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

An Admin or Manager user with the right to edit the project can add or remove project expenses.

1. Set the expenses allocation

Go to the Budget Tab
Open the Add allocation drop down
Select Other Expenses
Enter the total expenses amount in the budget for Other Expenses
Click Save

2. Add the expense items

Go to the Other Expenses tab
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

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
Overallocated - Your total charges exceeds the expenses budget. Reduce your expenses or increase the expenses budget to resolve this.
Underallocated - You haven't allocated all of your expenses budget.

🌟Runn Tip:

Does the Total Expenses in the Other Expenses Tab carry over to the Budget Tab automatically?

No. The Other Expenses Tab serve as a separate form for you to calculate the total expenses. You will have to add the amount back to the overall budget in the Budget Tab.

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.