Can T&M users be configured as contractors (not employees)?  I want them posting hours directly to projects so project budgets stay up to date.  They can send a single merged bill at the end of each month which can be reconciled against the project hours recorded in SCM.

I've previously been doing this by importing the timecards from excel, but it's a pain, and results in a lot of cleanup after the fact.  Things like tagging COs for extra work, or even making sure project numbers are correct.

Edit: I should add that my current subcontractor is set up as a vendor in contact management, with the 'track time' option enabled.  But the employees/contacts listed under that vendor aren't available in the pick list for the top radio button in the screenshot below.