You might notice a negative value in the Employee Profitability report in BQE CORE for a specific employee.
Employee profitability is calculated using the following formula:
Employee Profitability = (Gross Billed + Gross Unbilled) – All Costs
A negative amount indicates that the total costs recorded for the employee within the selected date range exceed the billed and unbilled revenue attributed to that employee.
This behavior does not indicate that the report is broken or incorrect. Employee profitability depends entirely on how time and costs are associated with invoices. If time is billed outside of its originating time entries, or if invoice line items do not reflect the employee’s actual billed amounts, CORE cannot associate billed revenue back to the employee. In these cases, costs are still included in the calculation, but the billed or unbilled revenue is not, which results in a negative profitability value even though the invoice itself has been billed.
If the amounts on the invoice do not reflect the employee’s actual billed time and the related time entries are not linked to that invoice, the Employee Profitability report does not pick up those billed amounts. Assigning time entries to an invoice ensures that billed revenue is tied directly to the employee, allows the report to match billed revenue with the employee’s costs, and displays the profitability value correctly.
To correct this behavior, the invoice should be edited to remove any manually added line items. The relevant time entries should then be marked as billed and assigned to the appropriate invoice. This ensures that employee profitability is calculated correctly for future reports.