How to Work with Fixed Task Costs in Microsoft Project 2016

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During this Microsoft Project 2016 advanced training tutorial video, we will explain and show you an example of a fixed task cost in a project.
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Welcome back to our course on Project 2016 Advanced.
In this and the next few sections I’m going to look in some detail at Costs.

Once again I’m going to assume that you have good, basic knowledge of using Cost in Project 2016 and I’m going to look at some aspects that you either may not have come across so far or perhaps where you need to know a little bit more about the detail of when and why you would use these tools and techniques and how to get the best out of them.

Now in this first section on Costs I’m going to look at Fixed Task Costs. It’s probably the case that with many of the projects that you manage a very large proportion of the costs are associated with the use of resources. And of course this could be the cost of work resources, the amount that you pay people to do various tasks, and it can be the cost of the materials that are used. But sometimes you have costs which are fixed costs for specific tasks. And I’m going to demonstrate this one with a particular example in the building project that we looked at earlier on.

Now in that building project under the summary task Services there was a task Connect to services. And very often with this kind of task or perhaps with a task associated with a legal cost or a regulatory cost there is a fixed part to the cost. So for example in the case of a house build there may be costs associated with connecting the houses supplies to the services that are provided locally. So for instance, connecting to the water supply or connecting to the electricity supply.

Now in this particular case I’m going to assume that in this locale the fixed cost of connecting to services is 295 U.S. dollars. This isn’t a cost for resources. This isn’t a cost for people working on it and it isn’t a cost for a material. It’s a cost associated with the specific task of connecting to services.

Now the way that you would enter a cost like this is via the Cost table. So what I’m going to do now is to switch from the Entry table to the Cost table and let’s start by having a look at what’s in the Cost table.

By default the Cost table contains a Fixed Cost column, a Fixed Cost Accrual column, they’re the ones we’re going to use now, and then you have Total Cost, Baseline Cost, Variance, Actual, and Remaining. And I’m going to talk about some of these other costs as we go through the next section. But in this particular case this fixed cost for connecting to services we’ll just put it in here. It’s going to be $295.

Now we also have the question of how this cost is accrued and I’m actually going to look at Cost Accrual in the next section, but for the moment I’m going to record this cost as being accrued at the start. I’ll explain accrual more fully in the next section.

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Видео How to Work with Fixed Task Costs in Microsoft Project 2016 канала Simon Sez IT