An Overview of the Financial Tab of Projects

When you navigate to the Financials Tab within a project, you’ll immediately encounter two critical visual aids, Cost Comparison By Type and Financial Summary charts. These two charts offer a summary view of key financial metrics, but there is much more depth to explore beneath the surface.

Cost Comparison By Type Chart

The first chart you’ll see is the Cost Comparison By Type, which provides a breakdown of the budgeted, committed, and actual costs categorized by item type. These categories are Material, Equipment, Labor, Subcontractor, Other, and Unassigned (which refers to items without a type attached). This chart serves as a visual comparison of how much has been budgeted versus how much has actually been spent, and it shows you what commitments have been made but not yet paid.

The three columns displayed are:

Budgeted Costs – This is the total amount estimated for each type of item when the estimate was created.

Committed Costs – These represent the costs that have been agreed upon but not yet paid. For example, this could include purchase orders that have been placed but not yet billed or subcontractor agreements that have been signed but not yet billed.

Actual Costs – This shows the actual expenses that have been incurred to date.

By comparing these three figures, you can quickly identify areas where costs are exceeding the budget or where commitments have been made but not yet billed.

These columns provide a much deeper dive into the project’s financial standing. For instance, the Remaining Committed and Remaining Actual columns show the difference between what was estimated or committed and what has actually been spent. The percentage columns (Remaining Committed % and Remaining Actual %) help quantify the remaining balance as a percentage of the estimated cost.

Turning the Chart into a Table

For users who prefer to view this information in a table format, there’s an option to switch from the chart to a table by clicking the icon in the top-right corner of the chart. Once the table view is activated, more detailed columns will appear.

For each of these columns, there is an “i” icon next to it that provides additional details on where the data is coming from and how it is calculated.

Estimated Cost – Total Estimated Cost (no markup) from Approved Estimate, SOV items, Approved Change Orders, Approved Work Orders, and Service Tickets that are related to the project.

Committed Cost – This will pull data from Expenses, Purchase Orders (Approved, Paid, Submitted, Received), Sub-Contracts (Committed, Submitted, Approved), Time Cards, and Daily Log Equipment.

Actual Cost – This will pull data from Bills (no markup), Expenses, Time Cards, and Daily Log Equipment.

Remaining Committed – Difference between Estimated and Committed.

Remaining Actual – Difference between Estimated and Actual.

Remaining Committed % – (Remaining Committed*100)/Estimated Cost.

Remaining Actual % – (Remaining Actual*100)/Estimated Cost.

This additional level of detail helps to get a clearer understanding of where money is being spent and whether it aligns with the original budget.

Financial Summary Chart

The Financial Summary chart presents three pie charts that offer a high-level view of the project’s financial status:

Original Contract Amount, Estimated Cost, and Estimated Profit

Total Project Amount, Estimated Cost, and Estimated Profit

Amount Invoiced, Amount Paid, and Amount Unpaid

Image of the Financial Summary Chart

These charts help to track not only the financial health of the project as it progresses, but also the project’s overall cash flow.

Converting the Financial Summary to a Table

Similar to the Cost Comparison chart, the Financial Summary can also be converted into a table for a more detailed view.

For each of the column headings, hovering over the “i” icon provides further clarification on the data source and calculation methods:

1. Estimates Revenue – Items total with markup.

2. Estimated Cost – Items total without markup.

3. Estimated Profit – Total markup of items (Estimates Revenue – Estimated Cost).

4. Estimated Markup – (Estimated Profit*100)/Estimated Cost.

5. Estimated Margin – (Estimated Profit*100)/Estimated Revenue.

The rows in this table are based on the original contract amount, change orders, work orders, service tickets, and the total project amount. Below these figures, you will also find details like the amount invoiced, amount paid, amount unpaid, retention held, remaining to the invoice, due in 30 days, and past due.

This detailed breakdown helps not only track the project’s financial performance but also understand exactly where profits and costs are coming from.

Changing Calculation Preferences

Just below these two charts, there are two options for adjusting how information is presented:

Pull budgeted row from – This allows you to choose whether to pull budgeted data from the Schedule of Values (SOV) or the Estimate.

Financial Summary View – You can select whether to view the financial summary based on Actual, Committed, or Total Project costs.

Changing these preferences will adjust the information shown in the charts, giving you different perspectives on the project’s financial standing. However, these changes won’t affect the information presented in the table view, which remains consistent.

Stage-Based Reflection of Data in Financials

It’s crucial to remember that the information presented in the Financials Tab is dependent on the stages of records from various modules. For instance:

Estimates, Change Orders, Work Orders, and Service Tickets will only reflect in the financials if they have been Approved.

Purchase orders will be included if they are in a stage of Approved, Paid, Submitted, or Received.

Subcontracts are counted if they are Committed, Submitted, or Approved.

Bills and Expenses contribute to actual costs when they are logged without markup.

Understanding these stages is important to ensure the financial reports reflect the most accurate and up-to-date data.

The Financials Tab in Contractor Foreman offers a robust set of tools for managing and analyzing project costs. From comparing budgeted and actual costs to understanding estimated revenue and profit, this tab provides a comprehensive view of the financial health of a project. The ability to switch between charts and tables and to adjust preferences makes it highly adaptable to the needs of project managers and financial controllers.

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