Fixed Price Projects

You can choose the Fixed price budgeting type if your project has a pre-determined budget.

Within the Profitability info, which can be found in the Project info, you can keep track of your Budget, Spent so far, Income, Cost and Profit.

  • First of all, set the internal hourly rate (more on this topic) by going over to the People section, where you can see everyone's hourly rates,
  • Clicking ''Not set'' pops up the Change Rates and Capacity Dialog. In this case, Mike Johnson's internal rate is set to 10 USD/h.
  • Let's create a Project with the following elements:

- Choose Fixed price project and set it to $500,

- Then choose if the tracked time and expenses will be billable or non-billable, along with who gets to change the billing status, the Owner and Project Leader or all users,

- A Design job type with an hourly rate set at 20 USD/h.

  • Now that both rates are set, we can move on to tracking time records, and in our case, 1 hour of "Design" has been added.
  • We have also added a fixed Expense amount of $100 (billable) and $50 (non-billable).

Finally, let's focus on the Project info to check the current status. This is where the following will be displayed:

Budget: 500 USD

Spent: 120 USD (1h x 20 USD/h + 100 USD billable expense)

Income: 500 USD (always the same as the budget)

Cost: 60 USD (1h x 10 USD/h + 50 USD non-billable expense)

Profit: 440 USD (500 USD - 60 USD)

NOTE: This data can be seen by Owner and Member+ (with the option to work with invoices and estimates) users only.

The Profitability info consists of the following elements (in detail):

Budget: The amount you have set as fixed price (budget) i.e. the amount you will charge your client.

Spent: Percentage of the utilization of the budget. The calculation is based on all billable hours and billable expenses.
Spent = [(Billable Hours * Job Type Hourly Rate) + Billable Expenses]

Income: The same amount as the defined budget. 

Cost: Your project's internal costs. (For example, your employee's wage)

Cost = [(All Tracked Hours (both billable and non-billable) * Employee's Internal Hourly Rate) + Non-Billable Expenses]

Profit: The difference between Income and Cost.
Profit = [Income - Cost]

Last, but not least, an invoice can be issued based on a project's fixed price budgeting type. Learn more here: Issuing Invoices.

NOTE: if internal rate is not set for one of the users and time record submitted, the system will let you know by presenting the notification in red within the Project info/Profitability section).

Make sure you get the most out of this feature by setting up Budget Alerts!

When a certain percentage of the budget is spent, the Project Leader will be notified via an in-app notification, and email.

If there's no Project Leader, a notification will be sent to the Project Creator.

If the Project Creator is no longer on that particular Project, the Owner and Member+ (permission to access invoices and estimates) roles will be notified.

*Note: If a threshold is edited or deleted, once it's reached or exceeded, no new notification will be received when a new lower threshold is set.

Budget alerts are set by default at 80% and 100% of the spent budget for the entire account.
They can be changed here: System Settings>Time and Expenses>Tracking and Availability>Budget and Time Tracking.

This is where you can also set new ones.

Note: Profitability info and internal hourly rates are part of Get Paid Bundle.