overhead apportionment

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Overhead apportionment

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Sally has attended:
Project Intro Intermediate course

Overhead apportionment

I have to assign an apportionment of overheads to each member of staff based on time allocated to each project.
How and where do I record this on project?

RE: Overhead apportionment

Hi Sally

One approach to tacking overhead costs would be to change the standard rate for the resource (View > Resource Sheet) to include a portion of overhead. As the resource is assigned to tasks Project calculates the cost based on the duration and effort involved.

If you need more information or if you need to track overheads in a different way please let us know with further details. Do let us know if you have any other questions.

Kind regards,
Andrew

RE: Overhead apportionment

Thanks Andrew.
I was thinking about adding to the standard rate, but for certain projects I don't think that would work.
I will need to speak to the CEO to find out a little more and have a go myself; if I'm still having problems, I'll post again.

Thanks,
Sally

RE: Overhead apportionment

Hi Sally

By all means contact us again. One other thing you might want to consider is that you can assign fixed costs to certain tasks regardless of whether or not a resource is assigned to them.

A quick way to do this would be to insert a column and choose the fixed cost field. Values entered here apply just to that task. Fixed costs are added to the cost of resources assigned to the task. There is an associated field called Fixed Cost Accrual that lets you decide how the costs should be applied (Start, Prorated or End).

Keep us posted and let us know if we can be of further assistance.

Kind regards,
Andrew

RE: Overhead apportionment

Thanks Andrew.
Unfortunately, our overheads are apportioned by project on the amount of hours a permanent staff member spends on it, not on a set activity.
We have to do it this way as we are a charity, and can only claim overheads in this way.

I was looking at the resource usage sheet which is really helpful for seeing how much time a person spends on a project overall; presumably I can insert a column here and do some kind of formula to generate overhead cost of that person on that project for that specified amount of time?

RE: Overhead apportionment

Hi Sally

How are you getting on with your overhead tracking in Project? I've been thinking of other ways of tracking the overhead figure. I'm not sure if this meets your requirements but I hope it helps:

In the resource sheet the resource usage sheet view insert a column and choose the cost1 field (assuming this isn't being used for something else in your project).

Right click on the column you have just inserted and choose customize fields.

From the dialog box that appears click on the formula button

(We are creating a custom formula to multiply total work for this resource by a notional overhead rate. The result will be put into the new column we have created.)

In the formula box enter:

([work]/60)*2

Work is calculated in minutes so dividing by 60 results in the number of hours allocated. If you want to track how many days have been assigned divide by 480.

2 is my notional overhead figure. Change this depending on whether you are calculating days or hours.

I hope this makes sense and comes closer to the kind of calculation you are looking for. Let me know how you get on.

Kind regards,

Andrew

RE: Overhead apportionment

Thanks Andrew,
I'll have a go at that when I get back to work!

Thanks,
Sally

RE: Overhead apportionment

Great Sally - keep us posted!

Kind regards,
Andrew


 

MS Project tip:

Set default task type - Project 2010

a. In Project, click on the File tab
b. Select Options from left hand side
c. Click on Schedule to set the scheduling options
d. Set the Default Task type box to your chosen option
i. Generally if you plan/estimate your projects using durations you should use fixed duration, and untick the box New tasks are effort driven, if you plan/estimate with person hours use fixed work, or for plans estimated with the proportion of resources time use fixed units, and untick the box New tasks are effort driven)
e. Click OK to apply your changes

View all MS Project hints and tips


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