ConnectWise Agreement Actions

Agreement actions cover the operational tasks you perform on agreements after setup — running invoicing cycles, handling sales tax, reviewing profitability, and resolving common issues.

Agreement invoicing

ConnectWise generates invoices for agreements based on the billing cycle and invoice method you configure on each agreement. The Invoice tab controls how and when the agreement bills.

Key behaviors to know:

• Agreements bill on the Bill Start Date using the cycle defined in the Billing Cycle field.
• The Invoice Description field controls what appears on the invoice line item — keep it meaningful for your clients.
• If an agreement has additions, each addition can bill separately or roll into a single line depending on your Bill One Time and Grouped Items settings.

Note: If an agreement isn’t generating invoices, check that Bill This Agreement is selected on the Agreement tab and that the billing cycle has a valid start date.

Sales tax on agreements

ConnectWise applies sales tax to agreements based on the tax code assigned to the agreement or the client’s company record.

• Tax codes are set at the company level by default. You can override the tax code on the agreement’s Agreement tab.
• If the agreement covers services in multiple jurisdictions, the tax code must account for all applicable rates.
• Tax does not automatically update on existing invoices if you change the tax code after invoicing — adjust manually if needed.

Employee compensation rate and effective rate

The Employee Compensation Rate is the internal cost rate used to calculate profitability on time entries logged against an agreement. The Effective Rate is what ConnectWise actually uses after factoring in agreement-level overrides.

• Work role and work type overrides on the agreement take precedence over system defaults.
• Mismatches between compensation rates and billing rates are the most common cause of unexpected profitability figures.

Agreement profitability

Go to Finance > Agreements, open an agreement, and select the Profitability tab to see a breakdown of revenue versus cost for the agreement period.

• Revenue is calculated from billed additions and time.
• Cost is calculated from employee compensation rates on time entries and product costs on additions.
• Profitability figures are historical — they reflect posted transactions, not estimates.

Troubleshooting and FAQs

Common agreement issues:

• Agreement not invoicing — Verify Bill This Agreement is on, the billing cycle is active, and the agreement’s start date has passed.
• Wrong invoice amount — Check for open additions with incorrect quantities or prices. Also check if a prorate formula is in effect on any addition.
• Addition prorate price formula — ConnectWise uses a formula to prorate additions that start mid-cycle. The prorated amount depends on the addition’s start date relative to the billing cycle.
• Tax not appearing — Confirm the tax code is assigned and that the tax code includes the service type being billed.