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About Internal Hourly Cost and how it works

Alexander P.
  • Updated
Internal hourly cost in Forecast is mainly used for salary calculations. Users with an Administrator permission level have the possibility to edit the internal hourly cost for their team members from the Admin panel. Internal hourly cost also has an effect on the budget of a project, most notably its costs.
 
Depending on your account's subscription plan there will be differences in how you can add cost to projects. 

Selecting the Internal Hourly Cost Calculation type

When working on a project, users have the possibility to choose between three (3) distinct options of how the internal hourly cost of unassigned tasks should be calculated. As mentioned in the intro paragraph these methods are not applied to all subscription plans. 
 
The three (3) options are:
  • Company Averages (Pro & Plus only) - company averages is calculated based on the cost of everybody who has the same role in the company.
  • Project Team Averages (Pro & Plus only) - a more precise calculation, as they base the average on the roles of the assigned team. In order for this to work, users need to have the team already assigned to the project.
  • Set a fixed internal hourly cost - This setting allows users to have a blended hourly cost rate for the project for all team members.

Notice that for users on the LITE plan it is only possible to add a blended cost rate to projects.

To select the Internal Hourly Cost calculation type for Pro & Plus plan

  1. Click Projects in the top bar. 
  2. Select All Projects from the dropdown. 
  3. Click on the project you wish to review Internal Hourly Cost settings for. 
  4. In the left side panel, click Settings. 
  5. Select Financials. 
  6. Select the desired setting under Internal Hourly Cost Calculation.

To set the blended cost rate of a project for Lite plan

  1. Click Projects in the top bar. 
  2. Select All Projects from the dropdown. 
  3. Click on the project you wish to set a blended cost rate for. 
  4. In the left side panel, click Financials. 
  5. Click Rates & Internal Costs.
  6. Under the cost and rates area, click on Edit.
  7. Click on the field under Internal Hourly Cost and add a value. That value will now be a blended cost rate on the project which will be applied. 

Managing internal hourly cost for individuals (Pro & Plus only)

In Forecast, only Admins have the ability to set the internal hourly cost for a team member, which they can do from the admin panel.

To set up internal hourly cost

  1. Click Admin in the top bar. 
  2. Select Resources from the dropdown.
  3. Click People.
  4. Find the Internal Hourly Cost column.
  5. Click on the internal hourly cost value for a team member.
  6. In the Internal cost periods modal, add a Start Date.
  7. Add the Internal Hourly Cost.
  8. Click "+".
    IHC_AddInitial.jpg

Updating individual's internal hourly cost (Pro & Plus only)

Admins have the possibility to edit the internal hourly cost of a team member, in case of a salary raise, for example.

To edit the internal hourly cost

  1. Click Admin in the top bar. 
  2. Select Resources from the dropdown.
  3. Click People.
  4. Find the Internal Hourly Cost column.
  5. Click on the internal hourly cost value for a team member.
  6. In the Internal cost periods modal, add a new Start Date from when the new cost will be effective.
  7. Add the new Internal Hourly Cost.
  8. Click "+".
    IHCModal2.jpg

 

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