Situation:
ConnectWise agreement consisting of multiple additions, some of which are usage based (users/seats/devices) and fluctuate throughout the month. The quoted MRR is not always equal to the sum of the charges from the Additions due to this fluctuation.
Challenge:
ConnectWise user wants to bill actual usage but does not want the MRR to drop below the quoted amount. (minimum MRR)
Solution:
Set the agreement Base Charge = sum(the quoted usage * price) for all fluctuating Additions.
On the Additions tab for each usage-based Addition set the Less Included field to the number of users/seats/devices quoted.
With this setting in place CW will calculate the total amount of usage for each Addition based on usage then subtract the amount in the Less Included field. When the usage exceeds the quoted amount, the Addition will calculate the incremental amount and add it to the invoice. If the usage falls below the quoted amount the Addition adds $0. The Base Charge is unchanged and represents the minimum charge for usage based Additions on the quote. Any Additions that do not fluctuate will calculate normally and those charges will be added to the base when invoiced
Example:
Sales Rep Quotes the following deal:
20 users on MS Office 365 @ $25.00 per user - usage-based number of users may fluctuate during the month
Internet Service @ $60.00 per month – fixed monthly fee
30 Managed Workstations @ $25.00 per user - usage-based number of users may fluctuate during the month
BDR Service @ $100.00 per month – fixed monthly fee
Total Deal value and Monthly Recurring Revenue:
|
Addition |
Price |
Quantity |
Ext. Quantity |
Can fluctuate |
|
MS Office 365 |
$25 |
20 |
$500 |
Yes |
|
Internet Service |
$60 |
1 |
$60 |
No |
|
Managed Workstations |
$25 |
30 |
$750 |
Yes |
|
BDR Service |
$100 |
1 |
$100 |
No |
|
Quoted MRR |
|
|
$1,410 |
|
How:
Set Agreement Base = $500 + $750 = $1,250 (total of usage-based Additions on quote)
Set the ‘Less Included’ field on the usage-based Additions (Office 365 & Managed Workstations) to 20 & 30 respectively.
Base will bill monthly plus $60 and $100 for the non-usage-based Additions for a total MRR of $1,410
If usage based Additions fluctuate up and down during the month differences will be added/subtracted from Invoice but MRR will not fall below $1,410.
Example Agreement:
ConnectWise agreement with base charge set to $1,250.00, the total of the quoted value of usage-based Additions.
4 Additions were added, two of which were usage-based and could fluctuate during the billing cycle and two of which are fixed monthly charges.
With no changes to the counts the agreement generated an invoice for $1,410.00
If during the billing cycle the usage-based services have increased counts (fluctuate up)
The incremental extended price will be added to the invoice
If the usage-based Additions fluctuate down below the quoted number of users/seats/devices the MRR does not drop below the minimum.
Resulting in this invoice
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