If you go to Projects Finances in the Report tab, you'll see two checkboxes, which change calculations in your report.
Table Of Contents
Include Organization Overheads
Formula - How Is It Calculated?
Include Unutilized Time Costs In Project Overheads
Formula - How Is It Calculated?
For Scheduled Budget
For Settled Budget
Include Organization Overheads
This checkbox allows you to include organization overhead costs from a specific period (for scheduled and settled status) in the report, giving us information on whether you're earning on a specific project.
If you’re running a business, you'll have some general overhead and income, such as office rent, software subscriptions, and one-time purchases like a new computer or desk. In Primetric, you can add all of these overhead costs on the Organization tab - > Overheads.
If you check the Include organizational overhead box, general overhead costs will be included in the project budget. The system considers how many hours your employees have billable scheduled/settled for this project and divides this by the sum of all hours billable scheduled/settled for this period.
Formula - How Is It Calculated?
Include Unutilized Time Costs In Project Overheads
Below the organizational overhead checkbox, there is another one, that allows you to include unutilized time costs in the overhead. In Primetric, unutilized time costs are all costs of employees not working on clients' projects and contractor costs for non-billable projects. If your company has 10 employees and only 8 of them work on the project, hiring and paying the remaining 2 employees is counted as an unutilized time cost. This includes the working time of employees who don’t work at total capacity. For example, if all of your employees work, but their utilization on their projects is 50%, the remaining unutilized time is considered an unutilized time cost.
Formula - How Is It Calculated?
Let's first take a look at how the unutilized time cost is calculated:
When it comes to idle capacity cost, the formulas are as follows:
For Scheduled Budget
For Settled Budget
The second box is quite simple to count:
Hope this article will help you understand how Project Report works. Please don't hesitate to leave us feedback or any questions regarding this new time off view.