For either time based or fixed price projects, TekStack captures the total revenue of the project. It also shows labor costs attached to a resource or a resource's role. Using information including budgeted gross margin, actual gross margin, and estimated gross margin, you can track which projects are hitting a gross margin threshold and which are not.
This article explains the financial side of a TekStack project and how it ties into the complete view of our project services automation by allowing users to manage expenses, budgets, and financials from a single dataset.
It may be helpful to review these Knowledge Articles first:
Project Task Financials:
To understand financials at the overall project level, lets review how financials are calculated at the project task level. Project task financials are organized within the Margin sub-tab in the Project Task menu. These field values are calculated based on whether the task is fixed price or T&M. Project task financials differentiate between the sales amount of the task (calculated using the project milestones or price book role price for invoicing), the cost amount of the task (calculated using the project role cost for budgeting) and the projected cost of the task (calculated using the resource's cost for budgeting).
To breakdown this differentiation further, consider this example of Sarah, a project manager.
- The Project Manager role has an associated cost of $50 per hour. This is the average cost of the role within Sarah's organization (cost amounts - used for budgeting)
- The Project Manager role price within the price book is $200 per hour. This is the price per hour that your customer will be charged for the project manager (sales amounts - used for invoicing).
- Sarah's resource cost is $75 per hour. This is reflective of her salary (resourced cost and projected cost - used for budgeting).
These values are used to calculate budgeted, actual, and projected gross margin at the individual task level allowing project managers visibility into which project tasks are impacting the overall project gross margin thresholds.
| Field | Definition |
| Budget Sales Amount (FP) | Calculated as the sum of the sales amount of all associated Billing Milestone project tasks. |
| Budget Sales Amount (T&M) | Calculated as the sum of the budget amount of all time and material project tasks. |
| Budget Hours (FP) | Calculated as the sum of the budget hours of project tasks with Billing Type = Fixed Price. |
| Budget Hours (T&M) | Calculated as the sum of the budget hours of project tasks with Billing Type = Time & Materials. |
| Actual Hours (FP) | Calculated as the sum of the duration of time entries that are associated to projects tasks with Billing Type = Fixed Price |
| Actual Hours (T&M) | Calculated as the sum of the duration of time entries that are associated to projects tasks with Billing Type = Time & Materials |
| Remaining Hours (FP) | Calculated as the sum of remaining hours on Fixed Price project tasks. |
| Remaining Hours (T&M) | Calculated as the sum of remaining hours on Time & Materials project tasks. |
| Hours EAC (FP) | The hours estimate at completion for fixed price project tasks. Calculated as Actual Hours FP + Remaining Hours FP. lso equal to Actual Hours FP + Remaining Hours FP. |
| Hours EAC (T&M) | The hours estimate at completion for time and materials project tasks. Calculated as the sum of Hours EAC on T&M project tasks, also equal to Actual Hours T&M + Remaining Hours T&M |
| Progress % (FP) | Percent Complete Fixed Price, calculated as Actual Hours FP / Hours EAC FP. |
| Earned Value (FP) | Calculated as Budget Amount FP * Progress % FP. |
Project Financials:
TekStack provides a rich dataset of sales, cost, and margin values at the overall project level. These values pull from the financial details of each project task. Project financial details are organized within the sub-tabs of the project menu.
FP/T&M Breakdown:
This tab provides a detailed breakdown of hours between fixed price and T&M tasks. The budget hours are used to calculate the fixed price and T&M budgeted sales amounts.
| Field | Definition |
| Budget Sales Amount (FP) | Calculated as the sum of the sales amount of all associated Billing Milestone project tasks. |
| Budget Sales Amount (T&M) | Calculated as the sum of the budget amount of all time and material project tasks. |
| Budget Hours (FP) | Calculated as the sum of the budget hours of project tasks with Billing Type = Fixed Price. |
| Budget Hours (T&M) | Calculated as the sum of the budget hours of project tasks with Billing Type = Time & Materials. |
| Actual Hours (FP) | Calculated as the sum of the duration of time entries that are associated to projects tasks with Billing Type = Fixed Price |
| Actual Hours (T&M) | Calculated as the sum of the duration of time entries that are associated to projects tasks with Billing Type = Time & Materials |
| Remaining Hours (FP) | Calculated as the sum of remaining hours on Fixed Price project tasks. |
| Remaining Hours (T&M) | Calculated as the sum of remaining hours on Time & Materials project tasks. |
| Hours EAC (FP) | The hours estimate at completion for fixed price project tasks. Calculated as Actual Hours FP + Remaining Hours FP. ls equal to Actual Hours FP + Remaining Hours FP. |
| Hours EAC (T&M) | The hours estimate at completion for time and materials project tasks. Calculated as the sum of Hours EAC on T&M project tasks, also equal to Actual Hours T&M + Remaining Hours T&M |
| Progress % (FP) | Percent Complete Fixed Price, calculated as Actual Hours FP / Hours EAC FP. |
| Earned Value (FP) | Calculated as Budget Amount FP * Progress % FP. |
Cost and Margin:
This tab displays the combined cost and margin values from each individual project task.
| Field | Definition |
| Budget Cost Amount | Calculated as the sum of the cost amount for all projects tasks. Project task cost amount is calculated using planned role, costing currency, role cost and task duration. |
| Budget Gross Margin % | Calculated as (Budget Amount - Budget Cost Amount) / Budget Amount |
| Actual Cost Amount | Calculated as the sum of the Cost Amount of all the Time Entries related to this Project. |
| Actual Gross Margin % | Calculated as (Actual Sales Amount - Actual Cost Amount) / Actual Sales Amount. |
| Projected Cost at Completion | Calculated as the sum of the projected cost at completion for all project tasks. Project task projected cost at completion is calculated as the sum of actual cost + remaining hours * resource cost for each resource assigned to the task. |
| Projected Gross Margin at Completion % | Calculated as (Budget Sales Amount - Projected Cost Amount ) / Budget Sales Amount |
Sales Amounts:
This tab displays the combined budgeted and actual sales amounts from all milestone tasks and/or time entries from T&M tasks, as well as the total amount that has been invoiced for the project. Also displayed are details about the opportunity and opportunity line (product) that generated the project if there is one.
| Field | Definition |
| Budget Cost Amount | Calculated as the sum of the cost amount for all projects tasks. Project task cost amount is calculated using planned role, costing currency, role cost and task duration. |
| Budget Gross Margin % | Calculated as (Budget Amount - Budget Cost Amount) / Budget Amount. |
| Actual Cost Amount | Calculated as the sum of the Cost Amount of all the Time Entries related to the Project. |
| Actual Gross Margin % | Calculated as (Actual Sales Amount - Actual Cost Amount) / Actual Sales Amount. |
| Projected Cost at Completion | Calculated as the sum of the projected cost at completion for all project tasks. Project task projected cost at completion is calculated as the sum of actual cost + remaining hours * resource cost for each resource assigned to the task. |
| Projected Gross Margin Completion % | Calculated as (Budget Sales Amount - Projected Cost Amount ) / Budget Sales Amount. |