Simple gross margin calculations based on the planned hours.
Table of contents
Introduction
If you have the necessary permissions, FINANCE provides you with an overview of gross margin calculations based on the planned hours and shift functions to which wages and costs are linked. The figures and margins that are calculated are pure gross margins, they do not take into account any costs you may incur. Once work hours have been performed and finalised, you have an overall picture of these gross margins.
Attention! All rates or wages in Crewplanner are displayed up to two decimal places and are NOT rounded. Be sure to take this into account when checking amounts to ensure accurate calculations.
Where to find Finance
General
You will find the section FINANCE in ADMINISTRATION on the menubar. This page gives you a general overview of your finances.
Project
In addition, you have a tab FINANCE in every project, in which you will find the gross margin calculations related to this project.
In a project, you also have the possibility of changing the number of budgeted hours via the pencil icon:
This amount is then also displayed that way on the supervisors' metrics page.
CrewTip! To give you a clear overview of all your finances, the external cost of an external enquiry is also displayed on this page in the planned section instead of the wage of an employee.
Departments
You will also find a FINANCE tab when editing a department. Here you can set a different hourly rate than is normally used as standard for a shift function. More on this later.
Company
Finally, you will also find a FINANCE tab in the company file of a customer. Here you can make some more financial additions to the profile of the company. More on this in setting up finances.
Consult Finance
You consult finances on the general page in the same way as in a project. Each field contains the following:
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Budget: The client’s cost based on the planned hours, calculated using the shift function cost price x the planned hours.
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Planned costs: The predicted worker costs, calculated using the planned hours x the hourly wage. The hourly wage is entered according to the settings of the wage rules.
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Actual costs: After finalising the time registration, you will find the actual staff costs here. Hours worked x the hourly rate of the shift functions
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Total margin: This is calculated as your margin. Your budget - the real cost.
The following fields indicate what the margins of a project are calculated on.
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Name: the employees scheduled for the project.
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Department: from which the employee is scheduled for that shift.
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Budgeted: gives the calculation for the client’s shift price, calculated using the shift function hourly price x the planned hours = Budget
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Planned: gives the predicted cost of that employee, hourly wages x coefficient x planned hours.
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Actual: gives the actual worker cost calculation for the hours worked x hourly price
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Margin: gives the gross margin calculation for that shift: budgeted - actual costs
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Filters: can only be found on the general FINANCE page. You can apply these to highlight specific figures.
Budget: The client’s cost based on the planned hours, calculated using the shift function cost price x the planned hours.
Planned costs: The predicted worker costs, calculated using the planned hours x the hourly wage. The hourly wage is entered according to the settings of the wage rules.
Actual costs: After finalising the time registration, you will find the actual staff costs here. Hours worked x the hourly rate of the shift functions
Total margin: This is calculated as your margin. Your budget - the real cost.
The following fields indicate what the margins of a project are calculated on.
Name: the employees scheduled for the project.
Department: from which the employee is scheduled for that shift.
Budgeted: gives the calculation for the client’s shift price, calculated using the shift function hourly price x the planned hours = Budget
Planned: gives the predicted cost of that employee, hourly wages x coefficient x planned hours.
Actual: gives the actual worker cost calculation for the hours worked x hourly price
Margin: gives the gross margin calculation for that shift: budgeted - actual costs
Filters: can only be found on the general FINANCE page. You can apply these to highlight specific figures.
How to set up Finances
As we have already explained, CrewPlanner only calculates pure gross margins on personnel costs on the basis of the settings of the wage and the cost price of a shift function.
The employee's pay is therefore determined by the wage rules.
CrewTip! We advise you to read the article about the wage rules to gain more insight into the logic we use.
There are also different levels for the finance rules; we will list them briefly:
Shift function
The settings for SHIFT FUNCTIONS are your lowest level of finances or the basis where you set all the standard rules. The costs used for FINANCE can be set in the shift function by editing the function. For the calculations CrewPlanner will use the cost of the shift as the budgeted cost.
Read all about setting the shift functions and the shift function logic in this article.
Departments
As a second level, you can enter a different hourly rate for a shift function for departments. By editing a department through the pencil icon, you will find a tab FINANCE. Here you can select a shift function and set a different hourly rate than normally used for that shift function.
For example, you can assign prices that deviate from the standard prices at department level to functions. If you wish to set multiple deviations at once, you select the plus sign on the right and press SAVE when finished.
These settings exceed the standard hourly rate entered in the shift function.
Company file
In the company file you will now also find a tab FINANCE. Here you can add some more financial and accounting information to the profile of the company.
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Function: In this field you select one of your shift functions with a different hourly rate for the customer.
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Hourly rate: Enter the different amount for the selected shift function. This setting will exceed the default rules and department rules of the shift function. This allows you to set custom pricing from one customer to another.
Function: In this field you select one of your shift functions with a different hourly rate for the customer.
Hourly rate: Enter the different amount for the selected shift function. This setting will exceed the default rules and department rules of the shift function. This allows you to set custom pricing from one customer to another.
As soon as you have completed all settings, you finalise by selecting SAVE.
CrewTip! If you use our Invoicing module, this price will be transferred to the invoice as Hourly Price.
To be able to calculate finances for a project, these fields must all be completed. When you consult the finances and there is no known wage or cost for the shift function, CrewPlanner cannot make a calculation for you. This is immediately visible and can be adjusted by selecting Unknown hourly rate in budgeted.
A pop-up will appear in which you can still enter a rate. As soon as you save this, CrewPlanner will immediately adjust this for the settings of this shift function.
CrewTip! There is a possibility, however, to have CrewPlanner take any wage costs into account. You do this by setting a coefficient per contract type.
Click here on 1.00 and a pop up will appear.
In the red frame you indicate the coefficient, which will now be used for the selected contract type. In our example this is Occasional employee. When you have saved this change, you can always consult it in the sums. This is great for doing an ad-hoc adjustment to a wage.
Logic at a glance
Finally, we revisit the logic.
Finances are calculated on the basis of the planned hours, the wages and the hourly rate.
Budgeted costs = Hourly price x number of planned hours
Planned costs = Hourly wages x coefficient x number of planned hours
As soon as the time registration of a project has been completed, CrewPlanner can calculate a margin for you on the basis of the budgeted, planned and actual costs.
Actual costs = Hourly wages x coefficient x rounded hours
Total margin = Budgeted cost - actual cost
CrewTip! If a manager adjusts the total hours worked and saves or finalises time registration, these changes are also applied to the metrics visible to the supervisor. Breaks are deducted from the total hours worked in the total margin, so if an employee works 8 hours and has a 30-minute break, 7 hours 30 minutes is used to calculate the actual and total margin fields.
We hope this article has helped you!
If you still have questions, take a look at our Crew Academy first. You might find the answer in one of our articles.