Travel charge types: divide minutes by 60

• This calculation applies specifically to the Field Service product and does not generalize to every employer or state.
• Do not use the 76 cents a mile figure as the customer price; it is the self-employed and business standard mileage rate, according to Internal Revenue Service. That rate is for tax purposes, not for billing the customer.
• Check whether the drive counts as paid time before adding the line. If an employee normally finishes work at 5 p.m., is sent to another job finishing at 8 p.m., and returns to the employer's premises at 9 p.m., all of that time is working time, according to Legal Information Institute. This example from the regulation shows travel that is all in the day's work. It is not your shop's schedule.
• Walk the work order product list and confirm the travel line before you send the invoice. The Field Service Work Order Checklist for Dispatch Handoffs fits that same pass.

The calculation method depends on the specific charge type configured for the booking. For an hourly charge, the system uses the actual travel duration in minutes divided by 60, according to Microsoft. This division converts the raw minute count into a decimal hour value for the line item. For a mileage-based charge, the calculation is miles traveled times the mile price, according to Microsoft. A fixed charge uses a set amount regardless of distance or time, according to Microsoft.

Once calculated, the charge lands on the work order as a work order product, according to Microsoft. The system creates a separate travel charge item for each qualifying booking, according to Microsoft. This separation ensures each drive has its own distinct line item on the final document.

When setting up these charges, place them on the service account rather than the billing account, according to Microsoft. Check the work order product list to confirm the travel line appears correctly before sending the invoice. Verify the charge type matches the actual drive conditions to ensure the calculation uses the correct formula.

Configure travel charges - Dynamics 365 Field Service | Microsoft Learn defines three distinct calculation methods for the travel charge line item. Each method uses different input data to determine the final amount added to the work order. Understanding which method applies to a specific job prevents errors in the final invoice.

Hourly calculation

The first method is the hourly charge. According to Microsoft, Field Service calculates the travel charge based on the actual travel duration in minutes divided by 60. This method requires the exact number of minutes the technician spent driving. The system performs the division to convert minutes into hours. The resulting decimal is then used to calculate the charge. The dispatcher must ensure the travel duration is recorded accurately. If the duration is missing, the calculation cannot proceed. The division by 60 is the core mathematical step for this type.

Mileage calculation

The second method is the mileage charge. According to Microsoft, Field Service calculates the travel charge based on miles traveled times the mile price. This method requires the total distance covered. It also requires a set mile price. The system multiplies these two values to find the total charge. This approach focuses on distance rather than time. It may be useful when travel time varies but distance is consistent. The mile price is a configured value. The dispatcher must verify the miles traveled are correct. The multiplication step is the core mathematical operation for this type. It ignores the duration of the drive.

Fixed calculation

The third method is the fixed charge. According to Microsoft, Field Service uses a fixed amount for the travel charge. This method does not use minutes or miles. It applies a single, pre-determined amount. The system adds this amount directly to the charge. It is the simplest calculation of the three. It does not require measuring time or distance. The fixed amount is chosen ahead of time. The dispatcher selects this type when a flat fee is appropriate. The system does not perform division or multiplication for this type. It simply applies the set value.

The regulation distinguishes between travel that is part of the day's work and travel that is home-to-work. If an employee normally finishes work on the premises at 5 p.m. and is sent to another job which he finishes at 8 p.m. and is required to return to his employer's premises arriving at 9 p.m., all of the time is working time, according to Legal Information Institute. This example describes a scenario where the employee must return to the employer's premises. The drive from the second job back to the employer's location is considered working time because the employee is required to be there.

However, if the employee goes home instead of returning to his employer's premises, the travel after 8 p.m. is home-to-work travel and is not hours worked, according to Legal Information Institute. The critical difference is the destination after the second job. If the employee is sent home, the drive from the job site to the home is not paid time. The regulation treats this as standard home-to-work travel. This distinction matters when deciding whether to add a travel charge or count the time as paid. If the booked visit has to move, see Move a booked visit: 3 rules and 6 fields.

Another example involves a special one-day assignment in another city. An employee who works in Washington, DC, with regular working hours from 9 a.m. to 5 p.m. may be given a special assignment in New York City, with instructions to leave Washington at 8 a.m., according to Legal Information Institute. The special assignment is completed at 3 p.m., and the employee arrives back in Washington at 7 p.m., according to Legal Information Institute. This scenario shows how travel for a special assignment is handled. The employee leaves at 8 a.m. for a job that ends at 3 p.m.

The Internal Revenue Service lists a standard mileage rate of 76 cents a mile for self-employed and business use, according to Internal Revenue Service. This figure is the self-employed and business standard mileage rate, not a price to put on a customer invoice. Do not bill a customer 76 cents a mile for travel unless your shop has independently set that as its travel-charge price. Your travel charge is a separate line item you set based on your own pricing policy.

When you consider how a job system handles travel time, the distinction between tax rates and billing rates matters. The Resource Scheduling Optimization add-on for Dynamics 365 Field Service considers travel time part of a technician's work hours by default, according to Microsoft. In that system, the optimization algorithm schedules the technician to start traveling to the customer's site at 8 AM by default, according to Microsoft. Therefore, the technician won't start to work at the site until some time after 8 AM, according to Microsoft. This 8 AM start is a default setting in that specific product's optimization page, not a universal rule that every technician's day begins at 8 AM. Pair that timing with Customer arrival updates: 4 messages and owners.

Housecall Pro offers a different approach to managing drive time. Optimize by Drive Time automatically reorders a technician's scheduled jobs for the day to minimize total driving time, according to Housecall Pro. It doesn't reschedule jobs to different days or change which tech a job is assigned to — it only reorders the jobs within a single tech's day to reduce the miles driven between stops, according to Housecall Pro. This reordering does not change the day of the job or the technician assignment; it simply adjusts the sequence of stops.

The mileage-rate table from the IRS is for your books, not for the customer's bill. Your travel charge is what you decide to bill, whether that is hourly, by mile, or a fixed amount. The 76 cents a mile figure is the self-employed and business standard mileage rate, not a suggested price for customer travel charges. When you add a travel line to a work order, use your shop's pricing policy, not the IRS rate. If you bill travel by the mile, set your own rate based on your costs and market. The 76 cents a mile figure does not tell you what to charge the customer.

The table below lists each publisher's specific rule regarding travel charges and paid time. Every number and definition in a row comes from that row's cited source.

Field Service adds these charges to a work order as a work order product, according to Microsoft. It creates a separate travel charge item for each qualifying booking, according to Microsoft. Set travel charges on the service account rather than the billing account, as directed by Microsoft.

The regulation example defines the 5 p.m. to 9 p.m. period as working time when the employee returns to the employer's premises, according to Legal Information Institute.

A drive of 60 minutes with an hourly charge divides 60 by 60, which leaves 1 hour on the line. A drive of 20 miles with a mileage charge multiplies those miles by the mile price. A fixed charge adds 1 set amount and does not use the 60-minute figure or the 20-mile figure.

The charge type determines whether you divide minutes by 60 or multiply miles by a rate, as Field Service calculates the travel charge based on the actual travel duration in minutes divided by 60 for hourly charges according to Microsoft. If the charge type is hourly, ensure the amount reflects the minutes divided by 60. Confirm the travel line matches the calculation method before you proceed to the next job.

On today's last open job, write the travel-charge type. If it is hourly, divide the travel minutes by 60 before you save the line. If it is mileage, do not use the 76-cent rate as the billable amount. Count all of that time as working time only when the employee finishes on the premises at 5 p.m., is sent to another job finished at 8 p.m., and must return to the employer's premises at 9 p.m. If the employee goes home instead of returning to the employer's premises, the travel after 8 p.m. is home-to-work travel and is not hours worked.

How is an hourly travel charge calculated?

Field Service calculates the travel charge based on the actual travel duration in minutes divided by 60, according to Microsoft. This calculation applies specifically to the hourly charge type within that system.

What is the mileage option?

Field Service calculates the travel charge based on miles traveled times the mile price, according to Microsoft. This method relies on distance rather than time to determine the charge amount.

When is the drive home not paid time?

If the employee goes home instead of returning to the employer's premises, the travel after 8 p.m. is home-to-work travel and is not hours worked, according to Legal Information Institute. This distinction depends on the employee's destination after finishing the workday.

Is 76 cents the price to bill the customer?

No, the 76 cents/mile figure is the standard mileage rate for self-employed and business use, according to Internal Revenue Service. This rate is for tax purposes and should not be used as the travel charge price on a customer invoice.

Does putting travel at 8 AM mean the technician starts work at 8 AM?

No, the 8 AM time is a default for when the optimization algorithm schedules the technician to start traveling to the customer's site, according to Microsoft. The technician does not start work at the site until after the travel is complete.