Goal: Prepare to manage costs

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 the 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 within the Project Map 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.

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Prepare to manage costs user goal graphic

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  Review the planned costs     After you enter the costs for resources or tasks, or both, you can examine the costs to see whether they need to be adjusted to meet your goal for costs.

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Number 3  Control the cost calculation     Before you start tracking and managing the plan for costs, you should decide how you want to calculate the costs, enter the default rates that you want Project 2007 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.

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Number 4  Define how the costs accrue     Specifying when the actual costs are charged to your project (at the start, finish, or throughout the project) can help you establish a cash flow plan.

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Applies to:
Project 2007