While drafting invoices, you may have noticed that you must categorize each invoice line item by an Item Type.
The five Invoice Item Types are:
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Base Pay
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Expense
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Commission
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Bonus
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Other
Read this article to learn how to submit your invoice.
1. Base Pay
Base Pay invoice line items are for the standard compensation for services rendered, as outlined in your contract. These line item types function differently depending on whether your base pay is fixed or hourly.
If your payment amount is fixed per pay period, your Base Pay invoices are automatically generated for you. This means you do not submit any Base Pay invoice line items.
If the amount you are paid depends on the number of hours worked, you will likely need to submit Base Pay invoice line items.
To invoice your company for your base pay, select the "Base Pay" invoice line item type.
Read this article to learn about the difference between Fixed Rate and Hourly Rate, and to check whether you need to submit your invoices.
2. Expense
Expense invoice line items are for reimbursements.
Sometimes, it may be necessary to incur personal expenses in the course of completing a task for your company. These expenses could include the purchase of materials, labor fees, or travel expenses.
To bill an expense to your company, select the "Expense" invoice line item type.
3. Commission
Commission invoice line items are for additional agreed-upon achievement-based payments.
Some companies calculate commission by the products or services sold, the amount a person sells, or other similar metrics.
To charge a commission to your company, select the "Commission" invoice line item type.
4. Bonus
Bonus invoice line items are for additional payments.
To include a bonus payment in your invoice, select the "Bonus" invoice line item type.
5. Other
Other invoice line items are for any other type of payment – a sales tax for example.
To add an unclassified payment type to your invoice, select the "Other" invoice line item type. Ensure you specify what the invoice line item is for in the Description section.