Billing multiple clients for a project

You can use Replicon to split the bill for a project among two or more clients, based on percent cost allocations you’ve assigned to each.

There are a couple of common scenarios for splitting bills in this manner:

  • Joint ventures

Large infrastructure projects often require funding from multiple sources, such as different levels of government and private stakeholders. In cases like this, how the bill is split among the different clients is usually based on some pre-negotiated criteria.

For example, an NHL team might pitch in 70% of the cost of a new stadium, while the city assumes the remaining 30% of the cost. The bill for building that stadium would then have to be split between those two clients along those lines.

  • Internal billing
Some internal cost centers bill each department who uses their services a proportion of their costs. For example, if an IT department sets up a new sales forecasting system, they may bill their company’s Sales and Finance departments for the work. And, in some organizations, they actually generate an invoice for each department so the bill can be signed off on.

How multiple client billing works

To bill two or more clients for a single project:

  1. Project managers add clients to a project and allocate costs among them.
  2. Users enter billable time against the project.
  3. Approvers approve the billable time entered.
  4. Billing managers create client invoices, using the billing items available for that project, which automatically reflect the percentage split you assigned.
For example, 70% of the cost of Project X is assigned to the Client A, and 30% is assigned to Client B. If one month $1000 is billed against the project, a $700 billing item will be available to add to Client A invoices, while a $300 billing item will be generated that you can add to Client B invoices.

FAQs

Can we assign multiple clients to a bucket project and then allow the users to select which client their hours should be assigned to?

Yes, that is possible. Refer to Letting users choose which client is billed for a multi-client project for more information.

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