This tab is used for building the project budget using the Calculation of Revenue Based on Costs calculation method. The tab contains the following two panes:

• Revenues (upper pane)
• Costs (lower pane)

The "Project Estimates (create)" form. The Revenues and Costs tab

The Revenues pane

For each revenue listed in the upper pane, you can create a list of costs in lower pane.

The revenue estimates can be presented for multiple combinations (sets) of the analytical parameters selected from the following ones:

• Project Task: (available if the Enable Project Tasks option is selected on the Administration > Settings > General Settings form) To be able to set revenue estimates detailed to tasks.
• Item: To be able to set revenue estimates detailed to items.
• Company: To be able to set revenue estimates by supplier company.
• Business Activity: To be able to set revenue estimates by business activity.
• Department: To be able to set revenue estimates by department.
• Income Item: To be able to set revenue estimates by income item.

You can select the analytical parameters for revenue estimates by clicking the Settings button on the toolbar, then only columns matching the selected parameters will be available.. Alternatively, if you use the same set of parameters for most projects, you can select the default set of parameters on the Quick menu > Personal Settings (the Default Values tab).

In the corresponding columns, select the analytical parameters related to the revenue.

If you don't need to specify estimates by item, you can type the revenue estimate amount in the Amount column.

For each revenue, you can specify multiple costs in the Costs pane.

The Item column is available if the Item is selected as the project revenue analytical parameter.

The Quantity column is available if the Item is selected as the project revenue analytical parameter.

The UOM column (available if the Item is selected as the project revenue analytical parameter) is populated with the unit of measure used for the item.

Use the Cost column (available if the Item is selected as the project revenue analytical parameter) to enter the item's cost per UOM.

In the Overhead column, enter the other costs and expenses related to the item. Generally, this column is auto-populated from the overhead amount allocated from the Overheads tab.

The Total Cost field shows the cost of the specified quantity of the item with the allocated overhead amount.

In the Markup, % column, you can specify the percentage of increase to be applied to costs to get the revenue estimation. Generally, the revenue amount can be calculated based on markups specified for related costs in the lower pane.

In the Markup Amount column, you can view the added amount for the specified percentage or you can enter the amount directly if no percentage is specified.

The Amount column shows the amount for the specified parameters.

The VAT,% column is auto-populated with the VAT rate applicable to the revenue.

The VAT Amount column shows the amount of VAT calculated for the revenue.

In the Price column, you can view the resulting revenue item price. If the Markup is specified, the price is calculated based on the cost and markup.

The Total Amount column shows the revenue amount.

The Costs pane

Click Add to add a new cost for the revenue selected in the upper pane.

Generally, the costs are presented for different combinations (sets) of the following analytical parameters:

• Expense Item: Required. The Expense Item column is always available.
• Project Task: Optional. (Available if the Enable Project Tasks option is selected on the Administration > Settings > General Settings form.) To be able to set revenue estimates detailed to tasks.
• Cost Elements: Optional. To be able to view project costs detailed to cost elements which you can select from the Employees, Fixed Assets, and Items lists. Selecting this option brings up the following columns: Item, Quantity, Prices Include VAT, and Price.
• Company: Optional. To be able to view project costs by supplier company and its contract.
• Business Activity: Required. To be able to view project costs by business activity.
• Department: Required. To be able to view project costs by department.

You can select the analytical parameters for cost estimates by clicking the Settings button on the toolbar, then only columns matching the selected parameters will be available.. Alternatively, if you use the same set of parameters for most projects, you can select the default set of parameters on the Quick menu > Personal Settings (the Default Values tab).

If you need to specify cost estimates by item (as cost element), in the Item column, select a particular item, select the UOM, and specify its quantity required for the project in the Quantity column. If the price does not appear automatically, enter the price and indicate whether the price includes VAT by using the appropriate Prices Include VAT check box.

The VAT,% column is populated with the percent of VAT applicable to the cost or expense.

For an employee selected as cost element, you can enter the Amount, or you can provide more details, such as worked hours in the Quantity column and the daily salary in the Price column.

In the Price column, you can enter the item price.

The Total Estimated Amount column shows the total amount for the specified quantity of the item.

The Amount column shows the total amount for the specified expense or cost with the VAT amount added if applicable.

In the Markup, % column, you can enter the percent of increase to be applied to the cost to get the revenue estimate related to this cost or expense.

The Markup Amount column is auto-populated with the amount of markup. Alternatively, you can enter the amount and the markup percentage will be recalculated.

The Amount Incl. Markup column shows the cost with markup for this cost/expense.

The Estimate totals and other information

The following fields appear at the bottom of this tab:

• Revenue: Shows the total amount of all the listed revenue estimates for the project.
• Overhead: Shows the total overhead amount associated with the project.
• Cost: Shows the total amount of all the listed cost estimates for the project.
• Profit: Shows the difference between the Revenue and Cost amounts.

The toolbar buttons

Click the Allocate Overhead Costs button in the upper pane's toolbar to allocate overhead costs to revenue estimates.

You can select the allocation method from the following options:

• Proportionally to Costs: Proportionally to cost estimate amounts.
• Proportionally to Revenues: Independently from costs, proportionally to revenue estimate amounts.

The application checks that the sum of the allocated amounts is equal to the total overhead amount.