1. Administrator Guide
  2. Projects
  3. Pricing

Pricing

Project pricing lets you create pricing estimates for specific projects based on different staffing, rate, and time required scenarios, and automatically view the key financial analysis for those scenarios.

Pricing properties form.

The Pricing feature is displayed as a link within a project if pricing is enabled within the project stage. See Project Stages. The options available are determined by the pricing scenarios that are set up within the project.

Financials: Pricing: Scenario

Use the Pricing Scenario form to set up pricing scenarios for your project.

Create a Pricing Scenario

  1. Go to Projects > Projects > [select a project] > Financials > Pricing. The “Scenario” form opens.

  2. In the Revenue section, select the rate cards you wish to use to determine revenue based on standard and discounted rates. The analysis will show both the gross revenue (from the standard rate card) and the difference in the discounted rate card.

  3. The "Get the revenue hours from" field determines the revenue portion of the analysis. Choose "Job code estimates" for a high-level, job-code-based labor revenue estimate, "Bookings" for a more detailed estimate, or Tasks for the most granular estimate. (If you want to split revenue over time, you must select "Bookings.")

  4. Select “Calculate revenue to generate a margin of” if you would like to ignore revenue entries and instead calculate your scenario’s revenue by a percent margin. Enter the percent margin you want generated in the text field (do not include the % sign).

  5. The "Get the hours from billable resource costs from" field determines the labor cost portion of the analysis. Choose "Job code estimates" for a high-level, job-code-based labor cost estimate, "Bookings" for a more detailed estimate, or Tasks for the most granular estimate.

  6. If you have enabled multi-currency functionality, select the currency for the scenario.

  7. If desired, choose a percent probability of closing from the dropdown menu. This will be used when running the "Pricing analysis" Advanced project report.

  8. Check the “Staffing approved” and “Finance approved” boxes to indicate if this scenario has been approved by Finance or Staffing functions. These check boxes will only be visible to users whose roles are set up to modify finance or staffing approval for project pricing.

  9. Select “Use worked hours for prior months” to use actual worked hours to calculate the scenario instead of booked or assigned hours when actual hours are available.

  10. Enter any desired notes, and click “Save”.

Other gross revenue, investment absorptions, other billable costs, non-billable resource costs, and non-billable expense costs can all be individually spread out over time.

Split Pricing Scenario Amounts Over Time

  1. Go to Projects > Projects > [select a project] > Financials > Pricing > Scenario. The “Scenario” form opens.

  2. Set up the Revenue section of the Pricing Scenario form as in Create a Pricing Scenario.

  3. In the Cost section of the Pricing Scenario form, click the “split” link next to either the “Billable expense or purchase cost (money)” or “Non-billable expense or purchase cost (money)” fields. The form will change to show “Date” and “Amount (money)” fields for each billable or non-billable expense or purchase cost.

  4. For each section where you want to split the amounts over time, select the date and corresponding amount of money that you want to allocate for that time period. The first time period defaults to today's date. Note that for every date you choose, you must have a corresponding dollar amount or you will get an error message when you try to save the Scenario.

  5. For any section whose amounts you do not wish to split over time, either delete the initial date or click the "un-split" link for that section. The form will refresh without the Date and Amount fields for that section only.

  6. You can add additional Date/Amount rows to any section from the "Add rows" dropdown box.

Financials: Pricing: Job Code Estimates

Job code estimates enable you to specify the position levels or jobs required to complete the project, the number of individuals performing each job, and the average number of hours each of them will work. By combining this information with the rates and adjustments established in the Scenario section, you can run financial analyses on various estimate scenarios.

Create a Job Code Estimate

  1. Go to Projects > Projects > [select a project] > Financials > Pricing > Job code estimates. The “Job code estimate” form opens.

  2. Select a job code from the “Job code” dropdown list.

  3. Enter the number of employes who will be deployed on the project at that job level in the “# of employees” field.

  4. Enter the average number of hours each of these individuals will work in the “Hours per employee” field.

  5. Repeat steps 2 through 4 for each additional job code. If you need to add more rows to the grid, click the “[Add rows]” dropdown list and select the number of rows you would like to add. You can choose from “3 more”, “6 more”, or “9 more” rows.

  6. Click “Save”.

Financials: Pricing: Analysis

You can see a financial snap shot of your scenario by clicking on the "Analysis" link. The snap shot includes key revenue and cost parameters, discounts, profits and margins. By default, the analysis applies to the entire period of the project.

The weighted net revenue line represents net revenue weighted by the closing probability entered in the pricing scenario setup.

The snap shot dropdown menu lets you save a snap shot of the current analysis. You can also view previously created snap shots. To create a snap shot, select "> Create a snap shot" from the dropdown menu and enter a name in the window which opens. You can also select whether it is based on an approved budget. To view an existing snap shot, select the appropriate snap shot from the menu.

When viewing a snap shot, you can change the name of the snap shot or delete it by selecting "Edit this snap shot" from the dropdown menu and clicking the appropriate button on the window that pops up.

Note:

Note: If you are analyzing a "Bookings" Scenario, you can choose to split the analysis over time periods. To do so, click the "Analysis options" link, select a time period from the dropdown menu, and the start and end dates for the analysis. If you check the "Total by period" box, the report will show subtotals for each period, the total for the range specified and the total for the entire project.