Your PSA provides MSPCFO with product categories. Some of these categories are products and some are labor. MSPCFO uses additional settings in the Products table to more accurately distinguish between what is labor and what is product (3rd party products, licenses, subscriptions, etc.). An exception to this rule is in an addition line in a FFA Agreement. Products within Fixed Fee Agreements (FFA) are not determined by this table. Products for agreements are determined by the value in the cost field and its relationship to the price of the product for FFA agreements. For L&S agreements, all addition lines are considered products. Here is a link to an explanation of the process used within an agreement.

The columns in the report are as follows:

(1) Product Category Name

(2) COSG (%) - The second column of the table allows you to enter a Cost of Goods Sold % when there is no cost for the product from your PSA. MSPCFO calculates a COGS % from the price of the product. In the example below for Category 3, the COGS will be 80% of the price for all products in that category where the COGS is zero in the PSA.

(3) Is Product - An entry is marked 'Is Product' if the MSP had to go out to the marketplace and physically purchase the item; otherwise it is not checked.

(4) Product only on Agreements - As stated above, rules are used to differentiate product from labor in a FFA agreement. If a product category is checked in this column, then the standard rules will not be applied. For example, MSPCFO treats revenue without a cost as labor in an FFA agreement. If the category is set to 'Yes' in the Product only on Agreements, the SKUs in this category will be treated as product even with a zero cost

The example below shows changes to the following columns:

COGS (%) - For Category 11,  if the  unit cost of the product is zero, the COGS will be changed to 80% of the unit price.

is Product - Categories 1, 10, 11, 2, 6 and 7 will be classified as products. The other categories will be treated as labor. This designation is only used for non-agreement SKUs. For agreement SKUs, the rules  to separate product and labor are used.

Product only on Agreements - In the is Product column, agreements have rules that take president as stated above. The exception to this is using the Product only on Agreements column. The MSP might have certain SKUs within an agreement that do not follow the stated rules, but should always be considered products (example - very low or no cost for a product in an FFA Agreement). In this setting, an entire Product Category can be only considered products (not labor) and bypass the regular agreement settings.

The table above will look like the following when saved.