What does project cost include?
Choose a flow
Situation
The project’s “spent” differs from your own total.
Recommendation
Read the cost card with all legs: labour, expenses, purchasing (committed and received) and materials issued.
Why
Project cost has exactly one definition shared by every screen, report and AI assistant. Each document counts once: a PO is committed until its first receipt, incurred from then on. Labour is costed at cost rate, not selling rate. A service project’s budget is a cost ceiling, not revenue.
Steps
- Open the project cost card by leg.
- Separate committed (PO not received) from incurred.
- Check labour is at cost rate, not bill rate.
- Compare with the budget by category.
Avoid
- Add only labour and expenses, ignoring POs and materials.
- Treat a service project budget as revenue.
Roles & permissions
PM; users allowed to see project financials.