The Financial tab in your project provides an overview of the revenue and costs of a project. From this tab, you can also calculate margins and profit, generate and send out quotes, contracts and invoices.
In this article, we cover the following components of the Financial tab: Estimated costs, Planned costs, Actual costs, Revenue, Discount, Total.
Overview
In the lower part of the tab, you find a detailed breakdown of the Estimated, Planned, and Actual costs. If you have the quotation and invoicing add-on, you can also see the totals and margins for each category, and apply discounts or change VAT details. Besides, you will see a quick overview of the profit for this project and how much has been already invoiced. Lastly, you can also generate your quotations, contracts and invoices from here.
Subprojects
In the Financial tab of each subproject, you will find a detailed overview of each subproject that you have added to your project.
In the Financial overview of your main project, you will see an overview of the total costs, total revenue and total discount of each subproject. Below, we will talk about the main project financial overview.
Estimated costs
The estimated costs column shows the costs that you expect to make for your project, and are based on your planned crew and transport functions and the purchase price of equipment that you are selling.
When making a quotation, you should keep an eye on the estimated costs to see your margin and how much discount you can offer. You will use this overview mainly when your project is still in the Draft or Inquiry status.
Subrental costs are calculated per equipment item that is subrented. Per item, the following formula is used to calculate the actual costs for that item.
(average price attached to subrental equipment per day) * (amount
of reservations on subrental) * (amount of days used for the project).The additional costs of a subrental are proportionally split among the items in the subrental. These costs are then taken into calculating the average price of a subrental item per day.
Item X costs €20 and Item Y costs €180.
Item X is 10% of the total equipment costs; this means that 10% of the additional costs are for this item. In this case, €10. The other 90% of the additional costs are added to item Y.
This will result in the following costs for renting these items for 10 days:
Item X: €20 equipment costs + €10 additional costs = €30 total.
Item Y: €180 equipment costs + €90 additional costs = €270 total.
The average price per day:
Item X: €30 / 10 days = €3 per day.
Item Y: €270 / 10 days = €27 per day.
If you plan one item of the subrented item X for 5 days on a project, and the additional costs are kept the same for that subrent, then the cost will be €3 * 1 * 5 = €15.
When adding equipment for sale to your project, the purchasing costs of the equipment will be shown in both the Estimated costs and Planned costs column.
In the Equipment tab of your project, you will see the purchasing costs of the sale equipment in the List price column (see image below). You set this up when adding equipment or when adding a temporary item.
The cost of the sale items are calculated based on the following formula:
(purchase price of equipment) * (quantity of items)These costs will be totaled and shown as Planned costs for sales equipment in the financial overview.
The estimated costs for the crew are based on the hiring costs of your planned crew and transport functions. You can define these costs per hour or as a fixed amount.
The estimated cost for each function is calculated based on the following formula:
(fixed cost + (duration * hour cost)) * (function's quantity)In the Crew and transport tab of a project, you will find the hiring costs of crew functions in the Total costs column. The costs of this entire column will be totaled and shown as estimated costs for crew in the Financial tab.
The estimated costs for transport are based on the hiring costs that you have defined for transport functions. You can define these costs per kilometer or as a fixed amount. The estimated cost for each transport function is calculated based on the following formula:
(fixed cost + (distance * km cost)) * (function’s quantity)In the Crew and transport tab of a project, you will find the hiring costs of transport functions in the Total costs column.
Planned costs
The planned costs column provides an overview of the costs of your project before it begins. When your planning takes shape, you know more about (for example) who will execute the functions, what you are going to subrent, what vehicles will be used. This information is used for calculating the planned costs.
You can use the Planned cost to make sure you are on budget before the start of the project, so you can still change your planning accordingly.
This number is based on the Subrental price in your database, times the quantity you have already subrented.
The purchasing costs of the sale equipment are shown in both the estimated costs and planned costs columns. For more information, see the paragraph Sale equipment in the Estimated costs section.
When you plan crew member on a project, you automatically generate information about the costs that you will have. In the people Crew members module you can define multiple rates for each crew member, via the Rates tab. For each crew member, the standard rate will automatically be selected. You can manually change this when their rate deviates from the standard rate. The rates that you have selected will be shown as costs in the planned costs column.
The Planned cost of each planned crew member is calculated based on the following formula;
- If the crew rate is set for the function:
crew rate applied for (function's length - function's break)- If the crew rate is not set for the function:
price agreement in the functionWhen you plan vehicles on a project, you automatically generate information about the costs that you will have. In the local_shipping Vehicles module, you can define a fixed and variable rate for each vehicle. For each vehicle, the standard rate will be selected by default. The rates that you select, will be shown in the planned costs column.
Actual costs
Sometimes the costs of a project are different than what you were expecting. For example, your crew might have to work more, or the supplier of an item you are subrenting might charge you a different price than what you were expecting. This column shows the actual costs at the end of your project.
Rental
This number is based on the actual price you agreed with the supplier, times the quantity you subrented.
Crew
It may happen that your crew puts in more hours than calculated beforehand. The actual costs column shows this.
The costs that you see in this column are based on the actual number of worked hours of your crew. You can register your crew's hours in the watch_later Time registration module. When doing so, it's important to connect the worked hours to a function. This way, Rentman can connect the function (and thus its costs) to the project.
Revenue, Discount, Profit/Margin & Total
Revenue
The revenue column shows the revenue of your project per category. We calculate it summing up the totals for planned equipment, crew, transport, and additional costs.
Discount
The financial overview allows you to offer different discounts before generating a quotation or invoice. You can select a discount per category, or for the total price of the project.
Defining discounts per category is done in the discount column of that category. You define discounts as a percentage of the total price of that category.
Defining a discount for the entire project is done in the discount field in the financial overview of your project. You may choose between a percentage of the total price, or a fixed amount.
Profit/Margin
In this column, you can see how much you are earning from equipment, crew, transport, and in total. This is calculated by subtracting your costs to the revenue.
Click on the column header to switch the view between Profit (in digits) and Margin (in percentage).
Total
This shows the total costs of each column. You can manually define or adjust the total discount and total project price, by clicking on a Total field and typing the amount.
Lock price or customize VAT
If you'd like to lock the price of your project after generating a quotation or invoice, you may do this in the financial overview. After locking, any changes to your planned equipment, crew and transport will not affect the prices in the financial overview.
- Go to the Financial tab of your project.
- Click on the Lock icon next to the Project's total.
Insurance, deposit, and invoice moment
If you want to request a deposit, enter the amount in the input field next to Refundable deposit. The deposit is always a fixed amount.
Once the amount is entered, a drop-down menu will appear with three status options to help you keep track of the deposit:
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No deposit paid
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Deposit paid
- Deposit returned
By default, the deposit amount and status are not displayed on your slips (quotations, invoices). However, you can add them by editing your document templates:
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To display the deposit amount, edit the sum module of your template.
- To display the deposit status, edit a text module and add the "Deposit status" variabe.
To refund a deposit, create a credit note.
Terms and conditions and additional conditions
Generate quotations, contracts, and invoices
From the Financial tab, you can also generate a quotation, a contract, or an invoice. Click on Add quotation or Add invoice