Definition of Billing, Cost, Profit and Budget

Billing

Billing is what you invoice your clients for the work done.
Either an external client or another department within your organization.
Using Billing Methods, you can set a fixed fee on a project or a billing rate per person, project, tasks, ...


Costs

An employee costs the company an amount per hour based on: salary, compensation, car, mobile, laptop, office space, etc...
It is a standard cost that you have to evaluate based on past data.
The cost is set using Standard Cost on the employee page or a customer/project/sub-project page.


Profit

There are two kind of profit you can get in a report or chart:
  • The profit in %, equivalent to ( billing - cost ) / billing * 100 (Will be equal to 0 if the total profit is negative)
  • The profit in amount ( billing - cost )

Budget

The budget sets an amount or a number of hours budgeted for a project and/or subprojects.
Each time an employee records an hour, the budget is consumed by the respective amount or time.

The budget status indicates the initial budget, and how much is left in the project/subproject.


An example

When this employee records an hour, the company earn a profit of $20.
In this case , the profit is $20 ( 100 - 80 ) per hour or ( 100 - 80 ) / 100 * 100 = 20%

And this consume the budget by 100€.
In budget status, you can see the remaining budget is then 900€ or 90%.