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When billable hours exceed a client’s monthly allocation, the extra hours roll over to the next month. This keeps billing fair when work fluctuates.

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Why Rollover Exists

CharleOS uses a two-layer planning system:
Planning LayerUsesPurpose
PM Budget PlanningAverage estimatesDetermines what fits in the client’s monthly hours
Team SchedulingMax or score-adjusted estimatesEnsures realistic capacity for delivery
This creates a gap: PMs plan using averages, but actual work may take longer (up to the max). Rollover handles this difference.
Clients aren’t charged extra—they just use future allocation when work runs over in a given month.

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How It Works

At the end of each billing period: 
Rollover = Billable Hours − Allocated Hours
  • Positive rollover: Client used more than allocated → deduct from next month
  • Zero or negative: Client used less than allocated → no rollover (agency absorbs unused time)
Under-delivery doesn’t create client credit. If a client uses 80 hours of their 100-hour allocation, the remaining 20 hours stay with the agency—they don’t roll forward.

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Example: Monthly Rollover

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Scenario

Client: Acme Corp Monthly allocation: 100 hours Work planned: 10 tasks at average estimates (totalling 100 hours)

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What Happens

TaskAverageMaxActualBillable
Task 18h12h10h10h
Task 26h8h5h6h
Task 312h16h14h14h
Task 410h14h12h12h
Task 58h12h9h9h
Task 612h16h15h15h
Task 710h14h11h11h
Task 814h20h18h18h
Task 910h14h8h10h
Task 1010h14h13h13h
Total100h140h115h118h
Result:
  • Allocated: 100 hours
  • Billable: 118 hours
  • Rollover: 18 hours (deducted from next month)

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Next Month

  • Base allocation: 100 hours
  • Rollover from last month: −18 hours
  • Available hours: 82 hours
The PM now plans the next month knowing they have 82 hours, not 100.

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Why This Approach?

Clients pay for the hours used, just spread across months. They’re never surprised by a larger invoice—the work just comes off their future allocation.
Teams can schedule using max estimates (or score-adjusted) without worrying about artificial constraints. Work gets done properly rather than rushed to fit arbitrary monthly limits.
If rollover consistently eats into next month’s hours, it signals estimation issues. PMs learn to plan more conservatively or improve scoping.
Some months naturally have more work. Rollover lets the team focus on delivery quality rather than artificial monthly boundaries.

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Two-Layer Planning in Practice

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Layer 1: PM Budget Planning (Averages)

When deciding what work fits in a month, PMs use average estimates:
  • Client has 100 hours this month
  • PM selects tasks totalling ~100 hours at average
  • This is what the client “budgets for”

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Layer 2: Team Scheduling (Max or Score-Adjusted)

When scheduling the actual work, use max estimates or score-adjusted estimates:
  • New clients (no history): Use max estimates
  • Established clients: Use score-adjusted estimates based on their deliverability score
This ensures the team has realistic time to deliver quality work.
No historical data available
  • Use max estimates for scheduling
  • Expect some rollover initially
  • As tasks complete, scores build up
  • Future months become more predictable

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Rollover Scenarios

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Scenario 1: Slight Overrun

Month 1:
  • Allocated: 80 hours
  • Billable: 88 hours
  • Rollover: 8 hours
Month 2:
  • Available: 80 − 8 = 72 hours
  • PM plans work for 72 hours
  • Team delivers, uses exactly 72 hours
  • No further rollover
Result: Balance restored in one month.

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Scenario 2: Consistent Overruns

Month 1: Rollover 10 hours Month 2: Rollover 12 hours (cumulative: 22 hours) Month 3: Rollover 8 hours (cumulative: 30 hours) Warning signs:
  • Estimates are consistently too low
  • Scope creep is happening
  • Client needs may have outgrown their plan
Actions:
  • Review estimation accuracy
  • Discuss plan upgrade with client
  • Tighten scope management

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Scenario 3: Under-Delivery

Month 1:
  • Allocated: 100 hours
  • Billable: 75 hours
  • Rollover: 0 (not −25)
The agency absorbs the unused 25 hours. This might happen when:
  • Work was blocked waiting on client feedback
  • Priorities shifted mid-month
  • Estimates were too conservative
Under-delivery doesn’t give clients “banked hours” for next month. Each month resets to full allocation (minus any positive rollover).

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Viewing Rollover

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Client Detail Page

The client sidebar shows:
  • Current month allocation
  • Rollover from previous month
  • Effective available hours

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Hours Summary

When viewing a client’s hours:
  • Allocated: Base plan hours
  • Rollover: Carried from last month
  • Available: Allocated − Rollover
  • Used: Billable hours logged this month
  • Remaining: Available − Used

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Rollover Caps

To prevent excessive rollover accumulation, a cap may be configured:
  • Rollover limited to X hours maximum
  • Excess beyond the cap is absorbed by the agency
  • Protects against runaway rollover situations
Contact your admin to check if a rollover cap is configured for your clients.

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Best Practices

Monitor monthly

Check rollover trends at month-end. Consistent positive rollover signals estimation or scope issues.

Plan conservatively

If a client has rollover, plan next month’s work 10-15% under to recover.

Use scoring data

Check client deliverability scores. A score of 1.2 means work takes 20% longer—factor this into planning.

Communicate early

If rollover is building up, discuss with the client before it becomes a problem.

Billing Model

How the billing formula works

Client Intelligence

View client deliverability scores

Retainer Plans

How monthly allocations are set

T-Shirt Sizing

Understanding average and max estimates