Margins
VOGSY automatically tracks all hours and costs spent against a project’s budget, and shows you the calculated and actual margins based on sales and cost rates. It does the same at the level of each deliverable.
Margins at the project level
To view a project’s margin data and statistics, click the expander arrow:
The expanded data that displays includes the following:
The calculated data, based on hard bookings. 

The actuals data, based on invoices and time sheets. 

The forcasted data, based on soft bookings. 

The sales data 

The costs data 

The margin data cash value 

The margin data percentage value 

The hours data 

The sales rate data, averaged 

The cost rate data, averaged 
Margins at the deliverable level
To view a deliverable’s margin data and statistics, click it’s margin gauge:
The information that displays includes the following:
The calculated data, including the profit margin, displayed as cash value ( ) and percentage value ( ). Calculations are based on hard bookings. 

The actuals data, including the profit margin, displayed as cash value ( ) and percentage value ( ). Calculations are based on invoices and time sheets. 

The forcasted data, including the profit margin, displayed as cash value ( ) and percentage value ( ). Calculations are based on soft bookings. 
Determining what the margin guage’s value represents
The percentage value displayed in the deliverable’s margin gauge can be based on the deliverable’s actual margin or on its margin forecast. By default it displays the actual margin. To change this, do the following:

Go to the back office and open the Project settings page.
You must have the Support staff role in order to access the back office. 
Located the
Margin indicators are based on
section. 
Select the appropriate check box and then scroll down and click Save.
Calculated margin
The calculated margin ( ) is calculated depending on the invoicing method:

Time & Material: The total amount of calculated costs divided by the calculated sales ( ).

Fixed Price: The total amount of calculated costs divided by the total value of the invoicing schedule plus the amounts from manually created invoices( ).

Subscription: The total amount of calculated costs divided by the order value of the deliverable ( ).
Calculated costs ( ) are based on the calculated activities of the deliverable. In this example there are two activities calculated:
Activity  Calculated cost rate  Hours calculated  Costs 

Developing 
$100 
200 
$20,000 
Design 
$90 
100 
$9,000 
Total costs 
$29,000 
The calculated cost ( ) of an activity is displayed beneath the activity.
Actual margin
A deliverable’s actual margin is based on its actual costs and actual sales.
Actual costs
Actual costs are based on all hours spent on the deliverable. The total number of hours spent is multiplied by the cost rate of the employee who submitted the spent hours.
The following example shows how the actual costs are calculated. In this situation, two employees tracked time on a fixed price deliverable:
Employee  Cost rate employee  Activity  Hours spent  Costs 

Mikey Johnson 
$90 
Developing 
32 
$2,880 
William Smith 
$100 
Design 
12 
$1.200 
Total costs 
$4,080 
Actual sales
For fixedprice deliverables, the fixed price amount equals the actual sales amount.
To have a realistic actual sales value, VOGSY calculates the actual margin in proportion. How to determine the proportion can be configured in the Project settings.
There are three options to choose from:

Schedule: The percentage of the schedule is used. For example: If 25% of the time is passed, 25% of the total amount of the invoice schedule will be used.

Budget: The percentage of budget spent is used. For example: when 30% of the budget is used, 30% of the total amount of the invoice schedule is used for calculating the actual margin.

Completion: The percentage of completion determines the actual sales. The completion can be set manually by tapping on the completion indicator. When the deliverable has a completion percentage of 75%, the actual sales will be 75% of the total amount of the invoice schedule.
The default setting is
Completion
.
Based on the above example this would be the calculation of the actual margin, when the total amount of the invoicing schedule is $37,500 and the completion is 15%:
Actual costs 
Hours spent x cost rate employee 
$4,080 
Actual sales 
Invoicing schedule ($37,500) x Completion (15%) 
$5,625 
Actual margin ($) 
Actual sales  Actual costs 
$1,545 
Actual margin (%) 
Actual margin ($) / Actual sales 
27.5% 
Margin forecast
Forecasted margins are a snapshot of your project’s financial future. They are calculated based on the invoicing method of the project’s deliverables as well as the amount of hours that have been worked by all resources associated with the deliverable. This calculation offers a full view of your project’s potential income and expenses, giving you a clear financial forecast.
Time and Materials deliverables
The margin forecast for Time and Materials projects is calculated in the following manner: Forecasted sales  Forecasted costs.

Forecasted sales is calculated by adding the following:

Planned hours

Submitted hours for the current week

Approved hours
Planned hours
$8000
Submitted hours
$5000
Approved hours
$7000
Forecasted sales
$20000
These amounts are based on the sales rates of the activity calculations.


The same hours used to calculate the forecasted sales are also used to calculate the forecasted costs, except the cost rates of the assigned resources are used.
Planned hours
$5000
Submitted hours
$3125
Approved hours
$4375
Forecasted costs
$12500

The difference between the forecasted sales and the forecasted costs is the margin forecast.
Forecasted sales
$20000
Forecasted costs
$12500
Margin forecast
$7500

The margin forecast percentage is calculated by dividing the forecasted sales into the margin forecast.
Margin forecast
$7500
Forecasted sales
$20000
Margin forecast percentage
37.5%
Fixed price projects
The margin forecast for fixed price projects is calculated in the following manner: Forecasted sales  Forecasted costs.

The forecasted sales is derived from the project’s invoice schedule:

To calculate the forecasted costs, the following hours are used:

Planned hours

Submitted hours for the current week

Approved hours
Planned hours
$500
Submitted hours
$1000
Approved hours
$1000
Forecasted costs
$2500
These amounts are based on the cost rates of the assigned resources.


The difference between the forecasted sales and the forecasted costs is the margin forecast.
Forecasted sales
$5000
Costs
$2500
Margin forecast
$2500

The margin forecast percentage is calculated by dividing the forecasted sales into the margin forecast.
Margin forecast
$2500
Forecasted sales
$5000
Margin forecast percentage
50%