A key component to calculating gross margin is having an accurate cost for each person.
Cost information is very sensitive data and will most likely be maintained by your Projectworks administrator in conjunction with HR and Finance.
Projectworks administrator: By default the System Admin access level has access to add/edit costs for all people. The access levels can be amended as needed - use the "more options" area and tick/untick the view costs and edit costs options under Person.
Setting up costs
Costs for each person are set up on their costs screen and can be entered as an hourly figure or an annual amount. If entered as an annual amount, for calculations the cost will be converted to an hourly rate by dividing the annual amount by the number of hours specified on the Financial Year set up.
The costs screen is locked when first accessed and can be unlocked using the toggle at the top right of the table
To create a cost, you need to select the cost type (which are maintained in the admin section), a frequency, amount, currency and relevant dates.
- Select a date to see what cost applies on that date
- If the cost is to be ongoing, leave the end date blank.
- If the cost for a person changes, set an end date on the previous cost, and create a new cost starting the day after
- You can set up a future dated costs if required - remember to also set the end date if it is replacing an existing cost
- Cost types are set up by your administrator in the admin section
What to do when a cost changes
The cost of people will change over time, either with a change to their pay, or an adjustment to any overheads that are allocated. Changes are handled by either creating a new cost entry, and/or setting an end date to an existing cost entry.
Caution: If the costs associated with a person change they should be updated by adding a new cost record, and setting the end date on the previous version of the cost
Removing a cost
If a cost is no longer applicable it is recommended that it is edited and has an end date set to make it inactive.
A cost entry can be deleted, but should only be done if the cost entry was an added in error.