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
- Manually Recalculating Finances for a Project
- Actions That Trigger an Automatic Recalculation
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.
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:
- The system level (for job roles)
For more information about creating job roles with billing rates at the system level, see "Creating and Managing Job Roles."
- The user level
For more information about changing the billing rate information on users, see "Editing User Accounts."
- The Company level (for job roles)
For more information about overriding job role billing rates at the company level, see "Understanding and Managing Companies."
- The Project level (for job roles)
For more information about overriding job role rates at the project level, see "Overriding Job Role Billing Rates on a Project and Calculating Revenue."
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
- Preserving Project Revenue by Using Multiple Billing Rate Overrides
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."
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.
Cost rates can change at the following levels:
- System level (for job roles)
For more information about creating job roles with cost rates at the system level, see "Creating and Managing Job Roles."
- User level
For more information about changing the cost rate information on users, see "Editing User Accounts."
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.
You can recalculate the actual cost and revenue on all entered hours and expenses for a given project to ensure that cost and revenue are calculated at the current rates. You do this by recalculating finances on a project.
To recalculate finances for a project:
- Navigate to the project where you want to recalculate finances.
- (Optional) If you want to preserve any existing financial information in your project, first complete the steps in "Preserving Financial Data for Tasks with Existing Hours."
- Click Project Actions, then click Recalculate Finance.
All planned costs and revenue on the project are recalculated with any new information.
Various actions automatically recalculate finances for a project, including:
- Updating task status
- Editing any field of the task and saving it
- Adding an approval to the task
- Moving a task to a different project
- Changing the status of the project to Current