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Profitability Analysis on a Project Service Quote | Project Operations

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Dynamics 365 Project Operations

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Sep 20, 2023

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  • The article discusses the Profitability Analysis fields in Project Operations Quotations within Microsoft Dynamics 365.
  • The fields in the Profitability Analysis tab include Total Revenue, Total Chargeable Costs, Total Non-Chargeable Costs, Gross Margin, and Adjusted Gross Margin.
  • The Total Revenue field reflects the budget of the Quote Line, while Total Chargeable Costs are calculated based on the Cost Price list of the Contracting Unit.
  • The Sales Price for each role in the Org Unit determines the Equivalent Sales Price and contributes to the Total Revenue calculation.
  • The Gross Margin is calculated as a percentage based on the Total Revenue and Total Chargeable Costs, indicating the profitability of the project.
  • Non-Chargeable Calculations are also considered, with the inclusion of Non-Chargeable Roles and costs in the Total Non-Chargeable Costs calculation.
  • The Adjusted Gross Margin takes into account the Non-Chargeable Components, resulting in a slightly lower margin percentage.
  • The article provides examples and explanations to help understand the calculations and how they contribute to the overall profitability of a project.

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