Problem
When setting up a service agreement, you may wonder if the total agreement price (TAP) applies per quarter.
Solution
The total agreement price (TAP) is the price for the entire agreement term, not the amount billed each period. Your billing schedule determines how that total is divided into invoices. For example, a $1,000 agreement billed quarterly is invoiced as four payments of $250 each—not $1,000 per quarter. Selecting the billing schedule sets how the total is Split across invoices.
To apply the total agreement price (TAP) amount quarterly, you need to set the Billing Schedule as Quarterly, or select Time of Service, and make sure to include four visits for the service agreement.
Set the service agreement billing schedule
Go to the customer profile.
Go to the Service Agreements tab.
Click Create Service Agreements or edit a service agreement that is in Draft status.
In Step 5: Pricing, enter the Total Agreement Price.
Move forward to Step 6: Billing Schedule and Payment Terms.
Based on the Billing Schedule that you select:
Time of Service: An invoice is generated at the time of each visit.
Upfront: One invoice for the total agreement price.
Biannual: 2 invoices per year.
Quarterly: 4 invoices per year.
Every Other Month: 6 invoices per year.
Monthly: 12 invoices per year.
Make the billing schedule clear on the agreement document
A document that shows only the total agreement price (TAP) can leave your customer unsure how they'll be billed—for example, whether $1,000 is a one-time charge, an annual total, or a per-quarter amount. To remove that ambiguity, add the Billing Schedule component to your service agreement document template. It shows the exact schedule of invoice dates and amounts, so the customer can see precisely when and how much they'll be billed.
Tip: Because the Billing Schedule component shows the full per-invoice breakdown, you can remove the Pricing component (which shows the lump-sum TAP) from your template, if you prefer. This leaves only the billing schedule table on the document, so customers see the payment schedule rather than a single large total. For more, see Create document templates for service agreements with Template Manager.
Note: If you have the Edit duration and billing schedule permission, you can also change the billing schedule on an active agreement after creation, using Edit Duration and Billing Schedule. You don't have to set the final cadence during creation. For more, see Manage service agreement billing and invoices.