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Planview Customer Success Center

Times and Materials billing type

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The Time & Materials model involves regularly paying for work completed. It means that your expected revenues are incrementally earned with the performance of work, even if work packages were not completed. With this model, the client carries higher risks for the delivery of the project than with Fixed Price or Fixed Price Milestone projects. The customer is billed for the actual time for the Work item to be completed.

The Billing Type setting field at the project level for Billable Projects controls how financial planning schedules Budget Revenue, aggregated into work item Expected Revenue, and Actual Revenue aggregated into work item Actual Revenue, and is used for Revenue Forecasting and Revenue Recognition.

           

Prerequisites

f you can't configure your organization system settings or set User permissions, contact your administrator to ensure that the following prerequisites are met.

Enabled Global Settings

  • Set the Organization Currency Type in the global settings so that Project revenue and cost calculations are set by default to the correct currency in your org.
  • Enable the system settings 9.1: Budget Management. Defines whether to activate the budget module which enables budgeted cost and actual cost management.
  • Enable the system settings 9.3: Projects are Billable by default. Defines whether projects are billable by default, where revenue fields and variances are calculated.
  • Set the 13.9 Timesheet Actuals Recognition Date that defines which date period to use for recognizing as cost and revenue, either the Reported Date or the Approval date.

User Permissions and Profile

  • Enable the Financial permissions for Users so that they can access financial fields and the financial planning view
  • Ensure the User Profile Property Card includes a Financial section with the following standard fields: 
    • Budgeted Cost, Actual Cost, CPI
    • Expected Revenue, Actual Revenue, RPI
    • Planned Profit, Profit, Earned Value, % Profitability

Project setting

  • Set the Time Reporting settings at the Project level: Actual Effort Updated from Timesheets and Reportable are enabled. 
  • Set the Billing Type Project field to Times and Materials
  • Set the Agreed Date for Exchange rate or Currency Exchange Rate Card at the Project level if project calculations should have difference Exchange Rate than the Org setting. Note that Fixed Price work items that use a different Revenue Currency Type from that of the Organization Base Currency, use the exchange rate of the project’s Agreed Date for Exchange Rate or the Project-level Exchange Rate if one is set. 
  • Set the Resources Prices and Rates from the Project Work Plan > Resourcing > Price & Rates popup. This will drive financial calculations in the application based on rates. 
    clipboard_e30dc3809e3ecbd848bb7ceaade0a7d86.png

           

           

 

Working with Times & Materials

  1. Log in as a Project Manager.
  2. Create Project and set the due date and make it active. In our example, the due date is set to April 2026.
  3. Set the Revenue Currency Type column so that the Expected revenue is set to the correct currency. In our example, it is set to USD.
  4. Add Milestones and Tasks sub-items to your project and schedule resources. Let's take a look at John Smith. 
    clipboard_e5e9948e226ce11df6cc0595655436fbb.png
  5. In the Resources panel, John Smith has 1.78h Planned work in March.
    clipboard_e053bcfe90a8d9c202db7b17433c42527.png
  6. In the Financial view:
    • Go to Settings and add the following columns: Budget cost, Forecast Cost, Budget Revenue, Forecast Revenue, Actual Cost, Actual Revenue.
    • The Summary mode will show the calculation for the Project level in the Labor section at the time of the planned entries in Resource planning:
      • Budgeted Cost =  Planned Work * Hourly cost Rate
      • Expected Revenue= Planned Work * Hourly billing Rate

clipboard_e072a68f1dc2251a9c10808f21cbb5793.png

  1. Report timesheets to compute actuals based on reported times.
  2. Actuals will be updated in the Financial view when the cost and revenue is recognized, either the Reported Date or the Approval date:
    • Actual Cost = Actual Effort * Hourly Cost Rate
    • Actual Revenue= Actual Effort * Hourly billing Rate
  3. Set the project to Complete.

AdaptiveWork will calculate automatically CPI, RPI, Planned Profit, Profit, Earned Value, and % Profitability.