Automated Billing Logic

Most resident billings are simple and straight forward so all you have to do is indicate that the work order is billable and that it's complete. TheWorxHub takes care of the rest. See Mark a Work Order as Bill to Resident.

The automated billings logic uses the Resident Chargeback Rate settings as well as information within the work order to calculate the final amount of the charge as follows:

1. Time based charges: The total accumulated labor time from all workers in the work order is rounded according to rounding rules determined in the Chargeback Rate Settings. The resulting rounded time is then multiplied by the default chargeback rate that's also setup in the Chargeback Rate Settings.

2. Inventory based charges: if you use TheWorxHub Inventory application, you've used inventory on the work order, and you've checked off that you want to bill for inventory in the Resident Chargeback Rates, then the inventory will be charged on a billable work order. The amount charged for the inventory item is the internal cost for the item multiplied by the markup factor established in the Resident Chargeback Rate setting. The sum of time-based charges plus the inventory charges comprise the total billable amount.

Examples of Billing Calculations

The following examples are all based on following Resident Chargeback Rate Settings:

Billing -example

Example A:  Time-based charges calculation

In this example, a resident requests an extra cleaning because family is coming over.  The manager and resident agree to have 2 housekeepers work together for an hour of cleaning.  The standard housekeeping rate of $15/hr applies.

The first housekeeper has another job to go to immediately thereafter so she leaves after 45 minutes and enters her time as such.  The second housekeeper logs her time as 1 hour and 15 minutes.

According to the calculation logic:

  1. Total time is summed (45 min plus 1hr 15 min) which equals 2 hours.
  2. The total time is rounded up according to the settings.  Since 2 hours is an even quarter hour, no additional rounding occurs.
  3. The calculation is rounded time X standard housekeeping rate of $15/hr. results in $30.00 charge. Note that standard housekeeping is the default charge rate according to the Chargeback Settings.

Total charge:  $30.00.

Example B:  Time-based charges and Inventory calculation

In this example, in addition to the 2 hours of standard housekeeping as per example A, the resident requested that they'd like to buy a  shoe rack for the front closet and that it be brought up when the housekeeping was done.  (In this senior living community, shoe racks have become all the rage and for convenience, are now stocked in inventory for an occasion just like this!)

The cost to the community of the shoe rack is 25.00.

According to the calculation logic:

  1. Time charges total $30 (see example A)
  2. Inventory Charges are derived from the $25 cost calculated in the inventory app multiplied by the default 10% markup from the Rate Settings for a total of $27.50.

Total charge:  $57.50.

While many of your billings fit these simple examples, there are also times when further adjustments need to be made.  TheWorxHub billings can still accommodate.  See Customizing Billings on a Work Order.

Recalculating Billings - 'Recalc' Function

The billings calculation takes place the moment you put the checkmark in the Bill to Resident checkbox.   There are times when you need to adjust the billings information.  For example, you may need to edit the amount of labor time on the work order or an inventory item. 

This is particularly important for occasions when the billing amounts come from defaults set in a scheduled work order.  Any changes to the hours worked or other billings factor will require you to recalculate the billings total.

There are 2 places where you can force a recalculation of the billing amounts:

1.  Billing Info panel

The most common place to force a recalculation is from within the Billing Info panel in the work order.  Typically, you`d make the adjustments in the appropriate panels (labor time and inventory used).  Then, you'd open the Billing info panel to make sure you`re happy with the results.  Click the Recalc button to ensure that the changes are taken into account on the final billing amount.

Billing -info -recalc

2.  Billings to Send dashboard indicator

You can also recalculate billings amounts from the dashboard.

Click the Billings to Send indicator in the Reminders section.  Often, especially in housekeeping where the amounts have not been pre-set in scheduled work orders, you'll see a zero in the billing amount.

Use the mouse-over actions and select Recalc to make sure the labor time is multiplied by the default rate.  If you have many of these to do, you can also use the Batch Recalc function.

Recalc -dashboard


Note:  Whenever you force a recalculation, note that only the automated billing rows, time and inventory, will be recalculated.  All custom created rows remain as they were.  The Recalc is particularly useful when additional time has been logged to the work order after it was initially checked as Bill to Resident. 


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