In some cases, the project budget is created neither by estimating hours, nor by retrospectively invoicing the time spent on it. Sometimes the profit is made by a simple difference between the buying and selling price.
You’re a production agency managing an event – you rent the premises, hire the photographer, arrange catering, etc. Your salary is included in the profit margin that you generate from re-selling the individual items.
How to create a project for re-selling external expenses
The 3rd step of creating a project can be skipped, as there will be no costs generated by tracked hours. Skip the step by clicking the Skip button.
In the 4th step of creating a project (Project expenses), enter the individual external costs.
- Use the Name field to enter the titles of the costs
- Use the Purchased field to enter the buying prices
- (Optional) Use the Date of Purchase field to enter when you have to pay for this external expense – this will make cash flow reports more accurate
- Use the Invoiced field to enter how much you are going to sell the items for
This procedure will ensure that you’ll always see how much profit you’re generating within the individual items (Total). When finished, you’ll be taken to the project page (Overview), where you’ll see the current financial status of the project.