Project cost calculation is basically the calculation of activity costs. The total cost of the Project activities shows the total cost of the Project.
The cost items affecting the cost total are as below:
- Input Cost: Input costs refer to the costs of input materials that are related to the activity. Input materials consist of two child items:
- Material Cost: Material costs include activity input materials of Asset, Material, Material Class and Temporary Material types.
- Service Cost: Service costs include activity input materials of Service and Temporary Service types.
- Resource Cost: The cost of resources that are related to the activity consists of two child items:
- Employee Cost: Personnel, outsourced employee or temporary employee who work for the relevant Project create the employee costs.
- Asset Cost: Assets, asset parts, outsourced asset and temporary assets that are used in the relevant activity create the asset costs.
When calculating project costs, the following are crucial:
- The cost of an activity consists of the related child activities. Therefore, only the total cost of child activities is calculated when calculating the cost of a parent activity.
- The cost of cancelled child projects or child activities is not calculated and their cost amount is not included in project/activity cost total.
- In order to calculate the cost of resources or inputs, "Cost" checkbox must be checked when making definitions in Materials and Resources windows.