Automatic costs and penalties
Manual reconciliation between capacity, rates, and finance sheets is the biggest source of P&L error. DigitalCore links these directly so the numbers stay in sync as you record data.
Two links run automatically.
Hours become labour cost
When you record hours for a role on an engagement, DigitalCore multiplies them by the right hourly rate and posts the cost in finance.
The rate is chosen in this order, most specific first:
| Order | Source | When it applies |
|---|---|---|
| 1 | Contract rate matching this engagement | A rate set on the contract specifically for this engagement. |
| 2 | Contract rate | A general rate on the linked contract. |
| 3 | Rate card default | Your organisation default rate for the role. |
| 4 | Any rate card | Fallback if no default is set. |
The cost appears as an entry on the matching finance line (usually Labour Cost). It is tagged as system‑generated so you can tell it apart from manual entries.
Missed contract terms become penalties
When a KPI value crosses the limit set in the contract, DigitalCore detects the missed term and calculates the penalty.
The limit uses one of two operators:
- Greater than: actual exceeds the limit (for example, response time over 4 hours).
- Less than: actual falls below the limit (for example, availability under 99.5%).
Penalties are calculated three ways, depending on the contract:
- Fixed: a flat amount per occurrence (for example, €5,000).
- Percentage: a share of contract value (for example, 2% of the monthly fee).
- Tiered: bigger amounts for more serious misses.
The penalty posts as a cost on the finance line linked to the contract term and is tagged with the originating event.
Traceability
Every automatic entry shows where it came from. You can open it to see the source hours, KPI value, or contract term. Manual and automatic entries both count toward the total, but you can always tell them apart.
Related
- Rate cards: how rates are organised.
- Data domains: how the four domains connect.
- Engagements: where automation runs.