Projects Based on Time and Expenses

Projects Based on Time and Expenses

If a Project does not have a fixed 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.

How to set the Project Budget status to Time and Expense?

• Step 1: Click on the desired Project.
• Step 2: Click on the “...” menu.
• Step 3: Click on the Edit option from the drop-down menu.
• Step 4: Find the Budgeting type and set them to Time and Expense.
• Step 5: Click on “Update Project”

How to set the Project Budget status to Time and Expense for the entire account?

• Step 1: Click on your Profile Icon in the upper right corner.
• Step 2: Click on System Settings.
• Step 3: Click on Time and Expense Settings
• Step 4: Under “Budgeting type” select “Time and Expense”
• Step 5: The change is saved automatically.

How to set internal rates for users in ActiveCollab?

• Step 1: Click on the People tab
• Step 2: Click on the desired user
• Step 3: Click on the “...” menu
• Step 4: Click on the “Rates and Capacity” option from the drop-down list
• Step 5: Under “Internal Hourly Rate” enter the desired rate.
• Step 6: Click on “Save”

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

How can I use the Profitability and Internal hourly rates feature?

To activate the GetPaid bundle, please do the following:

• Step 1: Click on your Profile Icon
• Step 2: Click on your Billing page,
• Step 3: Choose Manage Bundles,
• Step 4: Click Activate and follow the steps for your Order Summary. Afterwards you may finalize the payment.

How does Profitability work in a Project budget based on Time and Expenses?

Note: After setting the project budget to Time and Expense and setting internal user rates, the Profitability will function as shown below:

• Lets say that Mike Johnson has tracked 1h of Design job type with his internal rate.
• Mike Johnsons’s internal rate is set for 10$/h
• Design job type is set for 20$/h
• For example, lets also add a billable Expense for 500$

• 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.

What elements go into Profitability?

• 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).

How to create a Project Budget Alert?

• Step 1: Click on the desired Project.
• Step 2: Click on the “...” menu.
• Step 3: Find the Budget line and click on the Bell icon
• Step 4: Click on “Add New Alert”
• Step 5: Enter the desired % for the Project Budget Alert.
• Optional: You can repeat steps 4 and 5 to add multiple Project Budget Alerts if you wish.
• Step 6: Click on “Save” once you are done.
• Step 7: Click on “Update Project.”

How to create a default Project Budget Alert for the entire account?

• Step 1: Click on your Profile Icon.
• Step 2: Click on your System Settings.
• Step 3: Click on “Time and Expense Settings”
• Step 4: Click on “Default Budget Alerts”
• Step 5: Click on “Add New Alert”
• Step 6: Enter the desired % for the Project Budget Alert.
• Step 7: Click on “Add” once you are done.
• Optional: You can repeat steps 5, 6 and 7 to add multiple Project Budget Alerts if you wish.
• Step 8: Changes are saved automatically.

How to delete a Project Budget Alert?

• Step 1: Click on the desired Project.
• Step 2: Click on the “...” menu.
• Step 3: Find the Budget line and click on the Bell icon
• Step 4: Click on the Trash icon to delete the desired Project Budget Alert.
• Optional: You can repeat Step 4 to delete all the Project Budget Alerts you wish.
• Step 5: Click on “Save” once you are done.
• Step 6: Click on “Update Project.”

How to delete a default Project Budget Alert for the entire account?

• Step 1: Click on your Profile Icon.
• Step 2: Click on your System Settings.
• Step 3: Click on “Time and Expense Settings”
• Step 4: Click on “Default Budget Alerts”
• Step 5: Click on “...” next to the Project Budget Alert you wish to delete.
• Step 6: Click on Delete
• Optional: You can repeat steps 5 and 6 to delete multiple Project Budget Alerts if you wish.
• Step 8: Changes are saved automatically.

How to edit a default Project Budget Alert for the entire account?

• Step 1: Click on your Profile Icon.
• Step 2: Click on your System Settings.
• Step 3: Click on “Time and Expense Settings”
• Step 4: Click on “Default Budget Alerts”
• Step 5: Click on “...” next to the Project Budget Alert you wish to edit.
• Step 6: Click on Edit.
• Step 7: Enter the new value for the Project Budget Alert.
• Step 8: Click on “Save”
• Optional: You can repeat steps 5 through 8 to edit multiple Project Budget Alerts if you wish.
• Step 9: Changes are saved automatically.

Who will the Project Budget Alert notify?

• 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.