If a Project does not have a budget amount simply go with Time and Expenses budget type and you are all set.
Within the Profitability info, which can be found within the Project info, you can keep track of your Income, Cost and Profit.
- First we need to set the internal hourly rate (more on this topic) by going over to the People section, where we can show the rates per all users,
- In our case it is Mike Johnson, whose internal rate has been set to 10 USD/h, which is done by clicking on the ''Not set'' field, which pops up the Change Rates and Capacity dialog,
- Once we set the internal hourly rate, we need to make sure that the Job type rate has been set too,
- In our case we have Design job type at 20 USD/h,
- Then we choose if the tracked time and expenses would be billable or non-billable, along with who gets to change the billing status, the Owner and Project Leaders or all users,
- As we have both rates set, we can now move to tracking the time, and in our case we have added 1 hour of design time.
- 7We have also added a fixed Expense amount of $500 (billable),
- Now that we are all set, let's focus on the Project info to check the current standing. This is where we can see the result of:
Income: 520 USD (1h x 20USD/h + 500 USD)
Cost: 10 USD (1h x 10USD/h )
Profit: 510 USD (520usd - 10USD)
NOTE: This data can be seen by Owner and Member+ (with the option to work with invoices and estimates) users only.
The Profitability section consists of the following elements (in detail):
Income: Potential income, if all the billable hours and expenses are charged.
Income = [(Billable Hours * Job Type Hourly Rate) + Billable Expenses]
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]
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).
Note: Profitability info and internal hourly rates are part of Get Paid Bundle.