How are costs calculated for Resource Plans? That is the million dollar question. Hopefully this article will reveal some of the mystery.

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There are three COSTS associated with a Resource Plan:

• Planned cost. Amount in Planned hours multiplied by the hourly rate. This is a first draft estimate of the Resource Plan cost.
• Confirmed/Allocated cost. Amount of confirmed or allocated hours multiplied by the hourly rate of the confirmed or allocated resources. Provides a more accurate estimation.
• Actual cost. Based on the Time Cards used for the Actual hours, calculated using the hourly rate of each user and the hours worked.

There are five ways to determine the hourly rate for those costs:

The hourly rate for resources can be based on several factors, including system configurations and values on your Resource Plan and/or Demand/Project.

• Rate Override. If selected on the Resource Plan, the hourly rate specified in the Resource rate field is used. This is often used for contractors.
• Rate Model. If a Rate Model is populated on the Demand or Project to which the Resource Plan is associated, the Rate Model will be used.
• Individual Labor Rate*. If the Resource Plan is assigned to a specific user, and the Time Sheet Policy of the user is set for multiple rate types, the Planned Cost is determined using the Labor Rate Card with the default rate type.
• Resource Group Rate. An Hourly Rate can be added to the Resource Group as well.
• Default Labor Rate. If no Override, Rate Model, Individual Labor Rate Card or Resource Group Rate is identified, the default rate will be used. The default rate is configured in Cost > Administration > Properties (default is $50/hour).

* Rate Model is new as of Madrid. Previously Labor Rate Cards were used. For more flexibility it is recommended to use Rate Models over Labor Rate Cards.

Note: If the hourly rate changes, the Resource Plan should be recalculated.

Please comment if I'm missing something or there are errors. I will update the article appropriately.

Rae Ann

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• Multiple Versions
• Resource Management