calculating cost of resources

[zzqv9p]

In my project schedule I can have resources that have hourly, daily and
monthly rates. I use the same rate for the entire schedule.

When I extract the standardrate in VB, I get an hourly rate which works when
my team bill on an hourly basis. But if I am using a monthly rate, then the
cost of the resource should be a fixed amount for the entire month. Is there
a way of doing this in project.

e.g.

My work hours per day are defined as 8
Resource 1 has a hourly rate of $10
If this resource works 20 hours in 2 months - project reports $200 which is
correct

If I change resource 1 and define a rate per day of $100/day I would expect
to see a cost of $300 (20 hours/8 and rounded up)

If the monthly rate for the resource is $500, then I would expect the cost
to be $1000 (2 months flat rate)

by using TIMESCALEDATA method I can determine the effort per month, week.
but the cost always seems to be per hour

 

[Jan De Messemaeker]

Hi,
Indeed it is.
There is no rounding whatsoebvver (indeed, all calculations are done in
minutes)
Using the timescledata method with the appropriate timescaleunits you can
verify whether work for that day or month is zero or not and charge
accordingly, especially when using actual cost.
Hope this helps,

--
Jan De Messemaeker
Microsoft Project Most Valuable Professional
+32 495 300 620
For availability check:
http://users.online.be/prom-ade/Calendar.pdf

 

[Steve House]

Project always pro-rates resource cost to an hourly basis regardless of how
the base figure is entered (ie hourly, daily, weekly, monthly, or yearly).
Think about it a moment - your company has an engineer on staff that earns a
salary of $75000 a year. You borrow him from his home department and use
him in your project for 1 hour. Should that one hour of work cost your
project budget $75000 or $37.50? Project says $37.50 which IMHO is the
correct figure - your budget does not have to pick up his entire year's
salary. The method you are trying to set up would charge your project
budget $75000 but that's just not reasonable. The costs of your Project are
not your company's overall payroll costs of the resources involved - they
are the opportunity costs of doing the specific work that drives the
project, only those portions of the payroll cost that are directly
attributable to that project work, and nothing else.

 

[Jan De Messemaeker]

You're right, Steve but accountants are always more right than just right.


--
Jan De Messemaeker
Microsoft Project Most Valuable Professional
+32 495 300 620
For availability check:
http://users.online.be/prom-ade/Calendar.pdf

Project always pro-rates resource cost to an hourly basis regardless of
how the base figure is entered (ie hourly, daily, weekly, monthly, or
yearly). Think about it a moment - your company has an engineer on staff
that earns a salary of $75000 a year. You borrow him from his home
department and use him in your project for 1 hour. Should that one hour
of work cost your project budget $75000 or $37.50? Project says $37.50
which IMHO is the correct figure - your budget does not have to pick up
his entire year's salary. The method you are trying to set up would
charge your project budget $75000 but that's just not reasonable. The
costs of your Project are not your company's overall payroll costs of the
resources involved - they are the opportunity costs of doing the specific
work that drives the project, only those portions of the payroll cost that
are directly attributable to that project work, and nothing else.
--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://project.mvps.org/faqs.htm for the FAQs

In my project schedule I can have resources that have hourly, daily and
monthly rates. I use the same rate for the entire schedule.

When I extract the standardrate in VB, I get an hourly rate which works
when
my team bill on an hourly basis. But if I am using a monthly rate, then
the
cost of the resource should be a fixed amount for the entire month. Is
there
a way of doing this in project.

e.g.

My work hours per day are defined as 8
Resource 1 has a hourly rate of $10
If this resource works 20 hours in 2 months - project reports $200 which
is
correct

If I change resource 1 and define a rate per day of $100/day I would
expect
to see a cost of $300 (20 hours/8 and rounded up)

If the monthly rate for the resource is $500, then I would expect the
cost
to be $1000 (2 months flat rate)

by using TIMESCALEDATA method I can determine the effort per month, week.
but the cost always seems to be per hour

 

[Steve House [MVP]]

LOL - very true. I've a minor in economics and I've never yet understood
what goes on in the mind of an accountant.

--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://www.mvps.org/project/faqs.htm for the FAQs

You're right, Steve but accountants are always more right than just right.


--
Jan De Messemaeker
Microsoft Project Most Valuable Professional
+32 495 300 620
For availability check:
http://users.online.be/prom-ade/Calendar.pdf

Project always pro-rates resource cost to an hourly basis regardless of
how the base figure is entered (ie hourly, daily, weekly, monthly, or
yearly). Think about it a moment - your company has an engineer on staff
that earns a salary of $75000 a year. You borrow him from his home
department and use him in your project for 1 hour. Should that one hour
of work cost your project budget $75000 or $37.50? Project says $37.50
which IMHO is the correct figure - your budget does not have to pick up
his entire year's salary. The method you are trying to set up would
charge your project budget $75000 but that's just not reasonable. The
costs of your Project are not your company's overall payroll costs of the
resources involved - they are the opportunity costs of doing the specific
work that drives the project, only those portions of the payroll cost
that are directly attributable to that project work, and nothing else.
--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://project.mvps.org/faqs.htm for the FAQs

In my project schedule I can have resources that have hourly, daily and
monthly rates. I use the same rate for the entire schedule.

When I extract the standardrate in VB, I get an hourly rate which works
when
my team bill on an hourly basis. But if I am using a monthly rate, then
the
cost of the resource should be a fixed amount for the entire month. Is
there
a way of doing this in project.

e.g.

My work hours per day are defined as 8
Resource 1 has a hourly rate of $10
If this resource works 20 hours in 2 months - project reports $200 which
is
correct

If I change resource 1 and define a rate per day of $100/day I would
expect
to see a cost of $300 (20 hours/8 and rounded up)

If the monthly rate for the resource is $500, then I would expect the
cost
to be $1000 (2 months flat rate)

by using TIMESCALEDATA method I can determine the effort per month,
week.
but the cost always seems to be per hour