In terms of the $0.00 invoices, it really depends on how you want to account for the time. You have two options.

1. The $0.00 invoice will create revenue, and then offset the revenue by the same account. Net effect $0.00 revenue.
2. The Agreement is set to reverse revenue, which will take the offset from your defined liability account. This is the true method for managing pre-paid style / block time agreements.

If you are "Reversing Revenue when applied" this is an option of the Agreement Type (you'll see it at the top of the form). Only agreemeents with this set, will then allocate the offset.

This option will allow you to post the "Revenue" from the agreement (by Type) to a liability account which will be drawn down by your $0.00 invoice.

You will need the following mappings:

1. A Revenue mapping for the "Revenue" when you charge the client for the Block Hours
  • Your "Block Time" agreement type (s) - Map this through the Revenue: Agreement Type

    This will map to your Liability Account > Deferred Revenue

  • Your "Block Time" agreement additions - Map this through the Revenue Agreement - Products by Category  / Sub Category

    This will map to your Liability Account > Deferred Revenue
2. A Revenue Mapping for your Service Revenue
  • You will already have these mappings in place.
When you bill your Agreement, you will see the money go into the Liability Account.

When you bill the $0.00 invoice, you will see that the Revenue from the service is offset by the "Deferred Revenue"

A caution for this type of mapping, is that you need to make sure that your agreement bills in the same way that you consume the balance. I.e. You cannot have discounted rates for Amount Agreements; where you give more value than the client pays for. This will result in an out of balance event in your liability account; as the agreement will allow more value than what was debited to the account.




 
Paul MacNeill

Founder | ConnectWise Finance Guru
Ninja Master | Trained at Virage IT


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