Cost and Effort Policy

The Cost and Effort policy dictates how the costs, effort, and workload for the project will be managed.

Resource Load Settings

The options in this section controls how planned and actual project work load is tracked.

Option Description
Work Load Category Select a category that the project work load belongs to.
Staffing Profile represents the work load imposed by the project

If you select this option, the project planned work load is tracked by the project staffing profile, and project actual work load is tracked by either the staffing profile or the work plan, depending on the selection of the following sub-options:

  • Enter actuals directly on the staffing profile

    If you select this option, you can enter actual effort in staffing profile legacy UI for each position.

  • Use actual information from the work plan and Time Management when viewing actuals in the staffing profile

    To use this option, you should select Track Actual Effort per resource assignment first. If you select this option, the project actual work load is rolled up from the work plan and time sheets and can be viewed from the staffing profile legacy UI.

Work plan task assignments represent the work load imposed by the project

To use this option, you should select Use Schedule Effort during planning and Track Actual Effort per resource assignment first.

If you select this option, the project planned work load and actual work load is tracked by the work plan task assignments.

Use Scheduled Effort during planning

Whether or not to track the scheduled effort needed to accomplish each task in the work plan. This option is required if:

  • You are setting the project to automatically calculate the planned labor cost of tasks (set in the Cost and Effort policy, Financial Management section), or
  • The work plan task assignments are set to represent resource load (set in the Cost and Effort policy, Resource Load Settings section).

Automatically calculate Scheduled Effort

If you select this option, PPM automatically calculates the task Scheduled Effort.

When no resource is assigned to a task, the task Scheduled Effort is calculated based on the task scheduled duration. This original Scheduled Effort is the Scheduled Effort of each resource to be assigned to the task.

The final Scheduled Effort = the sum of Scheduled Effort of each task resource

For example, when a task scheduled duration is 2 days, its original Scheduled Effort is 16 (2 x 8) hours. When two resources are assigned to the task, the task Scheduled Effort is twice the original Schedule Effort, which is 32 hours.

Manually enter Scheduled Effort per task assignment

If you select this option, you can manually enter the Scheduled Effort of task resources and Unassigned Effort.

Scheduled Effort of a task = Sum of Schedule Effort of the task resources + Unassigned Effort

Track Actual Effort per resource assignment

Whether or not to track actual effort per resource assignment during the execution of a project. This option is required when:

  • You are setting the project to automatically calculate the actual labor cost of tasks (set in the Cost and Effort policy, Financial Management section),
  • The work plan task assignments are set to represent resource load (set in the Cost and Effort policy, Resource Load Settings section), or
  • You are setting the project to use Time Management to track actuals for the work plan.

Require resources to enter % Complete along with actual effort

If this option is selected, when a resource enters actual effort for an assigned task (on time sheets or elsewhere), the resource must also specify a non-zero value for % Complete.

If this option is not selected, resources do not need to specify % Complete, and project managers can specify it later.

Track Estimated Remaining Effort per resource assignment

If this option is selected, when a resource enters actual effort for an assigned task, the resource can also specify Estimated Remaining Effort or % Complete --- when one of them is entered or updated, the other one is filled or updated automatically.

Note: You cannot use this option if you want to use Time Management to track actuals against the work plan at a summary task or project level.

Time Management Settings

This section controls whether or not to use Time Management to track actuals against a project and how.

Option

Description

Use Time Management to ...

Enable tracking of actuals using Time Management time sheets.

Track time at the ...

Specify whether to track time at the task, summary task, or project level.

You can specify the summary task hierarchy level to track down to.

If you are using Time Management to track actuals and are also capturing estimated effort, you can only track time at the task level.

Allow the following to report time ...

Specify whether you want Project resources,All resources, or only Assigned resources to track time.

  • Project Resources. Resources assigned to tasks on the work plan or who appear on the staffing profile can log time on any task.

  • Assigned Resources. Only resources who are assigned to a task can report time on those tasks.

  • All resources. Any resource who can see the project (including stakeholders) can log time for any task.

After a task is complete, allow time ...

Specify whether time can be logged after a task completes, and if so, for how long.

Time logged against this project must be approved by ...

Specify who must approve time logged against the project, either by participant group or specific security group.

Financial Management Settings

This section controls whether or not to enable Financial Management for the project work plan and, if enabled, how planned and actual work plan cost is calculated in task details and project financial summary.

Option

Description

Allow capitalized costs on this project

Specify if the project tracks capitalization for costs. When capitalized cost is enabled for the project:

  • For cost rolled up from work plan and time sheets, PPM identifies all costs as either capital or operating expenses according to the activity assigned to each task.
  • For cost manually entered in the project financial summary, you can specify whether the cost line you added is for capital expenses or for operating expenses.

Changes to this setting affect the capitalization tracking for the financial summary associated with the project.

Capitalization information is only tracked if capitalization tracking has been enabled on the PPM Server.

A proposal may or may not track capitalized costs (in addition to operating costs) based on the setting of the option The proposal is for a project that tracks capital costs on the Financial Summary Settings page of the proposal. When the proposal becomes a project, this setting can conflict with the setting of the option Allow capitalized costs on this project on the Cost and Effort policy of the project.

If the Cost and Effort policy of the project type is locked (meaning that no individual project of that type can be made to override any settings of that policy) and if the policy setting for tracking of capitalized costs conflicts with the financial summary setting for the proposal, the setting of the Cost and Effort policy prevails. Otherwise, the setting for tracking the project's capitalized costs is consistent with the setting for the proposal.

Enable Financial Management for Work Plan

Enables tracking of work plan costs using Financial Management.

Planned labor costs on the work plan will be:

  • Automatically calculated based on scheduled effort and rates

    To automatically calculate planned costs for the work plan, you must first enable the Scheduled Effort field as described in Use Scheduled Effort during planning.

    If you select this option, planned labor costs in task details page are calculated based on Scheduled Effort and cost rates.

  • Manually entered on tasks and rolled up to summary tasks

    If you select this options, you can manually enter planned labor cost of a task in the task details page, which will be rolled up to its summary task.

Actual labor costs on the work plan will be:

  • Automatically calculated based on actual effort and rates

    To automatically calculate actual costs for the work plan, you must first enable the Actual Effort field as described in Track Actual Effort per resource assignment.

    If you select this option, actual labor costs in task details page are calculated based on Actual Effort and cost rates.

  • Manually entered on tasks and rolled up to summary tasks

    If you select this options, you can manually enter actual labor cost of a task in the task details page, which will be rolled up to its summary task.

Costs on the Financial Summary

Specify if forecast and actual labor and non-labor costs of the project are rolled up to the project financial summary.

  • Calculate the forecasted labor costs from the staffing profile

    If you select this option, forecast labor costs calculated from the project's staffing profile is rolled up to the project financial summary.

  • Calculate the actual labor costs from the work plan and time sheets

    When Time Management is enabled for the project, if you select this option, actual labor cost calculated from time sheets (for assigned effort) and from work plan tasks (for unassigned effort) is rolled up to the project financial summary.

    When Time Management is not enabled for the project, if you select this option, actual labor cost calculated from the actual effort manually entered in the work plan tasks is rolled up to the project financial summary.

    If you select this option without selecting Allow manual adjustment on the actual labor cost, you cannot edit actual labor cost (both rolled-up and manually entered) in the project financial summary.

    • Allow manual adjustment on the actual labor cost

      If you select this option, actual labor cost can be edited in financial summary.

  • Calculate the actual non-labor costs from the work plan

    This option is enabled only when Calculate the actual labor costs from the work plan and time sheets is selected.

    If you select this option without selecting Allow manual adjustment on actual non-labor cost, actual non-labor cost calculated from the work plan is rolled up to the project financial summary, and you cannot edit actual non-labor cost (both rolled-up and manually entered) in the project financial summary.

    • Allow manual adjustment on actual non-labor cost

      If you select this option, actual non-labor cost can be edited in financial summary.