# How to Charge a Minimum Hours Flat Fee with Sage Timeslips

You use the minimum hours flat fee arrangement only to cover time charges in Sage Timeslips. When you use this arrangement, you and your client agree to a minimum number of hours you work and an absolute flat fee for that minimum number of hours. To handle hours that exceed the agreed upon minimum number of hours, you establish an hourly rate that Timeslips assigns, regardless of timekeeper.

If you work more than the minimum number of hours, Timeslips charges the full amount of the minimum hours flat fee and adds to that flat fee an amount equal to the number of hours that exceed the minimum times the hourly rate you establish.

If you work less than the minimum, you can opt to charge just the flat fee amount or to prorate the flat fee amount.

On the Arrangement 1 tab of the Client Information window, select Minimum Hours Flat Fee. Then click the Edit button to display the Minimum Hours Flat Fee dialog box.

Specify the minimum flat fee amount, the number of hours covered by that minimum flat fee, and the hourly rate Timeslips should use for hours that exceed the minimum number of hours. Then use the Duration list to select how long the billing arrangement should remain in effect. You can, optionally, include a message on the client’s bill for the billing arrangement. Then click OK to save the settings.

Let’s look at some examples. The sample bill shows 6 hours of work. In each of the following examples, set the per hour rate for hours that exceed the minimum to $100; note that both timekeepers on the bill use that hourly rate.

In the example the fee is set the amount at $1000 for the first 2 hours. The time charges total $1400: $1000 for first 2 hours plus $400 for the additional 4 hours.

When you change the minimum hours from two to 10 hours, the time charges total $1000 on the bill.

Proration affects the total time charges only when the minimum number of hours exceeds the hours worked on the bill. If you set the amount at $1000 for the first 10 hours and prorate the bill, the time charges total $600.00, which is 60 percent of the agreed upon minimum of 10 hours.

That is, if you’d worked 10 hours, you’d have earned the $1000, but because you worked only 6 hours, Timeslips prorates the amount due for time spent to 60 percent of the total minimum hours.