Project Profitability
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Introduction
Project Profitability JR
The Project Profitability report is used to monitor the planned and real cost related to a project.
The following information is displayed on the report:
Planned Services and Expenses:
- Revenue: the amount from the field Service Revenue on the multiphase project
- Cost: the amount from the field Services Provided Cost on the multiphase project
- Outsource: the amount from the field Outsourced Cost on the multiphase project
- Margin%: the margin from the field Planned Service Margin % on the multiphase project. The planned service margin % is calculated using the formula: (Service Revenue - Services Provided Cost - Outsourced Cost) x 100/Service Revenue.
- Reinvoicing: the amount from the field Reinvoiced Expenses on the multiphase project
- Expenses: the amount from the field Planned Expenses on the multiphase project
- Margin%: the margin from the field Planned Expenses Margin % on the multiphase project. The planned expenses margin % is calculated using the formula: (Reinvoiced Expenses - Planned Expenses) x 100/Reinvoiced Expenses.
- Gross margin: overall planned margin for the project
- Gross margin amount: calculated using the formula: (Service Revenue - Services Provided Cost - Outsourced Cost) + (Reinvoiced Expenses - Planned Expenses).
- Gross margin percentage: calculated using the formula: ((Service Revenue - Services Provided Cost - Outsourced Cost) + (Reinvoiced Expenses - Planned Expenses)) x100/(Service Renevue + Reinvoiced Expenses)
Real Services and Expenses:
- Revenue: cost reflected on sales invoices for the customer for:
- reinvoicing of outsourced work by a third party.
- invoicing of the cost for completed project phases.
- only sales invoice lines with service type products will be taken into account.
- Cost: cost of worked hours based on processed time sheets multiplied by the cost that is linked to the salary category of the employee at the expense date.
- Outsource: cost of worked hours executed by a third party based on purchases invoices.
- Margin%: real margin for services based on the formula: (Revenue - Cost -Outsource) x 100/Revenue
- Reinvoicing: expenses invoiced to the customer on sales invoices for:
- purchased goods related to the project
- invoiceable item expenses.
- only sales invoice lines with products whose type is not service will be taken into account.
- Expenses: real expenses based on purchase invoices for:
- purchased goods related to the project from a vendor
- reimbursement for item expenses for an employee.
- Margin%: real margin for expenses based on the formula: (Reinvoicing - Expenses) x 100/Reinvoicing
- Gross margin: overall real margin for the project.
- Gross margin amount: calculated using the formula: (Revenue - Cost - Outsource) + (Reinvoicing - Expenses)
- Gross margin percentage: calculated using the formula: ((Revenue - Cost - Outsource) + (Reinvoicing - Expenses)) x 100/(Revenue + Reinvoicing)
- Collected: amount that was collected from the customer for the sales invoices related to the project
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