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Tracking Costs

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You can track costs for projects, tasks, and issues in Workfront. 

Workfront also calculates a Cost Performance Index (CPI) for projects and tasks so they can be tracked for cost efficiency. 
For more information about calculating CPI, see "Calculating Cost Performance Index (CPI)."

Understanding How Costs Are Tracked for Tasks and Projects

Understanding How Costs Are Tracked

You can track several types of Costs for tasks and projects in Workfront. Overall Costs are calculated by the following formula:

Costs = Labor Costs + Expense Costs

Labor Costs are associated with the hours on tasks and projects and the Cost per Hour rates of the resources associated with tasks.

Expense Costs are associated with Expenses on projects and tasks. 
When you create a project, you can set planned expenses for the entire project. Additionally, you can associate expenses with new or existing tasks. 

Understanding How Planned, Budgeted, and Actual Costs Are Calculated

Workfront calculates the Planned Cost and the Actual Cost for each individual task in a project. Workfront uses these calculations for individual tasks to calculate the Planned Cost and the Actual Cost for the project.

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

Planned Project Cost = Planned Labor Cost of all tasks + Planned Expense cost of all tasks + Planned Expense Cost of the project. 

For example, you have the following expenses in the Expenses tab of a task: a $100 Marketing expense and a $50 Administrative expense. In the Finance tab, you select the User Hourly cost type. A user is assigned to the task, and the user's hourly rate is $15. The user is assigned to work 5 hours on this task. In the Expenses tab of the project, you have a $100 Planned Cost for an expense called Consulting.

The Planned Cost of the project is calculated as follows:

$100 (Consulting Expense) + $100 (Marketing Expense) + $50 (Administrative Expense)+$15(Hourly Rate)*5(Planned Hours Logged)=$325.

Legacy Budgeted Cost: If the Planned Hours of the tasks on the project match the Legacy Budgeted Hours (in the Legacy Resource Estimates section of the Business Case), and if the task Billing Type is Role Hourly, the Legacy Budgeted Cost of the project is the same as the Planned Cost of the project. 

If the Planned Hours of the tasks on the project do not match the Legacy Budgeted Hours (in the Legacy Resource Estimates section of the Business Case or the Capacity Planner), and if the Billing Type of the tasks is Role Hourly, the Budgeted Cost of the project is calculated using the following formula:

Legacy Budgeted Project Cost = Legacy Budgeted Labor Cost + Budgeted Expense Cost of all tasks + Budgeted Expense Cost of the project

Budgeted Cost: If the Planned Hours of the tasks on the project match the Budgeted Hours (in the Resource Budgeting section of the Business Case), and if the task Billing Type is Role Hourly, the Budgeted Cost of the project is the same as the Planned Cost of the project. 

If the Planned Hours of the tasks on the project do not match the Budgeted Hours (in the Resource Budgeting section of the Business Case or the Resource Planner), and if the Billing Type of the tasks is Role Hourly, the Budgeted Cost of the project is calculated using the following formula:

Budgeted Project Cost = Budgeted Labor Cost + Budgeted Expense Cost of all tasks + Budgeted Expense Cost of the project

NOTE To understand which Budgeted Cost you need to follow, 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."

For more information about Budgeted Cost and Legacy Budgeted Cost, see "Calculating Budgeted Cost."
For more information about the Business Case of a project, see "Creating a Business Case."
For more information about Budgeted Labor Cost, see "Calculating Budgeted Labor Cost."

Actual Cost is calculated using the following formula:

Actual Project Cost = Actual Labor Cost of all tasks + Actual Expense Cost of all tasks + Actual Expense Cost of the project. 

For example, you have the following expenses in the Expenses tab of a task: a Marketing expense with an Actual Cost of $110, and an Administrative expense with an Actual Cost of $40. You select the Role Hourly cost type and assign the Consultant job role to the task. The consultant job role’s rate is $15 per hour, and there are 6 hours logged on the task for the Consultant job role. There is also a Consulting expense associated with the project (in the Expenses tab), with an Actual Cost of $100. 

The Actual Cost of the project is calculated as follows:

 $100 (Consulting Expense) + $110 (Marketing Expense) + $40 (Administrative Expense) +$15(Hourly Rate)*6(Actual Hours Logged)= $340.

Modifying Cost Types for Individual Tasks

The Planned and Actual Cost of the tasks and their Labor Costs are determined by the Cost Type of each task. 

You can configure the Cost Type for individual tasks within the project. Each cost type affects the Planned Cost and Actual Cost values.

To configure the Cost Type of an individual task:

  • Navigate to the task where you want to configure the Cost Type. 
  • Click the Task Details tab, then click Finance.
  • Click Edit Finance.


  • In the Cost Type drop-down list, select the cost type that you want to apply to the task.
    The following table describes the Cost Types that are available:

    Task Cost Type

    Description

    User Hourly

    Planned Cost is calculated by the following formula:

    Task Planned Cost = (Planned Hours * Cost per Hour Rate of the User assigned to the task) + Task Planned Expense Cost

    NOTE Consider the following impacts of using the User Hourly Cost Type and calculating Planned Cost:

    • If you assign multiple resources to a task, Workfront adjusts calculations for Planned Cost based on the percentage of the task assigned to each resource.
    • The value of the Planned Cost field can differ depending on whether you view the Planned Cost from the task itself or from the Utilization report.
      When viewing Planned Cost from the task itself: The Planned Cost field takes into consideration the Cost/Hr field set at the Job Role level (when the Cost/Hr field has not been set at the user level).
      When viewing Planned Cost from the Utilization report on the project: The Planned Cost field does not take into consideration the Cost/Hr field set at the Job Role level. Instead, if you want the Utilization report to take into consideration the Cost/Hr field set at the Job Role level, you must set the Cost Type on the task to Role Hourly. 

    Actual Cost is calculated by the following formula: 

    Task Actual Cost = (Actual Hours * Cost per Hour Rate of the User logging the hours) + Task Actual Expense Cost

    For example, a user has a Cost per Hour rate of $20 in their profile. When they log 5 hours for a task, the Actual Labor Cost is $100 for that task. If the user does not have a Cost per Hour rate associated with them, the Actual Cost calculates based on the Cost per Hour rate of their Primary Job Role. If they do not have a job role or the Cost per Hour rate of their job role is not defined, then the Actual Cost of the task is zero. 

    NOTE Actual Costs are calculated based on the Cost per Hour rate for the user who is logging the time, regardless of who is assigned to the task. 

    Role Hourly

    Planned Cost is calculated by the following formula:

    Task Planned Cost = (Planned Hours * Cost per Hour Rate of the Job Role  assigned to the task) + Task Planned Expense Cost

    NOTE If you assign multiple resources to a task, Workfront adjusts calculations for Planned Hours based on the percentage of the task assigned to each resource.

    Actual Cost is calculated by the following formula: 

    Task Actual Cost = (Actual Hours * Cost per Hour Rate of the Job Role assigned to the task) + Task Actual Expense Cost

    For example, a task is assigned to a job role or a user with a job role for which the Cost per Hour rate is $20. When a user logs 5 hours for a task, the Actual Labor Cost is $100 for that task. If the user assigned to the task does not have a job role associated with them on the task, the Actual Cost calculates based on the Cost per Hour rate of their Primary Job Role. If they do not have a job role or the Cost per Hour rate of their job role is not defined, then the Actual Cost of the task is zero. 

    NOTE The Actual Hours of a Role Hourly task calculate based on the job roles of the users associated with the task, not on the roles associated with the user who is logging the time.

    Fixed Hourly

    Planned Cost is calculated by the following formula: 

    Task Planned Cost = (Planned Hours * Fixed Hourly Cost of the Task) + Task Planned Expense Cost

    Actual Cost is calculated by the following formula: 

    Task Actual Cost = (Actual Hours * Fixed Hourly Cost of the Task) + Task Planned Expense Cost

    This cost type does not take individual users or job roles into account.

    No Cost

    This Cost Type does not affect Costs. If a parent task has this Cost Type, subtasks with another Cost Type calculate according to their individual Cost Types, and the Cost of the parent task is affected accordingly. 

  • Click Save.

Understanding How Costs Are Tracked for Issues

Issues do not have and do not affect the following types of costs on a project:

  • Planned Cost
  • Budgeted Cost

Issues, can, however, have an Actual Cost which also affects the Actual Cost of the project. 

The following table explains how Actual Cost is calculated for issues, depending on the type of assignment on the issue:

  User Assignment Role Assignment No Assignment
Issue Actual Cost

Actual Cost is calculated by the following formula:

Issue Actual Cost = Actual Hours * Cost per Hour rate of the  user logging the hours

The Cost per Hour rate of the user who is logging the time is taken into account here, regardless of who is assigned to the issue. 

If the user who logs the time does not have a Cost per Hour rate in their profile, the Cost per Hour rate of their Primary Job Role calculates the Actual Cost of the issue. If the user who is logging the time has no role in their profile or no rate associated with it, the Actual Hours are calculated using the Cost per Hour rate of the Primary Job Role of the Primary Assignee on the issue. If that role has no rate defined, the Actual Cost of the issue is zero. 

Actual Cost is calculated by the following formula:

Issue Actual Cost = Actual Hours * Cost per Hour Rate of user logging the hours

The Cost per Hour rate of the user logging the time on the issue is taken into account here, regardless of what role is assigned to the issue. 

If the user logging the time does not have a Cost per Hour rate associated with them, the Cost per Hour rate of their Primary Role calculates the Actual Cost of the issue.
If the user who is logging the time has no role in their profile or no rate associated with it, the Actual Cost of the issue is zero. 

Actual Cost is calculated by the following formula:

Issue Actual Cost = Actual Hours * Cost per Hour rate of the  user logging the hours

If the user who logs the time does not have a Cost per Hour rate associated with their profile, the Cost per Hour rate of their Primary Job Role calculates the Actual Cost of the issue. 

If the user who is logging the time has no job role associated with their profile or their Primary Job Role does not have a Cost per Hour rate defined, the Actual Cost of the issue is zero. 

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When Legacy Costs are removed from the system, remove these concepts from this article

This is linked several places, some of which: 

- Portfolio Optimizer: https://support.workfront.com/hc/en-us/articles/216631918-Portfolio-Optimizer-Overview 

- Calculating Costs in the Resource Planner:  https://workfront.zendesk.com/knowledge/articles/115004186433/en-us?brand_id=662728

 

This article last updated on 2018-04-13 23:37:35 UTC