question Re: How Planned Cost is calculated in PPM in SPM forum

How Planned Cost is calculated in PPM

shaik_irfan — Mon, 24 Jun 2019 11:26:43 GMT

Hello,

I created a Resource Plan with Resource Type as Group once i submit Cost Plan is created and it dislays Total Planned Cost. Can anyone please tell me how it is created and how can i edit the total planned cost.

Also Requested Allocation are created based on the Start & End date of Resource Plan can anyone please explain me on this

Re: How Planned Cost is calculated in PPM

Mustafa Hussain — Mon, 24 Jun 2019 11:43:23 GMT

For cost plans created via resource plan

Update cost plan related to a resource plan

For cost plans created directly, You can modify the Unit cost, or the individual breakdown values which are aggregated to get the total planned cost v alue

Re: How Planned Cost is calculated in PPM

shaik_irfan — Mon, 24 Jun 2019 11:48:50 GMT

Mustafa,

I mean to say on what basis planned cost calculated ?

I gave Start & End date of Resource Plan with 1 month and gave the planned hours as 100 then it sets the Planned Cost as 5000 $

Can you tell me how it is calculating as 5000

Re: How Planned Cost is calculated in PPM

Mustafa Hussain — Mon, 24 Jun 2019 11:57:44 GMT

Amount in Planned hours multiplied by the hourly rate of the specified user or group resource. This amount is a first-draft estimate of the resource plan cost.

Planned cost is rolled up from Requested Allocations for plans in the Planning or Requested state and from Resource allocations for plans in the Confirmed or Allocated state. While requesting resources from a group, if a resource role is specified, the planned cost is calculated from the hourly rate of the specified role.

Have a look at the planned cost field in the request details section of this link

Re: How Planned Cost is calculated in PPM

yogesh41 — Mon, 24 Jun 2019 11:59:25 GMT

Cost Plan.Total Planned Cost = Requested Hours * per hours rate for request Group/User its.

The hourly rate are either bing defined in User Rate card or Rate Model (https://docs.servicenow.com/bundle/madrid-it-business-management/page/product/project-portfolio-suite-with-financials/concept/rate-model.html)

The default hourly rate is being defined as $50/hour. That is the reason you see $5000 as planned cost.

- Yogesh

Re: How Planned Cost is calculated in PPM

shaik_irfan — Mon, 24 Jun 2019 12:12:24 GMT

Perfect got it.

1 question i assigned the REsource Plan with type as User and selected User as my name, now i dont see Hourly rate defined on User Record as by default it takes $50 as you said but i want to set as 20$ per hour then ???

How can i acheive this /

Re: How Planned Cost is calculated in PPM

yogesh41 — Mon, 24 Jun 2019 12:38:30 GMT

You can define user specific rate using Labor rate card ( https://docs.servicenow.com/bundle/madrid-it-business-management/page/product/cost-management/task/t_ManageALaborRateCard.html )

- Yogesh