Dynamics 365 Field Service : Configure minimum charge amounts and durations

In Dynamics 365 Field Service, Minimum Charge Amounts and Minimum Charge Durations are important pricing configuration settings used to ensure that a customer is billed a base minimum amount for certain services—regardless of how little time a technician actually spends on-site.

These settings help service providers recover costs for travel, setup, or other overhead associated with dispatching a technician, especially for short-duration jobs.

What Are Minimum Charge Amounts and Durations?

1. Minimum Charge Amount

   This is the lowest price a customer will be charged for a specific service task or work order, even if the actual cost based on time and materials is less.

   Example: If the hourly labor rate is \$100 and a technician only works for 15 minutes (which would calculate to \$25), you may still charge a minimum amount of \$75.

2. Minimum Charge Duration

   This is the shortest amount of time that a technician will be billed for, regardless of actual time spent on-site.

    Example: If a technician works for only 20 minutes, but the minimum billable time is 1 hour, then the customer is billed for the full hour.

Where and How to Configure These Settings

You can define these minimums in:

1. Service Task Types

Each Service Task Type (like “Inspection” or “Installation”) can have:

•  Estimated Duration
•  Billing Method (Time-based or Flat fee)
•  Minimum Charge Duration
•  Minimum Charge Amount

This ensures that every instance of that task has consistent pricing logic.

2. Price Lists and Work Order Service Pricing

In the Price List Items for services:

 You can specify minimum billing durations or amounts when configuring the service pricing.

 Apply them based on territory, role, or account if needed.

Use Cases and Importance

• Field visits that require travel or setup effort, even if the actual job is small.
• Cost recovery for technician time, fuel, and vehicle usage.
• Standardized billing policies across your service team.
• Avoid undercharging for high-effort, low-duration tasks.
• More accurate revenue forecasting and profitability tracking.

Benefits of Setting Minimum Charges

•  Prevents revenue leakage on small jobs.
•  Makes service pricing more predictable and consistent.
•  Simplifies technician billing reports.
•  Enhances customer communication (by setting expectations up front).
•  Supports service-level agreements (SLAs) that include minimum charges.
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Summary:

Minimum Charge Amounts and Durations in Dynamics 365 Field Service help standardize pricing and ensure profitability for short service visits. The Minimum Charge Amount sets a baseline cost for any service task, regardless of actual time or material used. The Minimum Charge Duration ensures billing covers a fixed minimum time, even if the technician completes the job faster. These settings help avoid undercharging, especially for high-effort, low-duration jobs. They support consistent billing practices and simplify customer communication around service costs. Overall, they ensure cost recovery, promote fairness, and align with business rules for predictable revenue.