Capturing Initial Price of Equipment

[spencera12]

I have been beating my head against the keyboard for two days trying
to remember how to assign a piece of equipment an initial price. I am
running Project Professional 2007.

For example: (yes I know I am missing a million steps to make this
truly feasible)
Tasks: (Gantt Chart)
Making widget
Cast aluminum - resources- Me, foundry, aluminum ingots
Weld aluminum - resources - Me, wielder, welding rods

Resources:
Me- we won't worry too much about him
Foundry - cost $1000 to build and $40 every time I use it
Aluminum Ingots - cost $10
Welder - cost $2000 to buy and $10 every time I use it
Welding rods - cost $1 each

The Aluminum and Rods I can deal with. They are materials that have a
cost / use. Easy enough. (right???)
Dealing with the foundry and welder is my problem. I would like to
capture that initial cost and a cost per use and have all of the costs
show up when I go back to my Gantt chart and look at the top line!

Irrelevant background data:
In my research I found that setting them up as baselines and using a
separate line item to account for each use was referenced to. I am
pretty certain, especially after reading about it in this forum, and
having it not work, that is NOT the correct way to handle this
situation.

This is my first post (and I'm a bit stressed about this, and it is
1:30) so please try and work with me a bit!!

Thanks so much!!

Andrew Spencer

 

[Rod Gill]

Standard accounting practice is to amortize the cost of the welding
equipment over the expected life/usage. Your accounts dept should be able to
give you a cost per use.

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:
http://www.projectvbabook.com

I have been beating my head against the keyboard for two days trying
to remember how to assign a piece of equipment an initial price. I am
running Project Professional 2007.

For example: (yes I know I am missing a million steps to make this
truly feasible)
Tasks: (Gantt Chart)
Making widget
Cast aluminum - resources- Me, foundry, aluminum ingots
Weld aluminum - resources - Me, wielder, welding rods

Resources:
Me- we won't worry too much about him
Foundry - cost $1000 to build and $40 every time I use it
Aluminum Ingots - cost $10
Welder - cost $2000 to buy and $10 every time I use it
Welding rods - cost $1 each

The Aluminum and Rods I can deal with. They are materials that have a
cost / use. Easy enough. (right???)
Dealing with the foundry and welder is my problem. I would like to
capture that initial cost and a cost per use and have all of the costs
show up when I go back to my Gantt chart and look at the top line!

Irrelevant background data:
In my research I found that setting them up as baselines and using a
separate line item to account for each use was referenced to. I am
pretty certain, especially after reading about it in this forum, and
having it not work, that is NOT the correct way to handle this
situation.

This is my first post (and I'm a bit stressed about this, and it is
1:30) so please try and work with me a bit!!

Thanks so much!!

Andrew Spencer

__________ Information from ESET Smart Security, version of virus
signature database 4602 (20091113) __________

The message was checked by ESET Smart Security.

http://www.eset.com

__________ Information from ESET Smart Security, version of virus signature database 4602 (20091113) __________

The message was checked by ESET Smart Security.

http://www.eset.com

 

[spencera12]

Rod,

I figured I didn't give enough info!

I am trying to determine the TOTAL cost to start a business,
specifically the R&D. Therefore, I am the accounting, public
relations, purchasing, engineering, drafting and management
departments! Thus, my conundrum!

Andrew

p.s. I am horrible at accounting, therefore I was trying to get it
into one line.

 

[Mike Glen]

Hi Andrew,

Welcome to this Microsoft Project newsgroup

For the Foundry, enter $1000 in the Fixed Cost column (Insert/Fixed Cost or View/Table: ()/Cost) against the task "Build Foundry"

As for usage, make the Foundry a resource and enter a per use cost in the Resource Information dialog. Then assign the resource to the appropriate tasks.

Do the same for the Welder

FAQs, companion products and other useful Project information can be seen at this web address: http://project.mvps.org/faqs.htm

Hope this helps - please let us know how you get on

Mike Glen
MS Project MVP
See http://tinyurl.com/2xbhc for my free Project Tutorials



I have been beating my head against the keyboard for two days trying
to remember how to assign a piece of equipment an initial price. I am
running Project Professional 2007.

For example: (yes I know I am missing a million steps to make this
truly feasible)
Tasks: (Gantt Chart)
Making widget
Cast aluminum - resources- Me, foundry, aluminum ingots
Weld aluminum - resources - Me, wielder, welding rods

Resources:
Me- we won't worry too much about him
Foundry - cost $1000 to build and $40 every time I use it
Aluminum Ingots - cost $10
Welder - cost $2000 to buy and $10 every time I use it
Welding rods - cost $1 each

The Aluminum and Rods I can deal with. They are materials that have a
cost / use. Easy enough. (right???)
Dealing with the foundry and welder is my problem. I would like to
capture that initial cost and a cost per use and have all of the costs
show up when I go back to my Gantt chart and look at the top line!

Irrelevant background data:
In my research I found that setting them up as baselines and using a
separate line item to account for each use was referenced to. I am
pretty certain, especially after reading about it in this forum, and
having it not work, that is NOT the correct way to handle this
situation.

This is my first post (and I'm a bit stressed about this, and it is
1:30) so please try and work with me a bit!!

Thanks so much!!

Andrew Spencer

 

[Rod Gill]

There you have a problem as Project costs just one file. You will need to
define some accounting standards. How much of the capital cost are you going
to allocate to each project until it's paid off?

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:
http://www.projectvbabook.com

Rod,

I figured I didn't give enough info!

I am trying to determine the TOTAL cost to start a business,
specifically the R&D. Therefore, I am the accounting, public
relations, purchasing, engineering, drafting and management
departments! Thus, my conundrum!

Andrew

p.s. I am horrible at accounting, therefore I was trying to get it
into one line.

__________ Information from ESET Smart Security, version of virus
signature database 4605 (20091113) __________

The message was checked by ESET Smart Security.

http://www.eset.com

__________ Information from ESET Smart Security, version of virus signature database 4605 (20091113) __________

The message was checked by ESET Smart Security.

http://www.eset.com

 

[Steve House]

I am not an accountant but the way I think of it is that because capital
equipment isn't used up in a project the way a bucket of paint or a gallon
of fuel is, you sort of pay it a salary equal to its straightline
depreciation. You buy the welder of $2000 and use it in the project but
when the current project is done, you can move it over to another project
and use it there. The current project shouldn't be totally responsible for
its cost.

Let's say the your new $2000 welder will need replacing in 5 years. The
cost per year is $400. In many respects, $400 per year is like a salary
you're paying the welder. Its cost per hour of use is about 20 cents
($400/2000hours). If you use it for 100 hours in this current project, the
portion of its total cost of ownership born by the current project is $20.
Other projects you use it in and general business overheads pick up the
balance. So in MS Project I would list it as a work resource with a
standard rate of $400/yr.