--- title: "T&M Pricing Hierarchy" slug: "t-m-pricing-hierarchy" description: "Understand time and materials billing with Aspire's T&M Calc breakdown, ensuring accurate invoicing for labor and materials without guesswork." tags: ["Language - English", "Skill Level - 1 (Beginner)", "Area - Estimating"] updated: 2026-10-08T14:30:27Z published: 2026-10-08T14:30:27Z canonical: "guide.youraspire.com/t-m-pricing-hierarchy" --- > ## Documentation Index > Fetch the complete documentation index at: https://guide.youraspire.com/llms.txt > Use this file to discover all available pages before exploring further. # T&M Pricing Hierarchy # Overview Time and materials (T&M) billing is commonly used for work with an undefined scope. T&M bills for what actually happened, so you don't have to guess a fixed price and absorb the cost if the job runs long. The T&M Calculation Breakdown (T&M Calc) is how Aspire works out what a customer is charged on a T&M invoice. It lives on the work ticket and determines both the invoice amount and how materials and labor are priced. ## Key terms | Term | Definition | | --- | --- | | **T&M (time and materials)** | A billing method that charges customers for actual labor time and material costs, plus markups. | | **T&M Calc** | The Calculation Breakdown on a work ticket that shows how each T&M line was priced. | | **Item catalog** | The central list of items and their standard prices in Aspire. | | **One-time item** | An item that isn't in the item catalog. It's added to a single estimate or purchase receipt and doesn't carry over to future work. | | **Purchase receipt** | A record of the actual vendor cost for purchased items. | | **Warranty hours** | Time entries logged after a work ticket's Completed Date. They're excluded from T&M billing. | ## Requirements - To create purchase receipts in the **Purchasing** module and from the quick menu, you need *Add Receipt* added to your user role. - To edit items in your estimate, you need *Edit Estimate Items* added to your user role. ## Where to find the T&M Calc On the work ticket, go to the **Revenue** section and select the **T&M Calc** link. ### Calculation breakdown for items | Column | Description | | --- | --- | | **Item Name** | Each item line allocated to the work ticket. | | **Quantity** | The total quantity of the item allocated to the work ticket. | | **Unit Price** | The price applied to each unit of the item. | | **Pricing** | The pricing source that was used: **Estimate**, **Catalog Price Override**, **Price List**, **Catalog**, or **Receipt**. | | **Calculated total** | The amount that flows to the invoice. | ## How item price is determined When applying a markup to T&M items, Aspire checks the pricing sources in the order listed below and uses the first one that applies. | Priority | Source | When it applies | | --- | --- | --- | | 1 | **Estimate** | The item is on the estimate, and a price override was applied. Aspire doesn't use the service markup. | | 2 | **Catalog Price Override** | The item is in the item catalog and has a price override. When the item isn't on the estimate, Aspire uses this override instead of applying the service markup. | | 3 | **Price List** | The item is in the item catalog and has a price list cost, and the work ticket's branch is assigned to that price list. Aspire applies the markup to the price list cost. | | 4 | **Catalog** | The item is in the item catalog. Aspire applies the markup to the catalog cost. | | 5 | **Receipt** | The item is a one-time item created on the estimate or added manually to a purchase receipt. It has no catalog cost, so Aspire applies the markup to the receipt cost. | > [!NOTE] > **Note:** Catalog items (priorities 2–4) don't use purchase receipt cost, even when a purchase receipt is linked to the work ticket. ![Flowchart showing the order Aspire uses to price T&M items: Estimate, Catalog Price Override, Price List, Catalog, then Receipt for one-time items.](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/tm-pricing-hierarchy-flowchart.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A16%3A27Z&se=2026-11-13T11%3A16%3A27Z&sr=c&sp=r&sig=fbgDs%2B4azr8deJwN95SQbOx8zL7PDzYhFBcIA6vyMjo%3D) ### Example Your crew completes a T&M irrigation repair. The opportunity has a 25% T&M material markup, and the work ticket's branch is assigned to a price list. Five items are allocated to the work ticket, and each one is priced by a different level of the hierarchy: | Item | Why this source applies | Pricing | Unit Price | Quantity | Calculated total | | --- | --- | --- | --- | --- | --- | | Rotor head | It's on the estimate with a $30.00 price override. No markup is applied. | **Estimate** | $30.00 | 1 | $30.00 | | Valve box | It isn't on the estimate, but it has a $45.00 price override in the item catalog. No markup is applied. | **Catalog Price Override** | $45.00 | 1 | $45.00 | | PVC pipe | It's in the item catalog with a $6.00 cost on the branch's price list. The 25% markup is applied to $6.00. | **Price List** | $7.50 | 4 | $30.00 | | Drip emitter pack | It's in the item catalog at a $20.00 cost, with no price list cost. A purchase receipt for $24.00 is linked to the work ticket, but Aspire ignores it. The 25% markup is applied to $20.00. | **Catalog** | $25.00 | 2 | $50.00 | | Controller wire | It isn't in the item catalog. It was added as a one-time item on a $40.00 purchase receipt. The 25% markup is applied to $40.00. | **Receipt** | $50.00 | 1 | $50.00 | The T&M Calc for these items totals $205.00. The drip emitter pack shows why receipt cost doesn't change what you bill for catalog items. Only one-time items, like the controller wire, are priced from purchase receipt cost. ## Things to know - This hierarchy applies only to T&M services. - Catalog items are priced from the item catalog or a price list, never from purchase receipt cost. Receipt cost is used only for one-time items. - Using one-time items on purchase receipts doesn't change catalog prices. - T&M markups must be set on the opportunity or opportunity template, not in the **Pricing Markups** section in **Administration**. - Extra costs on purchase receipts aren't included in the T&M Calc. - Hours and materials allocated after the work ticket's Completed Date are considered warranty and aren't included in the T&M Calc.