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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