How to calculate inflation in MS Project

[Lisa Cozzens]

Is there a way to calculate inflation in to a project? I have a fixed cost
for a 12 year project. I need this to be broken down yearly, where each year
the cost would increase based upon the inflation rate of 7%. I need to be
able to create a cost report showing the yearly inflation. Any ideas how to
do this? (I'm a beginner with Project.)

Thanks for the help,
Lisa Cozzens

 

[JulieS]

Hi Lisa,

Welcome to the Project newsgroup.

If you are using resource cost to drive the costs of the project, you
can add the 7% increase along with the effective date of the increase to
the resource's rate.

Display the Resource Sheet view and double click a resource's name to
display the Resource Information dialog box. On the Cost tab click the
A (Default) tab. Enter the effective date (I assume 1 January 07) and
enter 7%. This will increase the resource's Standard rate by 7% as of
the effective date.

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

Julie

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

 

[Lisa Cozzens]

We do not have assigned resources, only a fixed cost for the project.

Lisa

 

[JulieS]

Hi Lisa,

Okay, well, I'm sorry but I believe this creates a bit of a problem
then. Resource rates can be time-phased easily, but getting an exact
increase in fixed costs on a specific date is a bit more challenging.

By adding a series of custom Date fields and Custom Cost fields, it
would be possible to show increased costs for tasks that start after a
specific date, but the problem would be tasks that start before the date
but finish after the new rate change date.

For example, if you insert a custom date (Date1, for example) and enter
in the 1 January 2007 date (use the fill handle to speed things along).
Insert a custom Cost field (Cost1) and customize the field with a
formula such as:
IIf([Start]>[Date1], [Fixed Cost]*1.07, [Fixed Cost])

For tasks that start after the 1 Jan 07 date, the Cost1 field will show
the fixed cost data increased by 7%, for tasks with a start before 1 Jan
07, the field will just show the original fixed cost entered. However,
if a task starts on 30 Dec 06 and ends on 5 Jan 07, the fixed cost will
not be increased.

This kind of manipulation of costs *may* be possible through VBA, but
I'm afraid that it outside my knowledge area.

I would suggest either the option I noted or exporting the data to Excel
for manipulation.

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

Julie

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

 

[Lisa Cozzens]

Thanks for the information.

Hi Lisa,

Okay, well, I'm sorry but I believe this creates a bit of a problem
then. Resource rates can be time-phased easily, but getting an exact
increase in fixed costs on a specific date is a bit more challenging.

By adding a series of custom Date fields and Custom Cost fields, it
would be possible to show increased costs for tasks that start after a
specific date, but the problem would be tasks that start before the date
but finish after the new rate change date.

For example, if you insert a custom date (Date1, for example) and enter
in the 1 January 2007 date (use the fill handle to speed things along).
Insert a custom Cost field (Cost1) and customize the field with a
formula such as:
IIf([Start]>[Date1], [Fixed Cost]*1.07, [Fixed Cost])

For tasks that start after the 1 Jan 07 date, the Cost1 field will show
the fixed cost data increased by 7%, for tasks with a start before 1 Jan
07, the field will just show the original fixed cost entered. However,
if a task starts on 30 Dec 06 and ends on 5 Jan 07, the fixed cost will
not be increased.

This kind of manipulation of costs *may* be possible through VBA, but
I'm afraid that it outside my knowledge area.

I would suggest either the option I noted or exporting the data to Excel
for manipulation.

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

Julie

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

We do not have assigned resources, only a fixed cost for the project.

Lisa

 

[JulieS]

You're welcome and thanks for the feedback.


Julie

Thanks for the information.

Hi Lisa,

Okay, well, I'm sorry but I believe this creates a bit of a problem
then. Resource rates can be time-phased easily, but getting an exact
increase in fixed costs on a specific date is a bit more challenging.

By adding a series of custom Date fields and Custom Cost fields, it
would be possible to show increased costs for tasks that start after
a
specific date, but the problem would be tasks that start before the
date
but finish after the new rate change date.

For example, if you insert a custom date (Date1, for example) and
enter
in the 1 January 2007 date (use the fill handle to speed things
along).
Insert a custom Cost field (Cost1) and customize the field with a
formula such as:
IIf([Start]>[Date1], [Fixed Cost]*1.07, [Fixed Cost])

For tasks that start after the 1 Jan 07 date, the Cost1 field will
show
the fixed cost data increased by 7%, for tasks with a start before 1
Jan
07, the field will just show the original fixed cost entered.
However,
if a task starts on 30 Dec 06 and ends on 5 Jan 07, the fixed cost
will
not be increased.

This kind of manipulation of costs *may* be possible through VBA, but
I'm afraid that it outside my knowledge area.

I would suggest either the option I noted or exporting the data to
Excel
for manipulation.

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

Julie

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

message

We do not have assigned resources, only a fixed cost for the
project.

Lisa


:

Hi Lisa,

Welcome to the Project newsgroup.

If you are using resource cost to drive the costs of the project,
you
can add the 7% increase along with the effective date of the
increase
to
the resource's rate.

Display the Resource Sheet view and double click a resource's name
to
display the Resource Information dialog box. On the Cost tab
click
the
A (Default) tab. Enter the effective date (I assume 1 January 07)
and
enter 7%. This will increase the resource's Standard rate by 7%
as
of
the effective date.

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

Julie

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


message
Is there a way to calculate inflation in to a project? I have a
fixed
cost
for a 12 year project. I need this to be broken down yearly,
where
each year
the cost would increase based upon the inflation rate of 7%. I
need
to be
able to create a cost report showing the yearly inflation. Any
ideas
how to
do this? (I'm a beginner with Project.)

Thanks for the help,
Lisa Cozzens