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By following this guide, you will configure labor billing rates by mechanic type, set parts markup tiers, generate maintenance estimates linked to work orders, manage the approval workflow, and track billing through to invoice generation.
Who should read this: Maintenance billing administrators, directors of maintenance, and MRO managers responsible for pricing maintenance work and managing the estimate-to-invoice pipeline.Required permission: maintenance_ops — read to view billing data, update to create rates, markups, and estimates. Finance permissions may be required to generate invoices.Regulatory basis: 14 CFR 145.219 requires repair stations to maintain records of work performed, including charges. While billing is primarily a business function, accurate cost tracking supports 14 CFR 43.12 maintenance record requirements and provides documentation for customer disputes or FAA audits.

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Billing Workflow

The maintenance billing pipeline flows through these stages: 
Work Order → Estimate (Draft) → Sent → Approved/Rejected → Invoice → Payment
Each transition is audit-logged in the billing events trail.

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Configure Labor Rates

Navigate to Maintenance > Billing Settings to manage labor rate schedules.
1
Open labor rate settings
2
Click the Labor Rates tab on the billing settings page.
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Add a labor rate
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Click Add Rate and enter:
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FieldDescriptionRate NameDescriptive label (e.g., “Standard A&P Rate 2026”)Mechanic TypeAP, IA, Avionics, Sheet Metal, or GeneralHourly RateBase hourly rate in dollarsOvertime MultiplierMultiplier for overtime hours (default: 1.5x)AOG MultiplierMultiplier for AOG premium work (default: 1.5x)Effective DateWhen this rate takes effectExpires AtWhen this rate expires (optional; leave blank for ongoing)Is DefaultWhether this is the default rate for the mechanic type
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Manage multiple rates
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You can maintain multiple rate schedules for different mechanic types, effective date ranges, or customer-specific pricing. The system applies the rate based on mechanic type and the work order date.

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Configure Markup Rules

1
Open markup settings
2
Click the Markup Rules tab on the billing settings page.
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Add a markup rule
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Click Add Rule and configure:
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FieldDescriptionRule NameDescriptive label (e.g., “Parts Markup Tier 1”)Rule TypeParts Markup, Shop Supplies, Hazmat, or FreightCost FloorMinimum part cost for this tier (e.g., $0)Cost CeilingMaximum part cost for this tier (e.g., $100)Markup PercentPercentage markup to apply (e.g., 30%)Basis TypeWhat the percentage applies to: Labor Total, Parts Total, or FlatFlat AmountFixed dollar amount (for flat-rate surcharges)Sort OrderProcessing order when multiple rules apply
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Create tiered markup
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For parts markup, create multiple tiers with non-overlapping cost ranges. A typical setup applies higher markup percentages to lower-cost consumable parts and lower percentages to major components. Configure as many tiers as needed to match your shop’s pricing strategy.
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Review markup rules quarterly to ensure they reflect current market conditions and your organization’s target margins. Markup rules apply automatically when generating estimates, so keeping them current avoids manual adjustments.

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Generate an Estimate

1
Open the estimate form
2
From a work order detail page, click Create Estimate. You can also navigate to Maintenance > Billing Dashboard and click New Estimate.
3
Select the billing type
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Billing TypeDescriptionFlat RateFixed price regardless of actual time and materialsTime & MaterialsActual labor hours and parts cost plus markupHybridCombination of flat-rate tasks and T&M tasksNot to ExceedT&M with a maximum cap (NTE amount)
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For Not to Exceed billing, enter the NTE Amount. The system alerts if accumulated costs approach the cap.
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Enter customer information
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  • Customer Name — The aircraft owner or management company
  • Customer Email — For sending the estimate electronically
  • Payment Terms — Net 30, Net 60, Due on Receipt, etc.
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    Add line items
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    Add items to the estimate. Each line item has a type:
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    Item TypeFieldsLaborDescription, hours, rate (auto-filled from labor rates), ATA chapterPartsPart number, description, quantity, unit cost, markup (auto-calculated)Outside ServiceDescription, vendor, total costShop SuppliesAuto-calculated from markup rules based on labor totalSurchargeHazmat, freight, or other fixed surchargesFlat RateDescription and total (for flat-rate billing items)
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    The estimate totals update in real time as you add items:
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    TotalCalculationLabor TotalSum of (hours x rate) for all labor itemsParts TotalSum of (quantity x unit cost) for all parts itemsParts Markup TotalSum of applied markup on partsShop SuppliesCalculated per markup rulesOutside ServicesSum of all outside service costsSubtotalSum of all categoriesTaxSubtotal x tax rateTotal AmountSubtotal + tax
    13
    Review and save
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    Review all line items, totals, and customer information. Click Save as Draft.

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    Send an Estimate for Approval

    From the estimate detail page:
    1. Click Send for Approval
    2. The system generates a formatted estimate document
    3. An email is sent to the customer with the estimate details
    4. The status changes to Pending Approval
    5. The sent timestamp is recorded in the billing events log

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    Handle Approvals and Rejections

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    Approved

    When the customer approves the estimate:
    1. Open the estimate and click Mark Approved
    2. Enter the approver name and any approval reference
    3. The status changes to Approved and the work order can proceed

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    Rejected

    When the customer rejects the estimate:
    1. Open the estimate and click Mark Rejected
    2. Enter the rejection reason
    3. To revise, click Create Revision — a new estimate version is created with the original items pre-populated, incrementing the revision number

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    Generate an Invoice

    Once work is complete and the estimate is approved:
    1. Open the approved estimate
    2. Click Generate Invoice
    3. Review the final amounts (adjusted for actual hours if T&M)
    4. The system creates an invoice linked to the estimate and work order
    5. The billing event trail records the full lifecycle

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    The Billing Dashboard

    Navigate to Maintenance > Billing Dashboard for a summary view:
    • Open Estimates — Drafts and pending approval
    • Approved — Ready for work or invoicing
    • Invoiced — Sent to customer
    • Revenue summary — Total billed by period

    Manage Work Orders

    Work orders are the source of maintenance billing.

    Work Order Templates

    Templates include estimated hours for consistent pricing.

    Component Tracking

    Parts costs flow from component records into estimates.

    Compliance Dashboard

    Monitor billing alongside fleet compliance status.
    Last modified on April 5, 2026