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 quotations, contracts and invoices
In this article, we cover the following components of the Financial tab: Estimated costs, Planned costs, Actual costs, Revenue, Discount, Total.
On the top part of the screen, you can see a quick overview of the profit for this project and how much as been already invoiced.
Here you can also generate your quotations, contract (link) and invoices (ink).
In the lower part of the tab, you find a more detailed breakdown of the Estimated, Planned, and Actual costs. Here you can also see the totals and margins for each category, and apply discounts or change VAT details.
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're 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'll use this overview mainly for when your project still carries the concept or option status.
This amount is based on the Subrental price in your database, times the quantity in shortage for this project.
Example: The subrental price of ItemX in your database is €5. You have a shortage of 10. The Estimated cost will then be: €5 times 10 (shortage) = €50
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'll see the purchasing costs of sale equipment in the list price column (see image below). You set this up when adding equipment or when adding a temporary item.
These costs will be totaled and shown as planned costs for sales equipment in the financial overview.
The estimated costs for 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.
In the Crew and transport tab of a project, you'll 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've defined for transport functions. You can define these costs per kilometer, or as a fixed amount.
In the Crew and transport tab of a project, you'll find the hiring costs of transport functions in the Total costs column.
You'll find the total additional costs of a project in the estimated costs column.
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.
Example: you know a supplier that will give you 5 ItemXs, so you create a subrent for 5 out of the 10 ItemX you are short of. The Planned cost will then be: €5 times 5 (already subrented) = €25
The purchasing costs of 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 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've selected, will be shown as costs in the planned costs column.
When 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.
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.
This number is based on the actual price you agreed with the supplier, times the quantity you subrented.
Example: you contact your supplier, and he offers you a better deal than you were expecting: €4 per piece, so you decide to subrent everything from him. The Actual cost will then be: €4 times 10 (the whole shortage) = €40
This feature is only available for Pro License users.
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.
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.
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.
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).
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
Lock the price of your project
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.
1. Go to the Financial tab of your project.
2. Click on the Lock icon next to the Project's total. Use the same button to unlock the prices again.
Customize the VAT code
The VAT code in the financial overview is automatically set to Default. This means that the default VAT code, as selected for each part of your project (each item, every function), will be applied.
In the same dropdown menu, you can select the VAT codes that you set up in the Configuration module.
Insurance, deposit, and invoice moment
If you ask an amount for insurance of your rented equipment, you can show this on the quotation and invoice. Do this by defining a percentage in the input field next to Insurance. This is a percentage of the gross (excluding discounts) total price of the planned hiring equipment.
Asking for a refundable deposit
If you want to ask for a deposit, specify the amount in the input field next to refundable deposit. The deposit is a fixed amount. The amount will not be shown by default on your slips, but you can set it up editing your document templates. The deposit amount will then be shown on the slip under the total amount.
Setting the invoice moment
You can choose various invoicing moments before you generate an invoice. You can set up your invoice moments in the Financial section of the Configuration module.
Terms and conditions and additional conditions
Terms and conditions
Terms and conditions are, by default, added to your slips if you've added these in the settings Configuration module. You can add your terms and conditions as a .PDF file in the configuration module, under "General".
In the free input field above the default terms and conditions, you may specify additional conditions. These will be shown in the additional conditions section on the slip. If you don't have this section on your slips yet, you can add it to your document templates.
Do you use the same additional conditions often? Then it's quicker to add these to 'additional conditions' in the Configuration module. You can select these custom conditions in the dropdown menu under the free input field.
In the Financial tab of each subproject, you'll find a detailed overview of each subproject that you've added to your project.
In the Financial overview of your main project, you'll see an overview of the total costs, total revenue and total discount of each subproject.