Fixed price projects allow you to charge your client a predefined amount for a project, milestone, or deliverable, regardless of the hours worked.
This guide explains how to configure a fixed price project, assign fixed billable amounts to tasks, and invoice those amounts as work is completed.
Project Setup
After creating your project, configure it as follows:
- Set the Project Budget to the total project value (optional but recommended for budget tracking).
- Set the Billing Method to Not Billable.
- Create tasks for each deliverable you intend to invoice.
- Add a fixed billable amount to each deliverable task.
Important
Projects billed using fixed amounts should always use the Not Billable billing method. Team members can still record time for costing and reporting purposes, but logged hours will not be billed to the customer.
Organising Your Tasks
Billable fixed amounts are attached to tasks.
Many teams find it helpful to create a dedicated task type (for example, Milestone) for tasks that represent billable deliverables. This makes them easy to identify, organise and filter throughout the project.
Standard tasks can then be used for the day-to-day work required to complete each milestone.
Adding Fixed Billable Amounts
To add a fixed amount to a task:
- Open the task.
- Select the $ tab.
- Choose the Invoice Inventory Item.
- Enter the fixed billable amount.
Each milestone task can have its own fixed amount, allowing you to invoice deliverables individually as they are completed.
If the project scope changes, simply edit the existing fixed amount or create another milestone task with its own fixed amount.
Note
The $ tab is only visible to users with the Admin, Invoice Manager, Portfolio Manager and conditionally to Project Manager roles.
Invoicing the Client
Once a milestone task has been marked Completed, its fixed amount becomes available for invoicing.
To create an invoice:
- Create a new invoice.
- Click Add Fixed Amounts.
- Select the completed milestone(s) you want to invoice.
- Save or send the invoice.
Example
Once Discovery & Planning has been completed, creating a new invoice and clicking Add Fixed Amounts will display:
- Discovery & Planning — $2,000
Later, after Design Approval and Website Development have also been completed, those milestones will become available to add to future invoices.
After a fixed amount has been invoiced, the task’s $ indicator turns green, making it easy to identify which deliverables have already been billed.
Tracking Project Costs
Although the project is billed at a fixed price, you can still monitor profitability by recording time and expenses.
Timesheets
Team members can record time against both Milestone and Standard tasks.
To accurately calculate project costs, configure Cost Rates under Project Settings.
Note
Cost Rates can be defined at both the User and Timesheet Category levels. If both exist, the Category rate takes precedence.
Because the project uses the Not Billable billing method, billable hourly rates are ignored.
Expenses
Project expenses can also be recorded against the project and its tasks, including:
- Client billable expenses
- Reimbursable expenses
- Contractor or freelancer costs
These contribute to project cost reporting.
Reporting
Several reports are available to help manage fixed price projects:
- Project Dashboard – Compare Budget versus Cost.
- Uninvoiced Items Report – View outstanding fixed amounts, timesheets and expenses awaiting invoicing.
- Fixed Amount Details Report – Review billable fixed amounts.
- Fixed Amount Revenue Report – Analyse fixed amount revenue over time.
For easier reporting, consider assigning a dedicated Project Category or Project Tag to all fixed price projects so they can be filtered together in reports.