Understanding Billable vs Non-Billable Resource Allocations in Keka PSA

Overview

In this guide, you will learn:

How to mark allocations as billable or non-billable in Keka PSA
Who can manage allocation types and where the setting resides
How it affects billing, cost, utilization, and revenue recognition

Who Can Do This?

Project Managers with the “Manage Project Team” privilege
Client Managers
PSA Admins
Users with “Manage Team” permission

Pre-requisites

Project must have at least one existing resource allocation.
User should have access to edit the team
Feature is available only in Pro plan and above.

Where to Enable This Setting

Navigate to Project > Policies and Settings > Resource Management > allocation
Enable the toggle for Non-billable resource allocation

Note: If this setting is disabled, the option to modify billability during allocation will not appear.

Adding Resource and Setting Allocation Type

Go to Projects > Projects and select a project
Click on the Team tab
Click Add Resource
Set the allocation date range and percentage
Choose Billable or Non-Billable as the allocation type

Note: If Non-Billable is selected, the Bill Rate will show as “NA”.

Editing Allocation Type

Go to Projects > Projects and select a project
Click on the Team tab
Click the Edit icon next to the resource
Click on the Allocation Type field
Choose the new allocation type and set the Effective Date.
Click Update under actions column.

Note: If invoices or charges have already been generated for that period, the allocation type cannot be changed.

Allocation Types Behaviour by Project Type

Project Type	Allocation Billability Option
Billable Project	Can choose Billable or Non-Billable
Non-Billable/Internal	All allocations auto-set to Non-Billable
Base Plan	Allocation type is fixed; cannot modify

How It Connects with Other Modules

Aspect	Billable Allocation	Non-Billable Allocation
Billing	Hours can be invoiced	Hours cannot be invoiced
Cost	Incurred	Incurred
Utilization	Counted	Counted
Revenue Recognition (Cost-Based)	Included	Included
Revenue Recognition (Invoice-Based)	Included	Not Included

Note : Shadow resources are always marked as Non-Billable and inherit billability from their parent.If parent is billable, their hours are billed using the parent’s bill rate

FAQs

Q: Why is the option to change billability disabled?
A: Either the setting is disabled under global policies, the project is marked as Non-Billable/Internal, or the organization is on the base plan

Q: Why can’t I set a bill rate for a Non-Billable allocation?
A: Since non-billable hours cannot be invoiced, a bill rate is not applicable