NIM uses 3 key areas of income and expense to determine actuals. The sum total of awarded bids is compared against labor costs calculated via timecards and expenses incurred. This allows NIM to accurately calculate the income, cost, profit and margin per job as well as company wide.
The chart below describes the flow of financial information within a job from awarded bids, expenses, and timecards through currency conversion and rate adjustments to calculate the final actuals.
NIM actuals income is derived from multiple sources:
Awarded Bid Totals
Expense Reconciliation Amounts
3rd Party Reconciliation Amounts
Additional Billed Items
NIM actuals start with awarded bids as the primary source of income. If the bids are in an alternate currency, they are converted to the job currency using the corresponding exchange rate based on the bid date.
The sum total of awarded bids define the Bid Total in the job actualization.
Similarly, the sum total of awarded bid costs and profit are represented in the job actualization as the Bid Cost and Bid Profit respectively.
The secondary locations for income are within the job actualization via expense reconciliation amounts, 3rd party reconciliation amounts, and additional billed items. The secondary sources of income will always be represented in the job’s currency.
The cost is determined from two primary locations:
Timecards do not have a direct financial value, but derive a cost based on the user’s rate type. This cost is calculated at the users currency and converted to the job currency prior to summation with other crew members. Exchange rate conversions for user timecards will use the exchange rate which corresponds with each timecard’s date.
Expenses are summed together to create an expense total. Any expenses that have been entered in an alternate currency are converted to the job currency using the exchange rate for the date of the expense.
The primary and secondary sources of income are added together to define the Actual Total.
The timecard total and the expense total are added together to define the Actual Cost.
Actual Profit and margin are both derived from the Actual Total and Actual Cost.