Understand estimated contribution
Read booked price, estimated cost, coverage and the effective cost basis without describing the result as actual profit.
Read booked price, estimated cost, coverage and the effective cost basis without describing the result as actual profit.
Before you start
Profitability View, not merely Reports View. Adding cost-basis versions needs Profitability Manage and is not performed in this lesson.
- Use fictional confirmed/completed work with recorded distances/times and approved demonstration cost-basis versions.
- Include one job without an applicable basis/data and one untimed leg, so the limitations are visible.
Check the travel window
Open Estimated contribution and read the estimate banner. Check Travel from and to, then Filter for the period you want. The default is the last twelve months of travel, not the date the invoice was issued.
Check the screen for: Estimate banner, Travel from, to and Filter.
Read the three headline amounts
Booked is the included booking price. Estimated cost comes from your cost basis and recorded journey data. Estimated contribution is Booked minus Estimated cost. It is not actual profit or a measure of cash received.
Check the screen for: Booked, Estimated cost and Estimated contribution.
Check coverage before interpreting the result
Read Coverage and the number of jobs estimated. Jobs without a usable estimate still add to Booked but carry no estimated cost. Low coverage can therefore make the contribution look better than the underlying work supports.
Check the screen for: Coverage percentage and explanatory job counts.
Read the cost assumptions and missing-time note
Inspect Cost basis, including Effective from and the per-mile or per-hour rates. DTE applies a version in force for the job’s travel date. Also read any untimed-journey warning: a job counted as estimated can still lack an hour-cost component.
Check the screen for: Cost basis versions and untimed-journey message.
Compare customers in context
Use By customer to compare Jobs, Estimated, Booked and estimated cost together. If a figure looks unusual, check the underlying journey data and the applicable basis before drawing conclusions. Do not change the rates merely to improve the result.
Check the screen for: By customer table: Jobs, Estimated, Booked, Est. cost and Est. contribution.
Check it worked
- You should be able to explain the travel period, the applicable cost assumptions and any missing coverage alongside the contribution figure. Even complete coverage does not turn an estimate into actual profit.
Something not quite right?
Why can’t I see this option?
Profitability View, not merely Reports View. Adding cost-basis versions needs Profitability Manage and is not performed in this lesson.