Menu > Reports > Financial Reports > Client Profit and Loss (Multi View)
Shows profitability across multiple clients with ability to allocate overhead from the GL.
How it works
The Profitability By Client report is different from the Company Profitability reports in that it includes an overhead allocation from the GL. It is based upon posted GL transactions and is not intended to tie to the budget analysis reports which are based upon actual transactions. The overhead allocation includes any transactions entered against expense accounts that are not associated with a client. Any entry tied to a client specified as an overhead client will be included in the overhead calculation and these clients will not show up in the profitability reporting. The percentage of overhead can be allocated using one of four methods.
- Labor Hours - This is the total approved hours on time sheets charged to the client or project divided by the total approved hours for the date range.
- Labor Cost - This is the total approved hours * standard cost charged to the client or project divided by the total approved hours * standard cost for the date range.
- Total Billing - This is the total of all revenue posted for the client divided by the all revenue in the date range
- No Allocation - This would still show the standard labor costs and inside costs, but would not have a bottom overhead number.
NOTE - GL Company Considerations: If a specific GL company is NOT selected prior to running the Client/Project P&L reports, the Overhead Pool will consist of all overhead transactions from all GL companies. When you specify a GL company prior to running the reports, only overhead transactions for that specific GL Company will be used to calculate the Overhead Pool amount.
Net Profit Calculation
The following fields and calculations will get you the same end result of the Net Profit value.
[Agency Gross Income] - [Other Expense Allocated] - [Total Inside Costs] + [Other Income]
([Revenue] - ([Allocated COGS] + [Direct COGS])) - ([Other Expense Allocated]) - ([Outside Other Expenses] + [Inside Labor Cost] + [Inside Misc Cost] + [Overhead Allocation]) + ([Other Income])
If you have the ability to Modify this report, then you can hover your cursor over the Available Columns to see how they calculate or get a more detailed description.
If you hover your cursor over Agency Gross Income. This calculates as "Revenue - COGS". So if you wish to verify this, you can add the Revenue and COGS columns separately and see the numbers before this calculation.