Engagement financials
The financials tab on engagements is for the monitoring of an engagement's financial position, reviewing the pricing model, managing payment milestones, developing the rate card, and summarizing notes on the fees.
Financials
The financials dashboard contains graphs for budget position, profit and loss, margin percentage, and billing.
Hover over the information icon to see details of what is displayed in the graph.
Fees
The fees section uses expenses information entered for each service in the resourcing tab.
Milestones
The milestones section provides a dashboard showing milestone progress, value, and percentage paid. The list view allows you to click on a milestone to open and update it. Click on the + Add button to create a new milestone for the engagement.
Milestones are used for fixed price engagements, when payment is tied to specific deliverables.
Step 1: Adding Payment Milestones
- Create a name, define the milestone's date, its associated value and add a description of the milestone.
Step 2: Managing Milestone Details
- To link a deliverable to a milestone, go to the Plan tab of the engagement, open the deliverable and select the milestone from the dropdown.
- To mark the milestone status as complete, open the milestone from the list view and use the dropdown box to update the status to complete and select the completion date.
Step 3: Automated Invoicing
- When a milestone status is updated to complete, advaise.app will seamlessly include it in the next invoice generated for the client or engagement.
- This automation streamlines your payment process and maintains financial organisation.
Step 4: Status Updates
- The milestone status will automatically update when the invoice status is marked as "invoiced" or "paid."
- This ensures real-time tracking of payment progress.
Rate card
It's important to have a well-defined rate card for your engagement. A rate card outlines the rate the client will be charged for roles on an engagement. advaise.app will populate the hourly cost rate for each role based on the information in the roles module.
To add a new rate, click on the + Add button. To update an existing rate, click on the role from the list.
Select a role from the dropdown. Only roles that have an approved status in the people module are available to add to the rate card. This ensures that the roles are standardised and consistent across all projects, making it easier to calculate costs and manage resources efficiently.
Enter the gross margin percentage that will be applied to this role. The gross margin ratio represents the percentage of a company's revenue retained as gross profit, expressed on a per-dollar basis. For example, a 20% gross margin implies that for each dollar of revenue generated, the company retains $0.20, while $0.80 is attributable to the incurred cost of goods sold (COGS), in this case resourcing costs. Leave this field blank to use the organization's default gross margin percentage.
As a worked example, if the hourly cost for a role is $80.00 and a 20% gross margin applies, the fees will be $100.00/hour and gross margin will be $20.00/hour.
Fee notes
The fee notes section is available to define the currency of the engagement, whether tax is to be included on invoices for the engagement, and provide additional context for the fees charged.
To update the fee notes, click on the Edit button.
Update the fee notes by selecting a currency from the dropdown list. All engagements will use the organization's default currency unless a different currency was selected in a proposal that was converted to an engagement. Only currencies with a rate in the organization module will be available to select here. If the required currency is not available, an owner or administrator will need to set this up in the currency section of the financials tab. Leave the exchange rate blank to use the current exchange rate for the currency, or enter a rate if a different rate has been agreed with the customer and approved.
Select whether taxes will be charged on invoices for this engagement.
Add comments with additional information regarding the fees for the engagement.
