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Adding Services to Deals or Budgets
Adding Services to Deals or Budgets

Add services to deals in the sales or budget phase. Use different pricing models to setup a fixed price or time and materials proposal.

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What are services?

In Productive, the setup of services is the foundation of a successful budget or a sales deal. These services serve as building blocks, allowing you to define the scope of your work and prepare for accurate invoicing once your work on the budget is complete.

Services are more than just placeholders; they act as the basis for tracking your time, whether in hours or person-days, as well as monitoring the expenses incurred throughout the project's lifecycle.


Services allow you to customize your billing approach to meet your client's needs, whether through fixed pricing, time and materials billing, or non-billable work.

Moreover, services are intricately connected to Resourcing in Productive. When you plan your work, you schedule people for services, so it is crucial to set them up carefully.

Let's we'll look at the components of the service setup below!

Adding services to a budget or deal

While in the Budget editor, select "+ New item" to start adding services to your budget.
You can manually add the service or copy a predefined service set from a rate card.

Once you add a service from a rate card, you are welcome to further modify it without affecting the information in the rate card.

There are a couple of ways to add services to your newly created budget. Check out the examples below!

  • If you disabled Open Hours and Expenses in the Budget settings, click on "+ Add services" to access the Budget editor and add the services you wish to include in your budget.

    This will also be your starting point when adding a new deal!

  • If you enabled Open Hours and Expenses, you'll initially see two service line items in your budget: "Open Hours" and "Open Expenses".

    These are placeholders allowing time tracking and scheduling before adding detailed services.

    It's recommended to edit these promptly as they lack service types and rates, impacting later profit and resource analysis.

    To edit or replace them with more precise services, select "Edit" in the upper right corner to access the Budget editor.

  • If you prefer setting up your budgets and adding services using the Simple Budget Editor, follow this link!

Service types

Service types play a key part in determining your budget and services. They are the foundation of your financial structure once configured in the settings.
In other words, these types represent your profit centers, covering the full range of services you provide as an agency.

When added to deals and budgets, they provide clarity on what you're offering to your clients and guide your team's time-tracking efforts.

In reports, service types help provide insights into which areas of your business produce the highest returns over time, while in integrations, they help you synchronize your invoices with any external accounting tool you've linked to your account.

After customizing your service types in the settings, select them from the drop-down menu in the Budget editor.

The distinction between service name and service type is based on functionality.

The service name provides flexibility, allowing you to label services as you see fit, as well as versatility by assigning different names to each service.

On the other hand, the service type functions as a categorization tool, allowing you to organize services in a systematic manner for efficient tracking and company-wide analysis.

Tip: If you have not defined your service types yet, just start typing the name of the service type you want to add and select "Create service type".

Note that adding service types this way must be enabled in Settings > Service types > Quick add.

Billing types

After defining the service types crucial for monitoring profitability, the next step involves configuring the billing type associated with each service.

Within the budget editor, you'll find the "Billing type" column, offering three distinct options: Fixed, Time and materials, and Non-billable, which you can select by directly clicking on the column .


These three are designed to help you track time and expenses, and book people for services and ultimately, invoice your client according to your and your client's needs and arrangements.

Fixed billing type

This option ensures that services are billed at a predetermined fixed rate, regardless of the actual hours worked.

It allows for accurate time tracking and estimation, enabling you to analyze profitability trends over time and efficiently schedule resources in the Resourcing module.

Whether you log fewer or more hours than estimated, the invoiced amount remains consistent with the fixed rate you've set!

Time and materials billing type

With this option, you can add rates and services, but invoicing can occur only after hours, days, or expenses have been logged against the service.

This approach enables progressive invoicing as work on the budget unfolds, facilitating efficient invoicing in stages.

Non-billable billing type

As the name suggests, this option is reserved for tracking work or expenses that won't be invoiced to the client.

It's useful for tracking preparatory or administrative tasks associated with client projects, providing valuable insights to optimize resource allocation in the future.

Unit

In the Unit field, you can select how you want to charge and monitor the service: by hour, day, or piece.

Opting for Hours or Days enables time tracking and resource scheduling in Resourcing for the services. Note that you can define how many hours there are within a "Day" (person-day) in Settings > General > Work time.

On the other hand, selecting Piece is more suitable for expense tracking or situations where you don't need to book people or track time against the service.

Tracking options

The tracking options available depend on the combination of the previously set billing type and unit.

You can enable or disable expense and time tracking, as well as the option to book people for the selected service in Resourcing.

For example, if you select "Time and materials" as the billing type, paired with "Hour" as the tracking unit, you'll be able to switch off or on time tracking and booking options.
Similarly, if you choose "Piece" as the tracking unit, you'll only be able to log expenses there.

To ensure all necessary options are enabled, hover over the time-tracking, expense-tracking, and booking icons and make sure they are violet (enabled) if you want them on.


Estimate

The Estimate column lets you input an approximation of hours, days, or pieces (matching the billing units), helping set budget totals and monitor progress against these estimates as the project progresses.

It's crucial to note that the estimated hours/days directly impact Resourcing, influencing your resource allocation based on precise service and budget specifications.

Pro tip: When setting up your service in hours or days, for the Time and materials billing type services, the estimates are automatically adjusted based on the quantity entered.

However, for Fixed billing type services, you can input a separate estimate of hours, allowing flexibility to sell the service at a fixed price while planning to invest fewer (or more) hours than initially projected.

Quantity and Price

When working with Fixed or Time and materials billing types, you can specify the quantity (hours, person-days, or pieces) you intend to sell to the client, along with the corresponding price per hour/day/piece established for the service.

Non-billable services, not intended for client invoicing, do not affect the budget total. Therefore, inputting quantity and price values is not applicable for such services.

Tracking time or logging expenses against non-billable services incurs costs, which are reflected in the Profitability section of the budget.

Discount

If you want to add a discount to your services, you can add it by clicking on the Show discount option in the three-dot menu located to the right of the service section name.

Once you click on it, a new Discount column will be visible and you will be able to set up a different discount for every billable service.

The total amount changes accordingly once the discount is added to the service.

Markup

If you want to add a markup to your services, you can add it by clicking on the Show discount option in the three-dot menu located to the right of the service section name.

Once you click on it, a new Markup column will be visible and you will be able to set up a different markup for every billable service.

The total amount changes accordingly once the markup is added to the service.

Guaranteed maximum price

For services that are defined as Time and materials, you can define a fixed cap which will then determine the maximum price that can be charged to the client, regardless of the hours put in.

To set it up, first, select Time and materials as the billing type and define the price and the quantity. From the three-dot menu to the right of the service section name, select "Show fixed cap".

Then, click on the padlock (🔒) icon to set a fixed cap. You'll know the fixed cap has been activated when the padlock turns violet.

Description

To add a description to your services, select the Show description option in the three-dot menu located to the right of the service section name.

The description you add there will later be visible in the reports!

Saving changes

Once you are done adjusting the services within the budget, select "Save changes" in the upper-right corner.

Tip: the three-dot menu allows you to duplicate or delete a service line item!

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