Navigation
14.2. Add Fixed, Hourly, Usage, and Bucket Contract Lines
Choose the right contract line model for common MSP services including fixed monthly fees, block hours, usage charges, and included-unit buckets with overage.
Contract lines are the billable parts of a contract. A single contract can include more than one line, which lets your MSP model real agreements such as a fixed monthly base fee plus backup storage overage.
Add contract lines
- Open Billing > Client Contracts.
- Open the contract.
- Select the Contract Lines tab.
- Click Create Custom to create a new line, or Add from Presets if your team has reusable contract line presets.
- Select the billing model that matches the service.
- Add the service, quantity, rate, included allowance, and overage rules.
- Save the line and repeat for each billable part of the agreement.
Figure 1: A contract can combine multiple line types, such as a fixed base fee and a usage-based storage overage line.
Pick the right billing model
| Billing model | Best for | MSP example |
|---|---|---|
| Fixed | Predictable recurring charges | Managed endpoint plan, SOC monitoring, backup platform fee, vCIO retainer. |
| Hourly | Billable labor based on approved time | Project work, after-hours support, onsite work outside the agreement. |
| Usage | Charges based on measured consumption | Backup storage, cloud hosting usage, licensed devices, security events, data ingestion. |
| Bucket / included allowance | A fixed allowance with optional overage | 10 included support hours, 1 TB included backup storage, 25 included managed endpoints. |
Billing timing: advance vs. arrears
Use advance when the client pays before or at the start of the service period. This is common for managed services, platform fees, and per-seat agreements.
Use arrears when the amount depends on activity that happens during the period. This is common for time, usage, and overage charges.
A common MSP contract uses both:
- Fixed monthly base fee billed in advance.
- Usage or overage billed in arrears after actual usage is known.
Example: flat-rate backup plan with storage overage
GreenLeaf Dental Group buys a backup plan with:
- Managed Backup Platform Base Fee: $300.00 per month.
- Cloud Backup Storage Overage: 1,000 GB included, then $0.20 per GB.
If the client uses 1,250 GB in the month, only the 250 GB overage is billed:
| Charge | Calculation | Amount |
|---|---|---|
| Base platform fee | 1 × $300.00 | $300.00 |
| Storage overage | 250 GB × $0.20 | $50.00 |
| Pre-tax subtotal | $300.00 + $50.00 | $350.00 |
This keeps the client's invoice easy to understand: one predictable base fee plus a clearly explained overage.