Yes, if I understand the system (Xero) correctly, the profitability of projects only works on actual invoices (expensed and sold). Which is correct from an accounting point of view as profit/loss is only realized on actual invoices processed.
However, it does not give you an estimated profit and loss on the project at the time of entering the project's estimated costs and estimated income. The estimated P&L is more important as you want to know at the time of estimation how viable the project is. This also highlights any potential errors before commencing with the project or before issuing quotes to the customer.
It should be easy to do as the estimated costs and income are all there when the project is captured on Xero.
Gavin De Mezieres
supported this idea
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Yes, if I understand the system (Xero) correctly, the profitability of projects only works on actual invoices (expensed and sold). Which is correct from an accounting point of view as profit/loss is only realized on actual invoices processed.
However, it does not give you an estimated profit and loss on the project at the time of entering the project's estimated costs and estimated income. The estimated P&L is more important as you want to know at the time of estimation how viable the project is. This also highlights any potential errors before commencing with the project or before issuing quotes to the customer.
It should be easy to do as the estimated costs and income are all there when the project is captured on Xero.