Overview of Configuring Cost Rules

Cost rates are determined by a number of factors. Organizations may struggle to forecast costs with sufficient accuracy if they are limited to one rate per person or role. The factors that determine cost rates can also vary.

For example:

  • The cost rate for a resource might be different from another resource.

  • The cost rate for a role might vary from year to year.

  • The cost rate for a resource might be different for a contractor than for a full-time employee.

Additionally, the order of precedence among cost factors may vary from organization to organization. For example, a regional cost rate may supersede the rate for a particular project.

Financial Management enables you to set cost rules that can be based on a range of factors that can be reprioritized, including:

  • Resource

  • Role

  • Region

  • Project

  • Request type

  • Resource type

  • Department

  • Primary organization unit

  • Package workflow

  • Miscellaneous work items

Cost rules are used to compute costs for the following:

  • Costs shown in time sheets that are ready for approval

  • Forecasted costs as computed from staffing profiles

  • Actual costs for time logged on time sheets against proposals and assets

  • Planned and actual costs on project work plans, where the time data is rolled up from time sheets, rolled up from the My Tasks portlet, or entered directly on the work plan

Before entering cost rules, cost factors for your business as well as their order of precedence should be identified. See Precedence of Cost Rules for details on cost rule determination and precedence.