Labor Costs: How Much Epics and Tasks Cost
Enji automatically calculates the cost of working on each Epic and Task in commercial and internal projects to help understand the monthly expenses of work within the project.
Accessible to these roles: HR and Stakeholder.
The data can be filtered by Year/Month. Users can view the total hours spent working on an Epic as a whole and on each task within the Epic individually. It also shows which employees worked on specific tasks. The filtered report can be downloaded in .xlsx format.
Labor Cost is calculated by taking the Employee’s hourly rate and multiplying it by the Hours logged in the Epic/Task per month.
The formula changes depending on the type of project (Commercial or Internal) and the rate (Hourly or Monthly).
Setting up Labor Costs
To generate cost data for Epics and Tasks in a project, follow these two steps:
1. Link a Task Tracker to the project. This is necessary for Enji to gather information about worklogs and the Epics/Tasks associated with them.
Instructions for linking task trackers
2. Configure employee rates. This is necessary for Enji to know how much an employee's work costs per hour.
Instructions for configuring rates in Internal Projects
Instructions for configuring rates in Commercial Projects
Below are the instructions for configuring employee rates for Commercial and Internal projects, along with an explanation of how this affects the Labor Costs calculation.
Labor Costs formula for internal projects
Net Cost / Logged_Time × Logged_Time Epic(Task)
- Net Cost* – the employee's cost to the company for the month (expenses including salary, taxes, overhead, etc.)
- Logged_Time – the number of hours worked by the employee across all projects for the month.
- Logged_Time Epic(Task) – the number of hours worked by the employee in the specific Epic** (or Task) for the month.
* The most recent available Net Cost is used. If an employee has a Net Cost for May, and then a new Net Cost for July is added, the formula will use the Net Cost for July.
** Hours spent on an Epic include both hours logged directly in the Epic and the hours logged in all Tasks associated with that Epic.
Labor Costs formula for commercial projects
| RATE | FORMULA |
|---|---|
| Only Hourly Rate specified | Hourly Rate × Logged_Time Epic(Task) |
| Only Monthly Rate specified | Monthly Rate / Logged_Time (across all Epics (Tasks) in the project) × Logged_Time (specific Epic/Task) |
| Both Hourly and Monthly Rates specified | Hourly Rate × Logged_Time Epic(Task) + (Monthly Rate / Logged_Time (across all Epics (Tasks) in the project) × Logged_Time (specific Epic/Task)) |
| Billed To Customer specified (if set, Hourly and Monthly Rates are not used) | Billed To Customer / Logged_Time (for the month in the project) × Logged_Time Epic(Task) |
Task-based billing in Labor Cost
Task-based Billing in Labor Cost is a special mode within the Labor Cost functionality designed for companies operating under a Fixed Scope model, where clients are charged a fixed price per task.
The module can be activated in: Settings -> Company Settings -> Feature Settings -> Task-based billing in Labor Cost.
Task-based Billing in Labor Cost formula:
| RATE TYPE | FORMULA |
|---|---|
| Only Hourly Rate specified | Hourly Rate × Logged_Time Epic(Task) |
| Only Monthly Rate specified | (Monthly Rate / Total Logged_Time across all Epics (Tasks) in the project) × Logged_Time of a specific Epic (Task) |
| Both Hourly Rate and Monthly Rate specified | Hourly Rate × Logged_Time Epic (Task) + (Monthly Rate / Total Logged_Time across all Epics (Tasks) in the project) × Logged_Time of a specific Epic (Task) |
| Billed To Customer | Not considered |
- Billed is the cost of work on an Epic/Task for which the company invoices the client.
These values are entered manually. If the manually entered Epic cost does not match the sum of its child tasks, the value will be highlighted in red. Users can specify the cost for each task within an Epic, in which case the Epic's total cost will be the sum of all its tasks.
- Margin – by default, this is the difference between Price and Net Cost.
- Show Actual Income – when enabled, Margin will display the difference between Billed and Net Cost. Since Show Actual Income calculates Margin based on the total billed cost of the task (Billed), it displays Hours and Net Cost for the entire duration of the task, rather than for a selected time period.
