LESSON 4-5: Creating a Cost-Loaded Schedule

This tutorial describes:
•    cost loaded schedule
•    how to assign rates using the availability and rates detail window 
•    how resource assignment generates a cost against the activity
•    how to specify the price per unit to use when entering a cost without a resource or role assignment
•    how to recalculate costs by using the Actions menu
•    how to customize your view to display financial columns

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1. Сost loaded schedule.
Most large projects, and virtually all projects for government agencies, require a cost loaded schedule that calculates costs based on monetary rates assigned to resources and roles performing the work. Costs roll up to the activity level when multiple roles or resources are assigned. Similarly, costs from multiple activities roll up to the WBS level, and the WBS costs roll up to the project. Tracking costs is a key metric for measuring project performance. Contractors, for example, need to update costs and bill for completed work based on schedule progress.

2. Resource Rates.
Begin on the resource list. Use the availability and rates detail window to assign up to five rates to each resource. Rates can be edited on a per project basis.

3. Resource assignment.
When you create a resource assignment, it generates a cost against the activity, which rolls up to the related WBS node and to the project as a whole. Use the Rate Source column to select either the resource or rolе rate for an assignment. The Rate Type column specifies which of the five defined rates is used to calculate the cost, or you can use the Override Rate to manually specify a new rate. The rate type changes to Custom, and you can type in a new price per unit for the specified assignment. The values change in the detail window and on the main grid.
You can also specify a direct cost against an activity independent of a resource assignment. In the Status Detail window, select the units or cost type you want to enter against the activity. For instance, select material costs and type a material cost value for the activity. The cost is updated on the activities grid.

4. Specify the price per unit to use when entering a cost without a resource or role assignment.
Even without a resource assignment, labor and non labor costs require a price per unit calculation, although the rate can be different than the resource or role rate. Type a cost amount or enter a unit value. The Calculations tab in Project Settings is where you specify the price per unit to use when entering a cost without a resource or role assignment. This cost value will also be used as the default when you assign a resource that has no availability or rates defined. The Calculate Costs from Unit Setting is on by default.

5. Recalculate costs by using the Actions menu.
When you make changes to a resource, role, or direct cost rate, the application will ask if you want to recalculate cost. You can also recalculate costs at any time by using the Actions menu. Typically, you would do this if you reschedule the project, and dates have moved out, or if you adjusted resource and role rates in the resource and role list pages.

6. Customize your view to display financial columns.
Customize your view to display financial columns, project and user baseline cost values, and financial bar labels. Financial fields are available for network settings as well. Because a project may be multi-currency, view costs in the base currency or project currency. You can also customize the Project Usage panel to display bars and curves for cost values and financial fields in the spreadsheet rows, including cumulative and incremental values.
With a cost loaded schedule, you can view planned and actual costs for individual activities and their resource and role assignments, WBS elements, and the project as a whole.
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