Fixed Costs

[Nathalie]

Hi,
I have questions about Fixed costs.
I have several activities with fixed costs.
I update the status date.
If I go to the task usage form,( I add the Actual cost row), I can't modify
the cost that has been divided in the different months of the period and when
I enter values in the actual cost, instead of having the same behaviour as
for the work, the cost sums up the initial value with the actual value.
Do I do something wrong?
thanks
Nathalie

 

[JulieS]

Hello Nathalie.

I assume you've turned off the option "Actual costs are always
calculated by project" on the Calculation tab in Tools > Options as
you note that you are manually adding actual costs.

When you update the status date, are you also updating the progress
on the task -- % complete or actual and remaining duration? Just
updating the status date does not update the progress on the task.

In order to have the total cost calculate correctly, you need to
record progress (actual and remaining duration or % complete on the
task. ) Assuming the accrual of your fixed costs is prorated, once
you update the status of the task and then enter actual costs, the
remaining cost should drop. For example: a 5 day duration task with
$500 fixed cost. The fixed cost accrual is set to prorated, so the
fixed cost is spread at $100 per day. Status date end of day 1.
Actual Duration = 1 day, remaining duration = 4 days. I add $125 in
actual cost for day 1. Remaining cost = 400. Cost (which is Actual
Cost + Remaining Cost) is $525.00. The fixed cost of $100 for days
2-5 are still showing in the Task Usage view under cost. As I
continue to progress the task by updating Actual Duration -- and
then record actual costs, the remaining costs drop.

I hope this helps. Let us know how you get along.

Julie
Project MVP

Visit http://project.mvps.org/ for the FAQs and additional
information about Microsoft Project