit margin but will not be invoiced to the client.

Important Things to Remember

• Timing is Everything: Billability is calculated at the exact moment you submit your time.

• No Retroactive Changes: If a project's budget or rates are updated, it will not change the billability of time that has already been submitted.

• Understanding Reports: In reports like "Time Entries," you will see two columns:

  • Hours: Shows all time submitted (both billable and non-billable).

  • Billable Hours: Shows only the hours that were marked as billable based on the rules above.