MS Project 2016: Fixing Actual Cost Proration Issues

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Hey project managers! Are you wrestling with Microsoft Project 2016 and those pesky actual cost figures for your cost resources? Specifically, are you seeing that the costs, which you expect to accrue only at the end of a task, are instead being doled out bit by bit throughout the task's duration? You're not alone! This is a head-scratcher for many, and we're here to unpack potential causes and solutions.

Understanding the Problem: Prorated Costs When You Expect Lump Sums

So, here's the deal. You've meticulously set up your cost resources in MS Project 2016, indicating that these costs should only hit the books once the task is fully complete. Think of it like a consultant's fee, a final inspection charge, or a delivery cost – you don't pay until the job's done, right? But MS Project seems to be ignoring your instructions and spreading that cost out over the entire task duration. This leads to inaccurate reporting, skewed earned value calculations, and a general feeling of frustration. Let's dive into why this might be happening and, more importantly, how to fix it.

Why is MS Project Behaving This Way?

Several factors can contribute to this unexpected behavior. It's like a detective game – we need to examine all the clues to pinpoint the culprit. Here are some common suspects:

  • Accrual Settings Mismatch: Double-check, and then triple-check, that your cost resource's accrual setting is indeed set to "End." It's easy to accidentally select "Start" or "Prorated" during setup. Even a momentary lapse can throw everything off. To verify, go to the Resource Sheet, find your cost resource, and inspect the "Accrue At" column. Ensure it clearly states "End."
  • Task Type Interference: Task types like Fixed Duration, Fixed Work or Fixed Units can influence how costs are distributed, especially when combined with resource assignments. If a task's duration is unexpectedly changing due to resource allocation, MS Project might be recalculating and prorating costs, even if the resource is set to accrue at the end. Try experimenting with different task types to see if one resolves the issue.
  • Incorrect Task Updates: How are you updating the progress on your tasks? If you're manually entering percentages complete or actual start/finish dates that don't align perfectly with the planned schedule, MS Project might misinterpret the progress and prorate the costs accordingly. Consistent and accurate task updates are paramount. Use features like "Update Project" to ensure consistent tracking.
  • Calendar Conflicts: Project and resource calendars dictate working and non-working time. If your project calendar has exceptions or unusual work patterns, it might be interfering with the cost accrual logic. Review your project and resource calendars to ensure they accurately reflect the actual working days and hours.
  • Budgeting Issues: Sometimes the problem arises because of the way you've budgeted the cost resource. If the budgeted amount is not correctly associated with the task, MS Project might distribute it based on the task's duration rather than holding it until the end. Ensure the budget is allocated correctly.
  • Corrupted Project File: While rare, a corrupted project file can cause all sorts of strange behavior. If you've tried everything else, consider saving your project as an XML file and then re-importing it into MS Project. This can sometimes clear up underlying data corruption.

Step-by-Step Troubleshooting Guide

Okay, let's roll up our sleeves and systematically tackle this problem. Here's a detailed troubleshooting guide to walk you through the most common solutions:

  1. Verify Accrual Settings:
    • Go to the Resource Sheet (View > Resource Sheet).
    • Locate the cost resource in question.
    • Check the "Accrue At" column. It must say "End."
    • If it doesn't, change it to "End."
  2. Examine Task Types:
    • Go to the Gantt Chart View (View > Gantt Chart).
    • Right-click on the task and select "Information."
    • Go to the "Advanced" tab.
    • Note the task type (Fixed Units, Fixed Duration, or Fixed Work).
    • Experiment with changing the task type to see if it affects cost accrual.
  3. Review Task Updates:
    • Ensure that task updates are accurate and consistent.
    • Use the "Update Project" feature (Project > Update Project) to synchronize progress.
    • Avoid manually entering percentages complete unless absolutely necessary.
  4. Check Calendars:
    • Go to Project > Change Working Time.
    • Review the project calendar for any exceptions or unusual work patterns.
    • Ensure that resource calendars are aligned with the project calendar.
  5. Inspect Budgeting:
    • Go to View > Resource Usage.
    • Verify that the budgeted cost for the resource is correctly associated with the task.
    • Adjust the budget allocation if necessary.
  6. Consider XML Import/Export:
    • Save your project as an XML file (File > Save As > XML Format).
    • Close MS Project.
    • Re-open MS Project and import the XML file (File > Open).
    • This can sometimes resolve underlying data corruption.

Example Scenario: The Case of the Errant Consultant Fee

Let's imagine you've hired a consultant for a fixed fee of $5,000, payable only upon completion of their assigned task. You've diligently set the consultant's resource accrual to "End" in MS Project. However, as you update the project, you notice that MS Project is showing a portion of the $5,000 being spent before the task is complete. What gives?

After a thorough investigation, you discover that the task type was inadvertently set to "Fixed Duration." As you adjusted the resources assigned to the task, MS Project automatically shortened the task's duration. This triggered a recalculation of costs, leading to the prorated accrual. By changing the task type to "Fixed Work," you ensure that the task's work effort remains constant, and the consultant's fee is correctly recognized only upon completion.

Best Practices for Avoiding Cost Accrual Issues

Prevention is always better than cure, right? Here are some best practices to help you avoid these cost accrual headaches in the first place:

  • Establish Clear Resource Settings: When setting up cost resources, double-check and triple-check the accrual settings. Make it a habit to verify these settings every time you create a new cost resource.
  • Use Consistent Task Update Methods: Stick to a consistent method for updating task progress. Whether you use the "Update Project" feature or manually enter actual start/finish dates, ensure that your approach is standardized across the project team.
  • Regularly Review Project and Resource Calendars: Calendars can be a silent source of errors. Regularly review your project and resource calendars to ensure they accurately reflect the project's working days and hours.
  • Train Your Team: Ensure that everyone on your project team understands the nuances of cost accrual in MS Project. Provide training and clear guidelines to minimize errors.

Final Thoughts: Taming Those Tricky Costs

Dealing with cost accrual issues in MS Project 2016 can be frustrating, but with a systematic approach and a solid understanding of the underlying factors, you can regain control of your project's finances. Remember to double-check your accrual settings, task types, task updates, and calendars. And don't be afraid to experiment with different settings to find the perfect configuration for your project. By following these tips and best practices, you'll be well on your way to accurate cost tracking and successful project management!

If you have other tricks please comment below!