Yield Calculations

Yield is calculated first by determining the revenue for the whole project. This will either come from the Confirmed Bid total; the Invoice Total (if higher than Bid Total), or the Estimated Revenue total if that value has been added to the Project.

• If all confirmed bids add up to $1m, then the yield total will be $1m
• If the invoices add up to $1.1m, then the yield sits at $1.1m.
• The Estimated Revenue box isn't generally used, but allows for a manual override of the above
• If a Project is Sent To Accounts, then we always use the Invoiced total

We take that value, regardless of the services it was made up from, and spread it over all booked services, according to either the rate-card value or the cost of the services booked (this is a setting).

The effect of this is that the total yield will always match the value you are going to be paid, and each booking will have an appropriate amount of revenue allocated to it.

Please Note: Not scheduling your project out to completion is like intentionally under-booking. Doing so will result in skewed figures and your project will appear more profitable.

How it works in practice:

• If you have a $1m project, and book just 1 day of Flame, that single booking will have a yield of $1m
• When you book the 2nd day of Flame (assuming it is identical to the first in terms of services, duration etc), then each day will now be worth $500,000
• If you book a third day, all three jobs will drop to $333,333.33 and so on
• If you book 1,000 Jobs (all the same) they will all be worth $1,000
• The total of the Yield on all Jobs will always add up to $1m, though
• The more accurately you schedule, the more accurate the achieved rate per service will be

We call the per-service rate calculated from yield the 'achieved rate'. This is because we think it is what you will actually be paid for performing that service.

If you over-book a project (due to an unpaid extension or problems etc) then the achieved rate of every single service on every booking on the project will drop. You achieve lower than expected.

If you under-book, due to finishing early, then the rates will remain high. You achieve higher than expected.