Today we are pleased to annouce a major upgrade to our project financials. We have rebuilt the static “form” into a table or grid allowing you to expand and collapse rows, show and hide columns and even rename columns to suit your own terminology. We now present the project financials based on the following information in columns for actuals to date, remaining, forecast (actual + remaining), base plan and any number of baselines and variances between:

1. T&M Revenue at company or project rates (a project type setting) to give an indication of what this project might be worth if the same volume or work had been sold at company rates or on a pure T&M basis. This is the basis of calculating your customer’s discount %
2. Project or Contract Services Revenue is the actual, projected or forecast labor and services revenue or the sum of hours * resource billing rates for T&M deliverables plus quantities service/product rates for fixed price or milestone-based deliverables
3. Expenses Revenue is either zero (if your project type is configured not to include billable expenses as revenue) or the value of billable expenses plus any applicable mark-up(s) defined in your project’s expenses tab
4. Project Labor Cost is the sum of actual, planned, remaining or forecast hours times each resources’ individual cost rate for every task, irrespective of whether that task is internal, T&M or fixed price. The cost of a fixed price task is based on the labor input in other words
5. Project Gross Service Margin is the Project or Contract Services Revenue minus the Project Labor Cost (as $) or this margin divided by the Project or Contract Services Revenue (as %). It never includes expenses
6. Billable vs. non-billable Expense Costs are the sums of billable vs. non-billable expenses booked to this project. We will also introduce planned or budgeted expenses in the near future
7. Total Project Direct Cost is simply the sum of Labor + Expense Costs
8. Project Gross Margin depends on whether your project type is set up to include expenses as revenue or not. If expenses are included then the total project gross margin is the Project Services Revenue + Expenses Revenue minus Total Project Direct Cost (which includes all expenses). If expenses are not included then the total project gross margin is the Project Services Revenue minus Project Labor Cost and also minus the Non-billable Expenses Cost (since billable expenses are not part of the margin calculation). Project Gross Margin as a % is the margin divided by total project revenue (again including or excluding expense revenues based on your project type setting)
9. Department Overhead Allocation is a new concept where you will soon be able to maintain overhead % separately for labor vs. expenses by department. All projects allocated to each department will adopt that department’s overhead rates and calculate Net Margins accordingly. More information on this will be forthcoming as well roll it out
10. We also keep track of a large number of other financial and operational project metrics such as funded and unfunded revenues (based on matching revenues to customer purchase order values remaining), invoiced, paid and approved timesheet or expense amounts ready to bill (as well as calculating average days to pay this project), recognized revenue (based on a range of industry-standard reveue recognition techniques for you to choose from), dates, durations, efforts, internal cost budgets and average cost and revenue per labor hour