Tracking Internal Costs

G

Gene Dudley

My company would like to use PS to track profitability of projects. To do
this I need to track the amount of revenue generated by the project vs the
actual cost of the resources used to complete the project. Project seems
very adept at tracking the revenue generated using the Cost tables, however
I can not seem to locate any built-in tracking mechanism for the internal
cost of resources. I'm pretty sure I can use some of the custom cost fields
to create what I'm looking for, but want to make sure this feature is not
already built-in in to Project before doing custom coding. Thanks in
advance

Gene Dudley
 
K

Kevin Flanagan

The Enterprise Resource Pool tracks Regular Cost (up to 5
different rates) and the OT cost per resource. As they
are assigned to tasks, the cost for that task is
claculated based on the resource cost, duration, hours
worked, etc based on % assigned to task.
 
G

Gene Dudley

Thanks for the reply Kevin. I do have a follow-up question - will the
Enterprise Resource Pool allow me to track two cost rates simultaneously? As
you said it allows me to enter 5 different rates (Cost Rate Tables A through
E, right?) but I didn't see a way to use two Cost Tables at the same time.
We are a consulting firm and I have been asked to track both the internal
costs for a resource along with their bill rate in order to calculate the
profit margin for the project. As an example lets say developer Dev1 is
working on a project that will take 100 effort hours to complete. And lets
say each fully loaded hour of Dev1's time costs the company $10 (internal
cost) and Dev1 is being billed to the client at $12 / hour. Lastly assuming
the project takes exactly 100 hours to complete it will cost us $1,000 to
complete the project ($10 / hr * 100 hr) but we will in turn bill the client
$1,200 ($12 / hr * 100 hr). Net profit of $200 or 20%.

My ultimate solution would be to have Project automatically calculate and
aggregate two sets of costs, the first being the internal cost based on the
fully-loaded cost for a resource and the second being the external cost
(perhaps revenue is a better term?) based on the bill rate for the resource.
If I can get Project to do that then calculating the profit and profit
margin for a project would be trivial. However I'm not sure how to get
Project to calculate two "costs" at the same time, even with custom fields.

Again, thanks in advance to all for any help.

Gene Dudley
[email protected]
 
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