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Calculating Budgeted Labor Cost

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Understanding Budgeted Labor Cost for Job Roles and the Project

The Budgeted Labor Cost of a project is the cost associated with the job roles assigned to complete the work on the project.

There are two Budgeted Labor Cost values in Workfront, depending on which Budgeted Hours are used for their calculation: 

  • Budgeted Labor Cost: is calculated by the following formula: 
    Budgeted Labor Cost = SUM(Estimated/ Budgeted Hours for each job role on the project * Cost per Hour rate of each job role on the project)
    The Budgeted Hours are the hours budgeted for job roles in the Resource Budgeting area of the project, or the Resource Planner. 
  • Legacy Budgeted Labor Cost: is calculated by the following formula: 
    Legacy Budgeted Labor Cost = SUM(Estimated/ Legacy Budgeted Hours for each job role on the project * Cost per Hour rate of each job role on the project)
    The Legacy Budgeted Hours are the hours estimated for job roles in the Legacy Resource Estimates area of the project, or the Capacity Planner. 

When budgeting for resources, you must make a decision whether you are using the legacy or the new resource management tools. 
For more information about the resource management tools in Workfront, see "Understanding the Difference between Legacy Resource Planning and Planning."

The following fields can affect the Budgeted Labor Cost of the project:

  • Estimated/ Budgeted/ Legacy Budgeted Hours for each job role: These are the hours that you estimate are needed for the job roles on the project to complete the work.
    There are two types of Budgeted Hour values you can use for this calculation:
    • The Budgeted Hours: When you are using the new resource planning tools, you can follow the hours budgeted for each job in the Resource Planner and you can view them in the Resource Budgeting area of the Business Case.
      The Budgeted Hours in the Resource Planner affect the Budgeted Labor Cost of the project.
      For more information about budgeting resources in the Resource Planner, see the "Budgeting Resources in the Resource Planner" section in "Planning in the Resource Planner."
      For more information about the Resource Budgeting area of the Business Case, see the "Resource Budgeting" section in "Creating a Business Case."
      NOTE If users are associated with the job roles on the project and their hours are budgeted in the Resource Planner, they are listed in the Resource Budgeting area of the Business Case under their respective roles. The Budgeted Labor Cost of each user is also displayed in the Resource Budgeting area of the Business Case. Only the Budgeted Labor Cost of the job roles are used to calculate the Budgeted Labor Cost of the project. 
    • The Legacy Budgeted Hours: When you are using the legacy resource planning tools, you can follow the hours estimated for each job role in the Capacity Planner or the Legacy Resource Estimates area of the project.
      The Legacy Budgeted Hours in the Capacity Planner affect the Legacy Budgeted Labor Cost of the project.
      For more information about Resource Estimates, see the "Resource Estimates" section in "Creating a Business Case."
      For more information about budgeting hours in the Capacity Planner, see the "Estimating Resources in the Capacity Planner" section in "Working in the Capacity Planner. 
  • Cost per Hour rate of a job role: The Budgeted Labor Cost of a project can be calculated only when you associate your job roles with Cost per Hour rates. 
    For more information about creating and managing job roles and associating them with Cost rates, see "Creating and Managing Job Roles."

NOTE Workfront calculates all cost information using the currency of the project. If you specify Budgeted Hours for your resources in the Resource Planner, the option to change project currency is disabled. 
For more information about changing the currency of a project, see "Changing the Default Currency for a Project."

Update the following section in the Create a Business Case article, as well, when you update it here.

Understanding Budgeted Labor Cost for Users 

You can view the Budgeted Labor Cost of users when they display in the Resource Budgeting area of the Business Case, under the role they are associated with. Users display in the Resource Budgeting area of the Business Case under their respective roles if the following conditions are met: 

  • The user is associated with one of the job roles on the project.
  • The user has Budgeted Hours specified in the Resource Planner.
  • The user has a Cost per Hour Rate associated with their profile. 
  • The user is part of one of the Resource Pools associated with the project. 

The Budgeted Labor Cost of a user is calculated by the following formula:

User Budgeted Labor Cost = Estimated/ Budgeted hours for the user on the project * Cost per Hour rate of the user 

IMPORTANT The User Budgeted Labor Cost does not affect the Budgeted Labor Cost of the project. Only the Budgeted Labor Cost of the job roles affects the Budgeted Labor Cost of the project. 
The total of all Budgeted Labor Costs of all users may or may not equal the Budgeted Labor Cost of the job role associated with the users. 

For more information about adding Cost per Hour rates to users, see "Editing User Accounts."

Locating the Budgeted Labor Cost of a Project

You can view the Budgeted Labor Cost or the Legacy Budgeted Labor Cost of  a project in the following areas of Workfront:

  • In Business Case: You can view the Budgeted Labor Cost in the Resource Budgeting area and the Legacy Budgeted Labor Cost in the Legacy Resource Estimates area of the Business Case. 
    • budgeted_labor_costs_in_business_case.png
  • You can view the Legacy Budgeted Labor Cost or the Legacy Budgeted Hours in a project report. 
    You cannot view the Budgeted Labor Cost or the Budgeted Hours in a project report. 
    For more information about creating a report, see "Creating a Report."

Locating the Budgeted Hours of a Project

Budgeted Hours and Legacy Budgeted Hours affect the values of the Budgeted Labor Cost and the Legacy Budgeted Cost of the project. 
For more information about the difference between Budgeted Hours and Legacy Budgeted Hours, see "
Understanding Budgeted Labor Cost for Job Roles and the Project."

You can view the Budgeted Hours and the Legacy Budgeted Hours of  a project in the following areas of Workfront:

  • In the Business Case of the project:
    You can view the Budgeted Hours for users and roles in the Resource Budgeting area of the Business Case.
    You can view the Legacy Budgeted Hours for roles in the Legacy Resource Estimates area of the Business Case.
    budgeted_hours_on_the_BC.png
  • In a report:
    You can view the Legacy Budgeted Hours in a project report. 
    You cannot view the Budgeted Hours in a project report. 
  • In the Utilization report:
    You can view the Legacy Budgeted Hours in the Utilization report, in the Budgeted Hours column.
    You cannot view the Budgeted Hours in the Utilization report. 
    For more information about the Utilization report, see "Viewing Utilization Information for Projects, Programs, and Portfolios."

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Replace screen shot when it comes to production?!?! Or when will the Legacy fields be retired?! 

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LEAVE THIS NOTE IN AFTER PRODUCTION: Article linked to Creating a Business Case and other areas, don't change link!  

Linked to this as well: https://support.workfront.com/hc/en-us/articles/115003566687-Viewing-Utilization-Information-for-Projects-Programs-and-Portfolios

KEEP THIS: see the note on the user budgeted labor cost section - always keep this note in this article to know the link.

Keep the structure of this article similar to Calculating Labor Cost 

This article last updated on 2018-03-02 19:28:31 UTC