Zomentum offers a robust feature that lets you automate or manually input the cost and revenue of an opportunity, giving you a dynamic and flexible approach to financial management. This guide explains how cost and revenue are captured, and how totals and margins are calculated within the platform.
1. Automatic vs. Manual Cost & Revenue
Zomentum presents a checkbox that lets you choose between automatically retrieving an opportunity's cost from its associated document, or entering cost and revenue manually.
Note: You can customize the number of months over which cost and revenue are calculated, regardless of which mode is selected.
2. How Totals and Margin Are Calculated
When cost and revenue are entered manually, Zomentum uses the following logic to calculate totals and margin.
2.1 Total Revenue
Total Revenue is the total money earned from the client over a chosen number of months. It is calculated by taking every revenue type one-time, weekly, monthly, quarterly, half-yearly, and yearly converting each to a monthly equivalent so all figures share the same time frame, and then multiplying by the number of months being calculated for.
2.2 Total Cost
Total Cost is calculated the same way as Total Revenue, but using the corresponding cost values instead.
2.3 Margin Value
Margin Value = Total Revenue − Total Cost. This shows how much profit remains after all costs are covered.
2.4 Margin Percentage
Margin Percentage = (Total Revenue − Total Cost) ÷ Total Revenue. This shows what portion of total revenue is profit.
2.5 Formula Reference
3. Worked Example (6 Months)
The following example calculates totals and margin for an opportunity over 6 months.