Overview:
Pre-Paid Service Agreements (PPSA) are retainer agreements. These are similar to Block Time agreements, but rather than being based on hours (block time), they are based on a dollar amount (retainer).
We recommend using a PPSA over a Block Time agreement because in an hour-based agreement, ConnectWise Mange tracks an hour as an hour:
For example, if a member records one (1) hour of “Business Hours” time to the agreement, then one (1) hour is deducted from the remaining block. Likewise, if a member records one (1) hour of “After Hours” time to the
agreement, it still deducts only one (1) hour from the remaining block.
Alternately, with an amount-based agreement, assuming the hourly rate is $100/hr., then $100 is deducted from the retainer for the one (1) hour of “Business Hours” time, but $150 is deducted from the retainer for the one (1) hour of “After Hours” time. This more accurately represents what has occurred.
How to renew a Pre-Paid Service Agreement (PPSA) One-Time agreement
STEP 1. Navigate to Finance > Agreements and open the PPSA agreement that is being renewed.
STEP 2. Click on the Additions Tab, click , and enter the new addition.
a. Typically, the addition is called PPSA, but it may vary. The best practice is to see what the
name of the existing product is and use the same name.
b. Enter Quantity of 1.00.
c. Enter the amount you with to charge the client in the Price field.
d. Save & Close the Addition.
STEP 3. Click on the Adjustments Tab, click , and enter the new addition.
a. Enter the adjustment amount.
i. For Amount based agreements, this is the dollar value of what you are providing.
ii. For Hours based agreements, this is the number of hours you are providing.
b. Save & Close the Addition.
To the right is an example of renewing an amount-based agreement:
The Application Parameters pod on the main Agreement Tab is set to provide the client with $1,500.00 worth of services.
The Additions tab has the original entry for Quantity 1.00 of PPSA for $1,500.00. (The actual product name may vary.)
In this scenario, the client is paying $1,500.00 for $1,500.00 worth of services. When the initial $1,500.00 is running low or has been used up, and the client has agreed to renew for another $1500, first add another addition.
Then add the adjustment.
