As a leader of a company in the Information Technology (IT) and Services industry, you are required to make business decisions that brings impact to your company.
With this, you need effective tools in your decision making such as utilizing the features of NetSuite Services Resource Planning (SRP) feature.
A sub-feature that comes in handy is the Advanced Project Profitability feature.
In NetSuite SRP there is a feature called Advanced Project Profitability feature that allows you to report on the profitability of the project.
To avail of this feature, you must go to Setup > Company > Enabled Features and tick “Advanced Project Profitability”.
Once you enable this feature, you will see an additional menu for the “Project Profitability” report under Reports > Projects > Project Profitability.
You will also see a P&L tab added to the Project record. This will allow you to track the profitability on the project level.
Profit and Loss tab on Project Level
On the P&L tab, you can automatically see Cost and the Revenue generated by the project.
The Actual Cost can be based on the figures record in the various Account Types in your General Ledger and can even be from the Actual Time of the Employee. From the screenshot above, the Actual Cost of 1,250 USD came from the Total Cost incurred by the approved Time Entries logged by a Project Resource.
Same with the Cost, the Revenue calculation may also be customized according to the Account Type that you prefer. It could also come from the other transactions such as Sales Orders calculation.
Using the above example, you will see that an Actual Revenue of 2,500 USD is calculated which is coming from the Invoice amounting to 2,500 USD.
Project Profitability Reports
As mentioned, the Project Profitability feature also allows you to generate different types of reports which shows you the profitability of all the projects recorded in the system. See the screenshot for the standard profitability reports available upon enabling this feature.
Note: The Project Profitability report requires the Job Costing and Budgeting feature. For more information, see Job Costing and Project Budgeting.
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