PERF allows to include and exclude sub-items from metrics calculation. This can be helpful if you need calculate metrics for a project duration/release and sub-items estimation and quantity is no object in this case.
If "Include sub-items into calculation" turned on then task estimates and their quantity will be taken into account while calculating metrics (it mostly affects affects Productivity & Scope and Backlog metrics).
If "Include sub-items into calculation" turned off then tasks are not included into the calculation in items at all but estimates are summarized in most most Productivity metrics.
To including/excluding sub-items in calculation go to Project Configuration → Task Tracking Systems (Jira, Rally, TFS/VSTS) → Workflow.
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Include sub items checkbox affects calculation in the following metrics:
Velocity by week (non-defects)
Iteration Scope Conversion (depends on units of measure: if unit of measure is Items then sub-items are calculated only when "Include sub-items into metric calculation" is turned-on. If metric is in Story Points or Hours then Story Point and Hours are calculated regardless of "Include sub-items into calculation" check-box)
Iteration Completion Snapshot (depends on units of measure: if unit of measure is Items then sub-items are calculated only when "Include sub-items into metric calculation" is turned-on. If metric is in Story Points or Hours then Story Point and Hours are calculated regardless of "Include sub-items into calculation" check-box)
"Not Done" Bucket Review (depends on units of measure: if unit of measure is Items then sub-items are calculated only when "Include sub-items into metric calculation" is turned-on. If metric is in Story Points or Hours then Story Point and Hours are calculated regardless of "Include sub-items into calculation" check-box)
Delivery Forecast via Burn-up(depends on units of measure: if unit of measure is Items then sub-items are calculated only when "Include sub-items into metric calculation" is turned-on. If metric is in Story Points or Hours then Story Point and Hours are calculated regardless of "Include sub-items into calculation" check-box)
Cumulative Flow by status bucketsDiagram (depends on units of measure: if unit of measure is Items then sub-items are calculated only when "Include sub-items into metric calculation" is turned-on. If metric is in Story Points or Hours then Story Point and Hours are calculated regardless of "Include sub-items into calculation" check-box)
Example if Include sub items checkbox affects calculation:
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UoM | Sub-items OFF | Sub-items ON |
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Item | Number of parent issues: 1 | Number of parent issues + number of sub issues: 1+2=3 |
Story point | SP for parent issues: 5 | SP for parent issues + SP for sub issues: 5+0+0=5 |
Hours | Hours for parent issues: 0 | Hours for parent issues + Hours for sub issues=0+20+5=25 |
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