---
title: "Cost Code Billing Rates and Invoicing in Ontraccr"
url: "https://help.ontraccr.com/en/article/cost-code-billing-rates-and-invoicing-in-ontraccr"
language: "en"
last_updated: "2025-08-22T18:22:27.876Z"
---

# Cost Code Billing Rates and Invoicing in Ontraccr

## 🧾 **Cost Code Billing Rates and Invoicing in Ontraccr**

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### 📘 **Overview**

Ontraccr supports setting **billing rates** on cost codes, which define how much you charge your customer for work logged under that code. These rates are used when generating **time-based invoices**, enabling precise billing for labor, equipment, or overhead.

This is separate from **cost rates** (which represent internal cost). The billing rate defines your **external charge-out rate** per hour or per day.

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### **💰 Where to Set Billing Rates**

Billing rates can be set at two levels:

### 1\. **Global Cost Code Level**

-   Go to **Global Cost Codes**
-   Open a cost code
-   Scroll to the **Billing** section
-   Enter a **Billing Rate**
    -   Per hour or per day

### 2\. **Project Cost Code Level**

-   When editing a project → Step 3
-   Click into a cost code
-   You can **override the billing rate** here for project-specific pricing

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### **🧾 How Billing Rates Are Used**

Billing rates are applied automatically when generating **invoices** based on:

-   **Time Entries** for Labor or Overhead codes
-   **Equipment Usage** forms (daily/hourly billing)
-   **Form logs** tied to billable cost codes

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### **🧠 Example**

Cost Code: “LAB-003: Electrical Finishing”

Billing Rate: **$95/hr**

If your team logs:

-   10 hours on this code → Invoice shows $950
-   5 hours next week → Adds $475 to the next invoice

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### **📋 Invoice Line Item Breakdown**

Ontraccr can show the following per line item:

-   **Cost Code Name**
-   **Worker Name** (optional)
-   **Hours Logged**
-   **Rate Used**
-   **Total Billed Amount**

You can configure whether to show:

-   Detailed breakdown (line-item per entry)
-   Rolled-up summaries (line-item per cost code)

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### **🔄 Overriding at the Invoice Level**

You can also override billing rates directly **during invoice creation**:

-   Click into the line item
-   Manually change the rate or amount
-   This won’t affect the original cost code billing rate

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### **🔒 Validation Notes**

-   If no billing rate is set, the default is **$0/hr**, and the line will show $0 billed
-   Billing only applies to **billable projects** — non-billable projects won’t generate invoice lines