The goal of this tutorial is to see how to create a fixed-price project from A to Z in BoondManager.
First, we will see:
- how to create the project in the interface,
- how to qualify it and assign resources,
- and finally, we will focus on the billing of this project.
You have two options to create a fixed-price project, either from an existing Opportunity or from scratch. That's what we will see here.
From an existing Opportunity
You can start from an existing ongoing fixed-price Opportunity and then change the status to Won and you can then click on the Save button.
Before duplicating your won opportunity into a project in order to create it, Boond asks if you want to select a collaborator to work on this project.
Since it is a fixed-price project, you are free not to select anyone because you are committed to the result of this project and not to the means used. However, if you wish to, you can select a positioned collaborator. You can also go back to the Opportunity card to mark other collaborators as "Won" and then choose your project from the list provided. This way, you can start building your team on the project.
You can also create your project from scratch by going to the Project module and clicking on the + button. You just need to enter an Opportunity title (because a project = a won business opportunity), select the type that corresponds to the fixed-price project, and the contact client.
Once you have created your project with one of these two methods, you arrive at the Informations tab. Don't forget to fill in the title of your project (you are, of course, free to use the same title as the opportunity) as well as the project period.
Unlike Delegation of skills projects (time and material projects), the start and end date of the fixed-price project are not automatically linked to assigned services, so remember to update this period if the project is extended.
You have created your project; now you need to qualify it.
1st method: with only additional turnover (revenue)
On a fixed-price project, you have the option to assign one or more resources or none. If you still want visibility on your costs and revenue, you can use the investment and additional turnover section.
- In this column, you enter the revenue generated for the period.
- In this column, you enter the cost of the period or possibly your investments (machine purchases, licenses, ...). You can also leave this column blank.
- You can add as many lines as the desired level of detail.
- Each line is dated, and by activating the green button, you instruct the tool to consider each line as production for the specified month.
- You will find your completed financial summary with indications on the Signed Turnover, Signed Cost, Signed Margin, and Signed Profitability.
- As mentioned earlier, you are free to allocate deliveries (your positioned collaborators) or not. If you don't, note that no one can track time spent on this project in their timesheets.
2nd method: by qualifying deliveries and additional turnover
If you still want to assign people to the project, it is entirely possible by clicking the + button and selecting Deliveries.
To be as accurate as possible about your generated revenue (turnover) and costs, you can qualify your collaborators' deliveries in this way:
- Indicate the period during which you want your collaborator to track their time on the project.
- Do not specify a project rate but do indicate an estimated workload; indeed, the daily rate must remain at zero if you use the additional turnover feature in order to avoid doubling the results.
- Thanks to the delivery's average daily rate, you know the cost of your collaborator on the project, which is reflected in the financial summary section.
You can do this for all project deliveries and complete the additional turnover (revenue) to indicate what was planned with your client, giving you the following result:
This way, you have the total revenue for this project and an estimate of the cost based on what will probably be done by your collaborators. Actual costs will be adjusted based on the times tracked.
Also note that you can indicate a project manager; this feature allows the designated person to have additional information on their intranet account compared to the default view offered to collaborators.
3rd method: with the delivery only
You can also qualify each delivery by specifying a sales rate and a charge to have your overall total. Again, here you need to consider the data that matters most to you.
Advantages of each method:
Method 1 allows you to have an overall view of project costs and revenue without assigning resources (collaborators).
Method 2 provides visibility on both resource costs and production costs not linked to deliveries/resources but to various project milestones.
Method 3 provides visibility on costs and revenue per delivery, and it is the method to use in the case of a fixed-price delegation of skills (time and materials) type of project, for example.
Groupings on your fixed-price projects
If you choose method 2 or 3, you can create groupings (called groupments on the tool) to divide your project into "sub-projects." This allows you, for example, to divide tasks within your project and say that your collaborator is involved in one or more phases of the project.
You can find the entire tutorial on groupings by reading the article: Creating and Managing delivery groupings.
For this part, you need to go to the Consumption tab of the project. There, you will find the following section:
For the sake of this tutorial, I have chosen method 2 (mentioned earlier)
- Here, you have the financial consumption summary section that highlights what has been produced compared to what has been signed.
- The "Signed" row corresponds to the financial summary of the delivery tab.
- The "Production" row corresponds to the lines of the revenue section with a green checkmark (in my case, I only checked the first milestone to have production as the project progresses).
- The resource row is completed only on costs (thanks to the time tracked by your collaborators) because it is the revenue section that reflects production.
- The Purchase and details row corresponds to the various lines of the additional turnover section with a checked checkbox and purchases billed to the client on the project.
- Here, you can see the time signed per delivery versus the time tracked by each collaborator on the delivery.
- Here, you can see the expenses signed per delivery versus the expenses tracked by each collaborator on the delivery.
- Here, this column concerns the resource's net production turnover = (Daily net sales rate of the project's resources x the number of days tracked by resources on deliveries) + expenses forwarded and billed to the client.
In our case, it is equal to zero because the sales rate was not specified for the service. And Costs (excl. taxes) = Cost of Times Tracked by resources + Cost of Expenses forwarded on expense notes related to the project + Cost of Additional Investments (with the checkbox checked) + Cost of Purchases related to the project + Cost of the project's advantages.
- You will find a section summarizing the quantities of signed and consumed times with the possibility to indicate what "remains to be done," allowing you to see if you are behind or ahead on the project and to have visibility on any difference in the expected number of days. If the difference is negative (not enough days sold compared to the remaining work), the number is in red to alert you.
- You have the option to download the client's activity reports (timesheets destined to your clients) corresponding to each delivery line.
To go further
You can also create lots and milestones (called Batches & Markers on the tool) on your fixed-price projects.
Creating an order
As with any project in Boond, to be able to invoice your projects, you need to create an order.
For this, depending on the method, tick the boxes corresponding to the deliveries belonging to the same order and click on "Create an order".
In the case of a project without deliveries, click directly on the "+" button at the top right to create the Order.
Qualifying an order
Once this is done, you arrive at the Order card, and all you have to do is qualify it and provide:
- The order number (usually imposed by your client and to appear on the invoices)
- The ordered turnover
- Billing terms
By default, the billing type is set to "Schedule." To create the schedules, click on "+ Create a schedule". You can then define several criteria according to your needs:
Monthly, quarterly, semi-annually, annually, or custom
Method of calculating the amount of schedules to apply
You can choose to apply an amount or a % of the ordered turnover, retrieve the amount of Additional turnover, or manually enter the amount of each schedule.
In the case of a regular frequency (non-custom), you can choose when in the period the schedule should be set (e.g., last day of the month for a monthly period).
Number of schedules
In the case of a custom frequency, you can choose the number of planned schedules.
You can enter this description manually or use the available dynamic variables.
You can configure a default setting for your schedules in the Administration and define the frequency, amount, and default description masks you want to use.
Administration > Global Settings > Billing tab > Schedules settings
Good to know
If you wish, you can still indicate a "Monthly" type of billing. In this way, you can invoice each month based on the hours recorded by the collaborator. This can be associated with, for example, method 3.
Then all you have to do is create your invoices from the schedules. For this, you can follow the tutorial: Schedule Billing: Invoicing Your Fixed-Price Projects.