Costing Structure in Oracle Primavera

Costing Structure in Oracle Primavera
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Eshna

Published on June 1, 2012


  • 1802 Views

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.
    1. 4.   Click Add Resource.
      1. 1.   Select the resource you want to assign.
      2. 2.   Click the Assign button, then click the Close button.
        1. 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

About the Author

Eshna is a writer at Simplilearn. She has done Masters in Journalism and Mass Communication and is a Gold Medalist in the same. A voracious reader, she has penned several articles in leading national newspapers like TOI, HT and The Telegraph. She loves traveling and photography.


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