Enter costs for resources

Microsoft Project 2010 calculates the costs for resources based upon a number of factors and resource types.

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Introduction to entering costs for resources

Microsoft Project calculates the costs for resources based on regular and overtime rates, on per-use costs (per-use cost: A set fee for the use of a resource that can be in place of, or in addition to, a variable. For work resources, a per-use cost accrues each time that the resource is used. For material resources, a per-use cost is accrued only once.), on fixed costs (fixed cost: A set cost for a task that remains constant regardless of the task duration or the work performed by a resource.), or on costs for cost resources (cost resources: Resources that don't depend on the amount of work on a task or the duration of a task, such as airfare or lodging.) (such as airfare or dining) that are assigned to tasks. Before you can save changes to cost information for an enterprise resource (enterprise resources: Resources that are part of an organization's entire list of resources. Enterprise resources can be shared across projects.), the resource must be opened for editing.

The various cost types operate in differing ways, depending upon whether the resource is a work resource (a person), a material resource (material resource: The supplies or other consumable items that are used to complete tasks in a project.) (such as cement or rebar), or a cost resource (cost resources: Resources that don't depend on the amount of work on a task or the duration of a task, such as airfare or lodging.) (such as airfare or dining).

 Note   This article does not discuss how to create a budget for your project by using budget resources. Find links to more information about budget resources in the See Also section.

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Enter cost rates for a work resource

  1. On the View tab, click Resource Sheet.
  2. In the Resource Name field, select a resource or type a new resource name.
  3. In the Std. Rate and Ovt. Rate fields, type the resource standard and overtime rates.

If these fields are not visible, press TAB to move to them.

 Important    There are some situations where a single set of resource rates is not sufficient to capture complex billing schemes, called blended rates. These occur when the resource has variable rates that depend on:

  • Type of work
  • Work location
  • Volume discounting arising from the work
  • Change, over time
  • Resources used, such as trained vs. talented
.

You can model these more complex billing schemes by using rate-table features in Project:

  1. Right-click the resource, and from the list select Information.
  2. On the Resource Information dialog, click the Costs tab.
  3. In the Cost rate tables, click the A (Default) tab.
  4. In the Effective Date column, enter the date when the rate change takes effect.
  5. In the Standard Rate and Overtime Rate columns, type the resource rates.
  6. To enter a rate change that takes place on another date, in the additional rows of the cost rate tables (cost rate table: A collection of information about a resource's rates, including the standard rate, overtime rate, any per-use cost, and the date when the pay rate takes effect. You can establish up to five different cost rate tables for each resource.), type or select the new date, and the new standard rates and overtime rates.
  7. To enter additional sets of pay rates for the same resource, click the B tab, and then repeat steps 3-5.

 Notes 

  • Resource cost-rate tables are created and maintained in the Project Standard and Project Professional applications.
  • Use cost-rate tables to reflect rate changes that kick in after a special date. This will avoid old data being calculated.
  • If you are using cost-rate tables on a regular basis then you can add the Cost Rate Table column to the Task Usage view to see and select the assignment’s rate table.
  • Microsoft Project calculates cost totals when rate-based resources, resources that have per-use costs, and cost resources are assigned to tasks. The resources’ Accrue at setting will have an impact on this.
  • Changing the standard rate for a resource affects the cost of tasks that are 100-percent complete and that have the same resource assigned to them.
  • When you have entered multiple rates for a single resource by using the cost rate tables, you can change the resource rates for that resource for any assignment by using a different cost rate table. To change the cost rate table for a specific assignment, in the Task Usage view, select the resource that is assigned to the task, then right-click to select Information. On the Costs tab, in the Cost rate table list, click the cost rate table that you want to use.

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Enter a per-use cost for a work resource

  1. On the View tab, in the Resource Views group, click Resource Sheet.
  2. In the Data group, click the arrow on Tables, and then select Entry.
  3. In the Cost/Use field, type a cost value.

If this field is not visible, press TAB to move to it.

You can enter more than one per-use cost for each resource to reflect blended-rate schemes:

  1. Select the resource, right-click to select Information, and on the Resource Information dialog, click the Costs tab.
  2. In the Cost rate tables, click the A (Default) tab.
  3. In the Effective Date column, enter the date when the rate change takes effect.
  4. In the Per Use Cost column, type the per-use cost.
  5. To enter a per-use cost that takes place on another date, in the additional rows of the cost rate tables, type or select the new date and the new per-use cost.
  6. To enter additional sets of costs for the same resource, click the B tab, and then repeat steps 3-5.

 Tip    The Cost Accrual value is not specific to any cost-rate table, as it is a resource-level property.

Project can calculate cost totals when rate-based resources, resources that have per-use costs, and cost resources are assigned to tasks.

 Notes 

When you have entered multiple costs for a single resource by using the cost rate tables, you can change the resource costs for an assignment by using a different cost rate table. To change the cost rate table for a specific assignment, in the Task Usage view, select the resource that is assigned to the task, then right-click to select Information. On the Costs tab, in the Cost rate table list, click the cost rate table that you want to use.

If you are using cost-rate tables on a regular basis then you can add the Cost Rate Table column to the Task Usage view to see and select the assignment’s rate table.

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Enter a fixed cost for a task or for the project

Fixed costs are assigned to a task and are useful for planning and capturing task cost that arise in addition to those arising from the assigned resources. Fixed costs are applied to a task, and not to a resource.

  1. On the View tab, in the Task Views group, click Gantt Chart.
  2. In the Data group, click the down-arrow on Tables, and then select Cost.
  3. In the Task Name field, select the task (task: An activity that has a beginning and an end. Project plans are made up of tasks.) for which you want to enter a fixed cost (fixed cost: A set cost for a task that remains constant regardless of the task duration or the work performed by a resource.).
  4. In the Fixed Cost field, type a cost value.

 Tip    You can use the Fixed Cost Accrual value to control when fixed costs are realized, and you can use Use Cost Resource assignments for finer control of costs.

You can also enter fixed costs for the entire project, which you might choose to do if you are interested only in overall project costs (and not in task-level costs), or if you want to add project overhead costs (such as the cost of utilities).

  1. On the Format tab, in the Show/Hide group, select Project Summary Task.
  2. In the Task Name field, select the project summary task
  3. In the Fixed Cost field, type a cost for the project.

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Enter costs for a cost resource

A cost resource (cost resources: Resources that don't depend on the amount of work on a task or the duration of a task, such as airfare or lodging.) lets you apply a cost to a task by assigning a cost item (like a capital expenditure on equipment, or variable costs such as airfare or lodging) to that task. Unlike fixed costs, you can apply any number of cost resources to a task. Cost resources give you more control when you apply various types of costs to tasks.

Before you enter a cost for a cost resource, you must create the cost resource:

  1. On the View tab, in the Resource Views group, click Resource Sheet.
  2. In the Resource Name field, type a name for the cost resource (such as Lodging), and then right-click to select Information.
  3. In the Resource Information dialog box, on the General tab, select Cost in the Type list.
  4. Click OK.

After the cost resource is created, you can assign the cost resource to a task. After the cost resource is assigned to a task, you can enter costs for the resource assignment by using the Task Usage view.

  1. On the View tab, in the Task Views group, click Task Usage.
  2. Select the task that the cost resource is assigned to, then right-click to select Information.
  3. In the Task Information dialog box, click the Resources tab, and then enter a cost value in the Cost field.
  4. Click OK.

When a cost is applied by using a cost resource that is assigned to a task, the amount of the cost resource can vary depending on how the cost resource is used.

 Notes 

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Enter a rate for a material resource

  1. On the View tab, in the Resource Views group, click Resource Sheet.
  2. In the Data group, click the arrow on Tables, and then select Entry.
  3. In the Resource Name field (field: A location in a sheet, form, or chart that contains a specific kind of information about a task, resource, or assignment. For example, in a sheet, each column is a field. In a form, a field is a named box or a place in a column.), select a material resource or type a new material resource name.
  4. If this is a new material resource, do the following:
    1. Select Material in the Type field (field: A location in a sheet, form, or chart that contains a specific kind of information about a task, resource, or assignment. For example, in a sheet, each column is a field. In a form, a field is a named box or a place in a column.).
    2. Type a measurement-unit name in the Material field, such as lit (for liters), cu. m (for cubic meters), or ea (for each).
  5. In the Std. Rate field, type a rate.

If this field is not visible, press TAB to move to it.

You can enter more than one rate per material resource:

  1. Right-click to select Information, and on the Resource Information dialog, click the Costs tab.
  2. In the Cost rate tables, click the A (Default) tab.
  3. In the Standard Rate column, type a rate.
  4. In the next row, type a value or percentage change from the previous rate in the Standard Rate column. For example, type +10% to indicate that the rate has increased 10% from the previous rate.
  5. In the Effective Date column, enter the date when the rate change takes effect.
  6. To enter additional sets of rates, click the B tab, and then repeat steps 3-5.

 Notes 

  • Enter material resource rates if you want Microsoft Project to calculate material resource costs based on material resource rates. For example, to assign to a task a material resource named cement that has a unit price of $100 per ton, in the Type field select the resource type Material, and then type or select the resource name Cement, the label Ton, and the standard rate of $100.
  • Enter multiple rates for a material resource if you work with multiple grades of material or if you need to incorporate material rate changes on specific dates. For example, you can use the Cost rate table tabs to enter rates for various grades of carpet and to include cost increases or discounts that you expect at specific times during the project.

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Enter a per-use cost for a material resource

  1. On the View tab, in the Resource Views group, click Resource Sheet.
  2. In the Data group, click the arrow on Tables, and then select Entry.
  3. In the Resource Name field, select a material resource or type a new material resource name.
  4. If this is a new material resource, select Material in the Type field (field: A location in a sheet, form, or chart that contains a specific kind of information about a task, resource, or assignment. For example, in a sheet, each column is a field. In a form, a field is a named box or a place in a column.).
  5. If this is a new material resource, type a measurement unit name in the Material Label field, such as lit (for liters), cu. m (for cubic meters), or ea (for each)
  6. In the Cost/Use field, type a cost value.

If this field is not visible, press TAB to move to it.

You can enter more than one per-use cost for each resource:

  1. If this is a new material resource, select Material in the Type field.
  2. Type a measurement-unit name in the Material box.
  3. Right-click to select Information, and in the Resource Information dialog, click the Costs tab.
  4. Click the A (Default) tab in the Cost rate tables.
  5. In the Per Use Cost column, type a cost value.
  6. In the next row, type a value or percentage change from the previous cost in the Per Use Cost column.
  7. In the Effective Date column, enter the date when the cost change takes effect.
  8. To enter additional sets of per-use costs, click the B tab, and then repeat steps 5-7.

 Notes 

  • Enter one per-use cost for a material resource if you want to enter only one per-use cost for that material resource and you don't want to incorporate future cost changes.
  • Enter multiple per-use costs for a material resource if you want to enter more than one per-use cost for that resource or to incorporate future material cost per-use changes.

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Applies to:
Project 2010