revenue-level projects and then rolls up those profit amounts and corresponding budget amounts to determine the summary profit data.Tracking trends in project profits and margins are key for analyzing profitability. Profit is a critical indicator of your organization’s recognized effort and sustainability. Trends and comparisons of profit budgets are important for decision making and forecasting. The Profit Analytics give you the tools to assess the various components of profitability, compare this data to budgets, and analyze the variances by amount and percentage for your entire organization or its individual divisions. |
In this topicTop-Level and Revenue-Level Projects |
Your system administrator specifies both the current fiscal period and the number of prior fiscal periods for which data is available. The future fiscal periods for which data is available are the periods for which budget data has been loaded into Costpoint Analytics.
For more information on specifying the analysis period, see Specify an Analysis Period.
Costpoint Analytics calculates profit for revenue-level projects and then rolls up those profit amounts and corresponding budget amounts to determine the summary profit data.
You have the option to display profit or gross profit:
Profit = Project revenue — All project direct and indirect costs. This is derived from the Costpoint PSR table data.
Gross profit = Project revenue — (All project direct costs + Indirect costs directly linked to the project). This is derived from the Costpoint PSR table data, and the COM and Cost Pools options in Costpoint Analytics Configuration.
You can also view profit or gross profit as dollar amounts or as margin percentages:
Profit margin = Profit / Revenue (displayed as a percentage)
Gross profit margin = Gross profit amount / Revenue (displayed as a percentage)
A Costpoint Analytics configuration option controls whether revenue is actual or target rates.
Profit calculations include the company, organization, or other level as dictated by your access rights in Security Configuration. You can view profit by company, organization, reorganization, customer, project, project manager, or project type.
Several options affect profit and gross profit:
User option — Use the Profit Type option on the User Options tab to select to use Profit or Gross Profit for Profit analytics. During the configuration process for Costpoint Analytics, your system administrator determines the gross profit calculation.
Configuration option: COM in gross profit — During the configuration process for Costpoint Analytics, your system administrator specifies whether or not cost of money (COM) is included in the calculation of gross profit. By default, Costpoint includes COM in calculations.
Configuration option: Cost pools in gross profit — During the configuration process for Costpoint Analytics, your system administrator specifies if all, none, or specific cost pools are included in the calculation of gross profit. Using specific pools of indirect costs allows a flexible gross margin.
Configuration option: Adjustment Period — If your firm uses the Interim/Final Rates feature in Costpoint and includes prior year cost or revenue adjustments in the Project Status Report (PSR) reporting tables, profit calculations may include those prior year adjustments, depending on how this configuration option is set. If prior year cost or revenue adjustments are included, all profit amounts reflect any applicable prior year adjustments.
During the security configuration process for Costpoint Analytics, your system administrator sets up the organization access for your Costpoint Analytics user role. This determines the organizations and reorganizations for which you can view analytic information. The Orgs list only includes organizations to which you have access.
You can change the organization type on the User Options tab. If you select the Reorg option, you can filter the analytics by reorganization:
The Reorgs list only includes reorganizations to which you have access.
You do not have access to a reorganization if you do not have access to any of the organizations mapped to that reorganization.
You have access to a reorganization if you have access to at least one organization mapped to that reorganization.
For more information on filtering the analytics by organization or reorganization, see Filter by Organization. For more information on selecting the option to filter by reorganization on the User Options tab, see Organization or Reorganization.
You can use the Proposals option under the Additional Filters to further filter the data in the analytic. The proposal number and name are loaded as part of the budget or forecast process.
Use the Proposals attribute to select from the following for inclusion in the filter process:
Projects Only — Select this option to only include projects in the filter process.
Proposals Only — Select this option to only include proposals in the filter process.
All — This is the default. Select this option to include both projects and proposals in the filter process.
You can filter and analyze information by either top-level project or revenue-level project. If you select a top-level project, all revenue-level projects under it are included in the analytics data.
If you select one or more projects and then go to another Costpoint Analytics tab for which the project filter option is available, Costpoint Analytics automatically filters those analytics for the same projects.
For general information about making selections in filter lists, see Filter the Analytics: Overview.
For more information on filtering the analytics by project, see Filter by Project.
If your firm uses the Interim/Final Rates feature in Costpoint and includes prior year cost or revenue adjustments in the Project Status Report (PSR) reporting tables, profit calculations may include those prior year adjustments. A Costpoint Analytics configuration option controls whether the adjustments are included and, if they are, which fiscal periods are affected. For more information, see Adjustment Period.
If prior year revenue adjustments are included, all profit amounts reflect any applicable prior year adjustments.
Your system administrator determines the guidelines that control how, and when, you are alerted of variances. These alerts are either cautionary or urgent, depending on your configuration settings. A negative variance engages the alerts.
Refer to the following scale to determine the type of alerts that display:
Cautionary alert — The Variance % cell displays in yellow to indicate that performance is below the expected level but is not yet a critical problem.
Urgent alert — The Variance % cell displays in red to indicate that performance is far enough below budget that it requires urgent attention.
You can click the Variance column heading to sort a table by alert status. Urgent alerts will display first, and then cautionary alerts, and then projects with an acceptable status.
It is very common to post revenue by Owning Corporate Structure. The Revenue and Profit analytics report revenue if configured by owning corporate structure.
There are two ways to view profit: Period and Year-To-Date (YTD). The type of chart impacts the data that displays on the charts.
Period is data for the current analysis period, while YTD provides a cumulative, rolling perspective within a given year. For example, February = January + February, March = January + February + March, and so on.
Profit defaults to YTD when used initially, but you can switch the chart type at any time.
To switch the type of chart...
Locate the chart type options. 
Click Period or YTD. The selected option's button turns green, and the pertinent information on the charts and tables updates to reflect your selection.
Your selections on the User Options tab affect the Profit Analytics in the following ways.
|
User Option |
Effect on the Analytics |
|
Profit Type |
Select the profit type to indicate if you want to use Gross Profit (project income less project expenses) or Profit (project income less all direct and indirect expenses) for the analytics. Depending on your selection, the profit type is named either Profit under Budget/Forecast or Gross Profit under Budget/Forecast. For more information on this user option, see Profit Type. |
|
Budget Type |
If you select Baseline Budget, the baseline budget data is used to calculate profit that involve comparison to budget. If you select Forecast, the forecast data is used. If the selected timeframe extends beyond the current period, the Budget Type column displays the projected profit using the baseline budget or forecast. For more information on this user option, see Budget Type. |
|
Org or Reorg |
If you select Org, you can filter profit data by organization. If you select Reorg, you can filter profit data based on the selected reorganization. The name and contents of the filter list and cycle options change to reflect your current selection. For more information on this user option, see Organization or Reorganization. |
|
Org View |
Select Owning to view profitability by the project's organization, or select Performing to view profitability by the transaction's organization. For more information on this user option, see Organization View. |