Posts Tagged ‘Costs’

Microsoft Project Tutorial Part 12 – Planning for Costs

If you select View—>Resource Sheet, you can enter the costs for a resource.


Resources can be of two types: Work or Material. The difference is how costs are added. If you have a time based cost, the resource is of type Work and if you have a per unit cost, the type is material.

This means that if you have a test environment which costs per hour, the type is Work but if you buy a computer, the type is material.

You can also see that you have different rates for one resource. If you change the type to Material, you cannot enter all types.

Std rate is used when you normally assign the resource to a task.

Ovt rate is used when you specify that time is to be spent using the overtime rate. That means that even if a resource is overallocated, the Ovt is not used. You specifically have to state that overtime rate is to be used.

Cost per use is used to set a one time cost for each allocation. Observe that this a poor choice for the consultant who takes a fee per day: the Cost per use is one per assignment on a task independent if the task is one hour or one day. This is useful for example a test environment which has to be set up for each new test task.

Accrue at  is used to specify when during a task the costs are added to the task: before the task starts (if you’re billed in advance), during the task or after the task has been completed (billed afterwards).

If you double click a resource you can see that there is a tab for costs. In this you can set up five different price scales for the resource. This is useful if a resource costs differently on different tasks.

When you assign a resource to a task, the planned costs can be found in a field called Cost in the Gantt chart (View—>Gantt chart). You can select to view the column by right clicking a column and selecting Insert Column. Select Cost in the Field name drop down.


You can also select to change the table to the Cost Table by Selecting View—>Table.


In the table you can see the column Fixed Cost. This can be used if you want to add a cost which is not related to a specific resource. Observe that the Fixed costs are not summarized on Heading tasks so you can add a fixed cost on all rows in the Gantt chart.

Another trick when your working with costs is that you can select Window—>Split. The form is visible on the bottom of the Gantt chart.


If you right click the form (grey area) you can select a form called Costs. Here you can see the costs and you can also specify how much of the time uses the Ovt rate. Observe that the OVT rate is never used automatically.

If you want even more control on your planned costs, you can select View—>Resource usage or View—>Task usage.


Here you can change the table the same way you change tables in Gantt chart (View—>Table) but you can also right click the White/Yellow part and select to view the OVT Cost and Cost fields.

Another thing you can do in these views is that you can double click the italic rows in the tables, in other words; the assignments. Here you can see the planned costs but you can also set which cost rate table is to be used on the assignment.