Lifting the Fog of “What is (simply) the Best” Autotask Contract Configurations (Part III)
Here’s what we’re covering in our Grand Finale in this series:
The many members of the MSP neighborhood
4 scenarios on a Client-by-Client basis contract configuration
Recap: Streamlining Labor Invoicing & Recurring Service Contracts
Setting up the RMM
Set up or update the Services Portfolio
Contract Templates & the Copy Wizard rock
Setup Pax8 or Sherweb contract integrations
Setup Consumption billing for the pilot group
Approve & Post!
Summary (& an easy checklist for you)
Welcome back, Autotask Warriors! I am so glad that you are here for another one of our journeys into the mysteries of the Autotask software.
You may remember the classic musical segments “In your Neighborhood” from “Sesame Street.” Each version introduced us to various people in the neighborhood who needed to get things done. Our MSP neighborhood is full of wonderful people, and I love meeting as many of you as I can in person.
That’s why this year has been so great, getting out and running a booth at some great events. ChannelCon was such a great event to learn from those involved in just about every aspect of the MSP world. Our booth was packed with new and old friends. I am thrilled that Autotask Community Live is coming back, even if it is a pre-day to DattoCon. Meeting so many Autotask Warriors at our booth is going to be an incredible experience. Please stop in & say hello!
Enough about that neighborhood. It’s time to take the red pill, crank up some Tina Turner music, and dive into the Autotask Matrix and finish our series on (Simply) the Best Autotask Contract Configurations.
When creating Autotask Contracts, remember that one of the following determines which one of four scenarios on a Client-by-Client basis contract configuration should be considered:
What the Client wants on a Client-by-Client basis.
or
What the MSP wants to provide the Clients as to what they see on their invoices.
Here are the 4 scenarios:
One invoice per month for each Client, sent out in the first week of the month:
Recurring Services rolled up into one line item and invoiced in advance on the 1st of the month, with payment due on receipt for the Month’s Managed Services.
T&M labor/charges/milestones billing invoiced in arrears.
One invoice per month for each Client, sent out in the first week of the month:
Recurring Services, each with its own line item, invoiced in advance on the 1st of the month, payment due on receipt for the Month’s Managed Services.
T&M labor/charges/milestones billing invoiced in arrears.
Two invoices per month for each Client:
Recurring Services, rolled up into one line item, invoiced in advance around the 20th of the month, with a net of 10 days, for next Month’s Managed Services.
T&M labor/charges/milestones billing invoiced in arrears done the first week of the month** for last months’ time entries.
Two invoices per month for each Client:
Recurring Services, each with its own line item, invoiced in advance around the 20th of the month, with a net of 10 days, for next Month’s Managed Services.
T&M labor/charges/milestones billing invoiced in arrears done the first week of the month** for last months’ time entries.
Note: Rule-Based Billing will always be option #2 or 4, and Recurring Services will be presented in a detailed format listing all the Users or Devices that the Client is being billed for the service.
Recap: Streamlining Labor Invoicing & Recurring Service Contracts
Part 1 of this series covered Streamlining Labor Invoicing. Part II covered Recurring Service Contracts; including Licenses, Subscriptions, and HaaS. So, please refer to the appropriate article for detailed information.
To recap some important concepts:
When it comes to invoicing for services, there are a few more things that need to be taken into consideration:
Licenses are for SaaS products such as Microsoft 365, Adobe Acrobat, and Defender.
Subscriptions are Hardware-based licenses such as Meraki, AV, and Endpoint protection.
Subscriptions and Services are separate tabs in Approve and Post, and separate line items on the invoice.
It is confusing to the Client why one license shows up as a Service and another as a Subscription, so almost all MSPs invoice SaaS licenses and Hardware-based licenses as a service, which means they do not use any of the Subscription module.
Monitoring renewals is a pain in the butt as there is no widget or standard report that provides the tracking information for services (Licenses and Subscriptions) start and end dates. For this reason, most MSPs have a contract per license with the end date of the contract matched to the renewal date of the license or subscription.
If the Client prefers one line item for all Managed Service licensing, then a single non-Labor contract is needed, and the MSP needs to rely on an Advanced Live Report to monitor renewal dates.
Most MSPs send out at least two invoices per month.
Recurring Services are invoiced in advance, somewhere in the middle of the month, for next month, and are due on the 1st of the month.
Labor is invoiced in arrears on the 1st of every month for last month.
There are a few MSPs that send one invoice per month, on the 1st of the month, with Recurring Services in advance and Labor in arrears.
Larger MSPs invoice Services on the 15th or 20th of the month and send out T&M billing on a more frequent basis – weekly, bi-monthly, or even daily.
Once the Contract Templates are in place, ready to be copied into Client-Facing accounts along with the various service package offerings, we can verify that all Configuration Items (Installed Assets) are in place and ready to be connected to the Client-Facing Contracts.
Verifying or setting up Configuration Items (Installed Assets) between the RMM and Autotask
When setting up the RMM (I’ll reference Datto RMM for obvious reasons), there are a few things to make sure you check. You will need to do this inside the settings for Autotask in your RMM dashboard.
First, you will set up the mapping for your clients. Make sure this is linked up, or all tickets will be created as your company - and you will not be able to change the account name. There is a wizard to automate this.
Next, line up the devices. You will want to map the device name that the RMM uses to the device name you have in Autotask. Yes, this may cause duplication of some items.
Priority mapping and ticket attributes should be set for how the tickets are to be handled. Not all alerts will be the same priority.
Last, check how the alerts will be handled. At the bottom of the setting page, you will see where it asks how to handle tickets.
Alert Rules: Repeating alerts for 10 minutes.
Related alerts: within the last 10 minutes. S
elf-healed alerts: self-heal and complete when status is still new; if not new, add note.
In order for Configuration Items (may also be called Installed Assets or Assets depending on Autotask setting) to drive invoicing, we need to verify:
That the RMM is actively adding, removing, and updating the Configuration Items in Autotask.
The best way we are aware of verifying that the Autotask is in sync with the RMM is to pull Configuration Item lists from both Autotask and the RMM tool and use Excel VLOOKUP formula to do the verification (Don’t know how to use the Excel VLOOKUP formula? Email us at info@AGMSPCoaching.com (code “No More Tina”) and we will be happy to help you for FREE).
Any manually added Configuration Items are being manually maintained in Autotask.
(Note: While initially connecting all the Configuration Items to the Client-Facing Contracts is burdensome, once done, maintaining them on a daily or weekly basis is relatively easy.)
Once verified, we add them to the Client-Facing Contracts. But we don’t stop there; it is very important to be able to keep up with new devices that are added to your client’s accounts via the RMM.
If you are not making changes to the Client’s contract when new devices are added, you are losing money. An easy way to handle this is by having a widget for Newly Discovered Devices which allows you to determine whether to add or not to add (that is the question) decisions.
To add this widget, you need to determine which of your dashboards you want to view this on. Dashboards do have a limit (24 on my dashboard at the time of this writing), so make sure that there is room on the one you select. You will also need to make sure that you are in the design mode of the dashboard to be able to add a widget.
Start by hovering to the right of the last widget on the dashboard.
Click on Add Widget.
Select Choose a widget from the widget library; click next.
Choose Configuration Items or Installed Assets from the Entities dropdown.
Select New Devices Waiting Contract Review; click next.
If you wish, you may rename the widget.
Pick which type of chart you would like to see this information in.
The Data section shows the ways we want to sort and group. (The defaults will work perfectly for what you need!)
For your filters, select the following:
Filter 1 – Active – Equal to – Active
Filter 2 – Reviewed for Contract - Equal to – No
Filter 3 – Contract is empty
If you use the Datto RMM, you may also select a filter of Associated with Datto RMM – Equal to – Yes. If you use multiple RMM tools, do not add this filter, so all of the newly discovered devices will show on this widget.
Set up or update the Services Portfolio and add to the proper Recurring Services Contract
Services allow you to charge for items on a recurring basis. There are two ways to enter or update services. Both methods are accessed by going to Admin – Products, Services & Inventory, then clicking on Services.
A new Service can be entered with data including Name, Description, Invoice Description, Vendor, and Pricing info. You can edit Services here by hovering over the 3 lines and clicking Edit Service.
The second way to add or edit Services is by adding your information to an import template spreadsheet. If you need to update or multiple Services, you can easily export your Services in import template format, edit the template with any needed changes, and import back in Autotask.
You will see the Export and Import options at the top of the Services screen. Make sure to download an import template by clicking Import/Import History, and then click on Import.
You can also use this import template to enter the data manually, or from a spreadsheet you have previously created. It is VERY important to make sure your export columns match up exactly to those on the import template columns. NEVER change anything on row one of the import template.
To add Services to a Recurring Service Contract, go into the contract that needs updated or when creating services and click on Services on the right of the screen. From here, you will click to add a service. Add all of the information and make sure to verify the effective date you want this to be added to the contract.
To edit an existing Service, click the pencil by the Service name and any information you need to change. Again, verify the effective date for the change to take place.
You’re probably wondering If you make changes to a Service, will it update the Service in contracts that have that Service? The Service name and description will update. Unit Price and Billing Codes will NOT update and must be done manually. If you are changing the Vendor or Unit Cost, a popup will appear that will allow you to apply the change to non-posted Services and posted Services within existing contracts.
Service Code
Service
Add Services to the Recurring Service contract template(s)
Copy templates into pilot group of Clients
Copying Templates into Client accounts is easy. Roll over the 3-bar menu for the contract. Not in the case of copying Cascading Contract Templates, copy the first (Primary) contract in the cascade, as the Contract Copy Wizard will copy the Cascade all at once.
The Wizard will walk you through the copy process, allowing you to change/edit all contract fields. At minimum, you will need to change the Account Name, Contract Contact Name, and Start/End Date. Also check the Service Desk Default Contract checkbox for the primary contract, but not the others.
Here is where you can see the benefit of using Contract Templates and the Copy Wizard, as it makes it easy to create Client Contracts by populating only 3-4 fields.
Setup Pax8 or Sherweb contract integrations for the pilot group
There are a few methodologies for how to handle the reselling of services via Pax8 or Sherweb. Some MSP’s bind the services to a general Managed Services contract. We advise using a single contract for all vendors and leveraging an Advanced Live Report to track renewals.
Pre-Requisites:
Active Pax8 or Sherweb Account
Integration between systems is set up and operational
Contracts set up in Autotask for billing the services
Products in each service synced to the PSA
Clients bound between Autotask and Pax8
To Sync Products:
Click on Subscriptions
Locate the subscription you want to sync; click on it
On the left side, click on the button for sync
If the subscription is a new service to your Autotask, you will need to export the product to Autotask (or create the service manually) - do the following:
Click on Export product – this will sync the product from Pax8 to your Autotask
Once the product is exported (or if your product has already been bound) the system will request you to select a contract to bind to
Locate the contract for your customer, select the effective date; click Continue
You will be presented with a screen that is an overview of what you have set up for the sync. Review all the details and make sure that they are correct. If they are, click Confirm Sync
Once you confirm the sync, the products/services will be set to sync to your Autotask. You can dynamically edit the license counts in Pax8 (or place new orders) and Sync will update quantities to the contract in Autotask.
Setup Consumption billing for the pilot group
Autotask has a powerful feature to bill per device or per user for Managed Services. This has several pre-requisites:
For per user billing, a connection to the client’s Active Directory (either on prem or Azure)
For per device billing, a connection between Autotask and the RMM in use
Services entered correctly into the Autotask database for each type of billing (there is a spot to define if the service is to be billing per user or per configuration item)
Once you have done all the above, you need to configure billing rules to automate the billing process.
Click Main Navigation
The Contracts
Locate the contract for the client for whom you want to set up Rule-Based Billing
Click Billing Rules
Click New
Select the Billing Product from the drop down menu
Enter the start date for the billing, leave the end date blank
The description should automatically populate
Under billing options select the date you want the system to “count” devices or users
By default, the option to Create Charges as Billable is enabled; if you want charges to automatically appear in Approve and Post, keep this checked
Determine if you want to do prorations or bill for an entire month
Select the naming convention; this will itemize the user or device on the invoice for the client by this naming convention
The last section allows you to determine if you want to override the default product for the service/product (note you can also enter tiered pricing here as well)
As a general rule, I usually try to bill full months and not mess with proration. It can cause some unexpected headaches when invoicing.
Once the billing rules are in place on the contract, you can map the billing rules to the client.
Click on the main navigation -- > Contracts -- > Under Billing Product Mapping, select either per device or per user mapping
The next window will bring up a list of either configuration items or users for the client, from the drop down select the proper billing product for the device or user. This is working off the billing rules set up previously, so only the services outlined in the contract will appear here as options. Once you have mapped all the products to a device or user, save and you are done!
For products/services with add-ons that impact price, you will need to make a new product and map that to the specific configuration items/users with that additional service (and you will need to do this for any new items):
Per End User
Per Device
Approve and Post
Approve & Post is the first step in creating invoices. This lets you manually view and edit all billing items prior to invoicing. To get to Approve & Post, hover over the 3 lines at the top of the screen, then hover over contracts, and select Approve & Post. You will see tabs across the top of the screen for Labor, Charges, Expenses, Subscriptions, Recurring Contracts, and Milestones. Here is what they mean:
Labor – all T&M Labor
Charges – Hardware and Rule-Based Billing Labor
Expenses – Expenses (duh)
Recurring Contracts – Covered Labor, Services, Subscriptions, HaaS, etc.
Milestones – Fixed Price Contracts, mostly used for Projects including Labor, Hardware, and other items covered by the Fixed Price Contract
It is very important to click on any of these tabs that are applicable to your organization.
You have many options of how to sort to see items to approve. Just click search though if you want to see everything available. At this point, you will look through and see if any entries need to be edited. After all edits are made, click the items individually or select all items on the page to approve and post.
The second step of the process is selecting Items to Invoice. You will be able to navigate here from the screen you are on by clicking Items to Invoice. Again, you can sort by lots of different filters, or hit search to view all. Select the account or accounts you wish to invoice and select to Preview/Process Invoices. You may preview the invoices or proceed to processing.
Invoices may be generated from Autotask with data exported to the accounting system or exported to the accounting system and have the invoices generated from the accounting system.
Summary (& an Easy Checklist):
As you can see, Contracts and the configuration thereof are the most complicated PSAutomation module in Autotask. Follow this checklist and you should be in good shape:
Decide on what the Invoices will look like on a Client-by-Client basis
Set up and Streamline the Labor Invoicing process from Time Entry to Approve and Post, including reviewing the MSAs, Roles, and Work Types. – See Part I of this series
Configure and Add Services, Subscriptions, and HaaS to the primary labor Contract – See Part II of this series
Add Configuration Items (Installed Assets), Integrations, Rule-Based Billing to the primary Labor Contract
A&P, Invoice, and transfer data to the Accounting System
And there you have it: What I think is Simply the Best Autotask Contract setup.
I know this series has been long, and we have covered a lot.
But just think: it took 4 movies to save the world in the Matrix. So, it also takes some work and time to get all the potential out of Autotask. But the end will be so worth it with happy Clients, happy Techs, profits in the bank, and a reasonable work/life balance.
Of course, you could just take the blue pill, accept so-so performance of your MSP, and “wake up in your bed and believe whatever you want to believe.” The choice is yours.
If you would like Advanced Global to guide you through the process, we have two programs to help you thrive:
Streamlining Labor Invoicing
Advanced Contracts
Email us at Info@agmspcoaching.com for more information.
The elephant in the room:
Who is Advanced Global, and why should we listen to them?
Recently someone we’ve been in communication with since DattoCon 2018, who was faithfully reading our articles, commented that up until a few months ago, “I really did not know what Advanced Global does.” So here are a few bullet points to let anyone interested know who we are and what we do:
We Are – the Autotask Global Service Delivery Authority
We Help – MSPs thrive
We Solve – Service Delivery issues, inefficiencies, and challenges by making sure:
techs know what to work on next
someone is managing all open tickets and driving them to completion
the staffing levels are correct, and the workload is balanced
Real-Time Time Entry is a cultural habit
the Client has a great client experience
profit is maximized
Autotask is being fully leveraged
the historical data that is in the Autotask software is accessible to benchmark, track & USE effectively
the Service Delivery operations can scale
projects are completed On-Time and On-Budget
the company can grow
MSPs know what they don’t know
Our Tools:
Autotask “Best in Class” standard build
Our MSP robust Service Delivery SOP library
Advanced Live Reports
Expertise in providing a transformational experience
Note: We are not philosophers; we are doers with 31+ years of Service Delivery experience, bringing real Service Delivery Improvement change, profitability, and Best in Class performance.
We start our engagements by offering a FREE No-Obligation PSA Configuration Evaluation
