Estimated and Actual Costs


Throughout Simpro Premium estimated costs, actual costs and billable prices are displayed to help indicate how much projects are expected to cost, what they are really costing your business and how much you are making. Understanding where these costs come from, when an estimated cost becomes an actual cost and what is considered billable is a critical way to understand how Simpro Premium captures the cash flow of your business. It is also valuable to interpret the figures in your reports and how they are calculated.

Key terminology:

  • Estimated Costs: The cost of billable and not billable items listed on the Billable > Parts & Labour tab of a quote or job. This is how much you Estimate the job would cost your business.
  • Actual Costs: The cost of billable and non billable items captured in the Stock and Schedule tabs of a quote or job. This is the Actual amount you have spent on the job.
  • Billable Price: What is displayed on the customer facing documents, including quotes and invoices. This is how much your customer is Billed.

There is a dependency between Billables and Estimates.

Billable = Estimate + Markup. Actuals are completely separate.

Depending on the workflows, the values are derived differently.

For quoted / project work, first determine what is required for the project to be done, adding items into cost centres. This builds a quote made up of billable items, and the estimates back up these values. Actuals only come later, when the job is being worked on. Potentially your estimates will be Revised, if the original budgets were locked.

If you are working on call outs / service work, you are likely to start with Actuals, such as scheduled visits and materials used, and then updated billables based on this. In this case, estimates do not bear much relevance. They are still pulled from the items and labour, but for reference purposes only.

Note that locking cost centres has an impact on the Billables and Estimates. Learn more in Job cost centre locking.