Goal: Prepare to manage costs

Applies to
Microsoft Office Project 2003
Microsoft Office Project Server 2003
Microsoft Project 2000 and 2002

After establishing costs (cost: The total scheduled cost for a task, resource, or assignment, or for an entire project. This is sometimes referred to as the current cost. In Project, baseline costs are usually referred to as "budget."), you can make the necessary preparations for tracking and managing them to ensure that the project stays within budget (budget: The estimated cost of a project that you establish in Project with your baseline plan.). You can specify a start date for the fiscal year, control the calculation options, and determine when the costs should be payable.

 Tip   This article is part of a series of articles that describe a broad set of project management activities. We call these activities "goals" because they are organized around the project management life cycle: Build a plan, track and manage a project, and close a project. The project life cycle is outlined in The Project Map, where you can find a link to an article about each project management goal. Most of the articles include links to supporting information or procedures that you perform in Project or Project Server. These "goal" articles were designed to help you not only use Project but also better understand project management.

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See all goals on the Project Map

Paper money viewed through magnifying glass

number 1  Set the month in which a fiscal year starts     Before you start tracking and managing costs, you can establish the month in which the fiscal year should start for your current project.

Number 2  Control the cost calculation      Before you start tracking and managing the plan for costs, you should decide how you want to calculate costs, enter the default rates that you want Project to apply to newly assigned resources (resources: The people, equipment, and material that are used to complete tasks in a project.), and specify the overtime (overtime: The amount of work on an assignment that is scheduled beyond the regular working hours of an assigned resource and charged at the overtime rate. Overtime work indicates the amount of the assignment's work that is specified as overtime work.) rate for each assigned resource.

Number 3  Define how costs accrue     Specifying when actual costs are charged to your project (at the start, finish, or throughout the project) can help you establish a cash flow plan.