Projects > [Name of project] > Billing Caps can be created for time, expense item and purchase item billing rules. In the case of time billing rules, caps can be by hours or by money; for expense and purchase item billing rules, caps are by money only. Adjust items to fit under the cap: If this box is checked, and if the billings come to an amount that exceeds the cap, the billing run will give you the option to create timebills only up until the cap is reached, based on the dates/order of the receipts, purchases or time entries. If this box is NOT checked, and if the billings come to an amount that exceeds the cap, no billing will be generated. The cap limits the total amount billed by the rule. The next time you run billing, the cap will take into account any existing timebills created with this rule when it decides whether receipts, purchases, or time entries can be billed. For example, if you set the cap to $6000, and the first set of timebills created based on the rule total $5000, the next time you run project billing, you will only have the option to create timebills for the time entries or the receipts up to a total of $1000. If billing is later run and the next set of timebills have an amount of $1500, a total of $1000 would be billed if "adjust items to fit under the cap" is checked. If that option is not checked, no further amount would be billed. Any remaining receipts, purchases and time entries over the cap would not be billable. When running billing, the Description column will show ADJUSTED FOR CAP for transactions that have not been fully billed due to operation of the cap. Do not bill items that exceed the cap: This setting relates to sequential billing rules. If checked, no further billing will take place once the cap is hit. If unchecked, transactions will pass to successive billing rules, if any, for further processing. For example, leave the option unchecked to set up a time billing rule at a rate of $250 per hour up to a specified cap, and a second billing rule, at a discounted rate, after the first cap is reached. Leave the option unchecked also for situations where a certain amount of expenses are included in a fixed price billing and only expenses exceeding that are billed as incurred (first expense item billing rule marking expenses down by 100%, with a cap, and the second billing rule billing them fully or in part to the client).