Captial vs. Expense

[JJKEN]

Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with budget
number for each and actual tracking once the project begins. If I have an
indicator, I suppose I can dump into excel and sort by this indicator. Any
thoughts?

 

[MAS]

We had similar need. We created a text field to indicate tasks that are
capital vs expense and then created 2 new cost fields. Capital cost was = to
cost if text field was capital and vice versa. I hope this helps.

 

[MAS]

A little more detail - in order to get a project total for the cost field
mentioned below you need to add a macro that copies the task summary field to
the project cost field. So we actually had a cost field at a task level and 2
at the project level. The macro that we fired was on a save event.

 

[JJKEN]

That is what I'm looking for - thanks. What does the code look like for
doing a check of the new text field and setting the new cost fields
accordingly (I do this in the custom fields?). I have never done anything
like that?

 

[MAS]

Very simple code - use the custom formula in the custom field and it aids in
setting it all up. the code would be something like this

IIf( [capital ='Y'] , [Cost] , 0)
Where capital is a user defined flag. It would be set to "n" for expense.

 

[JJKEN]

OK, I got that part working - any help with the macro part? Again never had
to setup a macro in Project before - thanks!

Very simple code - use the custom formula in the custom field and it aids in
setting it all up. the code would be something like this

IIf( [capital ='Y'] , [Cost] , 0)
Where capital is a user defined flag. It would be set to "n" for expense.

That is what I'm looking for - thanks. What does the code look like for
doing a check of the new text field and setting the new cost fields
accordingly (I do this in the custom fields?). I have never done anything
like that?

 

[MAS]

Someone I work with did that part. Could you post an email address and I'll
have him send you some details? OK?

OK, I got that part working - any help with the macro part? Again never had
to setup a macro in Project before - thanks!

Very simple code - use the custom formula in the custom field and it aids in
setting it all up. the code would be something like this

IIf( [capital ='Y'] , [Cost] , 0)
Where capital is a user defined flag. It would be set to "n" for expense.

That is what I'm looking for - thanks. What does the code look like for
doing a check of the new text field and setting the new cost fields
accordingly (I do this in the custom fields?). I have never done anything
like that?

:

A little more detail - in order to get a project total for the cost field
mentioned below you need to add a macro that copies the task summary field to
the project cost field. So we actually had a cost field at a task level and 2
at the project level. The macro that we fired was on a save event.

:

We had similar need. We created a text field to indicate tasks that are
capital vs expense and then created 2 new cost fields. Capital cost was = to
cost if text field was capital and vice versa. I hope this helps.

:

Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with budget
number for each and actual tracking once the project begins. If I have an
indicator, I suppose I can dump into excel and sort by this indicator. Any
thoughts?

 

[JJKEN]

Thanks - (e-mail address removed)

Someone I work with did that part. Could you post an email address and I'll
have him send you some details? OK?

OK, I got that part working - any help with the macro part? Again never had
to setup a macro in Project before - thanks!

Very simple code - use the custom formula in the custom field and it aids in
setting it all up. the code would be something like this

IIf( [capital ='Y'] , [Cost] , 0)
Where capital is a user defined flag. It would be set to "n" for expense.


:

That is what I'm looking for - thanks. What does the code look like for
doing a check of the new text field and setting the new cost fields
accordingly (I do this in the custom fields?). I have never done anything
like that?

:

A little more detail - in order to get a project total for the cost field
mentioned below you need to add a macro that copies the task summary field to
the project cost field. So we actually had a cost field at a task level and 2
at the project level. The macro that we fired was on a save event.

:

We had similar need. We created a text field to indicate tasks that are
capital vs expense and then created 2 new cost fields. Capital cost was = to
cost if text field was capital and vice versa. I hope this helps.

:

Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with budget
number for each and actual tracking once the project begins. If I have an
indicator, I suppose I can dump into excel and sort by this indicator. Any
thoughts?

 

[Steve House [MVP]]

How can a task be either one? The tasks themselves (contrasted with their
costs) are not single expenditure categories. I am not an accountant but
I've always understood "capital" and "expense" to be accounting concepts
that categorize expenditure accounts based on their lifetime but a "task"
isn't a line-item expenditure account in the same sense that purchases of
electricity or a new truck might be. A project task is always an observable
physical activity being performed by a resource that results in the creation
of a concrete deliverable. The cost of the task is the cost of the assets
incorporated into the deliverable and the labour costs incurred paying the
resources performing the work. It seems to me that from an accounting
standpoint labour and material costs would always be expenses and never
capital expenditures. Never heard of anyone paying an engineer X dollars in
salary at the end of the month and then depreciating that amount over a 3 or
5 year schedule the way you would depreciate the purchase price of a piece
of capital equipment <grin>.

"Task X" would not be a budget category at all, but the labour that is spent
doing task X would probably be attributed to an expense budget category
while a special piece of equipment purchased in order for the resource to do
the work may well be a capital acquisition in the capital expenditure
category. So where would you place that task in the balance sheet?

I comment because it is important to remember that Project is a work
scheduling program, primarily intended to plan the activities of human
beings and it is NOT an accounting program except in that it can estimate
projected costs and provide data for input into a real accounting
application. It's always a good idea to use the right tool for the job at
hand.

 

[JJKEN]

Actually when doing software development for a new application or system,
tasks associated with building the system are considered capital expenditures
and are included in the cost of the system - therefore can be depreciated.
Otheritems are not - training, project administration, data migration,
process improvements.

I get your point about project not being a cost tracking tool, but for the
lack of having one it is the best thing we have that allows for tracking
project tasks and actual work effort/costs.

How can a task be either one? The tasks themselves (contrasted with their
costs) are not single expenditure categories. I am not an accountant but
I've always understood "capital" and "expense" to be accounting concepts
that categorize expenditure accounts based on their lifetime but a "task"
isn't a line-item expenditure account in the same sense that purchases of
electricity or a new truck might be. A project task is always an observable
physical activity being performed by a resource that results in the creation
of a concrete deliverable. The cost of the task is the cost of the assets
incorporated into the deliverable and the labour costs incurred paying the
resources performing the work. It seems to me that from an accounting
standpoint labour and material costs would always be expenses and never
capital expenditures. Never heard of anyone paying an engineer X dollars in
salary at the end of the month and then depreciating that amount over a 3 or
5 year schedule the way you would depreciate the purchase price of a piece
of capital equipment <grin>.

"Task X" would not be a budget category at all, but the labour that is spent
doing task X would probably be attributed to an expense budget category
while a special piece of equipment purchased in order for the resource to do
the work may well be a capital acquisition in the capital expenditure
category. So where would you place that task in the balance sheet?

I comment because it is important to remember that Project is a work
scheduling program, primarily intended to plan the activities of human
beings and it is NOT an accounting program except in that it can estimate
projected costs and provide data for input into a real accounting
application. It's always a good idea to use the right tool for the job at
hand.

--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://www.mvps.org/project/faqs.htm for the FAQs

Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with
budget
number for each and actual tracking once the project begins. If I have an
indicator, I suppose I can dump into excel and sort by this indicator.
Any
thoughts?

 

[Steve House [MVP]]

Question though - I've never heard of labour costs being considered capital
costs. Aren't salaries, rents, utilities, expendable supplies, etc always
operating expense items, not capital items? The costs of tasks are almost
always made up of those sorts of expenditures, at least I can only think of
one or two exceptions. Even when a piece of capital equipment like a new
bulldozer is purchased explicitly for the project its full purchase price is
not a part of the project cost or budget - only the portion of the
depreciation of that asset that is attributable to the hours it used within
the project counts in the project budget and the rest of the cost must be
accounted for elsewhere in the firm. Only when a capital asset is
acquired - a new server perhaps - that is physically incorporated into the
final project deliverable and is turned over to the customer at the
conclusion of the project does its full cost get included in the project
costs.
--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://www.mvps.org/project/faqs.htm for the FAQs

Actually when doing software development for a new application or system,
tasks associated with building the system are considered capital
expenditures
and are included in the cost of the system - therefore can be depreciated.
Otheritems are not - training, project administration, data migration,
process improvements.

I get your point about project not being a cost tracking tool, but for the
lack of having one it is the best thing we have that allows for tracking
project tasks and actual work effort/costs.

How can a task be either one? The tasks themselves (contrasted with
their
costs) are not single expenditure categories. I am not an accountant but
I've always understood "capital" and "expense" to be accounting concepts
that categorize expenditure accounts based on their lifetime but a "task"
isn't a line-item expenditure account in the same sense that purchases of
electricity or a new truck might be. A project task is always an
observable
physical activity being performed by a resource that results in the
creation
of a concrete deliverable. The cost of the task is the cost of the
assets
incorporated into the deliverable and the labour costs incurred paying
the
resources performing the work. It seems to me that from an accounting
standpoint labour and material costs would always be expenses and never
capital expenditures. Never heard of anyone paying an engineer X dollars
in
salary at the end of the month and then depreciating that amount over a 3
or
5 year schedule the way you would depreciate the purchase price of a
piece
of capital equipment <grin>.

"Task X" would not be a budget category at all, but the labour that is
spent
doing task X would probably be attributed to an expense budget category
while a special piece of equipment purchased in order for the resource to
do
the work may well be a capital acquisition in the capital expenditure
category. So where would you place that task in the balance sheet?

I comment because it is important to remember that Project is a work
scheduling program, primarily intended to plan the activities of human
beings and it is NOT an accounting program except in that it can estimate
projected costs and provide data for input into a real accounting
application. It's always a good idea to use the right tool for the job
at
hand.

--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://www.mvps.org/project/faqs.htm for the FAQs

Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with
budget
number for each and actual tracking once the project begins. If I have
an
indicator, I suppose I can dump into excel and sort by this indicator.
Any
thoughts?

 

[MAS]

Labour costs are absolutely considered capital. If a resource is working on
an item that can be capitalized - coding a new system - the cost associated
with that task (their fully loaded salary) are capital. This is a very common
practice in business. Many times costs associated with the development of a
system or application are capitalized.
Also, you are correct that Project is not an accounting tool. But, project
provides the mechanism for actual costs in addition to "estimated" costs.

Question though - I've never heard of labour costs being considered capital
costs. Aren't salaries, rents, utilities, expendable supplies, etc always
operating expense items, not capital items? The costs of tasks are almost
always made up of those sorts of expenditures, at least I can only think of
one or two exceptions. Even when a piece of capital equipment like a new
bulldozer is purchased explicitly for the project its full purchase price is
not a part of the project cost or budget - only the portion of the
depreciation of that asset that is attributable to the hours it used within
the project counts in the project budget and the rest of the cost must be
accounted for elsewhere in the firm. Only when a capital asset is
acquired - a new server perhaps - that is physically incorporated into the
final project deliverable and is turned over to the customer at the
conclusion of the project does its full cost get included in the project
costs.
--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://www.mvps.org/project/faqs.htm for the FAQs

Actually when doing software development for a new application or system,
tasks associated with building the system are considered capital
expenditures
and are included in the cost of the system - therefore can be depreciated.
Otheritems are not - training, project administration, data migration,
process improvements.

I get your point about project not being a cost tracking tool, but for the
lack of having one it is the best thing we have that allows for tracking
project tasks and actual work effort/costs.

How can a task be either one? The tasks themselves (contrasted with
their
costs) are not single expenditure categories. I am not an accountant but
I've always understood "capital" and "expense" to be accounting concepts
that categorize expenditure accounts based on their lifetime but a "task"
isn't a line-item expenditure account in the same sense that purchases of
electricity or a new truck might be. A project task is always an
observable
physical activity being performed by a resource that results in the
creation
of a concrete deliverable. The cost of the task is the cost of the
assets
incorporated into the deliverable and the labour costs incurred paying
the
resources performing the work. It seems to me that from an accounting
standpoint labour and material costs would always be expenses and never
capital expenditures. Never heard of anyone paying an engineer X dollars
in
salary at the end of the month and then depreciating that amount over a 3
or
5 year schedule the way you would depreciate the purchase price of a
piece
of capital equipment <grin>.

"Task X" would not be a budget category at all, but the labour that is
spent
doing task X would probably be attributed to an expense budget category
while a special piece of equipment purchased in order for the resource to
do
the work may well be a capital acquisition in the capital expenditure
category. So where would you place that task in the balance sheet?

I comment because it is important to remember that Project is a work
scheduling program, primarily intended to plan the activities of human
beings and it is NOT an accounting program except in that it can estimate
projected costs and provide data for input into a real accounting
application. It's always a good idea to use the right tool for the job
at
hand.

--
Steve House [Project MVP]
MS Project Trainer & Consultant
Visit http://www.mvps.org/project/faqs.htm for the FAQs



Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with
budget
number for each and actual tracking once the project begins. If I have
an
indicator, I suppose I can dump into excel and sort by this indicator.
Any
thoughts?

 

[Rob Schneider]

Question though - I've never heard of labour costs being considered
capital costs. Aren't salaries, rents, utilities, expendable supplies,
etc always operating expense items, not capital items? The costs of
tasks are almost always made up of those sorts of expenditures, at least
I can only think of one or two exceptions. Even when a piece of capital
equipment like a new bulldozer is purchased explicitly for the project
its full purchase price is not a part of the project cost or budget -
only the portion of the depreciation of that asset that is attributable
to the hours it used within the project counts in the project budget and
the rest of the cost must be accounted for elsewhere in the firm. Only
when a capital asset is acquired - a new server perhaps - that is
physically incorporated into the final project deliverable and is turned
over to the customer at the conclusion of the project does its full cost
get included in the project costs.

Steve,

When building a house, the cost of labor to build the house adds to the
capital cost of of the house. Lots of examples where costs are capitalised.

 

[Steve House [MVP]]

Thanks for the info - never have understood accounting, even with a minor in
economics

 

[MSPLearner]

I could use the same code - anyway you could post it to this thread?

Someone I work with did that part. Could you post an email address and I'll
have him send you some details? OK?

OK, I got that part working - any help with the macro part? Again never had
to setup a macro in Project before - thanks!

Very simple code - use the custom formula in the custom field and it aids in
setting it all up. the code would be something like this

IIf( [capital ='Y'] , [Cost] , 0)
Where capital is a user defined flag. It would be set to "n" for expense.


:

That is what I'm looking for - thanks. What does the code look like for
doing a check of the new text field and setting the new cost fields
accordingly (I do this in the custom fields?). I have never done anything
like that?

:

A little more detail - in order to get a project total for the cost field
mentioned below you need to add a macro that copies the task summary field to
the project cost field. So we actually had a cost field at a task level and 2
at the project level. The macro that we fired was on a save event.

:

We had similar need. We created a text field to indicate tasks that are
capital vs expense and then created 2 new cost fields. Capital cost was = to
cost if text field was capital and vice versa. I hope this helps.

:

Is there an easy way to classify a task as capital or expense? Perhaps
setting a text field or something.

My goal is to either sum up all the Cap and Exp items to come up with budget
number for each and actual tracking once the project begins. If I have an
indicator, I suppose I can dump into excel and sort by this indicator. Any
thoughts?