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Create New Contract - Block Money

This KB will show you how to create a new Block Money type contract in Atera.

Block Money Contract Definition:

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.

Example of billing for $5000 Block Money Contract:

Required fields:

  • Contract Type 
  • Quantity 
  • Rate

To create a Block Money Contract follow the steps below:

1. From the left hand panel click Customers
2. Then select the required customer
The Customer page displays.
3. Click the Contracts Tab
4. Click Create Contract
The Add Contract Page Displays
4. Enter the contract header details:
  • Select Customer (only if change from previously selected customer required)
  • Enter Contract Name
  • Select Start Date 
  • Select End Date
    • Note: Atera will automatically calculate Todays date  + 3 years ahead
Optional to check:
  • Active (This must be selected to enable the contract)
  • Set this contract to Default contract (Select if you wish this contract to be the default contract type for this customer)
  • Set this contract as Taxable (Select if you need tax to automatically be added to the contract)
5. Select the Contract Type Block Money

6. Select the Contract Amount (Total amount to be billed for the 'Block' contract)

Note: Prior to preparing the contract a Rate that represent this amount will need to be created (See Step 9).

7. Select the Billing Period

8. Select whether to enable Commit Rollover

The Primary Rate is the type of rate that will be billed against the Block Money.

Note: Commit Rollover has the following behaviour when selected: When a customer purchases hours within a period, and they do not use them all in the current billing period, those hours will be rolled over to the next period.

If this option is not chosen all unused hours within a billing period will be lost and the next billing period will start without adding them to the chosen rates opening balance.

9. Select the Primary Rate (the type of Rate that will be billed against the Block Money)
Note: If you have not yet setup the rate type required you can do this now by clicking Add Rate
10. Select the Additional Rates if required. This will be used for a block hour contract that has more than one rate.
Example: Additional Rates are used to create specific rates within a contract for Off SLA work or a special type of work etc.
11. Select the SLA Plan
12. Enter any contract Notes as required
13. Click Save

Contract Scenario Examples:

Scenario 1.

  • The customer purchased 10 monthly hours for the price of $1000 with Commit Rollover enabled.
  • In the first month the customer used 8 hours.
  • Two hours will be "rolled over" to the the second month, so the second month's opening balance will start with 12 hours.
  • In the second month the customer used 12 hours. In total the customer used 20 hours in the 2 month period (Rolling over the 2 spare hours from the first month).
  • In Month 1 the Customer will pay $1000.
  • In Month 2 they will pay $1000, and will take advantage of the entire month + the rollover balance.

Scenario 2.

  • In the first month the customer used 12 hours and in the second month they used 8 hours.
  • The extra 2 hours of the first month can be charged with a different (higher) hourly rate, this higher rate will be designated when creating the monthly Billing Batch, read more here.
  • Total work hours are 20.
  • At the end of the the second month 2 hours will be rolled over for the third month.
    • Example: First month was 12 hours at the price of $1500 ($1000 + 2 (hours) *$250 - deviation
    • Example: Second month 8 hours at the price of $1000 and 2 hours will be rolled over to the third month.

 

 

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