The GP calculator is a tool that can be used to provide an approximation of gross profit (sales minus all costs directly related to those sales) for a given scenario.
*Note* The gross profit calculator provides an approximation, and not an exact figure. The calculations provided by the GP calculator are not exact due to many factors such as taxes, etc, it is not possible to predict GP exactly.
The Gross Profit Calculator can be utilized at the customer, order, or assignment level, and is found by navigating to the desired record > actions menu > Gross Profit Calculator. This will bring up calculator options. If you access the GP Calculator from the order, you’ll get pre-populated values and a limited SUTA dropdown. You can also update the order after entering pay/bill rates.
Within the calculator options, different criteria can be entered to determine Gross Profit results.
The worker comp will pull from the default worker comp that was entered on the customer/order (this can be changed via drop down if necessary). The SUTA juris populates from the default worksite, or the physical location the employees are working at. The Initial Burden includes FICA, FUTA, MED, SUTA, and STATE FUTA.
The Initial Burden and Total Burden will pre-calculate based on worker comp and the SUTA Juris selected – any additional burden desired can be entered in the Additional Burden column. We can further specify Additional Burden by customer/order/assignment by setting up a configuration - this allows you to arbitrarily say that a customer has a higher cost for some reason (such as them requiring an onsite rep who you have to pay a salary for and want to count that in your GP estimations).
These burden rates will adjust as check boxes “Use SUTA”, “Use FUTA”, and “Use State FUTA CR” are selected/de-selected (if you want these to factor into the calculations, they would need to be selected).
Entering in regular pay and bill rates will automatically calculate the overtime and doubletime rates as well as calculate the Gross Profit percentages and markup rates. The Calculation that establishes the GP% is (Bill Rate - PayRate - (PayRate * Initial Burden) - (PaRate*WorkersComp)) /BillRate.
Factoring in any OT plans or expenses will also affect the GP Amount. OT Plan allows you to specify when overtime starts (for example, after 40 hours in a week). If you have a person who is FLSA exempt and choose NoOT for example, then when you put in “45” hours for the calculation, it will all be straight time instead of overtime.
Any expenses you would like to factor in to Gross Profit can be added by selecting the '+' icon in the expenses section. You will be prompted to enter in an amount as well as a description. This will affect the GP total.
The warning colors for GP% will turn green/red/yellow at first glance, based on how much GP you may obtain. There are default values in place, but this can be configured to whatever amounts are desired.