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text-body-primary-color no-underline hover:text-body-secondary-color" data-testid="breadcrumb-1">Specific Invoicing Cases</a><div class="pr-2" aria-hidden="true"><svg width="6" height="10" viewBox="0 0 6 10" class="block h-2 w-2 fill-body-secondary-color rtl:rotate-180" xmlns="http://www.w3.org/2000/svg"><path fill-rule="evenodd" clip-rule="evenodd" d="M0.648862 0.898862C0.316916 1.23081 0.316916 1.769 0.648862 2.10094L3.54782 4.9999L0.648862 7.89886C0.316916 8.23081 0.316917 8.769 0.648862 9.10094C0.980808 9.43289 1.519 9.43289 1.85094 9.10094L5.35094 5.60094C5.68289 5.269 5.68289 4.73081 5.35094 4.39886L1.85094 0.898862C1.519 0.566916 0.980807 0.566916 0.648862 0.898862Z"></path></svg></div><div class="text-body-secondary-color">Understanding Unrecognized Time and Expenses in Invoices</div></div></div><div class=""><div class="article intercom-force-break"><div class="mb-10 max-lg:mb-6"><div class="flex flex-col gap-4"><div class="flex flex-col"><header class="mb-1 font-primary text-2xl font-bold leading-10 text-body-primary-color">Understanding Unrecognized Time and Expenses in Invoices</header></div><div class="avatar"><div class="avatar__info -mt-0.5 text-base"><span class="text-body-secondary-color"> Updated over 2 months ago</span></div></div></div></div><div class="jsx-ef86202475c6562f flex-col"><div class="jsx-ef86202475c6562f mb-7 ml-0 text-md max-messenger:mb-6 lg:hidden"><div class="jsx-27f84a20f81f6ce9 table-of-contents max-h-[calc(100vh-96px)] overflow-y-auto rounded-2xl text-body-primary-color hover:text-primary max-lg:border max-lg:border-solid max-lg:border-body-border max-lg:shadow-solid-1"><div data-testid="toc-dropdown" class="jsx-27f84a20f81f6ce9 hidden cursor-pointer justify-between border-b max-lg:flex max-lg:flex-row max-lg:border-x-0 max-lg:border-t-0 max-lg:border-solid max-lg:border-b-body-border border-b-0"><div class="jsx-27f84a20f81f6ce9 my-2 max-lg:pl-4">Table of contents</div><div class="jsx-27f84a20f81f6ce9 "><svg class="ml-2 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class="jsx-ef86202475c6562f "><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>When creating an invoice in Productive, you might encounter negative (<b>Unrecognized</b>) line items.</p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>Understanding how unrecognized time and expenses are handled in invoicing ensures accurate billing and transparency for both you and your clients. </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>By following these steps, you can navigate through such scenarios effectively and maintain clarity in your invoicing process.</p></div><div class="intercom-interblocks-heading intercom-interblocks-align-left"><h1 id="h_63a73b910a"><br/>The Budget Scenario</h1></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>Let's consider a scenario where a service, let's say "Development," is billed with a Fixed billing type, and 10 hours are budgeted for it. However, <b>the team ends up tracking 12 hours</b> against this service.<br/></p></div><div class="intercom-interblocks-image intercom-interblocks-align-left"><a href="https://downloads.intercomcdn.com/i/o/1053814594/3beeadc033e68a6d0bce066c/Screenshot+2024-05-17+at+10_41_31.png?expires=1732394700&signature=ac7bd2e298c3e662f0eb916e025777fd291394ec1e9f58edce3afd9b9b9394b9&req=dSAiFcF%2FmYRWXfMW1HO4zXi3MIKryNBuTYzqnGbSD9LeoJ0m0zaUQKYRne1E%0Asgn7Kcqv2jr4R3cDtDI%3D%0A" target="_blank" rel="noreferrer nofollow noopener"><img src="https://downloads.intercomcdn.com/i/o/1053814594/3beeadc033e68a6d0bce066c/Screenshot+2024-05-17+at+10_41_31.png?expires=1732394700&signature=ac7bd2e298c3e662f0eb916e025777fd291394ec1e9f58edce3afd9b9b9394b9&req=dSAiFcF%2FmYRWXfMW1HO4zXi3MIKryNBuTYzqnGbSD9LeoJ0m0zaUQKYRne1E%0Asgn7Kcqv2jr4R3cDtDI%3D%0A" width="2928" height="1486"/></a></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-heading intercom-interblocks-align-left"><h1 id="h_8f37695b65">Creating the Invoice</h1></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>When you choose <b>Uninvoiced Time and Expenses </b>as the invoicing method for this service, the invoice will display the following line items:</p></div><div class="intercom-interblocks-unordered-nested-list"><ul><li><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p><b>12 hours for Development</b></p></div></li><li><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p><b>-2 hours for Development (Unrecognized)</b></p></div></li></ul></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>The negative line item represents the extra hours tracked beyond the budgeted amount. In this case, since 12 hours were tracked but only 10 were budgeted, the system automatically adds a line item for the 2 extra hours as "Unrecognized".</p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-image intercom-interblocks-align-left"><a href="https://downloads.intercomcdn.com/i/o/1053817875/510f2fbbb00e9d5b09b111d9/Screenshot+2024-05-17+at+10_43_01.png?expires=1732394700&signature=22159761744524351517b2575e15336b49f49c1c9480f3913198ecb94eb31345&req=dSAiFcF%2FmolYXPMW1HO4ze3LyAlznzW%2BZGMqH5tHmWgeStf9ULsSwrNhasV6%0ALuUwNoLVMCQFalg2hx8%3D%0A" target="_blank" rel="noreferrer nofollow noopener"><img src="https://downloads.intercomcdn.com/i/o/1053817875/510f2fbbb00e9d5b09b111d9/Screenshot+2024-05-17+at+10_43_01.png?expires=1732394700&signature=22159761744524351517b2575e15336b49f49c1c9480f3913198ecb94eb31345&req=dSAiFcF%2FmolYXPMW1HO4ze3LyAlznzW%2BZGMqH5tHmWgeStf9ULsSwrNhasV6%0ALuUwNoLVMCQFalg2hx8%3D%0A" width="2670" height="1476"/></a></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-heading intercom-interblocks-align-left"><h1 id="h_232d8b8c92">Billing Logic</h1></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>In scenarios where <b>a fixed service is billed</b>, the invoiced amount will match the budgeted hours, regardless of the actual hours tracked. </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>Any <b>excess tracked hours are treated as unrecognized</b> and are subtracted from the total billed amount.</p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-callout" style="background-color:#e3e7fa80;border-color:#334bfa33"><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p><b>Manually Adjusting the Amount in the Invoice</b></p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>Before finalizing the invoice, you have the option to disregard the unrecognized (negative) value automatically added and calculated by Productive. </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p>However, proceed with caution. Deleting such line items will lead to over-invoicing the budget, which could result in discrepancies and potential issues with your client.</p></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-image intercom-interblocks-align-left"><a href="https://downloads.intercomcdn.com/i/o/1053829658/7f2b02fb9a7ef6830a40ea29/Screenshot+2024-05-17+at+10_51_08.png?expires=1732394700&signature=c27a9e7288079eda4f43f12a01c8bf6b70f04c0ea1a93df3bf310bed70096bb5&req=dSAiFcF8lIdaUfMW1HO4zXV6MUwp5jIFQbfCA52ENLZtzqof7cilATaTYtEw%0A0%2FICqO10BJnX9ICNkZU%3D%0A" target="_blank" rel="noreferrer nofollow noopener"><img src="https://downloads.intercomcdn.com/i/o/1053829658/7f2b02fb9a7ef6830a40ea29/Screenshot+2024-05-17+at+10_51_08.png?expires=1732394700&signature=c27a9e7288079eda4f43f12a01c8bf6b70f04c0ea1a93df3bf310bed70096bb5&req=dSAiFcF8lIdaUfMW1HO4zXV6MUwp5jIFQbfCA52ENLZtzqof7cilATaTYtEw%0A0%2FICqO10BJnX9ICNkZU%3D%0A" width="2364" height="1364"/></a></div><div class="intercom-interblocks-paragraph no-margin intercom-interblocks-align-left"><p> </p></div><div class="intercom-interblocks-image intercom-interblocks-align-left"><a href="https://downloads.intercomcdn.com/i/o/1053829730/4e4f4c866768fc73da2259bd/Screenshot+2024-05-17+at+10_55_52.png?expires=1732394700&signature=3b8e77cbfcabb0f8b35e713f8198b6537f6133812eaf0262dc083f2ac91cabf2&req=dSAiFcF8lIZcWfMW1HO4zW8ktB1ObTeVQXZmFNGJdtw9m0OJ5Z02ESfnrB6b%0AIYiUpurqWJ58uQxXv80%3D%0A" target="_blank" rel="noreferrer nofollow noopener"><img src="https://downloads.intercomcdn.com/i/o/1053829730/4e4f4c866768fc73da2259bd/Screenshot+2024-05-17+at+10_55_52.png?expires=1732394700&signature=3b8e77cbfcabb0f8b35e713f8198b6537f6133812eaf0262dc083f2ac91cabf2&req=dSAiFcF8lIZcWfMW1HO4zW8ktB1ObTeVQXZmFNGJdtw9m0OJ5Z02ESfnrB6b%0AIYiUpurqWJ58uQxXv80%3D%0A" width="2918" height="1124"/></a></div></div><section class="jsx-62724fba150252e0 related_articles my-6"><hr 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Help Center","footerLogo":"https://downloads.intercomcdn.com/i/o/295088/7d1e9e7d334295930dd163a3/801f1c6d85d7662e8810fa8dcc02754d.png","footerLogoHeight":"110","localisedInformation":{"contentBlock":{"locale":"en","title":"Content section title","withButton":false,"description":"","buttonTitle":"Button title","buttonUrl":""}}},"user":{"userId":"e29be612-8bd1-471e-a26f-c1878e17e826","role":"visitor_role"},"articleContent":{"articleId":"7233634","author":null,"blocks":[{"type":"paragraph","text":"When creating an invoice in Productive, you might encounter negative (\u003cb\u003eUnrecognized\u003c/b\u003e) line items.","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"paragraph","text":"Understanding how unrecognized time and expenses are handled in invoicing ensures accurate billing and transparency for both you and your clients. ","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"paragraph","text":"By following these steps, you can navigate through such scenarios effectively and maintain clarity in your invoicing process.","class":"no-margin"},{"type":"heading","text":"\u003cbr\u003eThe Budget Scenario","idAttribute":"h_63a73b910a"},{"type":"paragraph","text":"Let's consider a scenario where a service, let's say \"Development,\" is billed with a Fixed billing type, and 10 hours are budgeted for it. However, \u003cb\u003ethe team ends up tracking 12 hours\u003c/b\u003e against this service.\u003cbr\u003e","class":"no-margin"},{"type":"image","url":"https://downloads.intercomcdn.com/i/o/1053814594/3beeadc033e68a6d0bce066c/Screenshot+2024-05-17+at+10_41_31.png?expires=1732394700\u0026signature=ac7bd2e298c3e662f0eb916e025777fd291394ec1e9f58edce3afd9b9b9394b9\u0026req=dSAiFcF%2FmYRWXfMW1HO4zXi3MIKryNBuTYzqnGbSD9LeoJ0m0zaUQKYRne1E%0Asgn7Kcqv2jr4R3cDtDI%3D%0A","width":2928,"height":1486},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"heading","text":"Creating the Invoice","idAttribute":"h_8f37695b65"},{"type":"paragraph","text":"When you choose \u003cb\u003eUninvoiced Time and Expenses \u003c/b\u003eas the invoicing method for this service, the invoice will display the following line items:","class":"no-margin"},{"type":"unorderedNestedList","text":"- \u003cb\u003e12 hours for Development\u003c/b\u003e\n- \u003cb\u003e-2 hours for Development (Unrecognized)\u003c/b\u003e","items":[{"content":[{"type":"paragraph","text":"\u003cb\u003e12 hours for Development\u003c/b\u003e","class":"no-margin"}]},{"content":[{"type":"paragraph","text":"\u003cb\u003e-2 hours for Development (Unrecognized)\u003c/b\u003e","class":"no-margin"}]}]},{"type":"paragraph","text":"The negative line item represents the extra hours tracked beyond the budgeted amount. In this case, since 12 hours were tracked but only 10 were budgeted, the system automatically adds a line item for the 2 extra hours as \"Unrecognized\".","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"image","url":"https://downloads.intercomcdn.com/i/o/1053817875/510f2fbbb00e9d5b09b111d9/Screenshot+2024-05-17+at+10_43_01.png?expires=1732394700\u0026signature=22159761744524351517b2575e15336b49f49c1c9480f3913198ecb94eb31345\u0026req=dSAiFcF%2FmolYXPMW1HO4ze3LyAlznzW%2BZGMqH5tHmWgeStf9ULsSwrNhasV6%0ALuUwNoLVMCQFalg2hx8%3D%0A","width":2670,"height":1476},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"heading","text":"Billing Logic","idAttribute":"h_232d8b8c92"},{"type":"paragraph","text":"In scenarios where \u003cb\u003ea fixed service is billed\u003c/b\u003e, the invoiced amount will match the budgeted hours, regardless of the actual hours tracked. ","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"paragraph","text":"Any \u003cb\u003eexcess tracked hours are treated as unrecognized\u003c/b\u003e and are subtracted from the total billed amount.","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"callout","content":[{"type":"paragraph","text":"\u003cb\u003eManually Adjusting the Amount in the Invoice\u003c/b\u003e","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"paragraph","text":"Before finalizing the invoice, you have the option to disregard the unrecognized (negative) value automatically added and calculated by Productive. ","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"paragraph","text":"However, proceed with caution. Deleting such line items will lead to over-invoicing the budget, which could result in discrepancies and potential issues with your client.","class":"no-margin"},{"type":"paragraph","text":" ","class":"no-margin"},{"type":"image","url":"https://downloads.intercomcdn.com/i/o/1053829658/7f2b02fb9a7ef6830a40ea29/Screenshot+2024-05-17+at+10_51_08.png?expires=1732394700\u0026signature=c27a9e7288079eda4f43f12a01c8bf6b70f04c0ea1a93df3bf310bed70096bb5\u0026req=dSAiFcF8lIdaUfMW1HO4zXV6MUwp5jIFQbfCA52ENLZtzqof7cilATaTYtEw%0A0%2FICqO10BJnX9ICNkZU%3D%0A","width":2364,"height":1364},{"type":"paragraph","text":" 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