Project and phase budgeting

This is about planning how much time your employees will actually enter for this project.

This allows you to compare how much time you were able to charge and how much was actually spent.

Planned amount that you should actually be able to charge to your customers (charged or “external” fee). It is the amount that the end customer sees on the invoice, i.e. billable time * ext. hourly rate.

Normally, the external fee for a service is the product of hours and hourly rate. However, before charging, this amount can be adjusted manually to charge a different amount.

Internal fee does not refer to the costs. It is the amount that one would theoretically or could bill to the end customer. This corresponds to the working time * ext. hourly rate. In the case of a flat rate, for example, this can be more or less than the billable amount. With the internal fee, an additional controlling figure is available.

At project phases, internal fees can also be used for Poc calculations, in which the planned total costs are estimated periodically and entered as “internal fees”.   Tracking planned values on phases the raw data are then available for a PoC calculation.

Unlike external fees (see above), the internal, recorded value is never adjusted at the time of charging.

This value is used to plan the internal costs incurred for this project – the so-called standard costs.

This value is important for internal cost accounting and can be evaluated via the Business Intelligence module.

What is included in these costs depends on what contribution margin you want to see in the Business Intelligence module. In most cases, only the pure salary and direct ancillary salary costs are taken. The same value is taken if you want to post via internal performance accounting (ILV), since costs such as rent, IT, etc. are transferred from cost accounting to KST.