According to standard terminology - "A project is a temporary endeavor undertaken to create a unique product, service, or result”.

User's hourly rates can be defined in two ways:

Cost and Billing Rates defined in the Organization settings define the default rate per hour for all organization resources. 

Work item financial data can be divided into three groups:

Authorized users can control a work item’s Actual Revenue in the Revenue or Extended Budget view of either the Work Items page or the Current Project page or work item Properties card.  

The Actual Revenue is recalculated for the Billable work items each time the Actual effort, invested in the work item, gets updated. 

Actual effort can change as a result of the hourly reports in the timesheet or direct reporting of %Completed or Actual and Remaining effort on the work item level.

Authorized users can see a work item’s Expected Revenue in the Revenue or Extended Budget view of either the Work Items page or the Current Project page or in the Properties of the work item. 

The system automatically calculates Expected Revenue of the work item having sub-items as a sum of:

Authorized users can control a work item’s Actual Cost in the Budget or Extended Budget views in either the Work Items page or the Current Project page or work item Properties card.  

The Actual Cost is recalculated each time the actual effort, invested into the work item, is updated. 

Actual effort can change as a result of the hourly reports in the timesheet or direct reporting of %Completed or Actual and Remaining effort at the work item level.

In general, project price is calculated using Billing Hourly Rates defined at the Organization and User levels (see “Setting Organization"s Hourle Rates” and “Setting User’s Hourly rates”).

In addition Clarizen allows a Financial user to define project specific billing rates and prices, used for calculations of the project prices based on the time tracking reports:

Project Budget Management is an important part of project planning and execution. Managing a budget refers to managing project estimates, costs and revenues.

Project Budget Management includes the processes involved in planning/estimating costs and controlling costs so that the project can be completed within the approved budget.

Project Budget Management is primarily concerned with the cost of resources needed to complete scheduled tasks, calculated from resource hourly rates and required effort. However, Project Budget Management should also take into account the impact of project activities that have fixed cost, such as services activities, maintenance activities, various decision meetings maintained during the project, etc.

Project cost and project revenue are calculated using different types of resource rates: Cost and Billing rates, correspondingly.

Authorized users can see a work item’s Budgeted Cost in the Budget or Extended Budget views of either the Work Items page or the Current Project page and in the Properties of the work item.