Calculating Amount for Invoices

In TMetric, the calculation for invoicing is based on the time entries logged and the hourly rates set for each project, team member, work type, and also the workspace settings (rounding).

The Amount($A) value is calculated by multiplying Quantity(H) and Unit Price ($R). It is calculated for each time entry separately (since in most cases there is more than one rate), and then it is summed up.

Here is the formula used for calculating the Amount in invoices:

$A = H × $R

The Quantity(H) value represents the total time worked, usually measured in decimal hours. It reflects the number of hours worked, which is then multiplied by the hourly rate to calculate the total amount billed.

The Unit Price($R) represents the hourly rate charged for a specific work type, project, or user. It is the rate applied to the quantity of time (worked hours) to calculate the total amount on the invoice.

The calculation of the Amount value depends on the Quantity value. The rounding of Quantity depends on the Time format option set in the workspace settings.

If Hours and Minutes, Clock-like, or Decimal Hours with Store data in minutes enabled are selected, the Quantity will be displayed with between 2 and 4 decimal places. If Decimal hours is selected and Store data in minutes is disabled, the Quantity will be displayed with 2 decimal places.

Let’s take a look at a real example to see how this works.

For example, a time entry is 10 minutes and the hourly rate is $50/hour. The Quantity value will be calculated in decimal hours (minutes are divided by 60) with the Store data in minutes option enabled.

• Quantity(H) = 0.1666 hours (rounded to 4 decimal places)
• Unite Price ($R) = 50$
• Amount ($A) = H × $R = 0.1666 × 50 = 8,33$

This process ensures precise invoice calculations, displayed with appropriate rounding.