Costing Structure in Oracle Primavera
Costs are planned and managed in oracle primavera at the activity level. Primavera supports two types of costs:
- Unit Price - calculated based on resource assignments
- Expenses - lump sum costs (entered manually)
- Unit Price: This cost is calculated based on the price/unit defined in the resource dictionary.
RESOURCES Resources defined for a project can be added to the resource dictionary. Three types of resources can be defined in primavera namely labor, material and non-labor resources. Labor and non-labor resources are always time-based and material resources, such as consumable items, use a unit of measure. Resource calendars can be assigned with time varying prices. Prices can be set for a defined time periods to calculate the overall cost of the resources.
EXPENSES Expenses are non-resource costs associated with a project and assigned to a project's activities. They are typically one-time expenditures for non-reusable items. Examples of expenses include materials, facilities, travel, overhead, and training.
COST ACCOUNTS You can create cost accounts and associate them with activity resource assignments or expenses in a project. Cost accounts are hierarchical, and they enable you to track activity costs and earned value according to your organization's specific cost account codes.Assigning Resources and Cost Accounts to activities: Assigning resources to activities:- 1. Choose Project, Activities. 2. Select the activity to which you want to assign a resource. 3. Display Activity Details, then click the Resources tab.
- 4. Click Add Resource.
- 1. Select the resource you want to assign.
- 2. Click the Assign button, then click the Close button.
- 1. Double-click in the Cost Account column. Select the cost account you want to assign, and then click the Select button.Formulas used in Oracle PrimaveraAccounting Variance (AV) = Planned Value Cost – Actual Cost.Cost Variance (CV) = Earned Value Cost – Actual Cost.Schedule Variance (SV) = Earned Value Cost – Planned Value Cost.Cost Variance Index (CVI) = Cost Variance (CV) / Earned Value Cost. Schedule Variance Index (SVI) = Schedule Variance (SV) / Planned Value Cost. Variance at Completion (VAC) = Budget at Completion (BAC) – Estimate At Completion (EAC). Cost Performance Index (CPI) = Earned Value Cost / Actual Cost. Schedule Performance Index (SPI) = Earned Value Cost / Planned Value Cost. Finish Date Variance = Planned Finish Date – Finish Date Start Date Variance = Planned Start Date – Start Date
- 4. Click Add Resource.
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