Entering Resource Cost

M

mark

Microsoft project will let me calculate costs for
resources based on regular and overtime rates, or on per
use costs. I am trying to figure out if Project will let
me assign annual salaries to resources? Perhaps I would
need to break the annual salary up into hourly. Any
advice is greatly appreciated.

Thank you very much for your help.

Mark
 
K

Kevin Flanagan

You can enter 31200/y for $35,000 per year salary or you
can just enter 15/h or 600/w. All of these are the
same. It's just that work is normally entered in hours
it may make more sense to enter $/hr.
 
C

Christine Pouliot

I am trying to find a way to track my internal resource
costs, like the initial posting below. I cannot however
enter an hourly rate, because the project will calculate
the costs based on hours booked against the project.
However my costs are the same whether the resource is out
ill, on holiday or only spends 30 hours per week on
project related tasks. Have you found a way to do this?
 
D

Dale Howard

Christine --

Rather than using actual salaries in the Resource Sheet (which will cause
our HR departments to have fits), many companies use a "blended rate" for
each resource instead. A blended rate can be set for each team, department,
or business unit, or there can be a single blended rate for the entire
company. To determine the blended rate, most companies will determine the
average salary plus benefits for a worker in the team, department, business
unit, or the entire company. Some companies also include other costs such
as equipment and supplies, office furniture, and utility bills, and then
average the total of these costs by team, department, business unit, or for
the entire company.

One company I know came up with a single blended rate for everyone in their
IT department (approximately 3,400 workers), and the rate was calculated
using the total salary, benefits, equipment, supplies, furniture, and
utilities. This blended rate was set as the Std. Rate for everyone in their
resource pool. Several other companies I know use a different blended rate
for each team in the IT department.

Perhaps using a "blended rate" approach might work better for you in your
situation. Let me know if this helps.
 
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