Profitability

ActiveCollab allows you to set internal hourly rates for each user (except for Client and Client+ roles) to keep track of all your projects' costs in detail.

Bill your client one rate (Job type rate), while having your internal rates calculated as well (Internal hourly rate).

Each member's capacity and internal hourly rate can be set by Owner and Member+ (with the ability to work with invoices and estimates) roles, within the People section:

  • Go to the People section in the menu on the left 
  • Choose the person 
  • In the upper right corner click Show Internal Rates
  • Internal rates are set as unchecked by default


Once the box is checked, you can set the individual rate:

  • to 0 (for interns or pro bono freelancers),
  • to a certain hourly rate,
  • leave it as is: in which case it will remain marked as ''not set'',
  • internal Hourly Rates can't be set for Client and Client+ roles.

This dialogue lets you set a user's daily capacity as well. For more details on the Capacity help page.

Here's an example to see how it all works:

If the Member Ashley Rogers has an internal rate set to $100 per hour and she has tracked 10 hours of Design work which is set to $300/h, your Project profitability will be:

Income: 10 hours x $300 = $3000
Cost: 10 hours x $100 = $1000
Profitability (Income - Cost): $2000

The Internal Hourly Rate history is taken into account as well.

This means that if you had one hourly rate until a certain date, it will remain applicable to those time entries, while new ones will be calculated for future entries. Changes made in internal hourly rates will be visible the next day. 

Example:


Ashley's entries up until January 30th will be multiplied by 10 USD/h while those from January 31st till February 4th will be multiplied by 16 USD/h ....and so on.

Note: This feature is only available with the GetPaid Bundle.

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