Table of Contents
Overview
Financial Calculations With "Include Organization Overhead" Checked
Formula - How Is It Calculated?
The Organization's Overhead Formula with "Include Unutilized Time Costs" Checked
Formula - How Is It Calculated?
Overview
If you go to Projects Finances in the Report tab, you'll see two checkboxes:
- include organization overheads
- include unutilized time costs (available if the previous box is checked)
They change calculations in your project's report in the Projects Tab and the Projects Finances Report in the Reports Tab. In this article, you'll learn how they change calculations.
Financial Calculations With "Include Organization Overhead" Checked
This checkbox lets you 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 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?
The Organization's Overhead Formula with "Include Unutilized Time Costs" Checked
Below the organizational overhead checkbox, another one 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 work on the project, hiring and paying the remaining 2 employees is 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 project utilization 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:
The second box is quite simple to count:
We 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.