What are non-labour or other expenses?

In Runn, all project expenses that are not related to people's time and labour are referred to as "Other expenses".

The costs and charges (or revenue) of these items are called "Other Costs" and "Other Charges".

Examples can include:

  • Travel expenses

  • Software licences and subscriptions

  • Hardware and other material costs

  • Room and equipment hire

  • Training and courses

  • Third-party services

Add these to your project budget to get a full understanding of all the costs and revenues on your projects. You'll be able to allocate your labour budget while taking all non-labour costs into consideration.

Managing other expenses

Setting and adding other expenses

Anyone with admin or editor permissions can add or remove project expenses.

1. Setting the expenses allocation

Start by defining the portion of the total budget you'll allocate to other expenses. You can change this at any time.

  1. Go to the project budget

  2. Open the Add role drop down

  3. Select Other Expenses

  4. Enter a budget for Other Expenses

2. Adding and editing the expense items

Once you have set the expenses budget allocation, you can start adding the different expense items. You can edit the expenses budget and items at any time.

  1. Go to the Other Expenses tab in the project budget

  2. Enter a name, date, cost and charge for each item

    • The cost is how much the item costs for your business

    • The charge is how much you are charging your clients for the item

  3. Click Save

As you enter your expense details, you'll see the total margin, gross profit, cost and charge update. The budget allocation status lets you know if you are above or under your other expenses budget.

The formula is as follows:

Budget allocation status = Expenses budget - Total expenses charge
  • Budget Allocated ✅ - You have allocated your other expenses budget perfectly

  • Over Budget - Your total charges exceeds the expenses budget. Reduce your expenses or increase the expenses budget to resolve this.

  • Under Budget - You haven't allocated all of your expenses budget.

Understanding other expenses

Project Performance

  • Time state

    Other expenses don't impact the time view.

  • Revenue state

    The charges of your other expenses affect the project performance (revenue) graph on the date they occur.

    In the table below the graph, the other charges are laid out as follows:

    • Past - Other expense charges prior to today

    • Future - Other expense charges from today onwards

    • Total - Sum of other expense charges over the entire project duration

    • Budget - The budget you have set for other expenses

  • Cost state

    The costs of your other expenses affect the project performance (cost) graph on the date they occur.

    In the table below the graph, the other costs are laid out as follows:

    • Past - Other expense costs prior to today

    • Future - Other expense costs from today onwards

    • Total - Sum of other expense costs over the entire project duration

    • Budget - The budget you have set for other expenses

Reports

Project Overview Report

Other expenses appear as a row in the detailed view.

Project Period Report

Other expenses appear as a row in the detailed view for the periods they apply to, based on the expense item's date.

Project Cumulative Report

Other expenses will be added to the totals based on the expense item's date.

How different project types handle expenses

  • T&M projects

Expenses are added to the cost and revenue / charges as entered, impacting the overall project cost / revenue.

  • Fixed price projects

When looking at the fixed price project revenue, the other expenses' charges are "pro-rated". The total of other charges is adjusted to reflect its contribution to the project's revenue, relative to the T&M total revenue benchmark.

See the Project Performance charts help doc for more information.

  • Non-billable projects

Since non-billable projects don't have revenue, the "charges" components are unavailable.


Still have questions? We're happy to help!

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