Project 2007 showing conflicting costs

N

news.microsoft.com

Hi guys,

I'm using Project 2007 and am a tad confused by the costs it calculates for
my project.

I've assigned the same standard prorated rate for all my resources on the
Resource Sheet at 100%. When I multiply the total hours (as shown on the
Resource Usage chart), by the resource rate, I get a 60% higher total
project cost than that shown in the Project Statistics. The statistical cost
matches the cost shown on the Task Sheet. All non-summary tasks have been
assigned.

MVP Mike Glen suggested I may have assigned resources to summary tasks, but
on double-checking, that's not the case.

What am I doing wrong?

Regards,
Graham
 
J

Jim Aksel

Only two things it could be... the total hours or the rates. The total work
shown on the resource sheet (or resource usage view) must match the total
work on the Gantt chart (or Task Usage View).

Look at these things.
First, on the Gantt Chart view make sure the "work" column is inserted.
Also, turn on the Project Summary Task (Task 0)... Tools/Options/View (tab);
check the box to show the project summary task. The value of "work" for Task
0 is the total work in the whole file. If you insert the cost column, the
cost on Task 0 is the file total cost.

Go to the Resource Sheet (the one listing all your resources and where you
keyed the rate). On the resource sheet, also insert the "work" column and
the cost column. On this sheet, you will need to manually total the work and
multiply by the rate. It should match the cost column on a resource by
resource basis. When you total them up the cost/work should match what you
have on the Gantt Chart for Task 0.

If they do not match up, go to the Resource Usage View (View/Resource Usage
View). Here, insert the "work" and "cost" columns on the left side of the
sheet. On this view you should be able to reconcile the total work assigned
for each resource back to the Resource sheet.

Look at the Task usage view. (View/Task Usage) This is a "cousin" view to
the Resource Usage view. Here you will see the spread of hours for each
task. Insert the cost and work columns on the left just like you did the
other three times. From here, you should be able to reconcile back to the
Gantt View and verify no resources are assigned to the summary tasks.

So, I've sent you to 4 places and had you insert cost and work columns on
all those views. Your problem will have to show up somewhere. My personal
guess is that when you look at the resource sheet you are using a different
value for the hours.

One other place you can look. If you have escallated rates you will
manually calculate a lower total cost because you'll be tempted to use the
present work rate shown.... yet that rate might increase after some magic
date (like 1/1/2010). To see if this is the case, go to the resource sheet
and double click on a resource. Pull the cost tab and look at the smaller
tabs A,B...E and see if you have dates and revised costs in any of those.
Gut check tells me probably not, you would already know if you have those
unless you inherited the file. Besides, you state your problem runs in the
opposite direction.

Also, you mention the Resource Chart (I assume you mean Graph). This is not
the most accurate place to get information (notice I never sent you there,
favoring the Resource Usage View instead). What happens on the resource
usage chart is the max value of assignment is shown even if it only occurrs
for 1 minute during the time frame defined on the horizontal axis. That
might also be the cause of your error.

see if that helps you reconcile it. If not, post back and maybe I can take
a look at the file. Gut check tells me to agree with Mike -- summary
resources that you may have missed. However, Project would handle that
consistently and it would reconcile (it is a logic error, not a calcuation
error). See where that takes you. It seems nearly impossible for it not to
reconcile.
--
If this post was helpful, please consider rating it.

Jim Aksel, MVP

Check out my blog for more information:
http://www.msprojectblog.com
 
J

Jan De Messemaeker

Hi,

This sounds as if your project is connected to a resource pool.
Resources show total work for all projects, tasks are from the project you
see only.

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

Graham R Seach

Hi guys,

I'm ashamed to say that this is all a false alarm. I can't believe how
stupid I've been.

The problem is that when I entered the resource costs into the Resource
Sheet, I entered the cost TO ME of those resources - not the chargeout cost.
When I sought to reconcile costs by multiplying the work hours by cost,
without thinking about it, I used the CHAREGOUT RATE, which of course is a
marginal 60% higher than that of the individual resource rates. When I
substitute the resource cost in my calculation, all is well with the world.

I'm sorry for my stupidity and for wasting your time.

Notwithstanding, is there a way in Project that I can take both costs into
account?

Regards,
Graham
 
J

JulieS

Not to worry Graham.

To your question of taking both cost and "charge costs" -- not
directly. You certainly can use spare Cost fields (Cost1, Cost2)
etc to track different information, but this becomes more difficult
when you have several resources with different work values on a
single task.

You can calculate different costs by using a different Cost rate
table for a resource and then copy/paste the calculated values into
spare fields. Double click on a resource's name to show the
Resource Information dialog. Enter the "cost to you" on one tab,
and enter the chargeout costs under a different rate tab. Show the
Task Usage view and add four columns, cost rate table, cost, cost1,
and cost 2. Copy the Cost to Cost1. Apply the other rate table to
the assignments and copy the recalculated Cost to Cost2.

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

in message
 
G

Graham R Seach

Thanks Julie,

I'd have thought Project would allow me to track that kind of thing. Oh
well, I suppose it manages projects, not businesses. I'm not going to bother
with it; I can adjust the rates (for this small team) when I want to look at
costs and earnings.

Regards,
Graham
 
J

JulieS

You're welcome Graham. You're correct in your assessment of
Project. It is very good at tracking expenses accrued in a project,
but it is not intended to be an accounting system.

Good luck and drop by again should you need to.
Julie
 

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