Planning Fixed Task Costs

Most of your costs are associated with resources and are calculated based on resource rates and assigned work. However, sometimes you have a cost associated with a task that's independent of any resource. In this case, you can enter a fixed cost for a task. Examples might include printing costs associated with the completion of a document deliverable or the travel costs associated with a milestone conference or event. To enter a fixed cost for a task, follow these steps:

1 Display the Gantt Chart or other task sheet.

2 Click View, Table, Cost.

The Cost table with the Fixed Cost and Fixed Cost Accrual fields is applied to the task sheet (see Figure 8-4).

Task Name

Fixed Cost

Fixed Cost Accrual

Total Cost

25

- Deuelopment

$0.00

Prorated

$22,440.00

26

Review functional specifications

10.00

Prorated

$680.00

27

Identify modular.'liered design parameters

$0.00

Prorated

$680.00

28

Assign development staff

$0.00

Prorated

$680.00

29

Develop code

$0.00

Prorated

$10,200.00

30

Developer testing (primary debugging)

$0.00

Prorated

$10,200.00

31

Development complete

$0.00

Prorated

$0.00

Figure 8-4. Apply the Cost table to enter fixed costs for tasks.

Figure 8-4. Apply the Cost table to enter fixed costs for tasks.

3 In the Fixed Cost field for the task, enter the cost.

4 In the Fixed Cost Accrual field, specify when the cost should be accrued: at the beginning of the task, at the end, or prorated throughout the duration of the task. The planned fixed cost for the task is added to the planned cost for the task based on assigned resources, and is shown in the Total Cost field.

3"

Tip Set the default fixed cost accrual method

To set the default fixed cost accrual method, click Tools, Options and then click the Calculation tab. In the Default Fixed Costs Accrual list, select your preferred accrual method. This default accrual applies only to fixed costs for tasks, not resource costs.

You can also enter a fixed cost for the project as a whole. To do this, follow these steps:

1 Display the Gantt Chart or other task sheet.

2 Click View, Table, Cost. The Cost table is applied.

3 Click Tools, Options.

4 In the Options dialog box, click the View tab.

5 Under Outline Options, select the Show Project Summary Task check box and then click OK.

The project summary task row appears at the top of the view, and includes rolled-up costs for tasks (see Figure 8-5).

Task Name

Fixed Cost

Fixed Cost Accrual

Total Cost

0

- Software Development

$0.00

Prorated

$09,500.00

1

- Scope

$0.00

Prorated

$2,240.00

2

Determine project scope

$0.00

Prorated

$320.00

3

Secure project sponsorship

$0.00

Prorated

$640.00

4

Define preliminary resources

$0.00

Prorated

$640.00

5

Secure core resources

$0.00

Prorated

$640.00

6

Scope complete

$0.00

Prorated

$0.00

7

- Analysis/Software Requirements

$0.00

Prorated

$9,220.00

8

Conduct needs analysis

$0.00

Prorated

$3,000.00

Figure 8-5. Add the project summary task to add a fixed cost for the project.

In the Fixed Cost field for the project summary task, enter the fixed cost for the project.

In the Fixed Cost Accrual field, specify when the cost should be accrued: at the beginning of the project, at the end, or prorated throughout the duration of the project. The planned fixed cost for the project is added to all other costs calculated for assignments and tasks throughout the project. This total is shown in the Total Cost field of the project summary task.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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