How is the 'Billable flag' determined
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A Charge can be set as 'Billable' or 'Not Billable'. When a Charge is set as Billable it means that you intend to bill the customer for this Charge. The default value for Charges is determined by the type of contract under which the Charges are created.
The following table shows which value is given to the Billable flag by default according to the Contract type and the Charge Type:
In the "Block of…" contracts, most of the Charges are not Billable, assuming the Charge is covered by the service agreement for this type of Contract. The Charge will reduce the relevant units (hours, money) from the Contract according to the units defined in the Charge. Read more on how this works in Tracking the Contract Status.
Note that these are the default values for the Billable flag. It is possible to modify the value of the Billable flag for specific Charges at any time. You should only bill customers for Billable Charges (though you can print Charge reports that include both Billable and Not Billable charges, or include not-billable charges in QuickBooks invoices, and show these to your customers).