Gross Profit Basics

Overview

This article describes the out of the box process that Bullhorn for Salesforce offers to calculate and store Gross Profit data for your recruiters. Minimal configuration is required.

If you need a more comprehensive way of storing and managing Gross Profit data, as well as Timesheet and Expense Expenses claimed by clients/candidates and charged to the recruitment agency Report, you might consider adding the Rate Card If in the context of ATS, a 'card' or 'tile' is the visual representation on the ATS board of a Candidate at various stages of the application process functionality. Please speak with Bullhorn for Salesforce support for more details about the Rate Card Model.

Gross Profit and Profit Splits

Gross Profit is the portion of the revenue that is given to the recruiters responsible for placing the Candidate A person looking for a job. A candidate can also be referred to as a Job Seeker, Applicant, or Provider.. As there might be more than one recruiter involved in the process, it is possible to split the credit into different types. Out of the box, you can associate recruiters to up to five different type of credits for each placement The stage that occurs after a candidate accepts a job offer and facilitates their information being copied to the back office.:

• Job A job (vacancy, position, role) is an opening for which a customer's client needs a placement. Credit
• Candidate Credit
• Marketing Credit
• Other Credit
• Other2 Credit

The credit can be split five ways (each recruiter will get a percentage) or the same recruiter can get 100% for one or more types of credits.

The information about Profit Splits that Gross Profit calculations are based on is entered on the Closing Report Fifth Stage of Job placement flow, a Candidate that reaches the Closing Report Placement stage has been assigned to a job. In BH4SF, a 'Closing Report' is a record that captures all the information related to the newly filled position (name of Candidate, position, salary, start date, which recruiter gets credit for the hire etc.) record created when placing the Candidate at the end of the Job application process. While he fields and options are the same for Permanent, Consulting, and Retained positions A job (vacancy, position, role) is an opening for which a customer's client needs a placement., the processes for generating Gross Profit records and the data on those records are different.

The Record Type identifies which formula to use for the calculations and how to populate the Gross Profit records based on the information coming from the Closing Report or Timesheet objects.

Gross Profit for Consulting Assignments

The recruiters that receive credits for the successful assignment are listed on the Closing Report record, in the Profit Splits Information section that also gives the percentage they are entitled to.

After that, the Gross Profit calculations and records will not be generated by the system until the Timesheets These are forms that temp employees are required to fill in (daily, weekly or monthly, depending on the job arrangements) and that provide details of how many works hours of work they did, PTO taken, overtime done etc. The temp worker submits the timesheet to an approver (normally the client/hiring manager) and the timesheet info is then used in payroll processes. associated to that Closing Report are created and the Status field changes to "Submitted", "Approved", or "Changed By Payroll".

Gross Profit Calculations - Consulting

Revenue from Consulting assignments = Amount Billed to Client A Company is the organization where the contact works. This can also be called the Client. - Amount Paid to Employee The person/candidate being hired for a job position - any cost arising from processing payroll or Burden

A recruiter’s fee for a consulting assignment would be the percentage they are entitled to:
Fee = Bill Rate - Pay Rate - Burden

Other factors need to be taken into account in the calculations, so Bullhorn for Salesforce uses more complex formulas.

Calculations are driven by a formula field in the Timesheet object: TR1__Gross_Profit__c. This is referenced in the code when the Gross Profit records are created, and the amount calculated by the formula is copied into the GP An abbreviation of Gross Profit, percentage of a candidate's placement revenue that is assigned to recruiters involved in the placement Amount field. This process can be customized to add custom fields and formulas depending on your business requirements.

There is also a formula for calculating the Adjusted Gross Profit, TR1__Adjusted_Gross_Profit__c, on the Timesheet object. This is where the value for the AGP Amount field on Gross Profit records comes from.

Gross Profit for Permanent placements

For Permanent Closing Reports, the Gross Profit records are created once the relevant fields are populated on the Closing Report and the record is saved.

The revenue from Permanent placements The stage that occurs after a candidate accepts a job offer and facilitates their information being copied to the back office. equals Salary multiplied by Fee Percentage. This is captured on a Permanent Closing Report in the Fee Amount field.

Other factors like discounts may need to be included, and for this use the Adjusted Fee Amount field.

Gross Profit Calculations - Permanent

On Permanent Closing Report, the Fee Amount field is a formula field that multiplies Salary by Fee Percentage.

The out of the box formula for Adjusted Fee Amount allows for more items to be factored in and it is this field that is referenced by the code to populate the GP Amount field on the related Gross Profit records.

Gross Profit for Retained Searches

For Retained searches, the search period can be extensive and in Bullhorn for Salesforce three "Invoices" (Closing Reports) are issued over the search period. Gross Profit records are created when each of the Closing Report records is saved, so there could be up to three sets of Gross Profit records for each Retained position A job (vacancy, position, role) is an opening for which a customer's client needs a placement. filled.

 

Retainer Close	Closing Report Record Type	When created?	New GP records created on Save?
First	Retained	Start of search (no candidates A person looking for a job. A candidate can also be referred to as a Job Seeker, Applicant, or Provider.)	Yes
Second	Retained_Invoice	Interviews (multiple candidates)	Yes
Final	Retained_Invoice	Placement (one candidate)	Yes

 

Gross Profit Calculations - Retained

The Gross Profit amount for a Retained placement is calculated based on Retained Invoice Amount multiplied by [Credit Type]Percentage.

For example, if the Retained Invoice Amount is $15,000.00 and recruiter John Smith is assigned 50% of the Job credit, the Gross Profit Amount for him will be $7,500.00.