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Invoicing - Unrecognized Time and Expenses
Invoicing - Unrecognized Time and Expenses
Mihovil Nakic avatar
Written by Mihovil Nakic
Updated over a week ago

This article will explain why you may be seeing negative (unrecognized) line items when creating an invoice.
Let us take a look at the following use case:

  • A "Development" service with the Fixed billing type has 10 hours budgeted

  • Against that service, 12 hours have been tracked

When creating an invoice and choosing Time & expenses as the invoicing method, the following line items will be displayed:

  • 12h Development

  • -2h Development (Unrecognized)

The reason for that is that when having a fixed service, the amount invoiced will be the one that has been budgeted, regardless of how much has been actually worked (tracked).

Since in our use case we have more hours tracked than budgeted (12 vs 10), and the method used when creating an invoice is Time & expenses, an extra line item with the negative amount is added that reduces the amount displayed on the first line item in an amount that represents the value that has not been budgeted. In the use case above, that would be 2 hours.

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