hello my fellow oh dudes and odettes costs have a direct impact on the profits made by companies and for this reason a good understanding of cost structures can help increase your profitability knowing the costs and revenues of your project also allows you to see where you stand in your baseline and when you know where you stand you can officially make smarter decisions and take corrective action if needed now before we jump into our database to start working i'd recommend you watch the previous videos of this chapter you'd be better able to understand the context and
you'll be already familiarized with us with some of the features presented in this video with that said let's get started let's start on the main dashboard we'll go straight into the projects to show you what you need to configure in order to get profitability set up so first things first we go to configuration of the project the macro level and ensure that timesheets is enabled which will then install the timesheet app from there if we go look at our project configuration we want to ensure that we have billable setup because without billable you're not profitable
then if we go take a look quickly we'll look at our products the repair service products we have created and so we do offer two different types of services one is a hourly service while the other is a 25 hour pack of services so prepaid in the case of the 25 hour pack as you can see here where we want to build a client up front and then if we go look at the hourly we'll build based on timesheets so that we only invoice the client after we perform some work let's create a quick sale
here let's say that deloitte wants to come in and buy some of our services because we're going to repair things and we can automatically create their contact record through our integrations we have set up and we'll add the two products very quickly they want a little bit of the repair hourly service just to see how well we perform 10 hours and then we're going to do the repair pack for one of their offsite locations and we will confirm the order they've already said they wanted to buy it anyway and we will create the invoice notice
that when i create the invoice only the repair service pack will be on it because it's billed right up front as opposed to the repair service which is billed based on our delivered and since we haven't delivered it no billing create the invoice regular invoice and you can see it here 3600 usd which is going to be profit now let's go look at our projects if we dive into it and go straight to the on track reporting we'll see how many hours have been sold total 65 which is the total sold two effective hours have
been logged which i'll show you more about that momentarily and then the remaining hours which is of course the hours of sold minus logged equals remaining we can see a forecast based on our revenues cost and margin which will be based on what we sold of course and any costs we assigned to it for via timesheets or billing for example with our vendor bills and you can see all sales here in the right-hand side you're going to have all the different metrics if you want to dive into the specifics of it which we'll do very
shortly so let's go look at our tasks that were created one we have the administrative work task this was created manually you'll notice that there's no information about sales orders or anything of the sorts it was created by ritchie rich three hours ago now odoo knows this is that any time logged on this task is non-billable because it is not linked to a sales order because it's created manually so any work that for example anita logs admin work one hour is non-billable we cannot send this to our client we cannot invoice from this task to
bill a client because it's not linked to a sale specifically not linked to a sales order line now as you can see we sold to deloitte the repair service 10 hours of hourly rate and then the 25 prepaid so let's go work on the repair service we'll move it to in progress assign it to myself however we're going to have abigail log the time helps richie with things log two hours and save that now finally we're going to repair our log hours on repair service pack in progress leave it unassigned everyone can work on it
and this time it's going to be audrey who's in long time lead the repair three hours so let's see how this impacts everything on the update status update of the report so we can see that the effective hours have went up from two to seven as we logged one two and three hours respectfully our costs increased and our revenue stayed the same and so let's see how that impacted on the micro level so nine hours recorded we can see the different color coding so build on timesheets is blue so that means any time logged on
any task created from a sale that was linked to a product built based on time is in that blue section i know convoluted just pause replay and you'll understand hopefully sooner or later then we have build at fixed price any time logged on a task that's linked to a sale with a product that's linked to the 25 hour pack will be in that section and of course any admin work i log on a task created manually not linked to a sale will be logged here pro tip you can actually go back and link a task
to a sale after the fact if you want to but that won't retroactively impact the timesheets and we can go in list view and see all the time logs and it separates it automatically with the grouping feature based on employee and the type of billable hours and you can automatically see it here and separate out into okay that's what they work they do what work they did and what task so let's go back and take a look at the billable time now this is only going to show any like well it's going to show all
the work but it's the ability time is a 67 only because of all the hours worked on tasks that are billable versus the administrative work here so of the work performed 67 is billable so obviously as a business you want to make sure that most of the work is billable and increase that percentage as much as possible obviously need an ambiguity can be a little bit more efficient then we can look at the gross margin we have 6745 and one cent gross margin this is essentially our analytic entries any negative value of timesheets so the
timesheet value comes from the employee record since all my employees which we can probably add very quickly partner those are customers but essentially all the hourly time is based on the employee record and all three employees are billed at 50 per hour any negative analytic uh entry will be just deducting from our available time or sorry our margins while any sales will increase it so just to show how this impacts uh things when we invoice remember if we go quickly back to our sales deloitte and we can see we've delivered two of the 10 hours
we can of course create an invoice which will then impact the repair service as you can see repair analytic account automatically assigns confirm posting the journal entry and we will see 200 dollars positively impact our profitability gross margin 200 usd now let's see how we can actually impact the cost margin in a negative way outside of timesheets so going to our purchase module let's say we need to go buy some equipment from home depot we can autofill create a new contact record we're going to get repair tools and in this case it cost us 150
usd now one thing we need to ensure that we do every single time is assign the analog account repair this way we know okay this particular purchase is associated with this one repair if you have multiple different purchases for different projects you'll need different line items even if it is the same product let's remove that confirm now confirming the po will not impact the profitability of your project because this is not a financial transaction it's not until you get to the bill that a transaction will be generated so we'll go ahead and create that bill
confirm it generating a journal entry odoo helping us in remind us that we need the bill date every single time confirm generating accounting entry impacting the repair analytic account we don't need to pay now let's go back to projects look at the repair updates and one more time look at that gross margin and we can see the home depot 150 decrease so this essential project update screen will give you all the macro level uh high overview perspective of profitability what's going on what's been sold how much time is remaining versus what's been logged and then
you have the micro level specifics looking into the information on the right hand side and as uh you may notice all the information is updated live as you generate purchase orders linked to the project as well as any vendor bills and you can dive right into them and see okay what's going on hopefully this has been enlightening for you if you have any questions about us about it please reach out let me know my name is richard have a great day
