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 Table screen (Projects\Process\Project) and Update Other Project Report Tables screen (Projects\Process\Project) for the projects that you plan on printing.
Indirect costs can be derived in two ways when calculating total costs. You can calculate indirect costs by using target or actual rates in the Pool Rates subtask in the Cost Pools screen or you can use a markup percentage. You select the method of indirect costing using the Desired Fee Percent and/or the Desired Markup Percent fields in the Update Other Project Report Tables screen. The systems calculates for these two options in the following manner:
Selecting the Desired Fee Percent radio button will produce a report that 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. The system then compares your predetermined billing rate to the burdened hourly rate and the profit percentage computed. The system adds the Desired Fee Percent entered in the Update Other 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.
The Desired Markup Percent radio button requires you to enter a markup percentage instead of the using cost burdens. The system 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.
Normally only T&M type of projects print on this report. The revenue formula must be one of the five 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, Rate Schedules W/Multipliers, or Loaded Labor Plus Non-Labor W/Burden W/Fee. The Include Non_T&M Projects checkbox in the Update Other Project Report Tables screen allows non-T&M projects to be included in the report.
This screen consists of three blocks and one subtask. They can be used as follows:
Use the Identification block to enter the parameter ID and description.
Use the Selection Ranges block to limit the projects that display on the report. You can also select the accounting period for which you want to print in this block.
Use the Options block to identify the project level, grouping order, report period, indirect cost option, and rate type.
Use the Project Non-Contiguous Ranges subtask to enter project non-contiguous ranges. You must select the Project Non-Contiguous Ranges checkbox in the Selection Ranges block in order to activate this subtask.
You must run the Update Project Status Report Table screen (Projects\Process\Project) and Update Other Project Report Tables screen (Projects\Process\Project) before executing the Print T&M Analysis 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, 2002 through May 31, 2005. If you elect to update the report table with information from FY 2005, subperiod 1 through 4 of period 5 (May 1-31, 2005), the utility will update only table rows containing amounts for these subperiods. If you want to run reports that include June 2005 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. Once 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. Many users save a unique set of parameters for each different way they run a report or process. If you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters will automatically display as selection defaults. You can change any of the associated selection defaults as necessary.
Enter, or use Query to select, a parameter ID of up to 15 alphanumeric characters. You should 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 produce reports and run processes more efficiently because you can select the parameter ID with its previously defined screen selections. Once the default selections display in the screen, you can override the defaults as necessary.
Enter, or use Query to select, a parameter description of up to 30 alphanumeric characters.
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Note: Use the Change Period Report Parameters toolkit in the Miscellaneous Toolkits screen to change only the fiscal year, period, and subperiod for a saved report parameter. |
Use the fields in this block to limit the projects that will be displayed on the report and to select the accounting period for which you want to run the report.
Projects *
Use this drop-down box to select the range of project that you want to include on the report. The following options are available:
All - Select this option to include all available projects. The Start and End fields are disabled for this option.
One - Select this option to include only one project. You must enter that value in the Start field. The End field is disabled for this option.
Range - Select this option to include a contiguous range of projects. You must enter the beginning value for the range in the Start field and the ending value of the range in the End field.
From Beginning - Select this option to include all the projects from the beginning of the available projects to a specific project in the range. You must enter the last value for the range in the End field. The Start field is disabled for this option.
To End - Select this option to include all the projects from a specific project to the end of all the available projects. You must enter the value from which the range should begin in the Start field. The End field is disabled for this option.
Enter, or use Lookup to select, a starting project number for the range that you want to include on the report.
If you select "One," "Range," or "To End," in the Projects Option field, you must enter a project number in this field.
If you select "All" or "From Beginning" in the Projects Option field, this field will be inactive.
Enter, or use Lookup to select, an ending project number for the range that you want to include on the report.
If you select "All," "Range," or "From Beginning" in the Projects Option field, you must enter a project number in this field.
If you select "One" or "To End" in the Projects Option field, this field will be inactive.
Select this checkbox to create a customized, non-contiguous list in the Project Non-Contiguous Ranges subtask. The list mode function is different from using a "Range" because you can use the list mode for a custom selection that will include or exclude any projects of your choice.
Accounting Period
This non-editable field displays the "One" option. This is because this report can only be printed for one accounting period at a time.
Enter, or use Lookup to select, the ending fiscal year to print on the report.
Period *
Enter, or use Lookup 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.
Subpd *
Enter, or use Lookup 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 subperiod ending date of the subperiod entered in the Subpd field.
Use the fields in this group box to the project level, the group by criteria, the reporting period, the rate type, and the fee method.
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 will be rolled up to this project level.
Print Revenue and Gross Profit Data
Select this checkbox to print revenue and profit information on the report.
Four additional columns are printed on the report when these columns are selected: T&M Revenue, Total Loaded Cost, Gross Profit, and Gross Profit %.
Use the fields in this group box to select the grouping criteria.
Select this radio button to summarize data by PLC (Project Labor Category).
If you select this option, the base labor rate used in calculations will be the average labor rate by project of employees who charged using this PLC.
Select this radio button 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.
Select this radio button to print the report by subperiod.
Select this radio button to print the report by period.
Select this radio button to print the report on a year-to-date basis.
Use the options in this group box to determine how costs are burdened and fee applied.
Select this radio button 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 Update Other Project Report Tables screen (Projects\Process\Project).
Select this radio button to mark up costs by a percentage. No indirect burdens will be applied.
You should 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 in commercial companies where no cost pools are used. No fee is applied. You determine the user-specified markup percent when you run the Update Other Project Report Tables screen (Projects\Process\Project).
Use the options in this group box to select the rate type you would like to use on the report.
Select this radio button to burden project labor on this report with target rates. These rates are from the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations). When you execute theCompute Burden Cost screen (Projects\Process\Project), the program computes both actual and target rates. This amount is stored in the report table.
Select this radio button to burden project labor on this report with actual rates.
These rates are from the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations). When you execute the Compute Burden Cost screen (Projects\Process\Project), the program computes both actual and target rates. This amount is stored in the report table.
* A red asterisk denotes a required field.
The following section details the source of information for each of the columns on the report.
The following columns will appear on the report if you selected the Desired Fee Percent radio button in the Use group box.
The source of information for this column is the Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History).
This information can also be found on the Project Labor Summary Report.
The system calculates the value in this column by subtracting the Allowable Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History) from the Hours field.
The source for this column is the Allowable Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History).
The Allowable Hours field will be different from Hours field if you have exceeded a ceiling.
This information comes from the Billing Rate field in the Maintain Labor Summary screen (Projects\Configure\Project History).
If you have changed the billing rate during the report period, you must multiply the Billing Rate field by the Allowable Hours in the Maintain Labor Summary table to arrive at the T&M revenue. Then divide T&M revenue by the Allowable Hours field to arrive at the average billing rate.
The system calculates the value in this column by dividing the Amount field by the Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History). This is the unburdened cost of the labor. You can also do this calculation using the Project Labor Summary Report.
The system calculates the value of this column by applying a burden markup amount to the labor. The burden markup amount is calculated for both target and actual rates during the Compute Burden Cost process (Projects\Process\Project). 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%
The system 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.
The system 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 Update Other Project Report Tables screen (Projects\Process\Project).
The system 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.
The system 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.
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Note: The next four columns will print only if you have selected the Print Revenue and Gross Profit Data checkbox. |
The system calculates the value in this column by multiplying the Allowable Hours column by the Billing Rate column. This column will print only if you have selected the Print Revenue and Gross Profit Data checkbox.
The system calculates the value in this column by multiplying the Total Hours column by the Burden Labor Rate column. This column will print only if you have selected the Print Revenue and Gross Profit Data checkbox.
The system calculates the value in this column by subtracting the Total Loaded Cost column from the T&M Revenue column. This column will print only if you have selected the Print Revenue and Gross Profit Data checkbox.
The system calculates the value in this column by dividing the Gross Profit column by the Total Loaded Cost column and multiplying the result by 100. This column will print only if you have selected the Print Revenue and Gross Profit Data checkbox.
The Markup Report contains some of the same columns as the Desired Fee Report. Note that you should print the Desired Fee Report if you want to see how some columns of information were derived on the Markup Report.
The source of information for this column is the Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History). This information can also be found on the Project Labor Summary Report.
The system calculates the value in this column by subtracting the Allowable Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History) from the Hours field.
The source for this column is the Allowable Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History). The Allowable Hours field will be different from Hours field if you have exceeded a ceiling.
This information comes from the Billing Rate field in the Maintain Labor Summary screen (Projects\Configure\Project History).
If you have changed the billing rate during the report period, you must multiply the Billing Rate field by the Allowable Hours field in the Maintain Labor Summary screen to arrive at the T&M revenue. Then divide T&M revenue by the Allowable Hours field to arrive at the average billing rate.
The system calculates the value in this column by dividing the Amount field by the Hours field in the Maintain Labor Summary screen (Projects\Configure\Project History).
This is the unburdened cost of the labor. You can also do 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 screen (Projects\Process\Project).
The system 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.
The system 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 will realize for the fully burdened labor category or employee using the Desired Markup Percentage.
This information is available on the Desired Fee Report. The system 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.
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Note: The next four columns will print only if you have selected the Print Revenue and Gross Profit Data checkbox. |
The system calculates the value in this column by multiplying the Allowable Hours field by the Billing Rate field. This column will display only if you have selected the Print Revenue and Gross Profit Data checkbox.
This information is available on the Desired Fee Report. The system calculates the value in this column by multiplying the Hours field by the Burden Labor Rate column. This column will display only if you have selected the Print Revenue and Gross Profit Data checkbox.
The system calculates the value in this column by subtracting the Total Loaded Cost column from the T&M Revenue column. This column will display only if you have selected the Print Revenue and Gross Profit Data checkbox.
The system calculates the value in this column by dividing the Gross Profit column by the Total Loaded Cost column and multiplying the result by 100 to arrive. This column will display only if you have selected the Print Revenue and Gross Profit Data checkbox.
* A red asterisk denotes a required field.
Use the Project Non-Contiguous Ranges subtask to enter project non-contiguous ranges. You must select the Project Non-Contiguous Ranges checkbox in the Selection Ranges block in order to activate this subtask.
The data for this report is obtained from the RPT_PROJ_TMA (Report Project Time & Materials Analysis) table.
