In a project's finances overview, you'll see at the top a high level report like this:
There are two major sections: Planned and Actual. In this article we'll dive into how each of these is calculated.
Planned
Planned refers to your planned revenue, costs, and profit for the project, based upon what you've entered into your scope of work and affected by final selections made by your client. Here is how it breaks down:
Amount to invoice is the grand total for everything in your scope of work that you'll send an invoice for, pre-tax.
Tax to collect is the total of client sales taxes estimated over all the items in the project.
Amount to spend is the total of your internal costs defined in your scope of work and approved selections.
Planned profit is the anticipated difference between what everything in the scope costs you (including your time!) and what you bill the client for it.
Actual
Actual reports on actual revenue and expenditures to date on this project. It is simply based on your invoices (representing income) and your Purchase Orders, Time Entries, and Expenses recorded. Here's how it breaks down:
Invoices paid is the total revenue over all your invoices (sales tax not included, as that is the State's revenue).
Sales tax collected is the tax you've collected from clients from all your invoices.
Spending committed is the total of all sent and paid purchase orders, expenses, and time entries.
Actual profit is what the client has paid you minus what you have spent on POs, expenses, and time.