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14.1. Create Client Contracts for Recurring MSP Services
Create client contracts in AlgaPSA for monthly managed services, backup plans, security bundles, and other recurring MSP agreements.
Contracts define what your MSP sells to a client, how often it should be billed, and which services belong on each invoice. Use client contracts for managed service agreements, backup plans, security bundles, block-of-hours support, and recurring project retainers.
Before you start
Make sure the client already exists and has a billing contact, billing address, payment terms, and billing cycle. If you plan to bill taxable services, confirm the client's tax settings before generating the first invoice.
Create the contract
- Go to Billing > Client Contracts.
- Click Create Contract.
- Select the client, such as GreenLeaf Dental Group.
- Enter a business-friendly contract name, such as Managed Backup & Security Agreement.
- Choose the billing frequency, usually Monthly for MSP recurring services.
- Set the start date. This determines when service periods can begin.
- Add a short description that explains the agreement in language your billing team will recognize.
- Save the contract.
Figure 1: Client contracts show which customer owns the agreement, the contract name, billing frequency, start date, and status.
What to include in the contract header
Use the contract header for agreement-level settings:
| Field | How MSPs commonly use it |
|---|---|
| Client | The customer receiving service and invoices. |
| Contract name | The name your sales, service, and billing teams use for the agreement. |
| Billing frequency | Monthly, quarterly, annual, or another cadence that matches the agreement. |
| Currency | The currency for all contract lines. |
| Start date | The first date the contract should be eligible for recurring billing. |
| End date | Leave blank for ongoing agreements; use an end date for fixed-term projects or one-year service agreements. |
| Purchase order | Use when a customer requires a PO number or PO budget before invoices can be approved. |
Recommended MSP naming pattern
Use names that make sense to both technicians and accounting staff:
- Managed IT Complete - 35 Seats
- Managed Backup & Security Agreement
- Block of Hours - 20 Hour Support Bank
- Microsoft 365 Licensing and Backup
- Co-Managed Help Desk Retainer
Clear names make invoice review easier, especially when a client has several active agreements.