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Calculating Budgeted Cost

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The highlighted information on this page refers to functionality not yet generally available. It is available only in the Preview Sandbox environment.

Understanding the Budgeted Cost of a Project

The Budgeted Cost of a project is the total cost associated with the project as estimated when you first launch the project.

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

Budgeted Cost = Budgeted Labor Cost + Budgeted Expense Cost + Fixed Cost of the project

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

  • Budgeted Labor Cost: This is the cost associated with the resources assigned to complete the work on the project. 
    The Budged Labor Cost of the project is calculated differently in the Production and the Preview Sandbox environments. 
    • In the Production environment, the Budgeted Labor Cost of a project is calculated in the Resource Estimates area of the Business Case and it takes into account the hours estimated for your job roles in the Capacity Planner and the Cost per Hour rate of each job role. 
    • In the Preview environment, there are two Budgeted Labor Cost values which generate two Budgeted Cost values for the project:
      • The Budgeted Labor Cost is calculated in the Resource Budgeting area of the Business Case and it takes into account the hours budgeted for your job roles in the Resource Planner and the Cost per Hour rate of each job role.
        The Budgeted Labor Cost affects the Budgeted Cost of the project. 
      • The Legacy Budgeted Labor Cost is calculated in the Legacy Resource Estimates area of the Business Case and it takes into account the hours estimated for your job roles in the Capacity Planner and the Cost per Hour rate of each job role.
        The Legacy Budgeted Labor Cost affects the Legacy Budgeted Cost of the project. 
        For more information about the Budgeted Labor Cost is calculated in the Production and the Preview Sandbox environments, see "Calculating Budgeted Labor Cost." 
  • Budgeted Expenses Cost: This is the Planned Cost associated with the expenses on the project, as they are calculated in the Expenses area of the Business Case or the Expenses tab of the project. 
    For more information about Expenses on a project, see "Managing Expenses."
  • Fixed Cost: This is the fixed amount associated with the Cost of the project, as defined in the Finances sub-tab of the project. 
    For more information about the Finance sub-tab of a project, see "Understanding the Project Finance Sub-tab."

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. (this is not valid yet, but they are fixing this in 18.1 beta 3. Make the text live with that release.)

For more information about changing the currency of a project, see "Changing the Default Currency for a Project."

Locating the Budgeted Cost of a Project

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

  • In Business Case Summary area of the Business Case. 
    For more information about the Business Case Summary area, see the "Understanding the Business Case Summary" section in "Creating a Business Case."
    budgeted_costs_outline_in_business_case_summary.png
  • In a project report, by adding the Legacy Budgeted Cost field to the View of the report. 
    For more information about creating a report, see "Creating a Report."
  • In the Portfolio Optimizer, if the project is the associated with a Portfolio.
    For more information about the Portfolio Optimizer, see "Understanding the Portfolio Optimizer."

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Take out the bullet point that refers to the "In the preview environment ..." when production is live! 

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

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KEEP THESE NOTES:

This article is linked from "Tracking Project Progress with a Utilization Report"

Article linked to Creating a Business Case and other areas, don't change link!