Fixed costs are a function whereby you may assign costs to a task without creating resources.

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It is a useful function if you require a cash flow only but not so useful with a progressed schedule as the Actual and Remaining costs of a Prorated Fixed Cost are linked and proportional to the Actual and Remaining duration.

• A fixed cost is assigned using the Fixed Cost
• The fixed cost may be accrued at the Start, End or Prorated over the duration of the task. This option is selected from the Fixed Cost Accrual The default for the Fixed Cost Accrual is set in the File, Options, Schedule tab:

• Fixed Costs will not be displayed in the Resource Sheet or Resource Usage views but are available in the Task Usage view and in Reports..
• Fixed Costs are added to resource costs and the total is shown in the Cost

• Normally the Actual Costs and remaining Costs are linked to the % Complete when set as Prorated:

When the File, Options, Schedule, Calculation Options for this project: Actual costs are always calculated by Project is unchecked the:

• The Actual Costs may be entered by the user at any value, and
• The Fixed Costs no longer equal the Total Costs:

Fixed Costs Issues

• When both Fixed Costs and Resource Costs are assigned to a task, there is no column to display only the total of either the Fixed Cost or the Resource Cost as they are added together in the costs column It is therefore recommended to be able to clearly understand the contents of a Cost column that either Fixed Costs or Resource Costs be assigned to a task but not both.
• The Actual and Remaining costs of a Prorated Fixed Cost are linked and proportional to the Actual and Remaining duration.
• When a Baseline is set, the Fixed costs and the Resource costs are added together.
• The Cost resource function has more functionality and should usually be used in place of Fixed Costs.

Eastwood Harris Resources

Accelerate your understanding of scheduling software to advance your scheduling career and be able to prepare better schedules with Eastwood Harris books, training courses and online videos on the following software packages:

• Microsoft Project,
• Oracle Primavera P6 and
• Elecosoft (Asta) Powerproject

Online video training is available through Udemy through following these links:

• Microsoft Project,
• Oracle Primavera P6 and
• Elecosoft (Asta) Powerproject

Please follow these links:

• Eastwood Harris books and training materials are available here https://www.eh.com.au.
• Eastwood Harris inhouse, one-to-one and public training courses are offered through Primaskills Pty Ltd, more details here>>>>.
• Resources for Oracle Primavera P6 users such as third party software that works with P6 and technical papers on Primavera P6 at https://primavera.com.au/.

 

Paul E Harris

Director Eastwood Harris Pty Ltd