Net Price/Internal Rate or How Extrapolation Works

Extrapolation is used to calculate the project cost based on the latest internal rate of the employee.

Project Cost = Net Price

Internal Rate = Internal Cost or Internal Rate

Problem Solved: To view margin reports, it usually takes about 1.5 months due to data entry (costs, margin, etc.). Now, with extrapolation, the Margin by project report automatically retrieves data from the previous period if data for the current one hasn’t been entered yet.

Calculation of Net Price in Different Cases:

Case	Formula	Comment
Current net cost is available	Current net price = Logged hours in project/Total logged hours * Net cost	The current net cost is available
The current net cost is unavailable.	Extrapolated net price = Logged hours in project * internal cost Internal_сost = Net cost / Total logged hours	Hours for the current period are multiplied by internal costs. Hours and net cost for calculating internal cost are taken from the last period with a net cost entry.
Net cost is unavailable altogether.	Extraploated net price (2) = Logged hours in project * Internal rate	Internal rate is taken from the Rates -> Project rates page.

Extrapolation Using Internal Cost:

Extrapolation Using Internal Rate:

Internal rate = internal cost, but the difference lies in:

• Internal rate is manually entered on the Rates -> Project rates page.
• Internal cost is calculated based on the formula from the table.