See the definition for FFA Additions.

Actual rates are billable time covered by three areas:

1. Time not covered by Recurring Labor Agreements (FFA) or Fixed Fee Projects.

2. Time covered by an Actual Rate Projects.

3. The usage of Block Time – One Time  or Block Time - Recurring with Rollover.

Aggregate refers to when multiple clients can be viewed as one relationship.

BT-One Time is a one time pre-purchased block of hours with prepaid revenue. For use in agreements, revenue and costs are T&M for these cases.

BT-Recurring is a pre-purchased block of time on a recurring basis (i.e. monthly). At the end of the time period, if hours are not used, they are lost. For use in agreements, revenue and costs are FFA for these cases.

BT-Recurring with Rollover is a pre-purchased block of time on a recurring basis with unused hours rolling over to the next block of time. For use in agreements, revenue and costs are T&M for these cases.

This is considered the same as Time & Materials (T&M). The term "break/fix" refers to the fee-for-service method of providing information technology services to businesses. Using this method, an IT solution provider performs services as needed and bills the customer only for the work done plus the cost of parts.

COGS = Total Labor Expenses + Total Product Expenses

Contribution is viewed as gross profit or gross margin. It identifies how much either each client or all clients add to the profitability of the company.

Contribution per Hour = Total Contribution (Gross Profit) / Total Hours Worked.

Contribution/Hour is a profitability metric. It's a measure of the total return on your time and takes into consideration that you may also gain gross profit from a project or product on top of your agreement revenue. Put another way, it allows you to have a loss leader for a more profitable side of the business.

Delta Hours is the difference between actual hours and target hours.

FFA shows the revenue from labor only on fixed fee agreements. Fixed Fee Agreements are defined by monthly recurring labor agreements or bundled agreements. Use this category when labor is a significant component of the sales. There can be also resold components within Fixed Fee Agreements.

FFA Additions refers to line items within Fixed Fee Agreements for licenses and product sales where both product and labor are included. (Product and labor are bundled in this case).

FFA Cost per Hour = FFA COGS Labor / FFA Hours

FFA E/R = FFA Labor Revenue / FFA Hours Worked

FFA Efficiency = FFA Labor Revenue / FFA Shadow Billable

FFA Efficiency is a pricing metric that shows a ratio of labor revenue to the value of the work performed.

FFA Hours are the hours worked toward Fixed Fee Agreements.

FTE is a unit of measurement that represents the total labor input of an organization's workforce. It is calculated by converting the hours worked by all employees, including part-time and temporary workers, into the equivalent number of full-time employees. An FTE of 1.0 is equivalent to one employee working full-time, typically defined as 40 hours per week.

For example, if two part-time employees each work 20 hours per week, their combined workload would be equal to one FTE (0.5 FTE + 0.5 FTE = 1.0 FTE).

Any business metric that is used to evaluate factors that are crucial to the success of an organization..

Members accrue revenue credit as a result of the portion of client revenue they are responsible for in a given month. Internal Technical Work is defined as work done for the MSP where no revenue is generated. If members perform internal technical work, then revenue credit can be allotted to the engineer by using the rate assigned to the work, setting the work type to 'Internal Technical' in the Work Type table, and assigning a percentage in the Options table.

Labor Contributions = Labor Revenue - Labor COGS

Labor Revenue = Total Direct Revenue - Product Revenue

L&S refers to the monthly recurring revenue for client sales that have separate agreements for the service portion (e.g. cloud services, anti-virus, domain registration, backup services, etc.). Expenses are paid to the third-party provider and are not included in the labor costs (This pertains to the product portion only).

MRR refers to all revenue that is recurring and governed by an agreement (FFA or L&S). This includes both labor and product transactions.

A Managed Service Provider (MSP) is a company that remotely manages a customer's IT infrastructure and/or end-user systems, typically on a proactive basis and under a subscription model.

MTD refers to the period from the beginning of the current month up to the current date.

A Node is a machine assigned to the equivalency of a managed workstation based on pricing and the time required to manage the machine. This is configured during setup.

Also known as Transactional Revenue, NRR is refers to all revenue that is excluded from MRR.

P&L refers to a company's revenues, expenses, gains, and losses that occur over a period of time.

Product Contribution = Product Revenue - Product COGS

A Project is a one-time multi-month arrangement.  If its Closed Date is after the current date, then the Project is considered Open. If its Closed Date is before the current date, then the Project is considered Closed.

A PSA is software designed to assist professionals with project and resource management for client projects.

A quintile is one of five values that divide a range of data into five equal parts, each being 1/5th (20 percent) of the range. Within some of the MSPCFO reports (eg. Segments), a the report list is divided into five equal parts, or quintiles to provide a more meaningful division of information.

RMM refers to the collection of information technology tools that are loaded to client workstations and servers.

Revenue = Product Revenue + Labor Revenue

Segments refer to the total clients that meet threshold and date filters divided into five categories.

Shadow Billable is the calculation of FFA Labor as if it had been billed on an hourly basis. It is a way to measure the value delivered to clients.

The Microsoft Services Provider License Agreement (SPLA) is for service providers and independent software vendors (ISVs) who want to license the latest eligible Microsoft software products to provide software services and hosted applications to end customers.

Target Hours = FFA Labor / FFA Target Effective rate.

Target Hours are the number of hours expected to deliver fixed fee labor to a client based on invoiced labor and expected effective rate.

T&M refers to the revenue from transactional labor that is billed hourly and from transactional products that are sold and not covered by an agreement or project.

Total Contribution = Total Direct Revenue - COGS (Total Direct Expenses)

This contains both labor contribution and product contribution. Total Contribution includes the return or gross margin from agreements, projects, products, and straight time (all work done for a client). Total Contribution does not include overhead expenses.

Utilization = Client Hours / Potential Hours

Utilization refers to the percentage of potential hours an engineer spends servicing external clients.