WBS Cost price update

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Posted on by Community Member

Hi All,

I have a query regarding WBS resource rates update. When I select a resource roles on WBS effort line cost price field shows cost price of that role, but if I am maintainnig rate for resource + role combination then on scheduling the resource system doesn't picks resource's rate and keeps the cost price intact. My concern is, if I import WBS into Budget based on default role and then post actual transctions with the cost price which is based on role + resource combination then there would be difference between budgeted unit cost and actual unit cost.

Any suggestion?

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Ludwig Reinhard Microsoft Employee on at

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Hi nakul,

If you already know the detailed resource that should execute a specific WBS activity, why can't you simply enter this resource in the WBS directly without reference to a role? Would that be a workaround/solution here?

Best regards,

Ludwig

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Hi Ludwig,

Thanks for replying, the process that we follow is to create estimate in WBS and then import into budget, once the budget is approved then we do resource scheduling. so it is other way round.

Regards,

Nakul

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Ludwig Reinhard Microsoft Employee on at

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Ah.

So, your WBS is based on roles and the prices that default for them when you create the WBS, right?

Later on when you schedule and post hours you might get a different cost price for the role-resource combination selected.

Is that right?

Best regards,

Ludwig

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Yes Ludwig, you are right. So there we find difference between budgeted values and actual value. On WBS if the rate for Azure Architect is 150 per hour, then planned cost would be 1500 for 10 hours. Now if person A with the same role is assigned to that WBS line via resource scheduling and his price is 160 per hour then actual transaction cost would be 10 dollar more than the budgeted cost. Also it will have impact on calculating accruals on fixed price project.

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Ludwig Reinhard Microsoft Employee on at

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Hi nakul,

Ok.

The main issue seems to be the price difference that you have between the role based price and the resource based price.

Let's make an example to get things clear.

You have a role based price of $150 for an architect.

There are 3 architects (Nakul, Ludwig, Mr.X).

If Nakul has a cost price of $150,

Ludwig a cost price of $140 and

Mr.X a cost price of $160

Now, if you assign either Ludwig or Mr.X to the WBS task later on, you will see the variance you referred to.

That's ok in my opinion and actually what I would expect to see.

If you don't like this can't you simply use role based prices and forget about those resource specific ones?

Best regards,

Ludwig

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Hi Ludwig,

In your example above and for this specific line - Now, if you assign either Ludwig or Mr.X to the WBS task later on, you will see the variance you referred to. here system will not pick the rate of Ludwig or Mr. X, on WBS line it will keep the rate as 150 even after scheduling the resource.

Here in this screen, the cost price of Azure architect is 155

Then I created an employee with same role but different cost price - 180

Assigned this employee to WBS line

But the cost price remains 155 only and doesn't take resource's cost which is 180

Now if I create an hour journal, system picks resource's rate:

So here we have descrepency.

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Ludwig Reinhard Microsoft Employee on at

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Hi Nakul,

I setup the following prices

Then I recorded the following transactions and identified the following cost prices, which is what I would expect.

Is that what you would expect?

Note:

If I enter lines for the employees in my WBS with the category 'Appdev' then I see a cost price of $180. if I assign Adddev and the Softwaredeveloper role then I see a cost price of $150.

Also this is what I would expect.

Best regards,

Ludwig

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Hi Ludwig,

Sorry for late revert from my end, as per your configuration you have not created the pricing for combination of resource name + role.

My point is if you create cost price line for AppDev with the cost amount 150 and another line with the cost line of AppDev + Ludwig with the cost amount 180.

Then WBS should pick 180 on assigning Ludwig as a resource for the WBS Line with the role AppDev

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Ludwig Reinhard Microsoft Employee on at

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I see.

Yet, that's the standard 'search logic' that we have available.

If this is not good for your case and if no other workaround - such as the setup that I made - seems feasible then you need to consider making a system modification.

Best regards,

Ludwig

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Hi Ludwig,

What is your opinion on this, if we leave the scenario that I am looking at. From estimation point of how the system should take the rates.

Regards,

Nakul

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