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Calculating Budgeted Cost

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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.

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

  • 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 Legacy Budgeted Cost of a project is calculated by the following formula: 
    Legacy Budgeted Cost = Legacy Budgeted Labor Cost + Budgeted Expense Cost + Fixed Cost of the project

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 Cost of the project:

  • Budgeted Labor Cost: This is the cost associated with the resources assigned to complete the work on the project. 
    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. This value is visible in the Business Case 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. 
      This value is visible in the Business Case of the project, and it can also be displayed in a report. 
      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. 

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 when you add the Legacy Budgeted Cost
    For more information about creating a report, see "Creating a Report."
  • In the portfolio optimizer if the project is associated with a portfolio
    NOTE The total of all project Budgeted Cost values results in the Budgeted Cost of the portfolio.

    The Budgeted Cost in the Portfolio differs depending on which portfolio optimizer you use:

    • The Portfolio Optimizer displays the Budgeted Cost found in the Business Case.
    • The Legacy Portfolio Optimizer displays the Legacy Budgeted Cost found in the Business Case.
      For information about the Portfolio Optimizer, see "Understanding the Portfolio Optimizer." New_Optimizer_-_Budgeted_Cost_Highlight.png

 

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KEEP THESE NOTES:

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

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! 

Keep the structure of this article similar to Calculating Budgeted Labor Cost

This article last updated on 2018-07-18 15:58:43 UTC