Some MSPs manage a client's internal technical team. In this case, the engineer is not being paid by the MSP and is actually an employee of the client company but put time into the PSA. These employees need to be excluded from the company’s time records. The “License Type” of these members usually has the designation of “Client” in the table. By excluding these employees, you are also excluding their time records. Without this adjustment, hours can be artificially inflated and can act to skew performance ratios.

Take a look at the License Type categories. All members will be grouped under their license type. In the example below: Client Licenses, Regular Licenses and Sub-Contractor Licenses. For the Client license type, the members setting is: "is Excluded = Yes'. This means their hours will not be included to calculate the Efficiencies and Effective rates for the client.