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The cost planning tab is for planning out your expected expenses. You can then create budgets based on the plan and receive notifications when budgets are near consumed, or fully consumed. Budget by client amount, disbursed amount, and expense amount. Cost plans can be entered against Client amount, Disbursed amount, or Expense amount. You cannot define a separate amount for each one. They are tied together mathematically. If you update Client amount, then both disbursed and expense amounts will change. More details on how this works are available in this help document. |
This tab is reached by opening a project and selecting the Cost Planning tab.
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In order to understand how the calculations are done you also have to understand DMUP and TCAF. These define the relationship between Client Amount, Disbursed Amount, and Expense Amount. DMUP is the more most likely of the three to affect you you'll encounter, and so we start there.
Default Markup Percentage (DMUP)
Each expense type has a Default Markup Percentage. This is a positive or negative percentage. For example, you may have a markup of -50% for travel. This indicates that clients only pay half the costs of travel. Or you may have a +20% markup for subcontracted work, indicating the client pays a 20% premium. You can also have a 0% DMUP so that the client always pays the actual cost.
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So now you know how DMUP affects calculations, but how does TCAF affect it? TCAF is an on/off switch. When 'on' it tells Projector to treat all expenses as revenue. This in turn changes the way expense is calculated. The short way to remember this is:
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