Entering Other Cost Information

In addition to costs related directly to resources, you can plan and track a number of other costs associated with a project. Project supports both fixed and variable costs, which can be related to resources, tasks, and even to entire projects.

Creating cost estimates in a vacuum can be difficult, so it may be helpful to review the files of other projects to which you have access to see how actual costs broke out. In fact, you can even import cost information from other projects and programs into your project.

Note 

To learn how to import information into a Project file, see Chapter 18.

Earlier in this chapter, we discussed how to enter rates and per use costs for resources. Hourly costs, overtime costs, and per use costs of work resources and materials assigned to tasks account for all the variable costs you can track in Project. Use the Notes tabs of the Resource Information and the Task Information dialog boxes to record information about cost components.

Entering Fixed Costs

A fixed cost is a cost that does not change over the life of the project: the cost of a telephone installation, the cost for the movers, work done on a contract basis, or printing costs, for example. You can enter a fixed cost associated with a specific task or summary task in the Fixed Cost column of the Cost table, shown in Figure 9.11.

To display the Cost table, choose View Ø Table Ø Cost. To display additional Cost table fields, such as Fixed Cost Accrual and Total Cost, drag the vertical split bar to the right. Select a cell and enter the amount of the fixed cost. In the Fixed Cost Accrual column, indicate how the cost should accrue: at the Start, Prorated (over the course of the task), or at the End of the task.

Figure 9.11: The Cost table shows fixed and variable costs for each task.

Understanding Total Costs

When you enter a fixed cost, the Total Cost column changes to include the new cost. The Total Cost column represents the total of standard pay, overtime pay, per use resource costs, plus fixed costs associated with a task. The Total Cost is calculated based on the actual work completed on the project, the planned work yet to be completed, and the amount of fixed costs. The formula for figuring Total Cost is Actual Cost + Remaining Cost + Fixed Cost. See Chapter 12 to see how to use Project to analyze cost variance.

Tip 

If you want to enter fixed costs for the entire project, display the Project Summary Task. Choose Tools Ø Options from the menu to display the Options dialog box. Click the View tab. Enable the Project Summary Task check box and then click OK. The Project Summary Task is displayed as the first task in the table.