Note: This article is intended for use by customers who are currently participating in the beta test for this feature. Not all customers will have access to the feature discussed in this article.

Index

Enabling Billing

The Billing feature is available to every Admin, to turn this feature on, head to your profile off of the main menu > click edit > scroll down to extras and click on Billing. Be sure to click save and it will then be enabled, you will notice a billing section will appear in the main menu.

Please keep in mind each Admin will need to turn this on for themselves to use the feature.

Updating your Billing Details

To access your Accounts Billing Details, go into your Main Menu of Karbon and click on Settings > Billing.

Tax Rates

Set up tax rates for your firm that will be used when preparing invoices in Karbon in the near future. To set a tax rate go into your Settings off of the main menu and select Billing. Based on your firm's country set in Account Settings, we have populated some core tax rates.

For the US and Canada, we have set Tax Exempt and No Tax Set core rates and for Australia, UK and New Zealand, GST and VAT rates have been set for you.

If you have clients that have different tax rate requirements, you can select a tax rate for those contacts by going to the Billing section on the Details tab. When invoices are created for that contact, the tax rate will be applied to all invoices by default.

Tax Identification Number

It is a requirement in many countries to display tax identification/registration numbers on invoices. Below the tax rate section in your Billing Settings, you can also set up tax identification numbers by clicking.

From this modal, you can select an identifier name, enter the tax identification number and choose the related tax rate(s) for that number. If you choose the option to show the number on the invoice, when the related tax rate(s) is applied, the tax identifier name, and number will appear at the bottom of the invoice.

Invoice Templates

In preparation for being able to send an invoice in Karbon, you can now view an Invoice Template within your Settings off of the Main Menu click into Billing and the Invoice Template will be at the bottom.

In this first version, you are able to select a default payment term (Net 7, 14, 30, or 45) and add payment instructions. When invoices are created, the payment term and payment instructions will default to those set on the Invoice Template. On the template, you can also see how the Invoice will be presented to clients including the logo and branding color chosen in Branding off of the Main Menu.

Using Billing

Once billing has been enabled, you will then be able to use the feature by viewing unbilled items, approving invoices and exporting them in Xero or QuickBooks Online format for further billing purposes.

Choosing the Bill To Contact

By default, each contact will be the 'Bill To' contact when you are viewing your unbilled items. This can be changed within the contact's details under the billing details section.

Soon you will be able to send invoices to your clients from Karbon. In preparation, within the Billing section on the Contact details tab, you can set the Bill To and Billing Address for that contact. When invoices are created, the information set here will be applied by default to the invoice. Below are some additional rules:

  • The Billing Address and Billing Email for each Contact have been set by default. To change the billing address and billing email, select a different email or address from the dropdown.

  • The Bill To defaults to the contact

  • To protect private and hidden information, private and hidden contacts can only bill to themselves

  • Client Groups are not legal entities, but rather a collection of legal entities, and cannot bill to themselves. You can select any public contact as the Bill To and all work and time assigned to the client group will be billed to the selected Bill To

  • On Work items, you can select a different Bill To option. If you change the Bill To for the work item this will NOT change the Bill To for the Contact

If you need a single work item to be billed under a different contact, perhaps when the contact is billed as an organization, you are able to change the 'Bill To' contact within the work item. This change is made in the Basics section on the Details tab of the individual work item.

You can also individually change the 'Bill To' contact within the Unbilled section of Billing. Click on the work item that you'd like to change the bill to > use the options menu (...) on the right and choose 'Change Bill To'.

Finding billable work

Once you've enabled Billing, you can find it by navigating to your Main Menu and selecting Billing, by default this will open your Unbilled items.

Filtering and Viewing unbilled items

Unbilled work will be grouped by who the invoice will be issued to in alphabetical order. Each work item included in the invoice has its own Invoice Type; final or progress. By default, it is inherited from the work item’s status, when the work item has the status “Completed” it will automatically select Final invoice. However, you are able to change the invoice type to the progress type if needed.


When you click on the bill to contact, you will see the following information:

  • The work items

  • The client

  • The related client group

  • The work status

  • The fee type

  • The billable amount

  • The amount billed

You will be able to see work items with the fee type of Fixed Fee and Time and Materials.

All Fixed Fee type work items will appear under Unbilled unless you've created and approved an invoice with invoice type “Final”. Whereas Time and Material fee type work items will appear in the Unbilled screen when:

  • The work item does not have an approved invoice with invoice type “Final”

  • Or has unbilled time entries or expenses

You can filter your unbilled view to get to the specific invoices that you need to approve or view.

You further improve your view by using the following filter options:

  • Assignee

  • Bill To

  • Client

  • Client Group

  • Due Date

  • Fee Type

  • Status

  • Work Type

Once you've filtered, it will only show you invoices that match your criteria.

Remove work from unbilled items

If there are work items in the unbilled section that isn't needed in an invoice at all or yet, you can remove individual or bulk items from the unbilled section.

To do this, navigate to the 'Unbilled' section under 'Billing' off of the main menu and select the work items you'd like removed.

If you're individually removing them, you can remove them by clicking on the options menu (...) to the right of the work item and clicking 'Remove from Billing'

If you're removing multiple, you can do this in bulk by clicking the empty boxes of the preferred work items and clicking 'Remove from Billing'

Restore work removed from unbilled

Creating a draft invoice

To create a draft invoice, you can select the work items that you'd like to include and select 'Create Draft Invoice'. You can individually choose which work items to be added to an invoice

If you need to invoice all of the items in the unbilled section, you can use the multi-selection tool at the top of the page next to 'No Items Selected' to grab all the invoices shown.

Or you can select all the invoices for one client using the multi-selection tool next to your 'Bill To' contact.

If you made a mistake, you can discard a draft invoice under 'Invoices' and the work items will appear in Unbilled.

Once you've selected the items you'd like in your invoice, you can select 'Create Draft Invoice', this will automatically take you to your newly created draft invoice.

Or you can also access them from your Main menu under Billing > Invoices, by default it will show you the draft invoices first.

Adjusting a draft invoice

Adjust your invoices prior to approving them to ensure they are as accurate as possible.

You will have a full audit of the actions performed within the invoice activity section of the drafted invoice.

You can additionally mention your colleagues in the Invoice Activity of the drafted invoice which will allow them to see what updates were made.

Keep in mind if they don't have access to the Billing feature, you will not be able to add them in the comment.

Discarding a draft invoice

To discard a draft invoice, go into your draft invoices off of your Main menu under Billing > Invoices, by default, it will show you the draft invoices first.

There you can click on the draft invoice that you'd like to discard. Hover around the far right of the invoice and an options menu (...) will appear, click on the options menu and choose 'Discard'.

This will remove the draft invoice and revert it back to the unbilled items.

Write on / Write off

If you went over or under on your fee, you can adjust the amount within the drafted invoice. To update this, open up Invoices found under Billing in the main menu, click on the invoice you'd like to update, and change the amount.

You will see a positive or negative number appear under the Write On/Off column of that work item.

Filtering and Viewing draft invoices

Similar to unbilled work, draft invoices will be grouped by who the invoice will be issued to in alphabetical order.


You can filter your view to see the items you need to approve, the following filters will be available:

  • Bill To Contact

  • Created Date

Approving an invoice

When you have completed reviewing your drafted invoice, you can then approve the invoice. Once you click approve, you can choose the payment due date.

Keep in mind anyone with access to Billing, will have the ability to approve an invoice.

Filtering and Viewing approved invoices

Approve invoices will also be grouped by who the invoice will be issued to in alphabetical order.


You can filter your view to see the items you need to approve, the following filters will be available:

  • Bill To Contact

  • Payment Due Date

  • Approved By

  • Approved Date

  • Last Downloaded Date

Exporting approved invoices to QuickBooks Online or Xero

If you use Quickbooks Online or Xero for your invoicing, you can export your invoices to QBO or Xero formatting to import them into the system.

To do this, navigate to the approved tab within the invoices section off of the Main Menu, select the desired invoices to export and click 'Download QBO CSV' or 'Download Xero CSV'.

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