Invoicing Methods in VOGSY

VOGSY supports a variety of invoicing methods designed to align with various project types and client agreements. Each method offers flexibility and control over how services are billed and where they are typically applied within the platform:

VOGSY primarily supports the following invoicing methods:

1. Time and Materials (T&M):

   • Concept: This method is used when clients are invoiced based on the actual time spent by resources and the materials or expenses incurred on the project.

   • Usage: It requires diligent tracking of billable hours and any associated costs (e.g., travel, software, external services) against specific project deliverables.

   • Where: This is suitable for projects where the scope may not be rigidly defined upfront, or where flexibility is needed. You will typically track time in timesheets and log expenses, which then become available for invoicing.

2. Fixed Price:

   • Concept: With fixed-price invoicing, you agree on a predetermined price for specific project deliverables or the entire project. The invoice amount remains the same regardless of the actual time or resources consumed (unless scope changes are agreed upon).

   • Usage: It often involves setting up an invoicing schedule based on milestones, project completion percentages, or specific dates.

   • Where: Ideal for projects with a well-defined scope, timeline, and deliverables. In VOGSY, you would typically link these fixed amounts to project deliverables and create an invoice schedule.

3. Retainers/Subscriptions:

   • Concept: This method is used for ongoing services where a client pays a recurring fee for a set period, granting them access to your services or a predefined amount of work.

   • Usage: Involves setting up a recurring invoicing schedule (e.g., monthly, quarterly). VOGSY can automate the generation of these recurring invoices.

   • Where: Suited for long-term client engagements, ongoing support contracts, or bundled service packages.

How to Explain the Combination:

1. Project Setup is Crucial: When setting up a project in VOGSY, you can define different deliverables. For each of these deliverables, you can specify the appropriate invoicing method.

   • Example:

     • A project might have an initial consulting phase that you bill as Time and Materials.

     • Then, a software development phase could be billed as a Fixed Price deliverable.

     • Finally, ongoing support and maintenance could be set up as a Recurring/Subscription invoice.

2. Separate Billing for Separate Work: Think of it as having mini-agreements within the larger project. Each deliverable with its distinct invoicing method will be billed according to its own rules and schedule.

   • For T&M parts, you'll track time and expenses, which will then be pulled onto invoices.

   • For Fixed Price parts, invoices will be generated based on the agreed-upon payment schedule or milestones linked to those deliverables.

   • Recurring parts will automatically generate invoices at the set intervals.

3. Unified Project View: While you might use different invoicing methods for various components, VOGSY still allows you to see a consolidated view of the project's overall financials, progress, and profitability. You're not managing entirely separate projects; you're managing different billing streams within one cohesive project structure.

4. Flexibility for Client Needs: This approach offers great flexibility in structuring your proposals and contracts to match client preferences or the nature of the work. Some parts of a project might be well-defined and suitable for Fixed Price, while others might be more exploratory and better suited for T&M.

In essence, you explain that VOGSY's project structure, built around deliverables, allows you to assign different invoicing methods to different pieces of work within the same overall project. This means you can have a hybrid invoicing approach that accurately reflects how various parts of the project are priced and delivered.