Project Profits: Margin by Project

The data displayed in the report is helpful for managers and stakeholders when assessing current and future financial performance.

The Invoice Status column indicates the payment status for the month’s work by employees on the client's side. Applicable only to commercial projects and marked as n/a for internal projects. There are six status types for invoices:

• Draft
• Confirmed
• Sent
• Overdue
• PaidVoid

If a project contains discounts, they will appear in the Discount column:

• Entered manually here: [Finances -> Project Margins]
• Can be uploaded in bulk: [Finances -> Upload CSV]
• Optional for profitability calculations

The Expenses column shows additional project expenses.

• Entered manually in the admin panel: [Finances -> Project Margins]
• Can be uploaded in bulk: [Finances -> Upload CSV]
• Optional for profitability calculations

The Net Price column indicates the project's cost. It is calculated using the following formula:

Net price = sum (Logged hours in project / Total logged hours × Net cost)

It is presented as a sum of all employees in the project. Read more about Net Price and how it is calculated in Net Price: How Extrapolation Works.

Ensure Net Cost is not zero; projects with zero Net Cost will not be displayed in this report. Always set net cost != 0

The Margin column is the project profitability indicator. It is calculated as follows:

• Margin = exp.income - net price - expenses - discount
• Margin percentage: Margin % = margin/expected income × 100

The Expected Income column refers to the anticipated project income for the reporting period. Expected income is automatically calculated only if all project team members have an Hourly Rate set.

The formula for calculating Expected Income depends on the available rate inputs:

* If the Billed to Customer value is specified, any values calculated by the first three formulas will be ignored.

** This is the highest priority method. This shows the expected income the company expects to receive. To ensure clarity when understanding the concepts of Expected and Specified income, the concept of Actual income was introduced. Please find more details below.

• Expected income: Is a read-only value that is automatically calculated using one of the formulas listed above. It will be calculated only if all project employees have a Billing Rate set.
• Actual income: Is editable and represents the current state of Expected income, considering manually entered income. This Actual Income is used for all other margin reports’ calculations.

Enji provides a detailed Expected Income report to users. Click on a project value to view the details and then click on the report to view the details.

The contents of a detailed Expected Income report:

• "Billing rate not set" if Hourly Rate is not set.
• "Billing rate = 0" if the Hourly Rate is set to zero.
• Details of the calculation (Hourly Rate × Hours logged) when the Hourly Rate is set.
• "Manually added expected income = N" if manually added for the entire project (Margins & Profits → Projects).

It may be necessary to input the Actual Income value manually. To do this:

1. In [Finances -> Project Margins], enter a value in the Actual Income.

2. In the Expected Income details, click the pencil icon (which appears when hovering the mouse) next to Actual Income, enter a value, and save.

1. In [Finances -> Employee Costs], enter a value in the billed_to_customer field.

2. In the Expected Income details, click the pencil icon next to the Description column, enter a value, and save.

After editing Billed To Customer, the Expected Income will be recalculated.