Concepts overview

Written By Lauri Eurén

Last updated 1 day ago

This is the index to Operating's concepts: every core term in one line, with a link to its full explanation. It follows how Operating's data is layered — who and what (entities), when (planning), value (financials), and what actually happened (records) — with each layer building on the one below. For the formulas behind the numbers, see the Metrics glossary.

On this page, each concept's full explanation lives in its own article, linked below — this index only points to them, so each idea is explained in exactly one place. Most concepts sit with their feature in Features & how-tos; the cross-feature ones stay here in Concepts & metrics.

Organization foundations

The building blocks an admin sets up once. These mostly live in Set up & administer › Foundations.

Concept

In one line

Where it lives

Organization

Your whole Operating account — every setting, permission, and record is scoped to it. ("Tenant" is the internal name for the same thing.)

Set up & administer

Company

A legal entity inside your organization with its own invoicing setup; every Project and Person belongs to one. Multi-company orgs can invoice separately.

Set up & administer › Foundations

Site

A location (office or region) used to organize people and projects and to vary rates by location in a Rate card.

Set up & administer › Foundations

Group

An organizational unit — department or team — for categorizing, filtering, and permissions; people and projects can be in several.

Set up & administer › Foundations

Tag

A flexible label for categorizing and filtering projects, clients, or people, beyond fixed structures like Site or Group.

Set up & administer › Foundations

Role (competence role)

A job function like Developer or Designer; drives Rate card pricing and what someone does on a Project. A Person can hold several, one primary.

Set up & administer › Foundations

Seniority

A level (e.g. Junior, Senior) attached to a Role that further refines Rate card pricing.

Set up & administer › Foundations

Skill

A specific capability (e.g. React) assigned to people and Positions to help match the right person to work.

Set up & administer › Foundations

Status

A state on an entity — e.g. a Project's lifecycle status, or an Allocation being tentative vs. confirmed.

Set up & administer › Foundations

People and access

Concept

In one line

Where it lives

What's the difference between a User and a Person?

A Person is anyone in your org who can be staffed and track time; a User is a Person with login access. A Person can exist without a User.

Features & how-tos / Set up & administer

External person

A Person not on your payroll (freelancer or contractor); if they log in, their Permission set is usually limited to time tracking.

Set up & administer › People & access

Permission set

A named bundle of permissions assigned to a User that controls what they can see and do (e.g. Admin, Project Manager, Time Tracker).

Set up & administer › People & access

Approval flow

An optional rule that routes submitted (locked) time to approvers — by project owner, manager, or group — before it's finalized.

Set up & administer › People & access

What are working hours (and individual working hours)?

How much time a Person is available each day — their individual working hours when set, otherwise the Site default, reduced by weekends, time off, and holidays. Drives capacity, cost, and revenue.

Set up & administer › People & access

Projects

Concept

In one line

Where it lives

Project

The core unit of work — Client (billable), Internal, or Time off. Carries billing type, currency, owner, dates, and holds Positions, Budgets, time, and Expenses.

Features & how-tos › Projects

Client

The customer company buying your services; every billable Project has one.

Features & how-tos › Projects

Project owner (and secondary owner)

The Person responsible for a Project — often the sales lead early on, then the project manager. A secondary owner can share that responsibility.

Features & how-tos › Projects

What are Positions and Allocations?

A Position is a role a Person holds on a Project; an Allocation is a block of planned time on that Position. One Position can have many Allocations.

Features & how-tos › Resource planning

What are project phases?

Named stages within one Project (Design, Build, Launch) that organize the team and time. An organizing layer only — phases carry no budgets or rates.

Features & how-tos › Projects

What are tasks and task lists?

An optional, finer-grained unit of work within a Project that time can be tracked against; a Task can carry its own billing rate. Tasks group into task lists.

Features & how-tos › Time tracking

Estimated start and end dates

A rough early guess at when work begins and ends, used for initial planning and later overridden by Allocations and time.

Features & how-tos › Projects

Planning and scheduling (when work happens)

Concept

In one line

Where it lives

Tentative vs. confirmed allocations

Tentative work is planned but uncertain and may change; confirmed work is committed. The split drives capacity planning and forecasting.

Features & how-tos › Resource planning

What is allocation probability?

How likely tentative work is to happen, as a percentage, so reports can weight pipeline hours and revenue; confirmed work always counts in full.

Features & how-tos › Resource planning

What is capacity and how is it calculated?

How much of a Person's working time is available, shown as percentage booked against percentage available, after subtracting time off.

Features & how-tos › Resource planning

How utilization is calculated in Operating

The share of available working time spent on chosen work — by default billable client work; the formula is configurable.

Features & how-tos › Resource planning

Staffing

The recurring process of defining open Positions and finding the right people for them — including filling the bench proactively.

Workflows & best practices › Staffing routine

Time off

A special Time off Project for holidays, vacation, and leave; entries can be managed in Operating or imported from an HRIS.

Features & how-tos › Resource planning

Financials (economic value)

Concept

In one line

Where it lives

Budget

A monetary amount assigned to a Project for a date range — the agreed value of the work, and the target it's measured against. Sets or caps revenue on fixed-price and capped T&M Projects.

Features & how-tos › Financials

Billing type

How a Project is billed: time-and-materials (per hour), capped T&M, fixed-price, or non-billable. It determines how revenue is calculated.

Features & how-tos › Financials

Billable vs. non-billable

Billable work and expenses can be charged to a Client and generate revenue; non-billable is internal and generates none but still costs.

Features & how-tos › Financials

What is a rate card? / which rate is used?

A Rate card is a pricing table setting billing rates by Role, seniority, and Site; the rate falls back from position-specific → card → base → global average.

Features & how-tos › Financials

How people cost rates are decided

The internal cost rate (what a Person's time costs you) falls back from a project override → individual cost rate → an external default or Site/Role/seniority cost card → default.

Features & how-tos › Financials

Project budgeting and profitability

Profitability is revenue earned minus delivery cost, read as a margin against the Budget; what to watch differs by billing type.

Features & how-tos › Financials

Budget progress

A manually entered completion percentage used as an optional input to the time-based revenue recognition method.

Features & how-tos › Financials

Expense budget

A per-category envelope inside a Budget (e.g. travel, software) for planning non-time costs; a planning guide that doesn't itself change revenue.

Features & how-tos › Financials

Out of budget scope

On capped T&M, the amount by which work value exceeds recognized revenue once the budget cap is reached — distinct from non-billable.

Features & how-tos › Financials

Expense (and expense category, vendor)

A non-time project cost, optionally billable and invoiced; categories standardize handling and markup, and a vendor records who it was paid to.

Features & how-tos › Financials

Invoicing schedule

The pattern for when a Project's invoices are created — monthly, weekly, or on completion.

Features & how-tos › Invoicing

Records (what actually happened)

Concept

In one line

Where it lives

A time entry

A single unit of time tracking — a Person's hours on a Project for one date, optionally tied to a Task and Position. Feeds earned revenue, cost, and utilization.

Features & how-tos › Time tracking

Submitting (locking) a timesheet

Finalizes a Person's hours up to a chosen date and locks those days, marking them Submitted and ready to review, approve, and bill. Reversible with permission.

Features & how-tos › Time tracking

Time entry rounding

An option that rounds tracked durations up to a set interval for billing, while always keeping both the actual and rounded time.

Features & how-tos › Time tracking

Time balance (flex)

The running difference between a Person's expected and tracked time over a period — positive means they've tracked more than expected.

Features & how-tos › Time tracking

Invoice

A billing document capturing selected time entries and billable expenses for a Client; prices can be adjusted at creation, so invoiced revenue can differ from earned.

Features & how-tos › Invoicing

Credit note

A reversing document that cancels or corrects a sent invoice; the usual fix is a credit note plus a corrected invoice.

Features & how-tos › Invoicing

Cross-feature concepts (kept here in Concepts & metrics)

These span planning, time, financials, and invoicing at once, so they don't sit under any one feature.

Concept

In one line

Where it lives

Revenue recognition

How much of a Budget a Project has earned over time — by the recognition method (evenly, weighted by hours and rates, by time, or cost-to-cost).

Concepts & metrics

Revenue forecasting

A project's projected outcome at completion: actuals before a cut-off date plus the plan after it, for revenue, cost, gross profit, and margin.

Concepts & metrics

Planned vs. actuals

How the plan (Allocations and Budgets) compares against what actually happened (tracked time and Expenses) — the basis for every variance report.

Concepts & metrics

The numbers

Every computed metric — utilization, capacity, revenue, cost, gross profit, margin, earned vs. invoiced revenue, planned revenue and cost, and forecast values — is defined with its formula in one place.

Integrations

Concepts that come from connected systems rather than Operating itself.

Concept

In one line

Where it lives

CRM deal and pipeline

A sales opportunity moving through pipeline stages in your CRM; shown against its Project in Operating but managed in the CRM. A won deal can seed a Project.

Integrations & API › CRMs

External project

The name a Time entry's project has in an upstream system (issue tracking, an accounting system); a read-only label for tracing an entry to its source.

Integrations & API