Tempo Ideas

To better understand the definition of Cost Rates vs Billing Rates, we referred to following articles:

https://help.tempo.io/financialmanager/latest/setting-project-cost-rates

https://help.tempo.io/financialmanager/latest/setting-project-billing-rates

In the tool initially, we performed the following steps:

• Created monetary-based project in Financial Manager

• Turned on revenue tracking

• Set the Cost Rates based on a blended internal rate

• Established the Billing Rate as the blended rate we charged to our clients

However, we observed that Financial Manager calculates the remaining budget using the formula: Budget Remaining = Budget - Actual Cost, incorporating the associated Cost Rates. For our needs, we would prefer to see Budget Remaining calculated as Budget Remaining = Budget - Actual Revenue. We saw that Actual Revenue was based on the defined Billing Rate.

As a consulting team, our perspective on using the Financial Manager tool differs from typical internal project management, as we need to manage costs in a unique way.

Currently, the only solution we found to meet our requirements is to disable Revenue Tracking and use the Cost Rates as our blended “Billing Rate”.

We would like to see a way to track this using Billing Rates, rather than relying on Cost Rates as our “Billing Rates”