Creating a Fixed Price Project

If you’re being paid a specific amount for a project, you can create a Fixed Price Tempo project. This allows you to track expenses and labor costs against the amount of money you’re being paid.

A Fixed Price project generally includes a budget that the client has approved and fixed revenue where the client pays either a lump sum or in installments (recurring revenue). These projects can also include expenses, including billable expenses. They do not include billable hours, as these projects are based on providing a service or good, not on the labor involved in providing that service or good.

For example, if you were contracted to create an app for $20,000 over a three-month timeframe, you can use a fixed price project to track the expenses you’re incurring, including your labor costs. Use Timesheets and Jira to track your time as usual, and then use Financial Manager to track your labor costs, expenses, and revenue. You can use this information to determine your future pricing or make staffing adjustments on the fly.

If you want to track both billable time and fixed revenue, do not select Fixed Price Project. A Monetary-based project with Revenue Tracking enabled tracks fixed revenue and labor revenue.

Create a Fixed Price Project

1. Open Financial Manager, and create a project.

   1. Select Monetary-based project.

   2. Enable Revenue Tracking.

2. Once you’ve created your project, navigate to Configuration.

3. In General, select Fixed Price Project.

   

4. Finish configuring your project.

You can now enter expenses, billable expenses, or revenue. However, you can’t set Billing Rates, and data related to billable hours is not available for Fixed Price projects.