Project performance is shown differently depending on the project type - Fixed Priced or Time & Materials (T&M). The project performance chart helps you see how your project is tracking, and your past and future revenue.
However, both allow you to see how you are tracking against your budget, when you may go over budget and, if you are using timesheets, are automatically adjusted based on timesheet entries (actuals).
Time and Materials Projects
For T&M projects, the project performance chart will help you keep track of how the project is going against the budget, and whether you'll need to adjust your plans or even the budget.
It can be used to help predict your project performance and see where the money is being earned.
It also helps you see what has already been completed or earned, and what is still to be done / how much is still to be earned.
For T&M projects, performance can be viewed as:
Time
Revenue
Cost
Time
Shows you how many billable hours or days have been completed, how many hours or days are still to come, the total, and the budget.
Revenue
Shows the revenue earned in the past and future, and the total revenue based on the budget.
For T&M projects, the revenue is calculated from the project's billable hours and the charge-out rates you have set for each role in the budget or rate card.
Cost
Shows the people costs in the past and future, and the total project cost.
The costs are based on each role's "default internal role cost" unless you have set up a "cost to business" rate for the person in their contract.
Fixed Priced Projects
For fixed-price projects, performance can be viewed as:
Time
Revenue - T&M Benchmark and Fixed Price
Cost
Time
Shows you how many billable hours or days have been completed, how many hours or days are still to come, the total, and the budget.
Revenue
Shows the revenue earned in the past and future, and the total revenue based on the budget.
On the graph, you will also see the benchmark line. This is how much revenue you would earn if the project was charged as a T&M project. The benchmark is calculated from your project's billable hours and the project charge-out rates you have set for each role in the budget or rate card.
The T&M benchmark helps you understand if a project is performing better or worse than if it was charged as T&M. Ideally, every fixed-priced project would come in over the T&M benchmark.
Fixed Price view - shows your revenue earned. With fixed-price projects, the total revenue equals the project budget. The rates for each role are adjusted to the "effective hourly rate" and the revenue for each allocation is pro-rated to reflect its contribution to the total revenue relative to the budget.
T&M benchmark view - shows what would have been earned if it were a T&M project.
Cost
Shows the people costs in the past and future, and the total project cost.
The costs are based on each role's "default internal role cost" unless you have set up a "cost to business" rate for the person in their contract.
Please remember: Timesheet actuals will be used in these calculations if present. If you don't use timesheets, the scheduled hours will be used.