How are costs calculated ?
Article ID: 189329
Updated On: 11-08-2024
Products
Issue/Introduction
There are times when costs shows as $0 or $1/unit and for other times for actual costs ACWP does not match WIP.
How are the costs calculated in various parts of Clarity?
Resolution
Costs are calculated differently in different parts of Clarity.
For costs NOT associated to WIP (ETC Cost, Allocation Cost, ACWP)
1. Resource needs to be financially enabled.
- The exception to this is if Role is used in the Rate Matrix. Then the resource does not need to be financially enabled, they just need to have a role associated on the project.
2. They also need to have a matching row in the rate matrix
3. Rate matrix extraction job needs to run. You can run it with options 2,3,5 to get Team Rates only.
4. Update cost totals on the project or run the job.
If the following steps are performed your WIP costs should usually match your assignment level costs.
1. Resource needs to be financially enabled.
2. They also need to have a matching row in the rate matrix
3. Project needs to have a rate matrix associated.
- In order for financials to post the project needs to be financially enabled and Financial Status = Open
4. Run Full Rate Matrix Extraction job (this is needed so there will be rates available when timesheets post.
5. Post Timesheets
6. Post Transactions to Financials
7. Check and fix and invalid transactions
8. Post to WIP
As long as there are correct rates in the table nbi_proj_res_rates_and_costs for the matching project/resource then the cost will calculate correctly.
FOR Cost plan planned costs and Manual Transactions and cost plan planned costs:
1. Project needs to be financially enabled (department) - for cost plans to populate
- Location needs to be entered from Manual Transactions and timesheets to process
Project needs to have a rate matrix associated.
- In order for financials to post the project needs to be financially enabled and Financial Status = Open
2. Resource needs to be financially enabled.
3. They also need to have a matching row in the rate matrix
A few things to note:
1. The nbi_proj_res_rates_and_costs table has entries for TASK_ID = -1, as well as rows for specific tasks if you do the full extraction.
Post timesheet job uses the -1 row for the rates.
All of the EV values such as ETC cost also use the -1 TASK_ID row. This is the row that calculates based on the team, not each task.
2. When timesheets then process through to WIP the Post to WIP job uses the direct rate matrix to calculate the rates.
If the timesheet has a different input type code, charge code, or role than the resource or task, and any of these are columns in the matrix, the Post to WIP will use the value from the timesheet and not the resource or project values.
This means there could be true differences between the assignment cost and the financial transaction cost (shown on cost plan actual cost)
This can happen if there was a change in the rate matrix or other financial properties between the time the Post Timesheet job ran and the Post to WIP job ran.
This can also happen based on the columns of your rate matrix.
For example:
If you have charge code or cost type or even input type code in your rate matrix columns you could potentially have a different rate based on charge code for example.
If your tasks have different charge codes the post timesheet will use the charge code based on the project (not each task). That is the -1 TASK_ID on the table.
However, when you post this transaction to WIP it will look at the live rate matrix and find the match for that charge code.
3. ACWP on the task list page as well as the overall project is a roll-up of the assignment costs, however ACWP takes into consideration the As Of Date on the project.
Therefore if you have an As Of Date in the past the ACWP will show the actual costs through that date.
If the As Of Date is blank it uses today's date as the As Of Date. Therefore if you have timesheets or transactions posted in the future these will not be included in the
task list and project ACWP calculations. You can always put a future As Of Date to capture all costs.
4. Cost Plans and manual transactions do not need to have the Rate Matrix Extraction job run. As noted above, both these functions use the live rate matrix to calculate the rates and not the nbi_proj_res_rates_and_costs table.
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