The Project Profitability Report displays the profitability and utilization of each employee, derived from the Timesheets generated.

To view this report, you can go to:

> Home > Projects > Reports > Project Profitability

This report shows the Project Profitability with the following data:

• Timesheet
• Salary Slip generated using the Timesheet
• Sales Invoice generated using the Timesheet

Calculation of Utilization

The employee’s utilization is determined by calculating the total billed hours from the Timesheet, the working days from the Salary Slip, and the standard working hours from the HR Settings.

The formula for Utilization is as follows,

Utilization = Total Billed Hours / (Working Days * Standard Working Hours)

Calculation of Profit

The profit is computed based on the gross pay from the Salary Slip, the grand total from the Sales Invoice, and the utilization.

The formula for Profit is as follows,

Profit = Grand Total - Gross Pay * Utilization

Calculation of Fractional Cost

The fractional cost is determined based on the gross pay from the Salary Slip and utilization.

The formula for Fractional Cost is as follows,

Fractional Cost = Gross Pay * Utilization