Use this report to compare loaded labor costs and predetermined billing rates.

It provides visibility into the profit contributions of each project labor category and that of the individual employees. You can use this to determine whether your billing rates are right for your company. Before printing the T&M Analysis report, you must run the Update Project Status Report Tables screen and the Create Project Report Tables screen for the projects that you plan on printing. You specify the Desired Fee Percent and/or the Desired Markup Percent to be used for the calculations on the Create Project Report Tables screen.

You can print the T&M Analysis report in a variety of ways. If you select the Desired Fee Percent option, the report starts with the average base hourly rate for either the project labor categories or the individual employees, depending on your selection. This average base hourly rate is then burdened with your indirect costs at either actual or target rates, depending on your selection. The result is the burdened hourly rate, which represents the true cost, because it includes both the labor and the applicable share of indirect expenses such as fringe benefits, overhead, and administrative costs. Costpoint then compares your predetermined billing rate to the burdened hourly rate and the profit percentage computed. Costpoint adds the Desired Fee Percent entered on the Create Project Report Tables screen onto the burdened hourly rate to determine the minimum billing rate that you could charge and still reach your profit objectives.

If you cannot use indirect cost burdening, you can select the Desired Markup Percent option. Use this report to enter a markup percentage instead of the cost burdens. Costpoint uses this percentage to mark up the average base hourly rate to arrive at a markup hourly rate. This markup hourly rate and your average base hourly rate are then used to arrive at the profit percentage. The application compares this percentage to your predetermined billing rate profit percentage. As with the Desired Fee Percent report, you can print the Desired Markup Percent report by employee or project labor category and at actual or target rates.

Data for the report is stored in the RPT_PROJ_TMA report table. Base tables updating the report table include PROJ_BURD_SUM and LAB_HS. You must have billing rates set up for the project selected. Revenue must be computed for the report table to contain valid information. In addition, the revenue formula must be one of the four loaded labor rate options: Loaded Labor Rate, Loaded Labor Rate Plus Cost Incurred on Non-Labor (T&M), Loaded Labor Plus Non-Labor Plus Burden On Non-Labor, or Loaded Labor Plus Non-Labor W/Burden W/Fee.

You must run the Update Project Status Report Table and Create Project Report Tables processes before executing the Print T&M Analysis Report screen. The report table that stores the data for the T&M Analysis, RPT_PROJ_TMA, is updated based on the criteria you selected. For example, assume the report table contains amounts from January 1, 2005 through May 31, 2007. If you elect to update the report table with information from FY 2007, subperiod 1 through 4 of period 5  (May 1-31, 2007), the utility updates only table rows containing amounts for these subperiods. If you want to run reports that include June 2007 data (period 6), you must run the utility to update the table for that period.