Dear Community,

We are facing a challenge in Project Management Module, with the way Planned Cost is calculated when the Resource Plan is updated.

The challenge is described below. If anyone has faced a similar issue and solved it, a reply would be much appreciated!

Here’s the background:

• We are maintaining rates under Resource Group. The Resource Group rates are updated annually.  As a result, one Resource Group has a different rate for each year.
• If activity validity spans for several years, the Planned Cost uses all the different hourly rates that were valid for the time the activity is valid for.

Here’s the issue:

• The challenge arises when Planned Hours are insufficient and need to be increased during the life of the activity.
• When planned hours are increased, the Planned Cost is recalculated based on the total Planned Hours (including the increase) using all the labor rates that were valid during the validity of the activity.
• This results in Planned Cost that does not reflect what is going to happen: the work corresponding to the increase will be reported with the labor rate that is active at the time hours are reported, not with a combination of all the rates that were valid during the activity.
• The outcome is that Planned Cost cannot be used to accurately estimate the total cost of the activity.

Again, any comments from the forum are welcome!