Monthly rate / salary

[Gil]

Hi,
Would you help me with the following?

Let's say a resource standard rate is 1000$/month (a fixed sum
paycheck at the end of every calendar month), and this is what I input
in the resource sheet.
If I assign this resource to work on a 180hrs task, at 150% units, the
duration of the task is 15days, less than a month, but the cost
Project calculates for the task is 1125$.
I guess this is because 1000/160=6.25$/hour, and 6.25*180=1,125

But the resource is still getting payed 1000$ for the whole month,
even if he or she are working more than 160 hours per months.

Can project calculate the real cost for this scenario?
Thanks,
Gil

 

[Mike Glen]

Hi Gil,

Welcome to this Microsoft Project newsgroup

The Resource Sheet standard rates are for the cost of the resource to the
project and is thus based on the manhours of work actually spent on the
project. Project is not an accounting program and thus the rates should
include elements of holidays, sickness and other absences - ie the cost of
using that resource on this project. It should not simply be the resource's
salary ( particularly as months have different numbers of working hours).

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

 

[Steve House [MVP]]

That IS the real cost of the task, ie, the economic value of the work.
Project is not a cash accounting application. The costs it calculates are
the economic cost of doing the specific work involved in the project. He'll
figure out how to make up that extra uncompensated $125 worth of work he did
somehow.

 

[Jason]

I would say, put him as a resource with the salary not attached to it. so,
just put it down as "0". This way you can still account for your resource.
Then, put a $1000 expense standard for every month as a seperate item. What
do you guys think?

 

[Steve House]

There's still the problem of which task or summary task that cost is to be
attributed to. Do not try to make Project into a payroll tracking system -
it's not designed to do that. The project universe is a closed system and
MS Project is incapable of seeing beyond its boundaries. The costs it deals
with are the costs incurred in order to do the specific project at hand. If
Joe earns $1000 per month and this month he only works 1 day on the project,
doing something else non-project related for the rest of the month, the
project budget is impacted by $50, not $1000. It doesn't matter if that
that other 19 days out of the month are spent in productive activity or are
spent by him twiddling his thumbs and surfing web porn, as far as the
project is concerned he has cost you only $50 for the entire month since
only 1 day of his work produced project related deliverables. The rest of
the time has to be accounted for outside of the project universe and as far
as MS Project is concerned it doesn't even exist.

 

[Gil]

There's still the problem of which task or summary task that cost is to be
attributed to.  Do not try to make Project into a payroll tracking system -
it's not designed to do that.  The project universe is a closed system and
MS Project is incapable of seeing beyond its boundaries.  The costs it deals
with are the costs incurred in order to do the specific project at hand.  If
Joe earns $1000 per month and this month he only works 1 day on the project,
doing something else non-project related for the rest of the month, the
project budget is impacted by $50, not $1000.  It doesn't matter if that
that other 19 days out of the month are spent in productive activity or are
spent by him twiddling his thumbs and surfing web porn, as far as the
project is concerned he has cost you only $50 for the entire month since
only 1 day of his work produced project related deliverables.  The restof
the time has to be accounted for outside of the project universe and as far
as MS Project is concerned it doesn't even exist.
--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visithttp://project.mvps.org/faqs.htmfor the FAQs

I would say, put him as a resource with the salary not attached to it. so,
just put it down as "0". This way you can still account for your resource.
Then, put a $1000 expense standard for every month as a seperate item.
What
do you guys think?

"Gil" wrote:

- Show quoted text -

Thank you all for sharing your thoughts with me!

 

[Mike Glen]

You're welcome, Gil

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

There's still the problem of which task or summary task that cost is
to be attributed to. Do not try to make Project into a payroll
tracking system - it's not designed to do that. The project universe
is a closed system and MS Project is incapable of seeing beyond its
boundaries. The costs it deals with are the costs incurred in order
to do the specific project at hand. If Joe earns $1000 per month and
this month he only works 1 day on the project, doing something else
non-project related for the rest of the month, the project budget is
impacted by $50, not $1000. It doesn't matter if that that other 19
days out of the month are spent in productive activity or are spent
by him twiddling his thumbs and surfing web porn, as far as the
project is concerned he has cost you only $50 for the entire month
since only 1 day of his work produced project related deliverables.
The rest of the time has to be accounted for outside of the project
universe and as far as MS Project is concerned it doesn't even
exist. --
Steve House [Project MVP]
MS Project Trainer & Consultant
Visithttp://project.mvps.org/faqs.htmfor the FAQs

I would say, put him as a resource with the salary not attached to
it. so, just put it down as "0". This way you can still account for
your resource. Then, put a $1000 expense standard for every month
as a seperate item. What
do you guys think?

"Gil" wrote:

Hi,
Would you help me with the following?

Let's say a resource standard rate is 1000$/month (a fixed sum
paycheck at the end of every calendar month), and this is what I
input in the resource sheet.
If I assign this resource to work on a 180hrs task, at 150% units,
the duration of the task is 15days, less than a month, but the cost
Project calculates for the task is 1125$.
I guess this is because 1000/160=6.25$/hour, and 6.25*180=1,125

But the resource is still getting payed 1000$ for the whole month,
even if he or she are working more than 160 hours per months.

Can project calculate the real cost for this scenario?
Thanks,
Gil- Hide quoted text -

- Show quoted text -

Thank you all for sharing your thoughts with me!