Calculation Cheat Sheet

This article covers the calculated fields available in each report in Link and how each value is arrived at. The sections of this article are:

Capacity

This is your plan of what you expect from your team.

Work in Progress

This is the report based on the ledger entries from completing timesheets, adding disbursements and raising invoices.

Productivity & Utilization

These are the time based calculations

Profit, ROI and Average Rates (For Individuals, Teams and Firm)

These are the metrics available when we bring the Time and WIP data together to understand the performance of our Team Members, Teams and our Firm.

Profit, ROI and Average Rates (For Clients, Jobs and Services)

These are the metrics available when we bring the Time and WIP data together to understand the performance of our Clients, Jobs and Services.

Important Note: Internal Time does not exist for Clients, Jobs and Services. We therefore are unable to calculate average hourly rates due to the absence of internal time in the calculation. We instead use Average Recovered Rates for Clients, Jobs and Services.

We also apply an overhead cost to our clients, jobs and services to more accurately calculate the profit. We do not apply an overhead cost to our team members however, as we do not want to show a reduction in ROI caused by an increase in overheads as this is outside the control of the team member.

• Hours Per Week: The number of hours a team member is contacted to work per week
• Expected Hours: The number of hours a team member is contacted to work in the given month
• Leave Taken: The Leave Hours that have been entered for the given month
• Available Hours: Expected Hours - Leave Taken
• Target Capacity: The percentage of time the team member is expected to be working on client work
• Target Billable Hours: Available Hours x Target Capacity
• Available Internal Hours: Available Hours - Target Billable Hours
• Actual Billable Hours: Actual Billable Hours entered in the given month
• Actual Internal Hours: Actual Internal Hours entered in the given month
• Actual Total Hours: Actual Billable Hours + Actual Internal Hours
• Remaining Hours: Available Hours - Actual Total Hours
• Remaining Internal Hours: Available Internal Hours - Actual Internal Hours
• Allocated Billable Hours: The total remaining hours on each allocated task in the given month
• Available Capacity: Remaining Hours - Remaining Internal Hours - Allocated Billable Hours

• Opening WIP: The WIP balance as at the start of the report period
• Time Added: The value newly created WIP from time entries added in the report period
• Disbursements: The value of newly created WIP from non-time entries added in the report period
• Invoiced: The value of invoices in the report period (represented as a negative value as invoices reduce work in progress)
• Write-ups: The value of write-ups in the report period
• Write-offs: The value of write-offs in the report period (represented as a negative value as write-offs reduce work in progress)
• Net Write Ups: The combined values of write-ups and write-offs in the report period
• Closing WIP: Opening WIP + Time Added + Disbursements Added + Invoiced + Net Write-ups

• Billable Time: Time entries that have an assigned billable rate and create new WIP
• Internal Time: Time entities that do not create new WIP
• Leave Time: Time entries that are ignored for productivity and capacity calculations
• Total Time: Billable Time + Internal Time
• All Time: Billable Time + Internal Time + Leave Time
• Productivity: Billable Time / Total Time
• Utilization: Billable Time / ((Expected Hours - Leave Taken) x Target Capacity)

• Billable Time: Time entries that have an assigned billable rate and create new WIP
• Internal Time: Time entities that do not create new WIP
• Total Time: Billable Time + Internal Time
• Time Added: The value newly created WIP from time entries added in the report period
• Net Write Ups: The combined values of write-ups and write-offs in the report period
• Revenue: Time Added - Net Write Ups
• Cost: Team Member Cost Rate x Total Time
• Profit: Revenue - Cost
• ROI: Profit / Cost
• Average Recovered Rate: Revenue / Billable Time
• Average Hourly Rate: Revenue / Total

• Billable Time: Time entries that have an assigned billable rate and create new WIP
• Total Time: Billable Time + Internal Time
• Time Added: The value newly created WIP from time entries added in the report period
• Net Write Ups: The combined values of write-ups and write-offs in the report period
• Revenue: Time Added - Net Write Ups
• Base Cost: Team Member Cost Rate x Total Time
• Overhead Cost: Firm Overhead Rate x Total Time
• Total Cost: Base Cost + Overhead Cost
• Profit: Revenue - Total Cost
• ROI: Profit / Total Cost
• Average Recovered Rate: Revenue / Billable Time