Margins per Hour (Hours Contracts Only)

Margins Per Hour


The Margin Per Hour is a report for Time & Materials (hours) contracts that allows users to identify how profitable each team member is, considering the work rates compared to the average hourly rate from the contract. 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 contracted 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 contract was created, so it requires attention. 

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


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




Filters


The filters available for this report are

  • Customer
  • Contracts 
  • 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 Contracted Value: the sum of all contracted values (informed on the contract creation). See Create a Contract for more information. 
  • AVG Contracted Hourly Rate: the average of all contracted hourly rates from all contracts listed.
  • AVG Actual Hourly Rate: the average of actual hourly rates based on worklogs and work rates from all contracts listed.
  • Gross Margin to Date: Difference in % between total contracted hourly rate and total actual hourly rate.




Columns Displayed


Fixed Columns: Information that comes from contracts 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 contracts


ContractsContract description
Contract ValuesThe contract values defined on the contract creation
Contracted Hourstotal contracted hours defined on the contract creation
Contracted Hourly RateHourly rates calculated on the contract creation
  • Contract value divided by total contracted 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 contracted hourly rates at the contract level.


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


ColumnDescriptionCalculation
Actual Billable (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 contract.
  • At a contract level, it sums the billable hours from all team members in that contract.
  • The "Totals" row is the sum of all billable hours at the contract level
Actual Billable (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 contract level, it sums the billable values from all team members in that contract.
  • The "Totals" row is the sum of all billable values at the contract level
Actual Non-Billable (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 contract.
  • At a contract level, it sums the non-billable hours from all team members in that contract.
  • The "Totals" row is the sum of all non-billable hours at the contract level
Actual Non-Billable (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 contract level, it sums the non-billable values from all team members in that contract.
  • The "Totals" row is the sum of all non-billable values at the contract 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 contract 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 contract level, it sums the total hours from all team members in that contract.
  • The "Totals" row displays an average of all contract rates.
Gross Margin to DateShows the gross margin in % for the related row.
  • For both team member and contract levels, it is ((Contracted Hours Rate minus Actual Hourly Rate) divided by Contracted 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 contract 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 contract 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 contracts are presenting missing data in one or more of the items listed above.