Two of the reports in Primetric contain additional settings marked as checkboxes. These settings influence the calculations in reports. In this article, you will learn how the above settings affect the presentation of financial results in the Project Finances Report, the Profitability Report, and the Project's-Specific Report.
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Settings in the Project Finances Report
If you go to Projects Finances in the Report tab, you'll see two checkboxes which alter calculations in your report.
Include Organization Overheads
This checkbox lets you include organization overhead costs from a specific period (for scheduled and settled status) in the report, giving us information about everything that should be calculated to determine a project's profitability/ margin.
If you’re running a business, you'll probably have some general overhead costs, such as office rent, software subscriptions, one-time purchases like a new computer or desk, and overhead incomes, like rentals. In Primetric, you can add these overheads 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 proje
Formula - How Is It Calculated?
Include Unutilized Time Costs In Project Overheads
Below the Include Organization Overheads, another one allows you to include unutilized time costs in the overhead calculation. In Primetric, unutilized time costs are all costs of people not assigned to clients' projects and contractor costs for non-billable projects. If your company has 10 employees and only 8 are assigned to the project, hiring and paying the remaining 2 is an unutilized time cost - a bench. This includes the working time of those who don’t work at total capacity. For example, if all people have assignments in the project, but their utilization is 50%, the remaining unutilized time is considered an unutilized time cost (the bench).
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:
Settings In The Profitability Report
The Profitability Report calculates people's profit margins based on costs, incomes, average hour cost, rate, profit, and profit margin. It allows for sorting various data like name, team, and department, with the option to include company overheads. The report provides insights into a worker's profitability index, job availability, capacity utilization, project benefits, cost-effectiveness, and contract renewal considerations.
If you go to the Profitability Report in the Report Tab, you'll see two checkboxes that change the calculations in your report. The separation of these two options is caused by the need to precisely measure and predict the profitability of people in the organization, department, and projects following the details you set.
Include The Organization Overheads
Managing Organization Overheads
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Log in to Manager Role Account ▶ Click the Organization Tab on the main
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Learn more about Organization Overheads in Primetric in the following article: Lesson 19 - Managing Overheads In Primetric. Types And Formulas
Formula - How Is It Calculated?
Suppose you check the Include Organization Overheads checkbox. In that case, the amount of organization overheads included in people costs will also be displayed under the amount of costs generated by the filtered people through work alone.
Learn more about calculating overhead amounts in the Profitability Report in the article:
Profitability Report - A Comprehensive Guide On Report And Formulas
Include Project Overheads
Managing Project Overheads
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Log in to Manager Role Account ▶ Go to the Projects Tab ▶ Pick the project
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Learn more about Organization Overheads in Primetric in the following article: Lesson 19 - Managing Overheads In Primetric. Types And Formulas
Formula - How Is It Calculated?
If you check the “Include Organization Overheads” option, the amount of organization overheads included in people's costs is displayed under the amount of costs generated by them through their work. If both checkboxes for Include Organization Overheads and Include Project Overheads are checked, this amount includes both overhead categories.
The way organization overhead is calculated varies depending on other settings. To learn the detailed formulas for the different variations, go to the separate article about the Profitability Report: Profitability Report - A Comprehensive Guide On Report And Formulas