How Over/Under Billing is Calculated
To calculate Over/Under Billing on a Project, BuildOps uses the following formula:
Total Revenue Billed to Date - Total Revenue Completed to Date = Over/Under Billing
Key Terms
Over/Under Billing Amount – This value indicates whether billing aligns with actual project progress.
A positive number (Over Billed Amount) means more revenue has been billed than completed.
A negative number (Under Billed Amount) indicates that the project is ahead of billing, meaning invoicing may be delayed.
Total Revenue Billed to Date – This is the sum of all non-void invoices issued for the Project.
Total Revenue Completed to Date – This represents the revenue expected based on project cost and revenue budgets.
What Determines ‘Total Completed Revenue’?
‘Total Completed Revenue’ is a key part of Over/Under Billing calculations. BuildOps determines this number based on:
Cost & Revenue Budgeting
Each Project Phase has:
✔ Budgeted costs for labor, materials, and equipment.
✔ Sell price representing the expected contract value for that phase.
For example:
Budgeted Costs = $10,000
Sell Price = $20,000
Phase Markup = 200% (Sell Price / Estimated Cost)
Every actual cost added to the Project is multiplied by the Phase Markup to determine completed revenue:
📌 Formula:
Completed Revenue Amount = Actual Cost × Phase Markup
Phase Markup = Phase Sell Price / Total Estimated Cost
Tracking Over/Under Billing in BuildOps
Total Completed Revenue is shown on the Revenue tab of the Project Finance table.
Compare Revenue Billed to Date vs. Revenue Completed to Date to determine Over/Under Billing.
Example Calculation:
Revenue Billed to Date = $25,553.75
Total Completed Revenue = $13,597.24
Over/Under Billing = $25,553.75 - $13,597.24 = $11,956.51 (Overbilled)
A positive value means more revenue has been billed than completed, while a negative value indicates underbilling.
Why Does BuildOps Use ‘Total Completed Revenue’?
✔ Tracks profitability – Some phases generate more revenue than others.
✔ Prevents misleading billing numbers – Caps revenue at the budgeted amount to avoid inflating revenue when costs exceed the budget.
✔ Provides real-time insights – Helps track financial progress at the line-item level.
Troubleshooting Over/Under Billing
Project Budget Setup
✔ Verify Sell Price is entered for each Phase.
✔ Ensure total Sell Price equals the Contract Value.
✔ Check that each Phase has a Total Estimated Cost greater than $0.
Revenue Tab Issues
✔ Confirm Total Revenue Completed aligns with project progress.
✔ Ensure there are no "Unspecified" Phases (caused by deleted Phases).
Costs Tab Issues
✔ Verify Project Costs are correctly allocated.
✔ Check for Phases exceeding their budget.
✔ Identify and fix “Unspecified” costs (labor, POs, or bills missing Phase/Department/Cost Code details).
Fixing ‘Unspecified’ Costs
How to Identify Unspecified Costs
Open the Finance Table → Costs Tab.
Look for a line labeled “Unspecified”.
Expand to see missing Phase, Cost Code, or Cost Type details.
Fixing Timesheet Entries
A Technician can update missing details via their mobile timesheet.
An Office User can correct it in the Daily Report or Time Tracking Module.
Fixing PO/Bill Line Items
If not yet received → Edit the PO and add the missing details.
If already received → Edit the Receipt and update Phase, Cost Code, or Cost Type.
FAQs
1. Where can I see Over/Under Billing for my Project?
In the Finance tab of the Project or in WIP reports.
2. Why does my Over/Under Billing seem off?
Either budget is incomplete or there are unspecified costs in the Project.
3. Where can I see Unspecified Costs?
In the Finance tab → Costs Section, under "Unspecified Costs".