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Uses and attributes of the Labor financial item

There are two primary situations in which you will need to assign the Labor financial item to the project: to create an estimate in the financial plan for labor spending before resource managers have fully created the resource plan, and second, to create a place holder in which resource plan forecast and actual cost can be captured.

A possible workflow (among many) for the first case is the following:

  • Project proposed: Project team does initial planning, financial planner creates a financial plan including a Labor assignment with forecast spend.
  • Project approved: Initial plan is baselined. Project team executes phase 1, a planning phase. A skill based resource plan is created for the remaining phases of the project. The financial analyst posts the labor forecast (total spend) to the financial Labor item.
  • Project plan of record approved: Financial plan is baselined with the plan-of-record name. The financial analyst periodically posts actual and forecast labor spend to the financial Labor actual and forecast. This enables on demand comparison of financial Labor budget-forecast-actual.

A workflow for the second case is the following:

  • Project proposed: Project team does initial planning, including a Labor assignment with no values (to be filled in later).
  • Project approved: Initial plan is baselined. Project team executes phase 1, a planning phase. A skill based resource plan is created for the remaining phases of the project. The financial analyst posts the labor forecast cost (total spend) to the empty financial Labor item. Actuals for the previous phase(s) are posted to the empty Labor Actuals record.
  • Project plan of record approved: The financial analyst periodically posts actual and forecast labor spend to the financial Labor actual and forecast. Project plan is baselined at the phase transition with the plan-of-record name. This enables on demand comparison of financial Labor budget-forecast-actual.

How To Video: Post Labor Cost Forecast to the Financial Plan

 

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