Most of the features described below are available in Team Professional Services and Enterprise Professional Services editions only. Team and Enterprise editions use a curtailed version of the financial module.
The Targets tab of the Financials screen is used to view and modify your target financial metrics.
To access the financial module, you must have "Access billing information" global permission.
Accessing Targets tab
To access the Targets tab:
- Open project details.
- Click the Project Financials button (
).
- Select Targets tab.
Overview
The Targets tab consists of three sections as follows:
- Billing
- Targets
- Estimate at Completion
The sections are discussed below.
Billing
Use the section to specify the project's billing type, billing method, and currency, according to the table below:
| Field | Values | Comments |
|---|---|---|
| Billing type |
|
*Default value |
| Project billing is based on: |
|
*Default value |
| Currency: |
|
*Default value |
Targets
Three key target parameters are set in this section:
- Revenue
- Budget, and
- Profit.
Check the table below for fields and totals used in this section.
| Field | Description | Comments |
|---|---|---|
| Revenue | ||
| Target Labor Revenue | Specify the project's target labor revenue. | If you know total target revenue, you can set it first to calculate target labor revenue (see about total target revenue below). |
| add planned billable expenses | Use the checkbox to include planned billable expenses into the project's total labor revenue. | |
| add activities flat fees | Use the checkbox to include flat fee activities into the project's total labor revenue. | |
| Total Target Revenue | This is a calculable and editable field. | As it is an editable field, you can work from total target revenue to calculate target labor revenue. |
| EAC metrics & variance: | ||
| EAC Billing | Estimated final costs, including labor costs and billable expenses. | You can use EAC Billing as a landmark to set target revenue against to minimize variance. |
| Variance | Variance shows the difference in percentage points (pp) between forecast and target values. | It makes sense to have a zero or at least insignificant 'green' variance to avoid financial losses. |
| Budget | ||
| Labor Budget | Specify the project's labor budget. | |
| add activities budgets | Use the checkbox to include activities' budgets into the project budget. | |
| add planned expenses | Use the checkbox to include planned expenses into the project budget. | |
| Contingency | Specify a contingency amount. | Contingency is a reserve amount that allows you to adjust the total budget in case of additional risks. |
| Total Project Budget | This is a calculable and editable field. | |
| EAC metrics & variance: | ||
| EAC Cost | Actual costs plus ETC costs. | You can use EAC Cost as a landmark to set target project budget against to minimize variance. |
| Variance | Variance shows the difference in percentage points (pp) between forecast and target values. | It makes sense to have a zero or at least insignificant 'green' variance to avoid financial losses. |
| Profit | ||
| Track profit as (dropdown list) | Select Amount or Percentages as a method to track profit. | If you select Amount, the heading will show as Profit ($, €, etc.). Selecting Percentages will show the heading as Profit (%). |
| Target Profit | Specify a target profit value. | |
| Expected profit & variance: | ||
| Expected Profit | EAC Billing minus EAC Cost. | You can use Expected Profit as a landmark to set target profit against to minimize variance. |
| Variance | Variance shows the difference in percentage points (pp) between forecast and target values. | It makes sense to have a zero or at least insignificant 'green' variance to avoid financial losses. |
Estimate at completion
This section provides overall project EAC metrics calculated based on actual costs and expenses. Check the table below for metrics used in the section.
| Metric | Description |
|---|---|
| Labor Cost | Total labor costs estimated based on actual billable hours spent and billable hours left. |
| Expenses | Total of actual and planned expenses. |
| Cost | EAC Cost calculated as the sum of Labor Cost and Expenses above. |
| Labor Billing | Total billable labor costs. |
| Billable Expenses | Total billable expenses, both planned and actual. |
| Expected Profit | Expected profit given as an amount in the project currency. |
| Expected Profit (%) | Expected profit given as a percentage. |