---
title: "Billing Settings for Customers: Rates & Material Discounts"
url: "https://help.ontraccr.com/en/article/billing-settings-for-customers-rates-material-discounts"
language: "en"
last_updated: "2025-06-08T18:29:40.342Z"
---

# Billing Settings for Customers: Rates & Material Discounts

## **💳 Billing Settings for Customers: Rates & Material Discounts**  
 

Ontraccr allows you to define billing preferences per customer—including labor rates and automatic material discounts. This ensures accurate downstream billing and streamlines invoice generation across your workflows.

This article explains how to configure both **billing rates** and **material discounts** within a customer profile.

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## **🔧 Where to Set Up Billing Settings**

Billing configurations are set in **Step 2** of the “Add Customer” or “Edit Customer” slider.

To access:

-   Go to the **Contacts > Customers** tab
-   Click **Add (+)** or edit an existing customer
-   Proceed to **Step 2: Billing Info**

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## **💰 Billing Rates**

Billing rates allow you to define what labor or service rates apply to a specific customer.

### **🧭 How to Use**

1.  **Predefined Rate:**
    -   Choose a rate from your preset rate table (see setup below).
    -   Useful for clients with negotiated standard rates.
2.  **Custom Rate:**
    -   Check the **Custom Rate** box to manually type in a one-off rate.

💡 These rates flow downstream into any forms, invoices, or reports that use billing logic.

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## **🧾 Material Discount (%)**

You can assign a default material discount to a customer.

### 🎯 **Purpose**

Automatically reduce material pricing when generating forms like invoices or quotes.

### 📋 **Example**

If you enter **15**, and a form includes a material table priced at $1,000:

-   The discount will auto-apply a $150 deduction
-   Final pricing shown would be $850 (before taxes or other logic)

### 💡 **Important**

-   This discount applies only when the **customer is selected** in the form.
-   Ensures consistency across projects and forms linked to the customer.

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## **⚙️ Setting Up Preset Billing Rates (Reference)**

Before using preset rates in the customer form, they must be created:

1.  Go to **Settings > Time Tracking > Rates**
2.  Add your labor/service billing rates
3.  These will appear in the dropdown list in customer billing settings

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