The remaining-margin formula
Recorded payment − direct project costs = remaining margin
Finsway uses this result as the starting amount for Stage 2. Only the remainder - not the gross payment - is assigned across the planned purposes.
A fictional 12,500 example
A fictional incoming payment of 12,500 has 3,600 linked to contractors and 600 linked to project tools. Direct project costs total 4,200.
12,500 − 4,200 = 8,300 remaining margin
What remaining margin means
It is the amount left within the plan after the owner’s selected direct project costs are subtracted from the recorded payment. It lets the owner see the Stage 2 planning base separately from the cost of delivering the work.
What remaining margin does not mean
- It is not an accounting result.
- It is not a guarantee that every obligation has been included.
- It is not evidence that any transfer or payment occurred.
What happens after the calculation
The owner can assign the remaining margin across planned purposes such as tax, owner pay, operations, reserves, and goals. Those plans remain intentions until real-world actions are separately completed and confirmed.
Continue with planned versus paid or the core guide.