Margins per Hour (Plan in Hours Only)

Margins Per Hour


The Margin Per Hour is a report for Time & Materials (hours) plans that allows users to identify how profitable each team member is, considering the work rates compared to the average hourly rate from the delivery plan. It shows the cost position at a specific date in time.

When the report shows positive margins, this indicates the actual hourly costs (billable and non-billable hours) are lower than the planned ones and, the higher the gross margin is, the more profitable the team member is as well. Negative margins mean the actual hours executed are costing more than what was expected by the time the delivery plan was created, so it requires attention. 

The report shows the data per customer and plan and it is also possible to detail per team member. Users can select to show all plans for a customer or specify a single plan for that customer. For accounting purposes, there is an option to display all delivery plans from all customers as well.


IMPORTANT Hourly margins calculations do not consider extra Revenues and Extra Expenses informed on the delivery plan. If you want to calculate the plan margins, please, check the Margins per Delivery Plan report.


The Margins Per Hour report can also be exported to .PDF or .CSV formats. It also can be printed to be shared with other people inside the company.




Filters


The filters available for this report are

  • Customer
  • Delivery Plan(s) 
  • Position up to date
  • Detail by Team Member




Header


The report shows the most important totals in its header so the users can quickly check the status of the values and margins. Available totals displayed on the header:

  • Total Planned Value: the sum of all planned values (informed on the delivery plan creation). See Create a Delivery Plan for more information. 
  • AVG Planned Hourly Rate: the average of all planned hourly rates from all plans listed.
  • AVG Actual Hourly Rate: the average of actual hourly rates based on worklogs and work rates from all plans listed.
  • Gross Margin to Date: Difference in % between total planned hourly rate and total actual hourly rate.




Columns Displayed


Fixed Columns: Information that comes from delivery plans and which do not change over time. These columns are painted in gray in the report::


ColumnDescriptionCalculation
Customer

The customers that are informed on the related plans


Delivery PlanDelivery Plan description
Delivery Plan ValueThe plan value defined on the plan creation
Planned HoursTotal planned hours defined on the plan creation
Planned Hourly RateHourly rates calculated on the plan creation
  • Delivery plan value divided by total planned hours.
  • At a team level, it uses the same value as the basis for each team member
  • The "Totals" row is an average of all planned hourly rates at the plan level.


Variable Columns: Information that represents the current position on the selected date:


ColumnDescriptionCalculation
Actual Billable Costs (Hours)Displays the number of billable hours logged to date
  • At a team member level, it represents the sum of all billable hours logged by the team member for that delivery plan.
  • At a plan level, it sums the billable hours from all team members in that delivery plan.
  • The "Totals" row is the sum of all billable hours at the plan level.
Actual Billable Costs (Money)Shows how much that billable hours represent in money
  • At a team member level, the system multiplies each billable hour logged by the value defined on the related work rates.
  • At a plan level, it sums the billable values from all team members in that delivery plan.
  • The "Totals" row is the sum of all billable values at the plan level.
Actual Non-Billable Costs (Hours)Displays the number of non-billable hours logged to date
  • At a team member level, it represents the sum of all non-billable hours logged by the team member for that delivery plan.
  • At a plan level, it sums the non-billable hours from all team members in that delivery plan.
  • The "Totals" row is the sum of all non-billable hours at the plan level.
Actual Non-Billable Costs (Money)Shows how much that non-billable hours represent in money
  • At a team member level, the system multiplies each non-billable hour logged by the value defined on the related work rates.
  • At a plan level, it sums the non-billable values from all team members in that delivery plan.
  • The "Totals" row is the sum of all non-billable values at the plan level.
Total Hours to DateShows the total hours logged to date
  • The sum of billable and non-billable hours for that row.
  • The "Totals" row is the sum of all billable and non-billable hours at the plan level.
Actual Hourly RateDisplays the current hourly rate based on the actual hours and values
  • At a team member level, it is Total $ to Date divided by Total Hours to Date.
  • At a plan level, it sums the total hours from all team members in that delivery plan.
  • The "Totals" row displays an average of all plan rates.
Gross Margin to DateShows the gross margin in % for the related row.
  • For both team member and plan levels, it is ((Planned Hours Rate minus Actual Hourly Rate) divided by Planned Hours Rate).
  • The "Totals" row follows the same calculation.


IMPORTANT It is always recommended to pay attention to the values that compose the margins and results. In case the report shows negative or zeroed margins, or even when margins are too high, it may indicate some data are missing. In case this happens, please, check if:

  • The delivery plan value is correctly informed: this is important to calculate the hourly rate and to compare it with the actual rate to generate the margins. It is possible to fill in this information during the delivery plan creation
  • The work rates table for the team member is filled: the costs for every worklog entered are only calculated in case the work rates are informed. This will also impact the actual hourly rate and gross margin calculations. 
  • There are worklogs entered for that period: the work rates will be calculated based on the worklogs entered by the team members. Check if there are worklogs entered until the date the report is requested for.

The system will indicate with an asterisk (*)  and a tip in the bottom of the screen when the delivery plans are presenting missing data in one or more of the items listed above.