Options
Purpose
Each MSP runs their business with predefined criteria and goals. MSPCFO allows you to customize your financial planning to your own needs. The Options Table allows filters to be set throughout the reports as well as overrides for some of the basic rules.
If you need any help in deciding changes to this table, please talk to your MSPCFO customer success rep. to review your setting changes.
To edit any of these settings click "Edit Options".
Below is the definition for each selection along with the default settings. Some of the settings may have been changed during the onboarding process to reflect information from your specific data.
| Name | Default Value | Definition |
|---|---|---|
| Enabled |
true | Allows MSPCFO to consider additions. Should be yes in almost all cases. |
| Margin |
0.30 |
If any of three criteria are met (Cutoff Price, Min COGS %, Zero Price Additions with a cost) we will force the product value of the addition to be the lesser of the margin applied to the unit cost Unit Cost / (1-Margin) = Product Value or the actual value. See FFA Components for more detail on how we do the calculations. MSPCFO refers to this as “Forced Margin”. |
| Cutoff Price | 5000.0 | If the individual agreement addition unit price is in excess of this amount, we use a forced margin to determine the product value of the line item. See Margin above. |
| Min COGS % | 0.35 |
If the unit cost divided by the unit price is below the Min COGS %, we will use the Forced Margin to determine product value. |
| Zero Price Enabled |
true | We will use the margin to determine the product unit value for additions with zero price but a non-zero cost. This is typically used in agreements where the client is not billed for additional items such as A/V, Anti-Spam. The product value created here will create an offset to the labor value. |
| Use Uninvoiced Ticket Items |
false | We will look at items attached to tickets, but not invoiced as products for an agreement. We have seen this used for companies that take ownership of their client's systems and replenish equipment without invoicing the client separately. |
|
Ignore Negative Quantity to Bill |
false | We can ignore negative quantities of additions. Talk to MSPCFO before using. |
| Minimum Markup Price | (blank) | If a price is entered, a markup is not forced even if the cost is equal or below the Min. Cutoff Margin. Example: A product sells for $10 and costs $2 (2/10 = 20%) which is below the COGS Cutoff Margin. If the Minimum Markup Price is set at $10, then instead of assuming their is some labor in this addition line, the entire price is product. |
| Addition always required for product to be part of agreement | true | When = No, allows products to be included as part of an agreement even when they are not additions. Talk to MSPCFO before using. |
| Name | Default Value | Definition |
|---|---|---|
| Enable | true | We can assign efficiency on the agreement level or at the company level. If you are comfortable that time is being entered on the correct agreement check yes. Otherwise uncheck the box. See example below: Example 1 Invoiced Labor Shadow Billable Efficiency Agreement 1 $1,500 $1,000 150% Agreement 2 $3,000 $3,500 86% Total $4,500 $4,500 100% In this example, you can understand which agreement/engineer is doing better within a client by looking at agreement level efficiency. Example 2 Invoiced Labor Shadow Billable Efficiency Agreement 1 $1,500 $0 NA Agreement 2 $3,000 $4,500 67% Total $4,500 $4,500 100% In the second example, if you were to allocate the revenue to engineers, no one would get credit for Agreement 1, because all time is put against agreement 2. In this case, you should not use agreement level efficiency. |
| Cap | (blank) | Allows a cap to be put on the member efficiency values. This setting only changes member efficiencies, not agreement efficiencies. Example: If only one member (rate - $150) works on an agreement during the month and the labor revenue is $900, with no cap, the agreement efficiency would be 6 and the member would get $900 credit. Putting a cap on the agreement at 3 would lower the efficiency to 3 and lower the credit given to the engineer. |
| Month Start: | 2018–01-01 | If a cap is put on the efficiency, it can start at any month. If left at the default date, the efficiency cap would go back to the first month the information is feed from your PSA. Note: If the cap is added for the efficiency, all efficiencies will be changed for your previous months. If you want to preserve the data from past months, use the Month Start to limit the time of the changes. |
| Additional Cap on Block Time Recurring Without Rollover | (blank) | Allows a different cap to be put on the member efficiency values for Block Time Recurring. |
| Name | Default Value | Definition |
|---|---|---|
| Revenue Recognition Discount | 1.0 | We allow for agreements to bear an overhead expense. This would reduce the amount attributable to members. For example, if you have a $1,000 agreement and you have a .85 Revenue Recognition Discount, only $850 will be attributable to members. Note: This does not change the revenue in the Client P&L. |
| Include Non Recurring Agreement Products on Agreement Metrics | false |
| Name | Default Value | Definition |
|---|---|---|
| Base Active status on Last Update from RMM | false | The setting is used in conjunction with the Lookup/RMM Agents table to select the configuration names for use in developing a node count. |
| Days: | 30 | Amount of days to look back at the configurations |
| Name | Default Value | Definition |
|---|---|---|
| Default ER | 150 | The target effective rate for your agreements. |
| Minimum FFA | 1500 | Minimum monthly labor revenue for an agreement. |
| Name | Default Value | Definition |
|---|---|---|
| Ignore Sent Flag |
false | Clients can create draft invoices in their PSA prior to sending. MSPCFO does not consider an invoice valid until the “Sent Flag” is set to ‘true' to allow the client to have this type of draft. The PSA does this by defining a billing status with several attributes.One of those attributes is “Is Sent”. Another is “Closed". Some clients can setup their statuses to just have it be closed and not sent. MSPCFO has an audit screen for unsent invoices. When you look at the billing statuses, the system can ignore the sent flag. |
| Ignore Zero |
false | Ignore all zero dollar invoices. |
| Date Invoice Reference | true | Revenue occurs on the date of the invoice. Many clients will bill in advance or arrears though. The PSA creates a standard text field on the invoice that follows this format “Monthly billing for ####”. We can use the text for the month to move the invoices up or back for up to two months. For example, if an invoice is dated Feb 15, but the Reference field says “Monthly Billing for March”, MSPCFO will consider the invoice date to be March 15. The system does not consider the day of the month, so the month indicator is all that matters and the only part that is changed. |
| Use Sent Status | false | As with the Ignore Sent Invoices, we can look at invoices and classify them as sent on a status by status basis. If this is checked, we would consider the lookup/billing status table. |
| Use Quantity Shipped | false | Use the quantity shipped field from your PSA for unit count. Note: Only use this if you are using the inventroy module in your PSA. |
| Ignore Project Cogs | false | Not currently used. |
| Name | Default Value | Definition |
|---|---|---|
| Consider work done before project starts: false | false | The start date for a project should be the first month that work is done and revenue is collected. If this setting is changed to True, work and revenue will be included that start in months before the start month. |
| Name | Default Value | Definition |
|---|---|---|
| Margin | 0.3 | If the cost of certain license and subscription items do not have a cost in your PSA, we can set the COGS for only those items without a cost based on this margin. |
| Name |
Default Value | Definition |
|---|---|---|
| Exclude Non billable | true | Exclude all agreement work that is non-billable. |
| Name | Default Value | Definition |
|---|---|---|
| Hourly Rate Maximum |
5000.0 |
If the hourly rate exceeds this value, the hourly rate is then adjusted to default hourly rate. |
| Hourly Rate Default |
0.0 | An override to the hourly rate. If the value is zero, there is not a default hourly rate. If there is a zero billable rate and the Hourly Rate Default > zero, the program creates a shadow billable rate based on the Hourly Rate Default. Talk to your CSR before using this setting. |
| Agreement Hours Covered | true | Generally checked to yes. This allows us to differentiate between agreement covered time and agreement overages that are billed as T&M. |
| Fixed Fee Project Discount |
0.25 |
Discount revenue for multi-month Projects for each month except the closing month. On the closing month, resolve to actual revenue. See Member/FF Project Analysis |
| Fixed Fee T&M Discount |
0.25 |
Discount revenue for multi-month T&M for each month except the closing month. On the closing month, resolve to actual revenue. See Member/Ticket Analysis |
| Allow Agreement Covered Projects | true | When a project is done by an MSP, the work is generally tracked by the project, as is the revenue. Sometimes, clients will only use the project to track the time for a project within an agreement. For example, we would use to track the onboarding time for a new client. They are not billed separately, but you can see how much time is allocated to the agreement. In this case the project should be considered agreement time. We would check this to be yes. |
| Use Admin Cost Factor |
false | Allows the system to gross up hourly cost for client time to absorb the cost of admin time. Admin time cost is set to zero. This is only applied to Members defined as engineers on Lookup/Members table. |
| Internal Technical Revenue Credit | 0.5 | There is no inherent revenue for technical work done on the MSP. Employees can get credit for their work as a percent of shadow billable. For example, if a $200/hour person does one hour working on internal systems, she would get $100 of revenue credit. |
| Unbillable Uncovered Time | false | This setting, if set to Yes, corrects unbillable time on an agreement. Only use if okayed by a MSPCFO rep. |
| Include Unbillable Internal Technical | false | MSPCFO can post unbillable internal technical time if setting is Yes. |
| Use Actual Hours For internal Technical | false | The choice is using billable hours or actual hours for the internal technical time. The time is treated like time that is actual rate revenue and uses billable time. Therefore the default is to use billable hours. |
| Consider time status for BT One Time time entries |
false | This setting is used in conjuction with The Lookup/Time Status table. If there are certain time statuses that are marked yes, these records will be used to fufill the BT hours. |
| Treat Block Time Recurring (without Rollover) as T&M | false | Block Time Recurring is usually treated as FFA revenue and costs. If True, the revenue and costs are included in FFA. |
| Name | Default Value | Definition |
|---|---|---|
| Use Boards For Active Type | false | se the Lookup/Boards table to set Active board types. |
| Use Resolved Date for closing of fixed fee tickets | false | If yes, uses the Resolved Date field from PSA onstead of the Close Date. |
Changing Settings
To change settings:
If a check mark, check = true; not checked = false.
If a value, change the value (% are put in in decimal format with 1.0 being 100%)
When changes are finished, click the Save button or Cancel if changes should not be saved.
Recalculation of the data must be made for this option to be updated.
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