Report 462 – Employee Gross Profit Distribution

Report 462 shows the gross profit (GP) distributed on employees for a given period.

To understand the logic of this report, we will start by looking at the detail section.

Jobstatus The current job status
Used time in period Hours entered on the job in the given period
Total hours job (sales price) Total sales price of hours used on the job
Hours job in period (sales price) Total sales price of hours used on the job in the given period
Max. hourly value on job The maximum of all price quotes OR sales invoices
Total job value for distribution Lowest of either “Total hours job” or “Max. hourly value on job”
Job value for distribution in period Hours job in period / Total hours job * Total job value for distribution
Hours emp. in period (sales price) Employees time used in period
GP Employees share of GP in period
The gross profit is calculated after the following principles:
Jobs are non-billable GP = 0
Current job status = 0 or 5 GP = 0
Current job status = 1, 2 or 3 – For each job, the sum of sales price on all time entries throughout the job’s life time is measured and thereafter calculated if it is above or below the sum of the total amount (External cost * Profit margin) ÷ the sum of all price quotes with status “Approved externally”.- If under the periods GP = the sum of all time entries sales price in the period.- If over the periods GP =  proportionate sales price of hours entered during the period – as the selling price of all time entries in the job’s life is reduced proportionally to the sum of the total amount minus (External cost * Profit margin) of cost estimates (distribution key = sales price). The resulting percentage reduction is applied to all entries in the period.In other words: All employees bear their proportionate part of a write-down.The above means that if GP on price quotes = 0, GP = 0
Current job status = 4 – For each job, it is measured on the sum of the sales price on all time entries throughout the job’s life, if it is above or below:+ the sum (net amount) of all finalized sales invoices (no cut-off)÷ the sum (sales price) of all purchases with status 60 (no cut-off)÷ the sum (sales price) of all approved, unsettled purchase orders (no cut-off)- If time entries are over the periods GP = proportionate sales price of hours entered during the period – as the selling price of all time entries in the job’s life is reduced proportionally to the sum of the total amount minus (External cost * Profit margin) of cost estimates (distribution key = sales price). The resulting percentage reduction is applied to all entries in the period.In other words: All employees bear their proportionate part of a realized write-down.
The columns in the report shows the following:

Basic time Ideal time according to the employees capacity profile
Used time Actual time used in the period
+/- Basic time ÷ Used time
GP See section above
Pct. of total GP Percentage of the “GP” column
GP ranking Ranking of the “GP” column
GP target Ideal time in period * Employee sales price * Billable target
Diff GP ÷ GP target
Diff pct. Diff / GP target
Below is an example with data.

The report will check the job filter

It is therefore recommended that you see all jobs regardless of status and customer.

 

 

 

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