Employee Chargebacks in ConnectWise PSA

Use an employee chargeback when you find a billing mistake on a time entry after the invoice has already been closed. The chargeback credits the customer and deducts the time from the employee’s billable totals.

Common reasons to issue a chargeback:

• Time was entered against the wrong agreement or company.
• Time should have been marked Do Not Bill or No Charge but was billed as billable.

Note: Time entries in Open or Rejected status don’t need a chargeback — those fields are still editable. A time entry is locked once it reaches ready-to-bill status, which ConnectWise determines based on your Billable Options settings (Bill unapproved time entries or Bill only after closed).

Chargeback on a closed invoice

1. Locate the time entry. You have two paths:
   • Go to Finance > Company Finance, search for and select the company, select the Time tab, then select the time entry.
   • Go to Finance > Invoice Search, search for and select the invoice, select the Time tab, then select the time entry.
2. Select Clone Time Entry. ConnectWise creates a copy of the entry. The Start Time, End Time, and Actual Hrs fields do not carry over. The clone is created in ready-to-bill status.
3. Select OK in the confirmation dialog.
4. In the Billing Options pod, update the Invoice Hours field to the appropriate negative number (the chargeback amount).
5. Select Save.
6. Go to Finance > Invoicing and search for and select the invoice.
7. Select the Time tab, then select the checkbox for the negative time entry.
8. Select Actions > Create Invoice.

The resulting invoice shows a negative hour count and a negative Invoice Total. This adjusts your Accounts Receivable and Revenue accounts in your accounting package, and updates both the Invoiced Hours by Member report and the Employee Time Billing report for the affected employee.

Note: If you don’t need to invoice immediately, skip steps 6–8. The negative time record will appear in your next billing cycle.

Chargeback on an open invoice

1. Locate the time entry. You have two paths:
   • Go to Finance > Company Finance, search for and select the company, select the Time tab, then select the time entry.
   • Go to Finance > Invoice Search, search for and select the invoice, select the Time tab, then select the time entry.
2. Select Copy Time Entry. ConnectWise creates a copy of the entry. The Start Time, End Time, and Actual Hrs fields do not carry over. The copy is created in ready-to-bill status.
3. Select OK in the confirmation dialog.
4. In the Billing Options pod, update the Invoice Hours field to the appropriate negative number.
5. Select Save.

The negative time entry is now ready to bill and will appear in the Invoice wizard on your next billing cycle.