Create a project cost plan

Project cost plans capture the costs of projects. Create a cost plan to specify the unit cost of a cost type for a fiscal period.

Before you begin

Role required: it_project_manager

Application required: Project Portfolio Management with Financials

About this task

The application automatically creates cost plan breakdown records when you save the cost plan. The cost plan breakdowns are records that specify the estimated and actual costs and the budget at a granular level for specific fiscal periods, such as FY16: April and FY16: May. Cost plans can also have associated expense lines. The Cost Breakdown related list shows the aggregated costs for estimated and actual budget costs for each fiscal period for the project.
Note: Cost plans are automatically created for resource plans that are associated to projects and project tasks.
To use multiple currencies, create a new cost plan for another currency.

Procedure

  1. Open the project form.
  2. In the related links, click Cost Plans.
  3. Click New.
  4. Fill in the cost plan form.
    Table 1. Cost plan form fields
    Field Description
    Name A descriptive name of the cost plan.
    Project/Demand The project number to which the cost plan belongs.
    Start fiscal period Starting fiscal period.

    When you change the start fiscal period, the associated cost breakdown values also change.

    End fiscal period Ending fiscal period.

    When you change the end fiscal period, the associated cost breakdown values also change.

    Financials
    Currency Currency for the cost plan.
    Resource plan Resource plan number associated with the cost plan. The field appears for the cost plans originating from resource plans. The Cost type value is Labor.
    Product model Product for which the cost plan is created. The field appears if you select Hardware or Software as the Cost type.
    Quantity Quantity of the resource required.
    Recurring Indicates if the cost is recurring for each fiscal period.

    Quantity x Unit cost incurred for every fiscal period.

    Unit cost Cost of single unit of the resource.
    Cost type Cost type definition.
    Total planned cost Total planned costs of the cost plan. If the cost is recurring, the calculation is Quantity x Unit cost x number of fiscal periods.

    If the cost is non-recurring, the calculation is Quantity x Unit cost.

    This value is rolled up from cost breakdown.
    Total actual cost Total actual costs of the cost plan. This value is rolled up from cost breakdown.
    Forecast

    Sum of all actuals for past periods plus estimated cost for future periods.

    Note: When you change the planned start date of a project, the associated cost plans and resource plan also change. The project property Change Resource Plan and Cost Plan Start Date with Demand or Project Start Date Change controls the behavior for project start date change.
  5. Click Submit.

What to do next

To recalculate the value in the Forecast field, use the Calculate Forecast Amount related link.