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Comparison of Charge Out Rates with Cost Rates RRS feed

  • Question

  • I would like to be able to illustrate within Project 2007 the total profit I will be expecting from a project (i.e. the total Charge Out Rate) minus the actual cost to me (i.e. the Cost total Cost Rate) but I am not sure what columns I should enter these into.

    If I enter the Charge Rate for each resource into the Std. Rate column then Project will give me the overall cost of the project based on my Charge Out Rates. If I enter into Std. Rate the Cost Rate of each resource then it will outturn the total cost to me of the project.

    However, I'd like to see (and to show to my boss) a visual comparison bewteen the two (i.e. the projected profit = total Charge Rate - total Cost Rate).

    I'm sure that there's a really simple way of doing this but I can't find it in my Project Bible.

    Any help gratefully received please

    Thanks

    Peter

    Monday, December 17, 2012 8:15 AM

Answers

  • Peter --
     
    Good question.  He is how to accomplish your goal:
     
    1.  For each resource in your project, enter the charge out rate on Cost Rate Table A and the internal cost rate on Cost Rate Table B.
    2.  Create three new custom Cost fields named Charge Out Cost, Internal Cost, and Total Profit.
    3.  In the Total Profit field, create the following formula:
     
    [Charge Out Cost] �?? [Internal Cost]
     
    4.  Apply the Task Usage view and then click View > Table > Cost.
    5.  In the Cost Table, insert the following columns:
     
        Cost Rate Table
        Cost
        Charge Out Cost
        Internal Cost
        Total Profit
     
    At this point in the process, the Cost column contains the cost that needs to appear in the Charge Out Cost column.
     
    6.  Click the Cost column head to select the entire column, and then click Edit > Copy Cell.
    7.  Click the Charge Out Cost column header, and then click Copy > Paste.
     
    You now have the Charge Out Cost information in the Charge Out Cost column.
     
    8.  In the Cost Rate Table column, change the A cost rate to the B cost rate for every resource assignment.  You can use copy and paste or the fill handle to make this process go a little faster.
     
    At this point in the process, the Cost column contains the cost that needs to appear in the Internal Cost column.
     
    9.  Click the Cost column head to select the entire column, and then click Edit > Copy Cell.
    10. Click the Internal Cost column header, and then click Copy > Paste.
     
    The Total Profit column now calculates the total profit for your project as it currently stands.  At any point during the life of the project, you can redo steps #4-10 to see the total cost of the project.  You could even record a macro of you doing steps #4-10 to automate the process.  Hope this helps.
     

    Dale A. Howard [MVP]
    VP of Educational Services
    msProjectExperts
    http://www.msprojectexperts.com
    http://www.projectserverexperts.com
    "We write the books on Project Server"

    Monday, December 17, 2012 1:23 PM
    Moderator
  • Peter --
     
    To see the total profit for the project, there are two things you need to do.  First, you need to display the Project Summary Task (aka Row 0 or Task 0) in your project so that you can see the total profit for your project in the Total Profit field.  To do this, click Tools > Options > View, select the Show Project Summary Task option (lower right corner of the dialog), and then click the OK button.
     
    Second, you must make sure the values in the Total Profit custom field roll up to their respective summary tasks.  To do this, click Tools > Customize > Fields.  Click the Type pick list and choose the Cost item.  Select your Total Profit field and then select the Use Formula option in the Calculation for Task and Group Summary Rows section of the dialog.  Click the OK button when finished.
     
    You may need to press the F9 function key to get the project to recalculate after making the second change, but from this point forward, you should now see the total profit for the project in the Summary Summary Task (Row 0) for the Total Profit field.  Hope this helps.
     

    Dale A. Howard [MVP]
    VP of Educational Services
    msProjectExperts
    http://www.msprojectexperts.com
    http://www.projectserverexperts.com
    "We write the books on Project Server"

    • Marked as answer by peterjelliott Tuesday, December 18, 2012 3:41 PM
    Tuesday, December 18, 2012 1:27 PM
    Moderator

All replies

  • Hello Peter, good morning.

    In this situation the columns would be more suitable to Work column that will represent the hours spent on each activity and the Cost column will indicate that the amounts spent.

    And to have a history of his planned the best indication would be the use of baselines would be interesting.

    After saving the baseline you can also insert columns works the baseline and the baseline cost in this way can provide the proper planning in your business.

    Reference Microsoft:

    http://office.microsoft.com/en-us/project-help/create-or-update-a-baseline-or-an-interim-plan-HA010156784.aspx

    I hope I helped.

    Hezequias Vasconcelos

    Monday, December 17, 2012 11:13 AM
  • Thank you for your reply. I'm not sure that your suggestion actually does what I need. What I wanted to be able to achieve was something this by way of columns:

    Std. Rate                                                Cost Rate

    (Actual Charge Out Rate)                       (Actual Cost Rate)

    £72.50                                                    £58.93

    £84.50                                                    £69.72

    I'd like to see at start of the project, and at any point throughout, what I need to charge the client (the actual charge rate) against my actual cost rate so that I can illustrate to others the differential between the two (i.e. my profit).

    What would really help is a description somewhere of what the column headings actually mean and what can be done with them as I'm sure there is already a facility in MSProject to do this.

    Thanks again

    Peter

                                   

    Monday, December 17, 2012 11:56 AM
  • Peter --
     
    Good question.  He is how to accomplish your goal:
     
    1.  For each resource in your project, enter the charge out rate on Cost Rate Table A and the internal cost rate on Cost Rate Table B.
    2.  Create three new custom Cost fields named Charge Out Cost, Internal Cost, and Total Profit.
    3.  In the Total Profit field, create the following formula:
     
    [Charge Out Cost] �?? [Internal Cost]
     
    4.  Apply the Task Usage view and then click View > Table > Cost.
    5.  In the Cost Table, insert the following columns:
     
        Cost Rate Table
        Cost
        Charge Out Cost
        Internal Cost
        Total Profit
     
    At this point in the process, the Cost column contains the cost that needs to appear in the Charge Out Cost column.
     
    6.  Click the Cost column head to select the entire column, and then click Edit > Copy Cell.
    7.  Click the Charge Out Cost column header, and then click Copy > Paste.
     
    You now have the Charge Out Cost information in the Charge Out Cost column.
     
    8.  In the Cost Rate Table column, change the A cost rate to the B cost rate for every resource assignment.  You can use copy and paste or the fill handle to make this process go a little faster.
     
    At this point in the process, the Cost column contains the cost that needs to appear in the Internal Cost column.
     
    9.  Click the Cost column head to select the entire column, and then click Edit > Copy Cell.
    10. Click the Internal Cost column header, and then click Copy > Paste.
     
    The Total Profit column now calculates the total profit for your project as it currently stands.  At any point during the life of the project, you can redo steps #4-10 to see the total cost of the project.  You could even record a macro of you doing steps #4-10 to automate the process.  Hope this helps.
     

    Dale A. Howard [MVP]
    VP of Educational Services
    msProjectExperts
    http://www.msprojectexperts.com
    http://www.projectserverexperts.com
    "We write the books on Project Server"

    Monday, December 17, 2012 1:23 PM
    Moderator
  • Dale

    That's fantastic thanks!

    I shall give that a go and come back to you if I have any problems.

    Thanks for taking the time to respond.

    Kind regards

    Peter

    Monday, December 17, 2012 1:40 PM
  • Peter --
     
    You are more than welcome for the help, my friend!  :)
     

    Dale A. Howard [MVP]
    VP of Educational Services
    msProjectExperts
    http://www.msprojectexperts.com
    http://www.projectserverexperts.com
    "We write the books on Project Server"

    Monday, December 17, 2012 5:37 PM
    Moderator
  • Dale

    Many thanks again - done all that and the profit column does indeed cotain the profit, per task, which is great.

    However, is there then a way to present this as a total within MSProject or do I have to export the profit column to Excel and total it in there (which I have done)?

    Perhaps create a custom report within MSProject (although I've tried playing with this and I can't see how to create it with the necessary custom fields I have created......)?

    Any further advice very much appreciated!

    Kind regards

    Peter

    Tuesday, December 18, 2012 11:00 AM
  • Peter --
     
    To see the total profit for the project, there are two things you need to do.  First, you need to display the Project Summary Task (aka Row 0 or Task 0) in your project so that you can see the total profit for your project in the Total Profit field.  To do this, click Tools > Options > View, select the Show Project Summary Task option (lower right corner of the dialog), and then click the OK button.
     
    Second, you must make sure the values in the Total Profit custom field roll up to their respective summary tasks.  To do this, click Tools > Customize > Fields.  Click the Type pick list and choose the Cost item.  Select your Total Profit field and then select the Use Formula option in the Calculation for Task and Group Summary Rows section of the dialog.  Click the OK button when finished.
     
    You may need to press the F9 function key to get the project to recalculate after making the second change, but from this point forward, you should now see the total profit for the project in the Summary Summary Task (Row 0) for the Total Profit field.  Hope this helps.
     

    Dale A. Howard [MVP]
    VP of Educational Services
    msProjectExperts
    http://www.msprojectexperts.com
    http://www.projectserverexperts.com
    "We write the books on Project Server"

    • Marked as answer by peterjelliott Tuesday, December 18, 2012 3:41 PM
    Tuesday, December 18, 2012 1:27 PM
    Moderator
  • Thank you once again Dale

    It's all coming together!

    :)

    Tuesday, December 18, 2012 3:41 PM
  • Peter --
     
    You are more than welcome for the help, my friend!  :)
     

    Dale A. Howard [MVP]
    VP of Educational Services
    msProjectExperts
    http://www.msprojectexperts.com
    http://www.projectserverexperts.com
    "We write the books on Project Server"

    Tuesday, December 18, 2012 4:11 PM
    Moderator