Hourly vs. Daily billing is a business decision that organizations must make when choosing how to invoice their clients. This setting only makes sense in the context of T&M or NTE projects. For a FP project there is no billing implication because the client is paying a fixed amount regardless.
Explanation
Most companies invoice time by the hour---e.g., if a resource has logged five hours at $100 an hour, the client is billed $500. However, some contracts are structured such that the customer will be invoiced for a certain amount per day - independent of the actual number of hours the resource worked. In this case, the $500 would be written up to $800 to represent an eight hour work day. The inverse could also happen, the resource works ten hours, but the amount is written down to $800. This scenario is often used for things like client visits where a fixed price per day has been negotiated, the client is not paying for overtime, or it is just your organizational philosophy.
Settings
You specify whether you want hourly or daily billing in three different places, but only one of those places "counts." The first place is the Client Editor. Any engagements created for this client will inherit the setting from the client. You can override this setting on a per engagement basis from the Engagement Billing Tab. Finally, you can override that setting from the Invoice Tab of the invoice editor. The setting on the invoice editor is the one that "counts."
The inheritance model takes affect at the time of engagement or invoice creation. So if you change an engagement to daily billing, existing invoices are not affected, but new ones are.
Adjusting Time Cards
A daily billing adjustment should be made to "normalize" the hours to full days and apply the daily rates.
When adjusting for daily billing, either one or multiple time cards can be chosen to be adjusted. When executing on a single time card, the adjustment sets the billing rate to one full day or a fraction of a day based on what the user specifies. When executing on multiple time cards, Projector groups time cards by unique date and resource (ignoring task, role, and project) and sets the billing rates on the cards to one full day or fractions of days. Then Projector writes up or writes down the billing adjusted revenue of the cards based on billed days and daily rates.
Invoice Templates
When invoices are rendered as PDFs using invoice templates, hourly invoices will display hours and hourly rates, while daily invoices will display billed days and daily rates. Our Legacy Invoice Template Examples automatically reformat to display information in days vs. hours. If you are using the new invoice templates then you should choose a template that reflects daily billing (for example, showing days worked instead of hours worked). If you do not have a suitable invoice template then you can create one.