About Agreement Service Pricing

When you set up services on an agreement, you must indicate whether pricing is separate from the agreement or included in the agreement price.

If you elect to include services in the agreement price, no separate billing occurs for work orders associated with that agreement service. However, if you are pricing a service separate from the agreement, there are two pricing methods you can use:

  • Periodic - With this method, you specify a flat amount for the term of the agreement. For example, if the agreement covers a 1-year period and the service price is $3,000, the customer is charged a total of $3,000 for the year for the service.

    If you do not bill separately for these services (that is, you do not select the Billed Separately check box), they are included in the agreement billings. The agreement's billing frequency will determine the charges included in the billing. For example, if the service price is $3,000 and the agreement's billing frequency is Q-Quarterly, the charge for each billing would be $750.00 ($3,000 / 4).

    For services that you do bill separately (those with the Billed Separately check box selected), you must set up a billing schedule using the Billing Schedule tab. For more information, see Setting up a Periodic Service Billing Schedule Manually

  • Time of Service - With this method, the service price will be either be a flat rate or a derived rate based on a rate template. These services are billed separately via the work order; they are not included in agreement billings.
    Note: The Flat Rate method requires that you break down revenue by cost type category. This is done in SM Flat Price Revenue, which is accessed by clicking the Split button. For more information, see Entering Flat Price Revenue.