Project labor cost type - Opex and Capex

[neilgiliker]

In my projects some tasks will financially be capitalised other will need ot be recognised as operational costs. How can I identify project tasks as being wither Capx or Opex costs? Out of the box SN seems to assume all project costs are 'Labor Capex' . Is this oething I can set at a task level or do I have to set it at the Labotr rate card level? If the latter I see no option to set Labor rate cards as either Opex or Capex. Again it seems to assume all is Capex. Please advise.

Thanks,

Neil.

[sachin_namjoshi]

Hi Neil,

There is no differentiation of opex and capex cost at project task level.

But, Project Task costs can be estimated using the Estimated Cost field which can be added to the Project and Project Task forms.

To estimate task costs:

1. Enable the Estimated Cost field calculations.
   1. Navigate to Project Management > Properties
   2. Set the property Enable project cost rollup (estimated and actual) - updating the cost of a project task will update the cost of its parent to Yes (true).
2. Navigate to the lowest level sub-tasks of the project and populate the 'Estimated Cost fields.

Once those fields are set, the top-level project's Estimated Cost field should reflect the sum of all the lowest level sub-tasks' estimated costs.

Regards,

Sachin

.

[neilgiliker]

Sachin, thanks, that helps me in terms of rolled up cost visibiity but I still need to split project costs between capital (capex) and operational (opex). If this can't be done at task level, then is an alternative to have special Labor Rates for staff whose costs need to appear on the Opex side rather than Capex side?

E.g. If for my project most developer work is classed as Capex Labor BUT where I need the Infrastructure team to create a development environment I want to recognise this cost as Opex. I would like to ensure that all Infrastructure engineers are assigned a Labor rate card that is classed as Labor Opex, rather than Labor Capex. I assume that would work but I can't see how to change the Capex/Opex classification on Labor rate cards.

Does anyone have a view?

[mustc]

Neil,

My view is the same as yours.   This is a bit of a surprising miss if SNOW cannot differentiate between a capex and opex task.   These are GAAP rules we are talking about here.

Any time we create a capitalizable asset , we must classify a task as:

Design - capex

Development - capex

Discovery - opex

Go- Live - Capex

Support - opex

Testing - Capex

Training - opex

Everyone in the states has to do this.   I don't understand why it is not there.

[neilgiliker]

Exactly! Your description is spot on and reflects the cost categorisation we are also required ot apply but as you say it appears that SNOW does not support this fundmantal need for all projects ceratinly in UK and USA.