Margins per Contract

Margins Per Contract


The Margin Per Contract report allows users to identify how profitable each contract is, considering the amount of money that comes from contract value, executed hours, extra revenues, and extra expenses. It encompasses both Time & Materials and Fixed-Price contracts and shows the cost position at a specific date in time.

When the report shows positive margins, this indicates the actual contract costs (billable and non-billable hours and extra expenses) are lower than the Revenues (contract value and extra revenues) and, the higher the gross margin is, the more profitable the contract is as well. Negative margins mean the contract is actually costing more than what was expected by the time the contract was created plus extra revenues added later, so it requires attention. 

The report shows the data per customer and contract. 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.




Filters


The filters available for this report are

  • Customer
  • Contracts 
  • Position up to date





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 Revenues: the sum of all Contract Values and Extra Revenues. 
  • Total Costs: the sum of all contract costs from the logged hours and Extra Expenses. 
  • Gross Profit: the difference in money between Total Revenues and Total Costs.
  • Gross Margin: Difference in % between Total Revenues and Total Costs.




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


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


ColumnDescriptionCalculation
Revenues to DateDisplays extra values entered on the contract to date as revenues
  • Sum of all values on the Extra Revenues (left) column of the contract, considering the effective dates until the report date requested.
Expenses to DateDisplays extra values entered on the contract to date as expenses
  • Sum of all values on the Extra Expenses (right) column of the contract, considering the effective dates until the report date requested.
Billable $ to DateShows the costs that come from billable hours logged to date
  • Sum of all billable values for that contract (billable hours multiplied by related work rates)
Non-Billable $ to DateShows the costs that come from non-billable hours logged to date
  • Sum of all non-billable values for that contract (billable hours multiplied by related work rates)
Total Revenues to DateDisplays the total values entered as revenues to date
  • Contract Value plus Extra Revenues to Date
Total Costs to DateDisplays the total values entered as costs to date
  • Extra Expenses to date plus Total Billable to Date plus Total Non-Billable to Date
Gross Profit to DateDisplays the Gross Profit in money for the contracts
  • The difference in money between Total Revenues and Total Costs
Gross Margin to DateDisplays the Gross Margin in percentage for the contracts
  • The difference in % between Total Revenues and Total Costs


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 gross profit, comparing with the costs. 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 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.
  • Revenues and Costs are correctly entered for the contracts: make sure all values that compose revenues and costs are correctly informed. These values are used to calculate the gross profit and gross margin.
    • Revenues: Contract value and Contract Extra Revenues to date
    • Costs: Contract Extra Expenses to date and values gathered from Billable and Non-Billable hours, considering the related work rates.

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.