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The Costs entity allows users to capture expected costs and actual costs applicable to their project. The Costs entity can be renamed, depending on the requirement. For more details on re-naming entities, access the following knowledge base article.
By default the Costs entity shows the following fields.
The entity allows users to classify costs in terms of a category, sub-category, year and month. Users can also add an additional description for the cost.
For each cost record a budget, actual / spent amount and an estimated amount to complete (amount still required to finish the task / project) can be added. These three fields are then used to calculate the total at completion and variance (for more details, see the following section in this article).
Not all costs are recoverable from an external funding source. If the amount specified on the cost record is recoverable, this can be indicated by marking the Recoverable field true in the Cost Recovery category. After the recoverable amount has been invoiced and paid, the amount recovered can be specified in the Recovered field.
The costs entity in PPO calculates the following fields by default (the field names have also been provided in the explanation below as different clients may use different field captions. For more information on field names, access the following knowledge base article.
- Total at Completion (field name: CostAtCompletion)
This field is calculated by adding the Estimate to Complete (field name: CostEstimate) to the Actual / Spent (field name: CostBilled). This will show the user what their expected actual cost will be at the completion of the project, based on the amount already spent (Actual / Spent) and the amount expected to still be spent (Estimate to Complete).
The calculation for this field is thus: Total at Completion = Actual / Spent + Estimate to Complete.
- Variance (field name: CostVariance)
This field shows the difference between the Total at Completion (field name: CostAtCompletion) and the Budget (field name: CostBudget). This will show the user whether their expected cost at completion is in line with their budget.
The calculation for this field is thus: Variance = Budget - Cost at Completion.
The currency used on PPO is by default US Dollars. However, the default can be changed by going to Administration >> System Configuration. The currency symbol setting is found under the "Other Settings" category and can be changed to any currency symbol. The currency symbol is then displayed on the cost pages as well as the cost reports and dashboards.