Set sales tax, plan pricing, legal documents, and profitability

What you will have

• Find Invoice Settings and know what its four sections - Approval & Sending, Overdue Reminders, Billing Rules, and Numbering & Terms - each control.
• Find Sales Tax and know how the rate is entered, stored, and overridden per client.
• Find Plans & Pricing and know what the Client Band Pricing Ladder and the two proration toggles do.
• Read the Plan Categories table and know what Single Invoice and Always Prorate control.
• Know which plan category is the rollup target, and how it differs from Combine into one invoice.
• Find Legal Documents and set the Master Service Agreement, Services Statement, and link expiration.
• Find Client Billing Overrides and know it is a doorway to a client's own Billing tab, not a control of its own.
• Find Profitability and set the labor rate, workload baselines, and margin bands.

Why it works this way

Steps

1. 1

   Open Settings > Billing & Pricing > Sales Tax and look at Default Sales Tax Rate.

   Type the percent form, the percent with a % sign, or the raw decimal - 8.25, 8.25%, and 0.0825 are all accepted and normalize on save to the same stored decimal, 0.0825. The field always redisplays the percent form afterward, so this walkthrough entered 8.25, saved, and it redisplayed as 8.25.

   

2. 2

   Know when this rate applies, and how a client can override it.

   Tax runs one of two regimes, never both. Without QuickBooks connected, this is the local regime: the rate above is the tenant-wide default, and a client's own rate (set on that client's own Billing > Tax tab) wins over it whenever it is populated, falling back to this default when null or 0. With QuickBooks connected, QuickBooks owns tax instead - connecting automatically sets this default and every per-client rate to 0, and the rate then shows here read-only, with a QuickBooks Default Tax Code and Tax-Exempt Code picker appearing alongside it, each client's own code set on that client's Billing > Tax tab and synced both ways with the QuickBooks customer.

3. 3

   Open Plans & Pricing and look at the Proration & Bands panel.

   Bands ride on a count you choose (Licensed Users, Total Users, Unlicensed Users, All Devices, Workstations, or Servers) - Add band adds a band per plan, and the highest starting count at or below the month's peak wins on the 1st of the month. This tenant has no bands added yet. Prorate Onboarding prorates a plan's first billing cycle when it is added mid-cycle; Prorate Mid-Cycle Changes generates a prorated charge when a client's user or device count rises mid-cycle, added to the next invoice. Both are off by default.

   

4. 4

   Scroll down to Plan Categories.

   Each row is a ServicePlanType - the category your service plans group into (Core, License, Add-On, Managed SaaS on this tenant), with a Plans count, a Single Invoice toggle, and an Always Prorate toggle. Click a category's name to rename it inline; Show internal keys reveals the stored key behind each label. Single Invoice (rollupToSingleInvoice) combines that whole category's plans onto one invoice per client per period.

   

5. 5

   Know how the rollup target and Combine into one invoice work together.

   Core is this tenant's rollup target (isRollupTarget), which is why its own Single Invoice toggle is disabled on the row above - it is already its own combined invoice, so the two mechanisms cannot both apply to it. Any other category without the target flag can roll its subscriptions into whichever CORE invoice's date window contains that subscription's own period. Combine into one invoice is a separate, per-category mechanism: every subscription of that one category consolidates into a single invoice per client for each exact period label instead, and a category cannot do both at once - turning Combine on is blocked while that category also holds the rollup-target flag. Moving the rollup-target flag to a different category is currently database-only; there is no switch for it on this page.

6. 6

   Open Legal Documents and set the Master Service Agreement, Services Statement, and Agreement Link Expiration.

   Paste your Master Service Agreement PDF link into Master Service Agreement (PDF), and your Services Statement PDF link into Services Statement (PDF) - both are empty on this tenant. Every agreement you send after saving attaches both files. Agreement Link Expiration (days) controls how long a sent agreement's accept-or-sign link stays valid; it defaults to 30, which is what this tenant shows.

   Note: A client who can't open an agreement link you sent has almost always hit this expiration - after the set number of days the link is rejected and the agreement must be re-sent. Values above 30 days weaken that protection, so the page warns you when you raise it.

   

7. 7

   Open Client Billing Overrides.

   This page has no billing fields of its own - it is a doorway. Billing overrides live on one client's own record, not here: your tenant-wide defaults from the pages above apply to every client until that one client's own override wins. The four numbered steps on the card walk the same path the Open Clients button takes: open Clients, pick the client, go to their Billing tab, and adjust their rates, net terms, or tax treatment there.

   

8. 8

   Open Profitability and look at Labor Rate and the two Expected Minutes fields.

   Labor Rate ($/hr) is the flat internal labor cost the Profitability report uses to compute each client's labor dollars - a single tenant-wide rate, defaulting to 150. Expected Minutes per User / mo and Expected Minutes per Device / mo (defaulting to 30 and 15) are the baseline workload per managed user and device each month; variance above them flags scope creep before it reaches margin.

   

9. 9

   Scroll down to Green Band, Amber Band, and Target Margin.

   These set the margin bands the Profitability report colors each client with. Green Band (%) is the labor-to-revenue ratio (labor $ divided by MRR, times 100) below which a client reads healthy, defaulting to 40. Amber Band (%) is the ratio between Green and this value, defaulting to 70; above it is red. Target Margin (%) is a separate baseline, defaulting to 50.

   Note: Green Band and Target Margin are two separate checks. A client can sit inside the healthy green band and still fall below Target Margin - the report flags that client either way, because Target Margin is your floor even when the ratio looks fine.

   

10. 10

    Open Settings > Billing & Pricing > Invoice Settings and look at its four sections.

    Approval & Sending holds Auto-Approve Generated Invoices (on sends straight to Outstanding, off lands in Pending Approval first), Auto-Create Invoice on Quote Accept, Auto-Send Invoice on Finalize (off by default; invoices go out manually via Send otherwise), and the Auto-Send Recipients role list. Overdue Reminders holds Send Overdue Invoices Digest (off by default), its Frequency (Weekly, Bi-weekly, or Monthly), and its own Recipients role list - a client's designated billing email is always included on both role lists whenever the toggle above them is on. Billing Rules holds Discount True Value Pricing, Minimum Billable Time (minutes) - per-technician ticket time under this is excluded from billing, defaulting to 5 - and Quote Link Expiration (days), defaulting to 7. Numbering & Terms holds Invoice Net Terms (Due on Receipt, or Net 15/30/45/60). This one setting sets the due date on each invoice. It also prints as the terms label on the invoice PDF, so the printed label and the due date can never disagree. This section also holds an optional Invoice Number Prefix, and Invoice Starting Number, which new invoices increment from.

    

If it did not work

• If Default Sales Tax Rate will not save, check whether QuickBooks is connected - the field goes read-only the moment it is, and stays that way until QuickBooks is disconnected.
• If Save does nothing on a Plan Categories row, confirm it isn't Core - Core's own Single Invoice toggle is disabled by design, since Core is already the combined invoice every other category can roll into.
• If a client says a sent agreement link no longer opens, check Agreement Link Expiration (days) on Legal Documents - it defaults to 30 days and the link is rejected once that window passes.

Questions this page answers