Contract Profitabilty for ConnectWise Agreements Synced to e-automate

Contract profitability in e-automate measures revenue and costs associated with a contract. For contracts synced from ConnectWise, it is important to understand what data flows into e-automate with the ConnectWise syncs and what must be entered manually - particularly on the cost side.

Important note: No cost data recorded in ConnectWise will sync to e-automate, whether through ID964 (Agreements) or ID965 (Service Tickets). Costs in e-automate are calculated based on data in e-automate, AP invoices, service technician burden rates, and any parts or supplies costs.

Jump to: Contract Profitability Calculations | IT/MNS Contract Profit Specifics | Best Practices

Contract Profitability Calculations 

Contract profitability is the revenue associated with a contract minus its costs. The e-automate contract profitability report breaks these out as follows:

Revenue Calculations

Base — Revenue from ConnectWise agreement additions synced to e-automate will appear here. This is the primary revenue category for ConnectWise-synced contracts.

The remaining revenue categories will not typically have activity for ConnectWise-synced contracts:

• Overages — Meter charges; ConnectWise agreements do not bill meters.
• Parts — Would only appear if there are billable parts on a service call.
• Supplies — Billable supply orders are not commonly created for these contracts.
• Other — Miscellaneous charge revenue; not common for these contracts.
• Labor — Billable labor from service calls.
• Travel — Travel revenue is included in labor revenue for ConnectWise agreements, as ID965 does not sync travel time from ConnectWise.

Cost Calculations

• Parts — Cost of parts used on service calls associated with the contract. 
• Supplies — Cost of supplies from supply orders associated with the contract; not common. 
• Other — AP vendor invoice charges applied to the contract will appear here. 
• Labor — Actual hours multiplied by the burden rate for service calls associated with the contract.

IT/MNS Contract Profit Specifics

The main revenue and cost categories for IT/MNS contracts are:

1. Revenue from monthly recurring charges on contracts.
2. Vendor costs for monthly charges.
3. Technician labor costs for service calls associated with the contract.

Revenue

ConnectWise agreement additions sync to serviceable line items in e-automate via ID964. The recurring revenue amounts from those line items appear in the Base column of the contract profitability report.

Vendor Costs

Costs tracked on ConnectWise agreement additions do not sync to e-automate, as there is no field on the e-automate contract line item to store cost data. To capture vendor costs (e.g., Pax8, Microsoft 365) in contract profitability reporting, vendor invoices must be entered as AP invoices directly in e-automate and applied at the contract or contract line item level. These API charges will show as cost in the Other column of the contract profitability report.

If you have a high volume of vendor invoices, e-automate offers a spreadsheet import utility for bulk AP invoice entry.

When entering the AP vendor invoice, on the charge screen, add the contract number (1) and then assign the cost to a specific item on the contract (2):

Once associated with the contract, you'll see the cost in the Other column of the contract profitability report for the contract:

Labor Costs

Technician labor costs from service calls flow into the Labor Cost column of the report. All labor is applied against the CW-Service item on the contract, as that is the item used on all calls created by ID965. Cost is calculated as actual hours multiplied by the burden rate set in e-automate. Member costs from ConnectWise do not sync — only the e-automate burden rate is used.

The burden rate is specified on the employee record for each technician. This rate is multiplied by the number of actual hours for each labor entry to get the labor cost.

In the example below, the burden rate is $75.00, and the tech had two hours of labor on the service call. A total of $150.00 of labor is associated with the contract:

Best Practices

• Enter vendor invoices promptly. Vendor costs will not appear in contract profitability reports until the AP invoice is entered and applied in e-automate. 
• Apply costs at the correct level. Vendor invoices can be applied at the customer, contract, or contract detail level — applying at the contract detail level gives you the most granular profitability view. 
• Use the bulk import utility for high volumes. If you have recurring monthly vendor invoices across many contracts, e-automate's spreadsheet import utility can significantly reduce manual entry time.