Contracts overview - Gorelo Documentation

Contracts are used to invoice for labor and products on a recurring basis. There are three sections that make up a contract and require configuration: Invoicing, Labor and Products.

Contract sections

Invoicing
Labor
Products

This is where you define everything invoice related.

Section	Usage
Start Date	The contract coverage will start on this date
Repeat Period	The contract coverage and invoice creation will repeat based on this frequency (Monthly, Quarterly, Half-yearly, Yearly)
End Date	The contract coverage will end on this date and no longer create invoices (optional)
Invoice Creation (days before)	The invoice will be created on the Start Date and every month after based on the repeat period (when set to 0).
Invoice Due (Days later)	The invoice will be due on the day the invoice is generated when set to 0.
Invoice Template	The invoice PDF will be created based on this selection. Navigate to Settings —> Billing —> Invoice Template to create and customize
Invoice Email Template	The invoice email sent to the selected contacts is based on this selection. Navigate to Settings —> Email —> Settings and edit your Invoice email address. You can then create and customize via the Email Template Management tab.
Xero Branding Theme (only for Xero)	Specify the branding theme used in Xero — this allows for automatic payments via third-party providers, e.g., Payrix, Pinch
Reference	The name of the invoice — template fields can be used here such as billingmonth, contractgroupname and locationname.
Auto Approve & Send	The contract will create a draft invoice when this is toggled off (default). Toggle this on and select contacts to have the contract automatically create the invoice, send to the contact and sync to Xero/QBO.

Invoice creation examples

Example 1: Start Date of January 1st 2025 with a Repeat Period of Monthly and Invoice Creation 0 days before — the second coverage period would start on February 1st 2025 and the invoice would generate on February 1st 2025
Example 2: Start Date of January 1st 2025 with a Repeat Period of Monthly and Invoice Creation 7 days before — the second coverage period would start on February 1st 2025 and the invoice would generate on January 25th 2025

Invoice due examples

Example 1: Start Date of January 1st 2025 with a Repeat Period of Monthly, Invoice Creation 0 days before and Invoice Due 0 days later — the second coverage period would start on February 1st 2025, the invoice would generate on February 1st 2025 and the invoice would be due on February 1st 2025
Example 2: Start Date of January 1st 2025 with a Repeat Period of Monthly, Invoice Creation 0 days before and Invoice Due 7 days later — the second coverage period would start on February 1st 2025, the invoice would generate on February 1st 2025 and the invoice would be due on February 8th 2025
Example 3: Start Date of January 1st 2025 with a Repeat Period of Monthly, Invoice Creation 7 days before and Invoice Due 7 days later — the second coverage period would start on February 1st 2025, the invoice would generate on January 25th 2025 and the invoice would be due on February 1st 2025

This is where you choose the type of labor and configure how it functions.

Unlimited hours

Labor is completely uncapped (all-you-can-eat type).

Auto Approve automatically approves all time entries, with the assumption that you use the Contract Profitability report to monitor contract health.
Covered items define which combination of work types and billing roles will automatically be covered by the contract.
- Example 1: Remote Support performed by a technician would be covered ✅.
- Example 2: Onsite (Off Hours) performed by a technician wouldn’t be covered and instead flow through to default labor rates or an alternate contract ❌.

Per hour

Labor is billed at the rates specified.

Rate	Usage
Use default labor rates	Allows you to use the default rates but then give you the option to choose which Work Type and Billing Role combinations are automatically covered by this contract.
Use fixed labor rate	Allows you to set a fixed rate that overrides all selected Work Type and Billing Role combinations.
Use custom labor rates	Allows you to override individual Work Type and Billing Roles and choose which Work Type and Billing Role combinations are automatically covered by this contract.

Block hours (one-time top up)

Labor is deducted from a block of hours that have been purchased upfront. You invoice it once and it doesn’t renew.

Navigate to Settings > Billing > Block Hour Templates and create your templates (for example, a block of 10 hours).
The initial price and Block Balance is what flows through the first invoice.

Section	Usage
Warning Threshold	Determines at what percentage of the remaining hours a client banner appears. For example, 10 hours with a 20% threshold shows the client banner when 2 hours remain.
Overrun Threshold	Determines whether time can still be billed even though 0 hours remain. For example, 10 hours with a 30% overrun allows up to 3 hours to be billed even though 0 hours remain. The next top-up of block hours immediately consumes these overrun hours.
Covered Items	Define which combination of Work Type and Billing Roles will automatically be covered by the contract.

Limited hours (recurring invoice)

Labor is capped at a specific number of hours and then billed on a per-hour basis when that cap is exceeded. It renews at the start of each month.

The Allocated hours section is where you’ll set the maximum hours that are covered by the contract.
You then specify how excess hours will be billed (see Per hour).

No labor

The contract does not include any labor component. Use this option when the contract only covers products or recurring fees.

Use case examples

The following table contains billable items that best fit the setup:

Contract setup	Items
You allocate a time balance once and deduct the hours	Block hours Labor rates
You bill a fixed amount every month regardless of hours spent	Recurring product
You bill strictly based on hours, without any product	Labor rates
You allocate a fixed time allowance, then bill on a per-hour basis once exceeded	Limited hours Labor rates

​Contract sections

​Invoice creation examples

​Invoice due examples

​Unlimited hours

​Per hour

​Block hours (one-time top up)

​Limited hours (recurring invoice)

​No labor

​Use case examples