Most of our projects are fixed fee. Unfortunately, the Profitability Summary in Books does not calculate fixed fee projects profits correctly.

It is a simple equation: PROJECT PROFIT = INVOICED AMOUNT PAID - (minus) (PROJECT EXPENSES + LABOR COST).

For Example we invoice a customer $3,000; expenses total $800; labor costs total $700; total cost is $1,500; gross project profits are $1,500 or 50% margin.

Currently Profitability Summary only accounts for expenses.