How Income and Cost Profiles are Calculated

This section defines the rules for how the profiles of income and cost are calculated.

Terminology

Fixed Fee	Fixed fee tasks are task whose charge method is set to fixed fee. The fee may be either manually entered for the task as a lump sum or spread from a total service fee to the task using a percentage split. Fees are entered for tasks under the Project Fees project menu.
Time-charged	Time-charged tasks are tasks whose charge method is set to Timecharged. This is defined under the Project Fees project menu and editing the task fee.
Charge Timing	The charge timing defines how the task is to be invoiced. Options for Fixed Fee Tasks: ▪By percentage complete ▪On Completion ▪Monthly Schedule ▪By schedule ▪Sign-off ▪Manual Options for time-charged tasks: ▪As time booked ▪On Completion ▪Sign-off
Target Method	The target method defines how a task target is to be derived. The options are: ▪Manual entry – by entering a total hours remaining for a task ▪Linked to Fee – by entering a percentage profit required on the fixed fee ▪Build from Resource Plan – the total of resources allocated to the task creates the target.

Income for Fixed Fee Tasks

If the task has a charge timing setting of Monthly Schedule, then the income profile is taken from the schedule.

If the task is any other charge method, the income is apportioned on a straight line basis between the task start and finish dates

Income for Time-charged Tasks

If the task has a target method of Build from Resource Plan, the income is taken from the hours entered into the resource plan x resource charge rate.

If the task has any other target method, the income is taken from the time-charge estimate entered on the task proportioned in a straight line over the task start and finish dates. If no timecharge estimate is entered, the target cost is used instead.

Cost for All Tasks (of any charge method)

If the task has a target method of Build from Resource Plan, the cost is taken from the resource plan.

If the task has any other target method, the cost is taken from the target cost entered on the task proportioned in a straight line over the task start and finish dates.

If an estimate for non chargeable expenses is entered for the service, the expense percent is added to the remaining cost to complete.

If project expenses are entered in advance, these are shown as anticipated expense costs for the month they have been entered.