Use the Cost of Money options to indicate if you want to include cost of money (COM) as an expense when Costpoint Analytics calculates gross profit.
This setting affects the gross profit calculations for the following:
Profit Analytics, when you analyze gross profit
Projects at Risk Analytics, when you analyze risk related to the Gross Profit under Budget risk reason or Gross Profit under Forecast risk reason
This setting also affects the summary Profit Analytics and Projects at Risk Analytics in Costpoint Analytics – Summary.
In Costpoint Analytics, gross profit is all project income minus all direct expenses and any indirect expenses specifically related to a project:
Revenue – (Direct expenses + Indirect expenses directly related to the project)
In Costpoint Analytics – Project Configuration, you have two options that affect the expenses included in this gross profit calculation:
Cost of Money — Indicate if you want to include COM in the expenses directly related to a project.
Cost Pools — Select the individual final cost pools that represent expenses directly related to a project. (See Cost Pools (Project Analytics) for more on this option.)
Select Yes or No in COM as expense for Gross Profit under Cost of Money, depending on whether or not your firm normally includes COM as an expense in the gross profit calculation in Costpoint.
Normally, you do not change this setting after the initial configuration. However, you can change this option at any time if you change your normal gross profit calculation in Costpoint.