Project gross margin

The Margin screen within the Project Workbench shows the gross margin for a project. This screen contains sensitive information and your Project Works administrator may not have made the screen available to many people - talk with your Manager if you believe you should have access to this screen.

The margin for the project is calculated using timesheets, resourcing, invoicing and forecasting values. Margin is always updated as new data is entered, so up to date timesheets, financial forecasts and resourcing are key to accurate information.

The screen is split into two sections:

  • Summary data: showing the predicted margin based on projected revenue and costs at completion.
  • Cost data: for each person involved on the project, the cost of work done to date and future resourcing.

Note: You can predict the gross margin you will make on a project before you even start working on it. By entering the financial forecasts (revenue expected) and the resourcing expected to complete it (cost to deliver) you can verify whether the project will deliver the financial results expected.


Summary data

The summary data comprises of revenue and costs to the end of the project, with the relevant margin amount and percentage calculated

Revenue at Complete
  • Invoiced: The total of invoices issued up to the end of the previous month
  • Forecast: The total forecast from the current month and future months
  • Total: Invoiced + Forecast 

Note: only services GL Codes are used in the revenue calculation.

Cost at Complete  
  • Projected Burn: Worked + Resourced
  • Worked: The total cost for the hours in timesheets up to the end of the previous week (Sunday)
  • Resourced: The cost future resourcing from the start of the current week (Monday), using the hourly rates that apply

Note: If a person's costs change part way through a week, resourcing will be pro rated accordingly

Margin  
  • Total: Calculated as
    (Revenue at Complete - Cost at Complete)
  • Percent: Calculated as
    (Total Margin / Revenue at Complete)

Person cost data

The cost per person rows include timesheet and resourcing information. The cost data is presented on a per person basis, with a row for each person who has either recorded time against the project or has resourcing allocated

The calculated hourly rate is shown for each metric (timesheets, resourcing and total) and is calculated based on the cost and hours for each metric,

Timesheets  
  • Worked hours: The total hours in peoples timesheets up to the end of the previous week (Sunday)
  • Worked cost: The total cost of timesheet entries up to the end of the previous week (Sunday)
Resourcing

  • Resourced hours: The number of hours of future resourcing from the start of the current week (Monday), using the hourly rates that apply
  • Resourced cost: The total cost for the hours resourced, using the hourly rate that applies for the weeks resourced

Note: If a person's costs change part way through a week, resourcing will be pro rated accordingly

Cost at Complete
  • Total hours: The total hours for each person: Timesheets + Resourcing
  • Total cost: The total cost for each person: Timesheets + Resourcing