Simon Sez IT

Online software training and video tutorials for Microsoft, Adobe & more

  • Course List
    • Adobe
      • Dreamweaver
        • Dreamweaver CC
        • Dreamweaver CS6
        • Dreamweaver CS5
        • Dreamweaver CS4
      • Flash
        • Flash CS5
      • InDesign
        • InDesign CS6
        • InDesign CS5
      • Photoshop
        • Photoshop CS6
        • Photoshop CS5
        • Adobe Photoshop CS4
      • Photoshop Elements
        • Photoshop Elements 2022
        • Photoshop Elements 2019
        • Photoshop Elements 2018
        • Photoshop Elements 15
        • Photoshop Elements 14
        • Photoshop Elements 13
        • Photoshop Elements 12
        • Photoshop Elements 11
        • Photoshop Elements 10
        • Photoshop Elements 9
        • Photoshop Elements 8
    • Microsoft
      • Access
        • Access 2019
        • Access 2019 Advanced
        • Access 2016
        • Access 2016 Advanced
        • Access 2013
        • Access 2013 Advanced
        • Access 2010
        • Access 2010 Advanced
        • Access 2007
      • Excel
        • Excel 2021 Advanced
        • Excel 2021 Intermediate
        • Excel 2021 Beginners
        • PivotTables for Beginners
        • Excel Dashboards
        • Advanced Formulas in Excel
        • Excel for Business Analysts
        • Advanced PivotTables
        • Power Pivot, Power Query and DAX in Excel
        • Excel 2019 Beginners (Mac)
        • Excel 2019 Beginners
        • Excel 2019 Advanced
        • Excel 2016 Beginners
        • Excel 2016 Intermediate
        • Excel 2016 Advanced
        • Excel 2013
        • Excel 2013 Advanced
        • Excel 2010 Beginners
        • Excel 2010 Advanced
        • Excel 2007
      • OneNote
        • OneNote Desktop and Windows 10
        • OneNote 2016
      • Outlook
        • Outlook 2019
        • Outlook 2016
        • Outlook 2013
        • Outlook 2010
        • Outlook 2007
      • Power Automate
        • Introduction to Power Automate
      • PowerPoint
        • PowerPoint 2021
        • PowerPoint 2019
        • PowerPoint 2016
        • PowerPoint 2013
        • PowerPoint 2010
        • PowerPoint 2007
      • Project
        • Project 2019
        • Project 2019 Advanced
        • Project 2016
        • Project 2016 Advanced
        • Project 2013
        • Project 2013 Advanced
        • Project 2010
        • Project 2010 Advanced
      • Publisher
        • Publisher 2013
      • SharePoint
        • SharePoint Online
        • SharePoint Foundation 2013
        • SharePoint Server 2013
        • SharePoint Foundation 2010
      • Teams
        • Microsoft Teams
      • VBA
        • Macros and VBA for Beginners
        • VBA for Excel
        • VBA Intermediate Training
      • Visio
        • Microsoft Visio 2019
        • Visio 2016
        • Visio 2013
        • Microsoft Visio 2010
      • Windows
        • Windows 11
        • Windows 10 (2020 Update)
        • Windows 10
        • Windows 8
        • Windows 7
        • Windows Vista
      • Word
        • Word 2021
        • Word 2019 Advanced
        • Word 2019
        • Word 2016
        • Word 2013
        • Word 2010
        • Word 2007
    • QuickBooks
      • QuickBooks
        • QuickBooks Desktop Pro 2022
        • QuickBooks Pro 2021
        • QuickBooks Online Advanced
        • QuickBooks Online
        • QuickBooks Canada
        • QuickBooks Pro 2020
        • QuickBooks 2019
        • QuickBooks 2018
        • QuickBooks Pro 2017
        • QuickBooks Pro 2016
        • QuickBooks Pro 2015
        • QuickBooks Pro 2014
        • QuickBooks Pro 2013
        • QuickBooks Pro 2012
        • QuickBooks Pro 2011
        • QuickBooks Pro 2010
        • QuickBooks Pro 2009
    • Web Development
      • AngularJs
        • AngularJS Crash Course
      • Dreamweaver
        • Dreamweaver CC
        • Dreamweaver CS6
        • Dreamweaver CS5
        • Dreamweaver CS4
      • Bootstrap
        • Bootstrap Framework
      • Html/CSS
        • HTML/CSS Crash Course
        • HTML5 Essentials
      • Python
        • Pandas for Beginners
        • Introduction to Python
      • Java
        • Java for Beginners
      • JavaScript
        • JavaScript for Beginners
        • jQuery Crash Course
      • MySql
        • MySQL for Beginners
      • PHP
        • PHP for Beginners
        • Advanced PHP Programming
      • XML
        • XML Crash Course
    • Data Analysis
      • Financial Modeling
        • Financial Risk Management
        • Financial Forecasting and Modeling
      • Alteryx
        • Introduction to Alteryx
      • Power BI
        • Power BI – Beyond the Basics
        • Power BI
      • Qlik Sense
        • Qlik Sense
      • R Programming
        • R Programming
      • Tableau
        • Tableau Desktop Advanced
        • Tableau Desktop
      • Python
        • Pandas for Beginners
        • Introduction to Python
    • Work Productivity
      • Google Sheets
        • Google Sheets for Beginners
      • Confluence
        • Introduction to Confluence
      • Monday
        • Getting Started in Monday.com
      • Asana
        • Asana for Employees and Managers
        • Introduction to Asana
      • Jira
        • Getting Started in Jira
  • For Business
  • About Us
    • Testimonials
    • Contact Us
    • FAQ
    • Membership
    • About Us
  • Pricing
  • Free Resources
  • Sign In
  • Sign Up
Home > Microsoft Project > How to Set Costs for Tasks in Microsoft Project 2016

How to Set Costs for Tasks in Microsoft Project 2016

During this Microsoft Project 2016 training tutorial video, we will discuss the process of setting cost for each of your tasks; how you accrue a particular cost whether at start, end or prorated; and which calendar is used by a resource.

Facebook Linkedin Twitter

Like what you see? Get our complete Microsoft Project 2016 video training course. Click here to learn more. >>

Video Transcript

Hello again and welcome back to our course on Project 2016.

In this section we’re going to start to look at Costs. And I’m going to begin by looking at the bathroom refit project. We’re going to look at some basic aspects of costs in this project. Then I’m going to set you Exercise 05 to do, put in a little bit more detail about cost in relation to the bathroom refit. And then in the section after that we’re going to look at a couple of other more general aspects of cost and we’re going to also look at the cost for the wedding.

So first of all let’s look at the cost for the bathroom refit. And what I’m preparing here is version 05A of the bathroom refit project. And I’m going to go to the Resource Sheet and we’re going to look first of all at the cost related to the electrician. Now for work resources, generally, basically we would need at least a standard rate for a cost. And by default cost rate is entered in currency units per hour.

Free Microsoft Project 2016 Training. Master Your Projects On Time & Budget. Click Here to Get Started.

You can express it, for instance, in cost per day but we’ll stick with per hour. And I’m going to put the electrician cost as $25 per hour as a standard rate. That’s the STD column. And I’m going to put it as $40 per hour for the overtime rate.

Now as soon as I do that if I go back to the project itself, so let me just switch back to the Gantt Chart. There’s not really any noticeable different on that at all. But if I go to Project Information on the Project Tab and click on the Statistics button I’ll now see that I’ve got for the first time a cost for the bathroom refit.

And it comes out, currently, at $800. Now the reason it’s $800 is of course because the electrician is scheduled to do 32 hours of work on the project. So the first fix electric is two days work. That’s 16 hours at $25. That’s $400. And then the second fix electric is the same amount, another $400. So let’s close that and let me return to the Resource Sheet.

Now let’s take a look at a couple of other aspects of the cost of a work resource. We also specified here an overtime rate. And if for example I needed to get the electrician to work overtime, so to work outside the electrician’s normal hours of work then that is the rate I would need to pay the electrician at.

This difference between standard rate and overtime rate can of course be very significant because it may increase the cost of, for example, keeping a project on time that is starting to slip. And sometimes you have to balance the cost of a delay against the additional cost of keeping on schedule.

Cost per use relates to an additional cost for each time you might need to use a resource. This may apply to a work resource. So you may, for instance, have an agency hiring fee to pay or something like that. But it also could relate, for example, to a piece of equipment, the delivery cost of a pump or a special piece of machinery.

The next column is the accrue column or the accrue at column. And this basically relates to how you accrue a particular cost. Now this will often relate to when you pay for it. Do you pay for it up front? Do you pay for it as the work progresses? Do you pay for it at the end? And if I click on Accrual and click on the dropdown I’ve basically got those three options, Accrue at the start, Accrue prorated throughout the duration of the task, or Accrue at the end.

Now when it comes to company finance of course the accrual will be handled probably by an accountant or a team of accountants. But in a smaller project it can be as simple as saying when do I have to pay for this? Now very often on a small job like a bathroom refit you may have already agreed with the contractor that you’re going to pay at the start or perhaps by installments as you go or pay at the end. So on this occasion I’ve agreed to pay the electrician at the end so I’m going to put Accrue at end.

The next column determines which calendar is used by the particular resource. We haven’t looked at calendars at all yet. We’re going to be looking at them in a few sections from now. But basically by default we have a five day week, eight hour day working calendar. But a particular resource may have a different calendar. So for instance, this electrician may only be available Mondays, Tuesdays and Wednesday or may have different hours of work, perhaps starting earlier or finishing later than the rest of the people working on the project.

If the resource in this case the electrician does have a different calendar I can specify it here. And when Project is doing its scheduling it will use the resources calendar rather than the default one for the project. But as I say, more on that later.

So having put in the cost of the electrician and bearing in mind that I’m going to get you to setup the costs for the plumber and the contractor as part of Exercise 05, let’s look now at some of the materials on the bathroom refit. And we’re going to start with the flooring.

Now I’m going to fit floor tiles. The type of resource is material. And the material column specifies the unit that this material is measured in. Now it’s going to be measured in square meters, perhaps the initials. And the standard rate will be the cost of one of the material units.

So this is the cost of one square meter of floor tiles which we’re going to set at $36. Now in the case of the floor tiles we’re going to have to pay for those up front. So we’re going to put in here an accrual of Start. Now note cost per use in this case might, for example, be a delivery cost.

Free Microsoft Project 2016 Training. Master Your Projects On Time & Budget. Click Here to Get Started.

Now let’s go back to the Gantt Chart. Let’s find the task Select and order flooring and let’s assign the floor tiles to that task. Floor tiles are here. And the number of units that we need, we need 12 square meters of floor tile. So I put 12 in here, click on Assign. Note the cost there, $432. Close that and that’s another additional cost. Note that the cost itself doesn’t appear in the Gantt Chart on the right but the assignment of the floor tiles resource does.

Notice also that we’re going to have similar costs for the wall tiles here, Select and order wall tiles, Select and order paint, and Select and order equipment.

So we’ve entered some of the costs associated with this project. Exercise 05 is going to involve you in entering some more. And it’s Exercise 05 that I’m going to cover in the next section. Please join me for that.

Simon Calder

Chris “Simon” Calder was working as a Project Manager in IT for one of Los Angeles’ most prestigious cultural institutions, LACMA. He taught himself to use Microsoft Project from a giant textbook and hated every moment of it. Online learning was in its infancy then, but he spotted an opportunity and made an online MS Project course - the rest, as they say, is history!

30 day vertical banner

Most Popular Posts

  • How to Insert a Checkbox in Excel? 3 EASY Examples
  • How to Autofit Excel Cells? 3 Best Methods
  • XLOOKUP Google Sheets – 4 Best Alternatives!
  • Dashboards in Excel Using Pivot Tables, Pivot Charts and Slicers
  • Free Microsoft Project Training Course
  • Free Microsoft Access Tutorial for Beginners (3.5 Hours Video)
  • How to Use Blending Mode With Layers in Adobe Photoshop Elements 15
  • How to Create Charts and Graphs in Microsoft Excel 2016

START LEARNING How to Set Costs for Tasks in Microsoft Project 2016 ON SIMONSEZIT.COM

START MY MEMBERSHIP

Similar Posts

How to Combine Two Schedules in MS Project? 2 Easy Steps

Inserting Shapes in PowerPoint 2016

Introduction to Power Automate

Building a Website Using Dreamweaver CS6 – Part 2

Manage Customers and Jobs in QuickBooks Pro 2017 Part 2

How to Add a Watermark in Excel? 2 Easy Methods

Course Categories

  • Web Development
  • QuickBooks
  • Microsoft
  • Adobe
  • Data Analysis

About Us

  • About Us
  • Free Resources
  • Affiliates
  • Become an Instructor

Products

  • Pricing and Plans
  • Business Pricing
  • Government Discounts
  • Non-Profit Discounts

Support

  • FAQ’s
  • Contact Us
  • DVD support

Connect

YoutubeFacebook
© 2022 Simon Sez IT, Inc.
  • Terms
  • Privacy Policy
888.817.6665 Monday thru Friday 7:30 a.m. - 5:00 p.m. (ET)