---
title: Managing Activity Codes
description: "Activity Codes describe the type of work being performed on a time entry, for example, Site Survey, Consulting, Construction Stakeout, or PLS Review. They serve two purposes: categorizing time for reporting, and driving billing rates when your account is set to Bill by Activity Code."
---

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# Managing Activity Codes

## Activity Codes describe the type of work being performed on a time entry, for example, Site Survey, Consulting, Construction Stakeout, or PLS Review. They serve two purposes: categorizing time for reporting, and driving billing rates when your account is set to Bill by Activity Code.

### Why Activity Codes Matter

Every time entry can be tagged with an activity code. When your billing method is set to **Bill by Activity Code**, the rate attached to that code determines the billable amount on reports and invoices. If you use activity codes purely for categorization and bill a different way, rates are optional — but the codes themselves are still useful for filtering and grouping time reports.

See the [Billing Methods](https://claude.ai/epitaxy/local_008961d6-5b82-49f7-8bf2-2c6965e0718e#) article for details on choosing between Bill by Title, Bill by Activity Code, and Bill by Task.

---

### Managing Activity Codes

Navigate to **Settings → Activity Codes** to view, add, edit, or deactivate codes.

**Fields on each activity code:**

- **Description** *(required)* — The name of the activity as it appears in dropdowns and reports (e.g., *Field Inspection*, *Project Management*).
- **Is Active?** *(required)* — Active codes appear in the dropdown when employees log time. Deactivating a code hides it from new time entries without deleting historical data.
- **Billable Rate** *(optional, $/hr)* — The default hourly rate billed to clients for time logged under this code. This rate applies to all clients unless a client-specific override is in place.

---

### Adding a New Activity Code

1. Go to **Settings → Activity Codes**.
2. Click **Create New**.
3. Enter a **Description**.
4. Check **Is Active?** to make it available on time entries.
5. Enter a **Billable Rate** if applicable.
6. Click **Save**.

---

### Editing an Activity Code

1. Click **Edit** next to the code you want to change.
2. Update the description, active status, or default rate.
3. Click **Save**.

---

### Per-Client Rate Overrides

If a specific client is billed at a different rate than your default for a given activity, you can add a **client-specific rate override** directly on the activity code. This lets you maintain a single activity code while billing different clients at different amounts.

Client rates are managed from the edit screen of any activity code. Click **Show Client-Specific Rates** to expand the section, then use **Add New Client Rate** to create an override.

**Fields on each client rate:**

- **Client** *(required)* — The client this rate applies to.
- **Rate** *(required, $/hr)* — The custom hourly rate for this client.
- **Effective Date** *(required)* — The date this rate takes effect. Defaults to today.
- **Expiration Date** *(optional)* — The date this rate stops being used. Leave blank for a rate that has no end date.

When an expiration date is set and passes, the system falls back to the default billable rate on the activity code.

#### **Example**

You have an activity code *Contruction Stakeout - 1 Man Crew* with a default rate of $100/hr. Client A has a long-term contract at $85/hr with no expiration. Client B had a promotional rate of $75/hr that expired at the end of last year. All other clients bill at the default $100/hr.

| Client | Rate | Effective | Expires |
| --- | --- | --- | --- |
| Client A | $85/hr | 01/01/2025 | — |
| Client B | $75/hr | 06/01/2024 | 12/31/2024 |

---

### How the Default Rate and Overrides Interact

When Kudurru calculates a billable amount for a time entry tagged with an activity code, it looks for a client-specific rate first. If one exists and is currently within its effective/expiration window, that rate is used. If not, it falls back to the activity code's default billable rate.

| Scenario | Rate used |
| --- | --- |
| No client override exists | Default billable rate on the activity code |
| Client override exists and is active | Client-specific rate |
| Client override exists but has expired | Default billable rate on the activity code |

---

### Tips

- **Use consistent naming.** Codes appear in reports, so something more readable than internal shorthand.
- **Deactivate rather than delete.** Deactivating a code preserves historical time entries while preventing it from being selected on new entries.
- **Set effective dates accurately on client overrides.** The effective date determines when the custom rate kicks in — if a new contract starts on the 1st of next month, set that as the effective date so existing time entries aren't affected.
- **Leave expiration date blank for ongoing rates.** Only set an expiration if you know the custom rate has a defined end date.

---

### Related Articles

- [Billing Methods](https://kb.kudurrustone.com/billing-methods?hsLang=en) — Choose how Kudurru calculates billable amounts across your account
- [Employee Titles](https://kb.kudurrustone.com/employee-titles?hsLang=en) — Set up title-based billing rates
- [Tasks](https://kb.kudurrustone.com/manage-your-task-list?hsLang=en) — Set up task-level billing rates

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