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Cost Loading Activities

4 replies [Last post]
Hugh McLeay
User offline. Last seen 11 years 17 weeks ago. Offline
Joined: 12 Mar 2012
Posts: 20
Groups: None

Hi Planners,

Just wondering if someone can help me cost load a 'warehouse rental' activity in my P6 programme.

I've got a 'Level of Effort' activity which reflects the duration of warehouse rental requred.
I've set the duration type to 'Fixed Units/Time'.
I've tried playing with all sorts of combinations of assigning a monthly (or weekly/daily - whatever) 'rental' expense cost, but I can't get it to multiply out by the activity duration.

Should I be doing it via resources instead?
If someone could show me how, I'd appreciate it a lot.
Surely it's simple to do, right? It's a pretty common thing to have costs that are dependent on the activity's duration.

Thanks,
Hugh.

Replies

Neil Hendry
User offline. Last seen 5 years 31 weeks ago. Offline
Joined: 9 May 2012
Posts: 12

Hi Hugh,

I'm not sure what you're doing wrong as it should be as simple as you say it is.

Try assigning a non-labour resource to a WBS Summary bar that spans your desired period.  You will need to create the resource to have the correct £/day, just call it Warehouse rental or something!

Then as the WBS bar lengthens or shortens your Budgeted cost/units will change accordingly.

Its seems to work for me anyhow!

Hope you sort it

 

Neil

Neil Hendry
User offline. Last seen 5 years 31 weeks ago. Offline
Joined: 9 May 2012
Posts: 12

Hi Hugh,

I'm not sure what you're doing wrong as it should be as simple as you say it is.

Try assigning a non-labour resource to a WBS Summary bar that spans your desired period.  You will need to create the resource to have the correct £/day, just call it Warehouse rental or something!

Then as the WBS bar lengthens or shortens your Budgeted cost/units will change accordingly.

Its seems to work for me anyhow!

Hope you sort it

 

Neil

Hugh McLeay
User offline. Last seen 11 years 17 weeks ago. Offline
Joined: 12 Mar 2012
Posts: 20
Groups: None

Thanks Ross,

But I want the forecast cost to autmatically adjust as the project extends (or contracts).
My understanding of Expenses is that they are more like fixed lump sum expenses (i.e. not dependent on the activity's duration).

I think I have worked out how to appy this type of overhead cost as a 'non-labor' resource.
I just need to be very careful in aligning 'budgeted units/time' and the 'price/unit' fields, and also ensure that the monthly rental cost is correctly divided down to an hourly rate, and also making sure that the appropriate calendar is in use...

Seems like a fairly tedious process for cost loading overheads.
I plan to do this for all our overhead costs on this project, hence my desire to have it adjusting automatically as the project 'changes shape'.

Cheers,

Hugh

Rosalba P.
User offline. Last seen 11 years 14 weeks ago. Offline
Joined: 6 Jan 2014
Posts: 6

Hugh:

Add it as an Expense!!

1) Find or create an activity in your schedule that starts and finishes the same period you plan on rent the warehouse.

2) Add an Expense called Warehouse

3) Add the budget cost (Budget Expense Cost) of how much you calculate you will spend every month.

4) Every month update the Actual Cost of that warehouse.

I hope that will help you.

Regards,

Ross