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Recalculating Finances

Finances are calculated on a project as changes occur in the hours logged for the project or in the rates for costs and revenue. 

You can recalculate costs and revenues on a project, manually, by using the Recalculate Finance option on a project. In addition, some actions trigger an automatic recalculation. 

You might have a task or project with a certain billing rate or cost type attached to it. As you begin to execute the project or task, the billing rate might need to be changed. When the change is made, the updated rate is used from that point on as hours are logged and the financial information is calculated.

Changing the rate does not affect how things were calculated before the change was made. However, when the Recalculate Finance option is selected, Workfront retroactively recalculates all previously entered hours, planned costs, and revenues in accordance with the new rate information.

Prior to recalculating finances for a given project, you might want to preserve any financial data that has already been calculated.

Preserving Financial Data for Tasks with Existing Hours

When financial data for a project is recalculated, Workfront retroactively recalculates all previously logged hours, planned, actual costs, and planned and actual revenue, in accordance with any new or updated financial information. 

Preserving Project Revenue 

Revenue rates can change during the lifetime of a project. 

For more information about billing rates and revenue, see "Understanding Billing and Revenue."

Revenue rates can change at the following levels:

For example, a user's billing rate changes during the course of a project from $50 to $75 an hour and you want all existing data to remain calculated at the old rate ($50 and hour). However, when the project finances are recalculated, tasks that already have existing financial data will have the revenue updated to reflect the new billing rate (of $75 an hour). 

Preserving Project Revenue by Creating a Billing Record

When billing rates change at any level mentioned above, you can preserve existing revenue which has already been calculated on the project by locking the time recorded on the project and calculated using the old rate into a billing record. 

For more information about creating billing records, see "Creating Billing Records."

Preserving Project Revenue by Using Multiple Billing Rate Overrides

When billing rates change for job roles at the project level, you can preserve existing revenue which has already been calculated on the project by using multiple billing rates overrides which are locked within a specified time frame. 

For more information about using multiple billing rates overrides, see "Calculating Planned Revenue Based on Multiple Billing Rate Overrides."

NOTE This only applies to job role billing rates that are changed at the project level. 

Preserving Project Cost

Cost rates can change at the following levels:

When cost rates change during the lifetime of the project and you want to preserve the cost calculation of the hours that have been previously logged on the project, you cannot use the Recalculate Finance option, as described in the "Manually Recalculating Finances for a Project".

The hours logged after the rate changes will calculate with the new rate, and the hours logged before the cost rate changes remain calculated at the old rate when you do not recalculate finances on the project. If you use Recalculate Finance, the new rate is applied for the cost calculation of all hours logged to the project, for the lifetime of the project.

Manually Recalculating Finances for a Project

If your rates change during the life of a project and you want your cost and revenue calculations to reflect the new rates, you must manually recalculate the finances on the project. 

IMPORTANT You can prevent revenue values from updating to reflect the new rates when you manually recalculate finance by following the steps in "Preserving Financial Data for Tasks with Existing Hours." . Cost values are always updated to reflect the new rates when you manually recalculate the finances on a project. 

To recalculate finances for a project manually:

  1. Navigate to the project where you want to recalculate finances. 
  2. Click Project Actions, then click  Recalculate Finance.
    All planned costs and revenue on the project are recalculated with any new information.

    You should receive a confirmation at the top of the browser that the finances of the project have been recalculated successfully. 
    Existing cost values and some revenue values which have not been locked update to reflect the new rates. 

Manually Recalculating Finances for Several Projects in Bulk

You can manually recalculate the finances of several projects by editing them in bulk. This causes the revenue on the projects to recalculate retroactively. 

IMPORTANT You can prevent revenue values from updating to reflect the new rates when you manually recalculate finance by following the steps in "Preserving Financial Data for Tasks with Existing Hours." . Cost values are always updated to reflect the new rates when you manually recalculate the finances on projects. 

To manually recalculate the finances of several projects: 

  1. Navigate to a list of projects.
  2. Select several projects in the list, then click Edit.
  3. Click Settings, then select Recalculate Costs And Revenues.
  4. Click Save Changes.

Actions That Trigger an Automatic Recalculation of Finances

Various actions automatically recalculate finances for a project, including:

  • Updating task status.
  • Moving a task to a different project.
This article last updated on 2018-03-26 19:29:25 UTC