Use this report to compare loaded labor costs and predetermined billing rates. It provides visibility into the profit contributions of each project labor category and that of the individual employees. You can use this to determine whether your billing rates are right for your company. Before printing the T&M Analysis report, you must run the Update Project Status Report Tables screen and the Create Project Report Tables screen for the projects that you plan on printing. You specify the Desired Fee Percent and/or the Desired Markup Percent to be used for the calculations on the Create Project Report Tables screen.
You can print the T&M Analysis report in a variety of ways. If you select the Desired Fee Percent option, the report starts with the average base hourly rate for either the project labor categories or the individual employees, depending on your selection. This average base hourly rate is then burdened with your indirect costs at either actual or target rates, depending on your selection. The result is the burdened hourly rate, which represents the true cost, because it includes both the labor and the applicable share of indirect expenses such as fringe benefits, overhead, and administrative costs. Costpoint then compares your predetermined billing rate to the burdened hourly rate and the profit percentage computed. Costpoint adds the Desired Fee Percent entered on the Create Project Report Tables screen onto the burdened hourly rate to determine the minimum billing rate that you could charge and still reach your profit objectives.
If you cannot use indirect cost burdening, you can select the Desired Markup Percent option. Use this report to enter a markup percentage instead of the cost burdens. Costpoint uses this percentage to mark up the average base hourly rate to arrive at a markup hourly rate. This markup hourly rate and your average base hourly rate are then used to arrive at the profit percentage. The application compares this percentage to your predetermined billing rate profit percentage. As with the Desired Fee Percent report, you can print the Desired Markup Percent report by employee or project labor category and at actual or target rates.
Data for the report is stored in the RPT_PROJ_TMA report table. Base tables updating the report table include PROJ_BURD_SUM and LAB_HS. You must have billing rates set up for the project selected. Revenue must be computed for the report table to contain valid information. In addition, the revenue formula must be one of the four loaded labor rate options: Loaded Labor Rate, Loaded Labor Rate Plus Cost Incurred on Non-Labor (T&M), Loaded Labor Plus Non-Labor Plus Burden On Non-Labor, or Loaded Labor Plus Non-Labor W/Burden W/Fee.
You must run the Update Project Status Report Table and Create Project Report Tables processes before executing the Print T&M Analysis Report screen. The report table that stores the data for the T&M Analysis, RPT_PROJ_TMA, is updated based on the criteria you selected. For example, assume the report table contains amounts from January 1, 2005 through May 31, 2007. If you elect to update the report table with information from FY 2007, subperiod 1 through 4 of period 5 (May 1-31, 2007), the utility updates only table rows containing amounts for these subperiods. If you want to run reports that include June 2007 data (period 6), you must run the utility to update the table for that period.
Use the fields in this block to create a new parameter ID or to retrieve a previously saved parameter ID. A parameter ID represents a set of screen selection parameters. After you have saved a parameter ID and its related parameters, you can retrieve them using Query.
You can use the retrieved parameters to produce reports and run processes more efficiently and with greater consistency. The saved parameters are also useful and necessary when you want to run the process as part of a batch job. Many users save a unique set of parameters for each different way they run a report or process. When you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters automatically display as selection defaults. The page setup and print options are also included in the saved parameter ID if there are any. You can change any of the associated selection defaults as necessary.
Enter, or click to select, a parameter
ID of up to 15 alphanumeric characters. Choose characters for your parameter
ID that help identify the type of selections you made in the screen, such
as PERIOD or QUARTERLY.
When you save your record, all the selections made in the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.
You can use the parameter to run the process more efficiently because you can select the parameter ID with its previously defined screen selections. After the default selections display in the screen, you can override the defaults.
Enter, or click to select, a parameter
description of up to 30 alphanumeric characters.
Use these fields to limit the projects that are included on the report.
Use the drop-down list to select the range of projects to print. This range must be consistent with the projects you have updated in the report table. Valid options are:
All
One
Range
From Beginning
To End
Enter, or click to select, the starting project for the range of projects to be printed.
Enter, or click to select, the ending project for the range of projects to be printed.
Select this check box to enable the Project Non-Contiguous Ranges subtask. Use this subtask to create a customized list of projects to print on the report.
Use these fields to select the period through which you would like to include data on the report.
Enter, or click to select, the ending fiscal year to print on the report.
Enter, or click to select, the ending fiscal period to print on the report. Amounts incurred in periods up to and including this period are included on the report.
Enter, or click to select, the ending subperiod you to print on the report. Amounts incurred in subperiods up to and including this subperiod are included on the report.
This non-editable field displays the selected subperiod end date.
Use this group box to select the level of the project that you would like to show on the report.
Identify the highest project level that you want printed on the report. Balances are rolled up to this project level.
Select this check box to print revenue and profit information on the report. Use this option to print four additional columns: T&M Revenue, Total Loaded Cost, Gross Profit, and Gross Profit %.
Select this option to summarize data by Project Labor Category (PLC). If you select this option, the base labor rate used in calculations is the average labor rate by project of employees who charged using this PLC.
Select this option to see labor rate detail by employee. If an employee has charged using multiple labor categories, hours are segregated by labor category.
Select the period detail covered by the report. Options are:
Subperiod
Period
Year to Date
Use the options in this group box to determine how costs are burdened and fee applied.
Select this option to burden costs with indirect rates and to use a user-specified fee percent in the calculation of fee per labor hour. You determine the user-specified fee percent when you run the Create Project Report Tables screen.
Select this option to mark up costs by a percentage. No indirect burdens are applied. Use this option if you want to see base labor per hour marked up by a flat percent to estimate indirect costs. This option is especially useful for commercial companies where no cost pools are used. No fee is applied. You determine the user-specified markup percent when you run the Create Project Report Tables screen.
Use the options in this group box to select the rate type you would like to use on the report.
Select this option to burden project labor on this report with target rates. These rates are from the Pool Rates subtask of the Manage Cost Pools screen. When you execute the Compute Burden Costs screen, the program computes both actual and target rates. This amount is stored in the report table.
Select this option to burden project labor on this report with actual rates. These rates are from the Pool Rates subtask of the Manage Cost Pools screen. When you execute the Compute Burden Costs screen, the program computes both actual and target rates. This amount is stored in the report table.
The following section details the source of information for each of the columns on the report.
The following columns appear on the report if you selected the Desired Fee Percent option in the Use group box.
The source of information for this column is the ACT_HRS column of the LAB_HS table. This information can also be found on the Project Labor Summary Report.
Costpoint calculates the value in this column by subtracting the Allowable Hours column from the Total Hours column.
The source for this column is the ALLOW_REV_HRS column of LAB_HS. Allowable Hours are different from Total Hours if you have exceeded a ceiling.
This information comes from the REV_RT_AMT column of LAB_HS. If you have modified the billing rate during the report period, you must multiply the REV_RT_AMT by the ALLOW_REV_HRS in LAB_HS to arrive at the T&M revenue. Then divide T&M revenue by the ALLOW_REV_HRS to arrive at the average billing rate.
Costpoint calculates the value in this column by dividing the AMT column by the ACT_HRS column from LAB_HS. This is the unburdened cost of the labor. You can also perform this calculation using the Project Labor Summary Report.
Costpoint calculates the value in this column by using the appropriate BDM column in PROJ_BURD_SUM. The specific column used depends on the period and rate type selections. The labor is subject to this composite burden percentage.
Example:
Labor is subject to the following burdens:
Fringe |
40% |
Overhead |
80% |
G&A |
10% (applied to fringe and overhead) |
This results in a burden markup of 242%. This is calculated as follows:
Labor amount |
1.00 |
Fringe @ 40% |
+ .40 (1.00 x .40) |
Overhead @ 80% |
+ .80 (1.00 x .80) |
G&A @ 10% |
+ .22 ((1.00 + .40 + .80) x .10) |
Burden Markup |
2.42 |
Multiply by 100 |
242% |
Costpoint calculates the value in this column by multiplying the Average Base Labor Rate column by the Burden Markup % column. This is the labor amount after it has been fully burdened.
Costpoint calculates the value in this column by subtracting the Burden Labor Rate from the Billing Rate and dividing the result by the Burden Labor Rate. This is the profit percentage that you are currently realizing for this labor category or employee.
This column is the desired profit percentage that you entered when you executed the Create Project Report Tables screen.
Costpoint calculates the value in this column by multiplying the Burden Markup % column by the Desired Fee % column. It represents what the total markup percentage would be using your incurred rates and the desired fee percentage.
Costpoint calculates the value in this column by multiplying the Average Base Labor Rate column by the Burden Plus Desired Fee % column. It represents the minimum billing rate that you must charge for the labor category or employee to achieve your desired fee percentage with your existing burden rates.
Costpoint calculates the value in this column by multiplying the Allowable Hours column by the Billing Rate column.
Costpoint calculates the value in this column by multiplying the Total Hours column by the Burden Labor Rate column.
Costpoint calculates the value in this column by subtracting the Total Loaded Cost column from the T&M Revenue column.
Costpoint calculates the value in this column by dividing the Gross Profit column by the Total Loaded Cost column and multiplying the result by 100.
The Markup Report contains some of the same columns as the Desired Fee Report. Print the Desired Fee Report if you want to see how some columns of information are derived on the Markup Report.
The source of information for this column is the ACT_HRS column of the LAB_HS table. This information can also be found on the Project Labor Summary Report.
Costpoint calculates the value in this column by subtracting the Allowable Hours column from the Total Hours column.
The source for this column is the ALLOW_REV_HRS column of LAB_HS. Allowable Hours are different from Total Hours if you have exceeded a ceiling.
This information comes from the REV_RT_AMT column of LAB_HS. If you have modified d the billing rate during the report period, you must multiply the REV_RT_AMT by the ALLOW_REV_HRS in LAB_HS to arrive at the T&M revenue. Then divide T&M revenue by the ALLOW_REV_HRS to arrive at the average billing rate.
Costpoint calculates the value in this column by dividing the AMT column by the ACT_HRS column from LAB_HS. This is the unburdened cost of the labor. You can also perform this calculation using the Project Labor Summary Report.
This is column is the desired markup percentage that you entered when you executed the Update Other Project Report Tables process.
Costpoint calculates the value in this column by multiplying the Average Base Labor Rate column by the Desired Markup % column. This is the labor amount after it has been marked up.
Costpoint calculates the value in this column by subtracting the Burden Labor Rate, on the Desired Fee Report, from the Markup Labor Rate and dividing the result by the Burden Labor Rate. This is the profit percentage that you realize for the fully burdened labor category or employee using the Desired Markup %.
This information is available on the Desired Fee Report. Costpoint calculates the value in this column by subtracting the Burden Labor Rate from the Billing Rate and dividing the result by the Burden Labor Rate. This is the profit percentage that you are currently realizing for this labor category or employee.
Costpoint calculates the value in this column by multiplying the Allowable Hours column by the Billing Rate column.
This information is available on the Desired Fee Report. Costpoint calculates the value in this column by multiplying the Total Hours column by the Burden Labor Rate column.
Costpoint calculates the value in this column by subtracting the Total Loaded Cost column from the T&M Revenue column.
Costpoint calculates the value in this column by dividing the Gross Profit column by the Total Loaded Cost column and multiplying the result by 100.
Subtask |
Description |
Project Non-Contiguous Ranges |
Click this link to open the Project Non-Contiguous Ranges subtask. Use this subtask to create a customized list of projects to print on the report. |