# What is difference btn Billing and costing rate

Hello members,
Can someone assist the difference between billing rate and costing rate in time sheet. We are planning to start paying staff from time sheet, but found two words confusing between billing and costing rates,

Billing Rate: This is the rate at which you charge your clients for a particular resource
Costing Rate: This is your costing for that particular resource

So both the above terms are related to Sales and not Payroll

For your use case where , you want to pay your employees based on timesheet entered on ERPNext, lease refer to this link https://erpnext.com/docs/user/manual/en/projects/timesheet/salary-slip-from-timesheet

Basically you will have to configure the Salary structure based on timesheet

Thanks Manan for clarification,

However, when Iâ€™m on the payroll and when I tick â€śpay from time sheetâ€ť it gives me an option on salary component and hourly rate. My problem here is that each employee has different salary figure of salary amount, so if I put here an hourly rate means will factor out standard rate which will make others get higher salary amount than agreed in their contracts. Thatâ€™s why I had to set hourly rate straight from time sheet per each employee. However, I donâ€™t know if that setting will be fetched out when preparing payroll at the end of the month.

Deus Masige

TAEEs

Mazingira street #8

Box 35454, DSM,Tanzania

Tel: 0713483590

Hi Deus,
In order to differentiate the hourly rate based on employeeâ€™s designation or the amount agreed on their contracts, you will have to define a separate hourly rate (since the timesheets will be in hours) for different employees via a Salary Structure.
Letâ€™s say your company has two levels of employees, Executive (Salary=500/hr) and Manager (Salary=600/hr). For this you will define two Salary Structures in ERPNext;

1. Go to Human Resources>Salary Structure
a. For Executive: Salary Component= Basic (Assuming your Payroll is simple), Hour Rate = 500, in the Earnings table select Basic and Save
b. For Manager: Salary Component= Basic (Assuming your Payroll is simple), Hour Rate = 600, in the Earnings table select Basic and Save
2. Assign the Salary Structure against each employee
Go to Human Resources>Salary Structure Assignment> For each employee define the Salary Structure and Save
This completes the configuration part
3. Finally when the employees have filled in their respective timesheets, go to HR>Salary Slip>Make a new Salary Slip>Now you should see the timesheet details filed in by your employees in the Salary Slip

Hope this helps

Thanks so much Manan,

I hope will help a lot. Iâ€™ll come with feedback on this so that it may help others to.

Deus Masige

TAEEs

Mazingira street #8

Box 35454, DSM,Tanzania

Tel: 0713483590

One. More thing that is troubling us is automatic backup of ERPNext system in V11. V10 is working well and it backs up in drobox every midnight, however v11 is failing and bring error, do you experience the same? Or can you help on this!!!

Deus Masige

TAEEs

Mazingira street #8

Box 35454, DSM,Tanzania

Tel: 0713483590

Hi Deus,
If you are following the instructions right( https://erpnext.com/docs/user/manual/en/setting-up/integrations/dropbox-backup) and still facing the issue, try updating to the latest version
If the problem still persists, you can raise a ticket with ERPNext support team if you are on their cloud version

Thanks brother the efforts

Let me workout on it and will give you the feedback

Deus Masige

TAEEs

Mazingira street #8

Box 35454, DSM,Tanzania

Tel: 0713483590

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Manan,
The Dropbox has no problem in backing up except the Amazon S3 which does not catch up especially if shifting from V10 to V11. Otherwise of you install newly V11, the backup works nicely.
From my case, we have a lot of data we dont want to risk loosing data. so, this is where the problem is at the moment

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Hi Manan,

I recently want to pay my employee baes on Timesheet too, and i already set Hour Rate at the Salary Structure & component. Based on what i read, i think i donâ€™t need to fill in again the Bill rate and Costing rate at each Timesheet?

Thanks,
Randy