On Project financials tab you set project pricing and add fees and costs to your project. You can also update financial forecasts like billing and other costs either manually, or using the Update forecast feature. On the right side you can see all key financial figures of your project and all project Invoices.

Set prices

In Set prices section you can choose if project uses a price list added in Settings or a project-specific price list. When using a predefined price list, existing pricing rules cannot be edited on the project. By selecting Convert to project specific pricing you can edit hourly rates and mark work types as non-billable. In this case the changes apply only to that specific project and affect work hours and fees logged to it.

Set prices section is divided into three smaller sections (tabs):

  1. Work hour rates: This section shows the hourly rates applied to project work hours.
  2. Travel rates: In this section you can define whether travel expenses logged to the project are billed from the customer by selecting Bill mileage/per diems/other expenses. You can also see the rates applied to project travel expenses, inherited from the enabled price list or the company’s travel expense registry.
  3. Product rates: This section shows the prices applied to project products and where the prices are inherited from (price list/product registry). When a project-specific price list is used, product prices can be edited via this tab.

Add hourly rate

Add hourly rate button lets you add new pricing rows linked to work types and/or users on the project. 

The price of a work hour entry is determined according to the hierarchy below:

  1. Flat rate project (parent phase)
  2. Flat rate phase
  3. Price per hour per person + work type + phase
  4. Price per hour per work type + phase
  5. Price per hour per person + phase
  6. Price per hour per phase
  7. Price per hour per person + work type
  8. Price per hour per work type
  9. Price per hour per person
  10. Price per hour for all

Fees and other expenses

From this section you can find Recurring fees, Product fees, Subcontracting fees and Travel expenses already on project. On each tab, fees or costs are divided into billable (billable now), billable later, invoiced and non-billable.

Here you can also add new fees or costs by selecting Add fee or cost. To delete a fee or cost hover your mouse over the wanted item and click the red Remove icon. It is not possible to delete a fee or product which has been invoiced.

Creating recurring fees

Use Add fee or cost to add recurring fees. If you want to create recurring billable products (e.g. agreement billing or monthly service fee), create the fee as a recurring fee. The option to define the recurrence rule appears after you have added the fee or cost. Add a new recurring fee and create a billing rule for it:

  1. Click Add fee or cost and select the billable product
  2. Define Product information and Pricing
  3. Define the recurrence rule by selecting Billing section Billable  > Recurring
  4. Define the recurrence rule for the fee:
    1. Repeat every: define the invoicing recurrence, for example every sixth month.
    2. Start date: define the date when the first fee becomes billable.
    3. Recurrence end: define the rule for ending the recurrence. This setting can be edited afterwards.
      • Never: if no end date is defined, invoicing of the recurring fee continues until it is ended manually.
      • Number of times: define the recurrence based on number of times when you want to end the recurrence after a certain number is reached. The number of recurrences is defined in Times field.
      • On date: recurrence ends on the date set in End date field.
    4. Start date of invoice row's display period: the date defined in this field is shown as text on the invoice row when the fee is invoiced. For example, set the first day of the month if you want the recurrence to always start from the beginning of the month on each occurrence.

Recurring or Start date values cannot be changed after the fee has been invoiced, but Description, Quantity, Business unit, Unit cost, Unit price and VAT values can be changed at any time.

Forecast

Project forecasting is an essential tool when comparing project financial success to your own estimates. In forecast you can edit forecasts for revenue, billing, other expenses, sales margin, labor expenses and project margin. You can also add multiple forecasts for same row by clicking the pencil icon in the forecast row. You can also use the Update forecast feature to automatically calculate Revenue, Billing, Other expenses and Labor expenses.

When calculating forecasts, recurring fees use the following logic:

  • The first month is looked up from the Start date selection.
  • Repeat every defines the intervals after the start date.
  • When ending is after X times, as many occurrences as defined in Times are created.
  • When ending is on a certain date, occurrences are created until the month of the end date.
  • With Never selection, occurrences for 12 months forward are created.


Keywords: project financials, price list and hourly rates, travel rates, product rates, fees and costs, recurring billing, flat rate project, billable and non-billable items, update forecast, project financial forecasting



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