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How to define cost types

Added by Rajesh R Nair over 8 years ago

Hello Team,

1. Could you help me with some samples of how to define cost types (under Modules menu). The fields I see are below.

Name *
Unit Name *
Pluralized Unit Name *
Default
and then define the rates for the date.

What I tried values looks as follows, would like to know whether this is right approach. (That is, should it be for Human resource or not, because in budget screen I get this under Planned Unit Cost)
Name: Development
Unit Name*: Java Developer
Pluralized Unit Name: Java Developers
Default:
and then defined rates for the date.

2. I have a follow up question too, when we use Planned Unit Cost and Planned Labor cost in Project’s Budget screen

Here under Planned Unit Cost, I would get the Cost Type defined here. And all project members are coming under Planned Labor Cost. So what should be ideally coming under Planned Unit Cost, is it other material costs for the project.

Regards
Rajesh


Replies (7)

RE: How to define cost types - Added by Brendan Dunn over 8 years ago

Hi Rajesh

I am no expert, but when you use the cost plugin, it will want budgets attached to projects
these budgets are of certain types like

Capital budget
Vendor services
Contractor budget
hourly rate
Bill of material
Expenses
T&M
etc
so when the team builds a bill of material and a bill of labour and you allocate a budget to these. you use the types to categorise the budgets. Then you allocate these budgets to the projects
Cheers
Brendan

RE: How to define cost types - Added by Rajesh R Nair over 8 years ago

Hi Brendan,

Thanks for the update. If I understood correctly, cost type is kind of a “qualifier” for Budgets?

Regards
Rajesh

RE: How to define cost types - Added by Brendan Dunn over 8 years ago

yes
helps you understand that budget item
so when you create a new budget, you can create a budget of type capital. That is where you see the type used
or you can create vendor services budget. You then allocate the budgets to the work packages, so you need to line up your types as best you can to the budgets and work packages. I would tend to create a work package called " buy equipment" and use the capital budget there, the rest can go to the T&M or third party services budgets. You could get granular if you wanted to but you need to match the work packages, it would be hard if you mixed the budgets.

cheers
Brendan

RE: How to define cost types - Added by Rajesh R Nair over 8 years ago

Thanks a lot Brendan.

Regards
Rajesh

RE: How to define cost types - Added by Rajesh R Nair over 8 years ago

Hi Brendan,

Would you mind sharing one sample value for the below fields to show how you have defined the Cost type.

Name *
Unit Name *
Pluralized Unit Name *
Default
and then define the rates for the date.

Regards
Rajesh

RE: How to define cost types - Added by Brendan Dunn over 8 years ago

Hourly Rate $/hr $s/hr 50.00 AU

Daily Rate $/day $s/day 800.00 AU

Bill of Material Cost $k BOM Cost $k BOM Costs $k 100.00 AU

Fixed Price Labour $k Fixed Price Labour $k Fixed Price Labour $k 200.00 AU

RE: How to define cost types - Added by Rajesh R Nair over 8 years ago

Thanks a lot Brendan for you help.

Regards
Rajesh

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