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Understanding billable vs non-billable time

What billable means

A billable time entry represents work that may be charged to a client or included in a billing workflow. A non-billable entry still records real work and contributes to total hours, workload, and utilization analysis, but it is excluded from billable-hour totals.

The Billable setting and the billing rate are separate:

  • Billable answers whether the entry is eligible to be charged.
  • Billing rate determines the monetary value per hour when a rate applies.
  • Hours records the duration of the work.

Changing an entry from billable to non-billable does not delete it or reduce its duration. It changes how TimeSentry classifies the hours for billing and reporting.

Set the billable status on an entry

When adding or editing a time entry in Time, use the Billable toggle before saving. Manual Entry and Bulk Entry start with billable enabled in the current web experience, so confirm the setting for internal work, training, administration, business development, or other work your company does not charge to a client.

Your company can also configure a default billable preference in Company Settings. A connected source may provide its own billable value, and imported entries should be reviewed before they are submitted or billed.

How billing rates are determined

TimeSentry can display a billing rate for a time entry when the selected project and commercial relationship have a matching rate. Contracts are the primary place to maintain team-specific billing rates and payment terms.

If an entry is billable but has no expected value, check:

  1. that the correct client and project are selected;
  2. that the project is connected to the intended contract;
  3. that the contract contains a rate for the timekeeper;
  4. that the rate is effective for the relevant engagement; and
  5. that you are viewing the correct active company.

Avoid changing the entry's hours to compensate for a missing rate. Correct the project or contract setup instead.

Review billable and non-billable hours

The Time workspace supports a Billable filter with Billable and Non-Billable choices. Its summary separates the count and total hours for both groups while respecting the other active filters, including date, status, source, client, project, and timekeeper.

Analytics and dashboard views may also show billable hours, non-billable hours, utilization, revenue, or uninvoiced work. These metrics answer different questions. For example, billable hours measure eligible duration, while revenue depends on rates and the financial workflow.

No-charge entries

Some accounting integrations support a No charge treatment for non-billable entries. No charge is not the same as billable: use it only when the connected billing system and your firm's policy require the work to appear as a no-charge item.

Before correcting a billable value

Confirm the active company, date range, timekeeper, project, entry status, and whether the figure is hours or currency. Then correct the source record or contract rather than adjusting a report to hide the discrepancy.

Related articles: Create and Manage Time Entries in TimeSentry, Create and Manage Contracts in TimeSentry, and Why am I seeing incorrect billable totals?