Create new contract: Block money

This article will show you how to create a new Block Money type contract. A Block Money contract can be used when you want to charge the customer in advance.
The customer pays for a 'block' related to a specified hourly rate. As hours are used, money is subtracted from the block based on the hourly rate. For example, a $5000 Block Money contract, with an hourly rate of $150 and 20 hours worked would result in there being $2000 left in the block (5000 - (150*20) = 2000). This article will show you how to create a Block Money Contract and provide a couple use cases for Block Money contracts 

To create a Block Money contract:

1. From Admin, on the left-hand panel, click Contracts.

The Contracts page appears. 

2. Click New contract.

The New Contract page appears.

3. Fill in the contract header details:

• Add the customer.
• Give your contract a name.
• Select the start and end dates.
  Note: Atera will automatically calculate today's date + three years ahead.
• Set the contract as Active if you'd like to enable the contract (optional). 
• Set the contract as Default if you'd like this contract to be your default for this customer (optional).
• Set the contract as Taxable if you'd like tax to automatically be added to the contract (optional). Select the tax from the dropdown menu (or create a new one).

4. Under Contract Type, choose Block Money.

5. Select the Contract Amount (the total amount to be billed for the contract).
Note: To create a rate, click Add Rate.

6. Select the Billing Period.

7. Enable Roll over remaining balance if you'd like any funds not used within the defined billing period to be rolled over to the next billing period.
Note: Not enabling this option means all unused hours within a billing period will be lost. The next billing period will start without adding them to the opening balance.

8. Select the Hourly Rate.

9. Select the Overage Rate (used to create specific rates within a contract).

10. Select the SLA Plan.

11. Enter any Notes as required.

12. Click Save.

Nice! New Block Money contract created.

Block Money Contract Examples

Scenario 1

• The customer purchases 10 monthly hours for the price of $1000 with Roll over remaining balance enabled.
• In the first month, the customer uses 8 hours.
  • Two hours will be "rolled over" to the second month, so the second month's opening balance will start with 12 hours.
• In the second month, the customer uses 12 hours. In total, the customer uses 20 hours in the 2-month period (rolling over the 2 spare hours from the first month).
• In the first month, the customer pays $1000.
• In the second month, the customer pays $1000 (taking advantage of the entire month as well as the rollover balance from the first month).

Scenario 2

• The customer purchases 10 monthly hours for the price of $1000 with Roll over remaining balance enabled.
• In the first month, the customer uses 12 hours. 
  • The extra 2 hours of the first month can be charged at a different hourly rate (the overage rate)
• In the second month, the customer uses 8 hours. At the end of the second month, 2 hours will be rolled over for the third month. In total, the customer uses 20 hours in the 2-month period.
• In the first month, the customer pays $1000 + overage fees.
• In the second month, the customer pays $1000. At the end of the second month, 2 hours will be rolled over for the third month.
• In the third month, the customer pays $1000 (taking advantage of the entire month as well as the rollover balance from the second month).