Service items automatically set the billing rate and related details on invoices. They can also now be linked directly to Engagements, making it easier to build proposals, connect billing, and auto-generate related tasks.
Important Update
⚠️ Engagement Item templates have been removed.
All Engagement-related functionality is now part of Service Items. When creating a service item, you can:
Add a description that appears on proposals.
Link task templates to auto-generate tasks when proposals are accepted.
Link a terms template or manually add terms.
Why it matters
Service items save time, reduce manual entry errors, and keep billing and engagement processes standardized across clients.
Table of Contents
Create Service Items
Click on the Profile icon in the global navigation bar.
Select Settings from the pop-out menu.
In the left-hand column, click Billing Settings.
Go to the Service Items tab.
Click Create service item.
Enter a name for the service item. (This is the only required field.)
(Optional) Add a description of the service.
(Optional) Enter a billable rate.
Choose whether the charge is per service item or per hour.
(Optional) Enter a tax rate (as a percentage).
This will automatically apply to the billing rate set in step 8.
(Optional) Enter a code to help classify the service.
(Optional, QBO users only) Select an Income Account and Product Category.
These fields appear only if your Canopy account is synced with QuickBooks Online (QBO) and allow you to map the service item to an item in QBO.
New: Service Item on Engagements
12. In the Service Item on Engagements section, fill out the following:
Description appearing on proposal – Text that will auto-populate when the service is added to a proposal.
Linked task templates – Select one or more task templates to automatically generate tasks when the proposal is accepted. Learn how to create task templates ›
Terms – Choose a terms template or manually enter custom service terms. Learn how to create letter templates for terms ›
13. Click Save.
Manage Service Items
To edit, archive, or restore a service item:
Go to Settings > Billing Settings.
Select the Service Items tab.
Edit a service item
Click the name of the service item you want to edit.
Update the details (Name, Code, Description, Rate, Tax Rate, or Engagement settings).
Click Save.
Archive a service item
Locate the service item(s) to archive, check the box, and click the Archive icon.
Restore a service item
Open the options menu and choose Archived Items.
Check the box next to the item(s) you want to restore.
Click Move to active.
Set Service Items as Non-Billable (Beta)
This beta feature allows you to mark service items as non-billable by default, helping ensure internal and administrative time is tracked accurately without relying on manual toggles during time entry.
Enable the Beta Feature
Click the Profile icon in the global navigation bar.
Select Settings.
Open Experimental Features.
Enable Non-Billable Service Items.
Beta Feature
When enabled, all existing service items remain billable by default until you update them.
Mark Service Items as Non-Billable
Once the beta is enabled, you can mark both existing and new service items as non-billable.
For Existing Service Items
Use the Billable / Non-Billable toggle in the Service Items table, or
Open a service item and toggle Billable off, then Save
For New Service Items
Toggle Billable off during service item creation before saving
Important notes:
This setting controls the default behavior for future time entries only
Existing time entries are not updated retroactively
Individual time entries can still be manually changed to billable or non-billable
Summary
Service items now handle both billing and engagement setup. Instead of using Engagement Item templates, you can manage proposal descriptions, linked tasks, and terms directly within service items.
Need help?
Contact Support or ask Penny, our AI Support Bot, for assistance.