Project group reporting
Project group reporting is a solution where you can see the profit & loss statement in a view where different projects (dimensions) are displayed in separate columns.
NB! To start project group reporting, you need all optimizing plugins: watch here.
To enable this functionality, find “Global Attributes” on the dashboard and add the global:
- Name: GLOBAL_USE_PROJECT_GROUP_REPORTING
- Value: true
Also, in order for the report to work, you need to refresh balance values every time you use the report. For this to work smoothly, add the global:
- Name: GLOBAL_UPDATE_BALANCES_ON_THE_GO
- Value: true
When these globals have been added, save the changes and refresh the page.
To work with the report, open the profit & loss statement (“Reports” -> “Income Sheet”) and select “project group”. As you can see here, there are two new cells where you need to select “project group” and “Contribution margin (Type”).
Read here about how to add projects and here you can find out more about project groups.
Contribution margin
You also have an option to allocate all non-allocated expenses-revenues – the name of this field is “Contribution margin (Type)”.
The term contribution margin is maybe not the best, but there seems to be nothing better. Contribution margin is to simplify seeing the product’s (and why not any other cost/revenue centers’) profitability by first deducting variable costs that are easy to divide and then the method helps to divide the fixed costs.
Because in ERPLY Books all dimensions are managed by projects, most ERPLY books users usually want to divide all expenses-revenues into projects. But as the contribution margin already suggests, it is hard to allocate fixed costs like rent, depreciation etc. This functionality was created specifically for these situations.
If you need to use the contribution margin exactly like what its definition says, then contact support (support@erplybooks.com). We can enable rules for automatically adding one dimension for all the transactions. After that, you can use the report in the same way.
The allocation can be done in three ways:
- Equally: it divides the non-allocated expenses-revenues equally between the projects
- By revenue: it divides the non-allocated expenses-revenues by revenue
- By quantity: it divides the non-allocated expenses-revenues by quantity
When you have selected the project group and contribution margin, press “Search”. If you need to select other cells, then do it as well. In this picture, the type is selected by revenue as an example.
As you can see, the “(Contribution margin): Final” difference is equal in the projects “Tallinn” and “Tartu”. It doesn’t matter what type you select in the contribution margin, the final sum should always be equal to the total of the project column values on the same line.
Example: Let’s say that the account 4000 is allocated 100% into dimensions and the account 5000 is allocated 75% from the total 38,732. The system works as follows:
As 4000 is allocated 100%, then this is shown as normal. As 5000 is allocated 75%, then 100%-75%=25% which is 38,732*0.25=9,683 of the total amount in account 5000 which is shown at the bottom, and this 25% is divided:
- Option=Equally -> 9,683/(total number of dimensions) is added to every project. If you have 5 projects, then 9,683/5=1,936.6.
- Option=By revenue -> let’s say the first project has 12% of the revenue from all projects. Then, the first project’s value for account 5000 is 9,683*0.12=1,161.96.
- Option=By quantity -> let’s say the sold quantity is 5,000 pieces and the first project has the quantity of 400. In this case, in the first row the account 5000’s divided value is 9,683*400/5,000=774.64.