Categories identify the kinds of work available on a project. Their rates value work for client billing and member costs. Recording hours, valuing them and issuing an invoice are separate steps.
Create and enable categories
- With accountant write access, open Categories and add a category or choose Update Category.
- Enter its name, optional short name, description and colour.
- When financial management is enabled, check the default project and member rates, VAT and billability.
- Expand the category and assign the projects and people who should use it.
A category can be reused across projects. Its colour marks calendar drafts. A shared category retains the host’s ownership and colour.
When financial management is disabled, categories and assignments remain available. Rate, VAT and billability controls are hidden, while stored values remain. Disabling only client invoice creation leaves these controls available.
Defaults and agreed rates
The category’s default project rate supplies the selling rate. A project/category agreement replaces it. Member rates supply work costs when no positive salary-derived cost takes precedence.
| Value | Order used |
|---|---|
| Selling value | Project/category override, then default project rate. |
| Member work cost | Positive effective salary cost first. Otherwise project/member/category override, member/category rate, then default member rate. |
Use the expanded category’s project and member rate lists, or the selected project’s category list in Clients. Member rate details provide project-specific member rates. Save each permitted change.
An explicit zero remains zero. Clearing or deleting an override restores the applicable default. Billability is a separate setting.
A salary amount left blank is unknown, not zero. Fallback rates can still provide estimates, but affected cost results remain incomplete. Work schedules can be maintained without entering salary money.
Freelancers need separate permission to edit their own assigned rates. That permission does not expose colleagues’ rates. Partnerships use the permitted local agreements rather than private host defaults.
Billing choices and VAT
Billability allows personal invoices, organization-to-client invoices, both or neither. Check it on both the category and the project. Project choices are available under Clients → client → project → Bills when finances are enabled.
Personal invoices bill a freelancer’s work to the organization. Client invoices bill the organization’s customer. Work also needs the required review and must be unclaimed at that billing layer. See invoice eligibility.
VAT is tax added to the invoice price. A category can select a VAT rate or inherit the organization default. Net excludes VAT; gross includes it. Enter the tax treatment appropriate to the work.
Expense costs and charges
An expense records a cost independently of work rates. A client expense needs a project. A passed-on charge can differ from the original cost. Expenses and finances explains entry, recurrence and processing.
Other income
Record organization income outside invoices through Expenses & Other income in the internal client view. Other income instructions cover the amount, dates and tax choices.
Tax settings
Organization Settings and the internal client’s tax controls hold named VAT rates, the default VAT rate and estimated profit-tax rules. These controls need financial management and the required accounting access.
On expenses, Transfer tax deductible controls whether VAT is reclaimable. Reduces estimated taxable profit and the other-income exclusion affect tax estimates. The finance guide explains their effect on reported costs.