Analysis Cost Allocation in projects
Last updated
Last updated
Cost analysis shows us inaccuracies between company costs and costs in projects.
To understand where these inaccuracies arise, we recommend reading the articles Inaccuracies in Cost Allocation with Fixed Rate and Inaccuracies of Fixed Overhead Rate.
You can find the report in the section Your Company -> Costs -> Analysis
The report shows us the totals in individual months: Overhead costs / People costs
In the second and third columns, we see overhead costs.
Project Overhead Costs
This is the sum of overhead costs allocated in projects.
For example, in our sample, the total is $450 for the month 10/2024. As we described in the article Overhead Costs, Costlocker automatically allocates overhead costs into individual projects by adding a share of overhead to the wage cost. We can display the breakdown per person in the Business Reports.
Company Overhead Costs
This is the sum of overhead costs for the entire company in the given period—in our case, $450. We can view them in the Monthly Overhead Costs section.
Differences Between Fixed and Monthly Rate
In the case of the Fixed Rate, this difference is caused by retroactive data adjustments or discrepancies between estimated and tracked hours, see the article Inaccuracies of Fixed Overhead Rate, and cannot be corrected using an update.
In the monthly rate, the difference can be corrected using cost allocation update.
Project People Costs
This is the sum of wage costs allocated in projects.
For example, in our sample, the total is $3,600 for the month 10/2024. How the hourly rate used in projects is calculated was explained in the article Calculation of Individual Hourly Rate. We can display the breakdown per person in the Business Reports.
Company Personnel Costs
This is the sum of wage costs for the entire company in the given period—that is, the sum of Monthly Salaries plus the sum of hourly rates multiplied by the number of tracked hours of the given individuals. We can view them in the Business Reports.
In the case of the Fixed Rate, this difference is caused by their calculation described in the article Inaccuracies in Cost Allocation with Fixed Rate.
In the monthly rate, this inaccuracy can occur due to a low coefficient in the monthly rate.
In the monthly rate, the difference can be corrected using cost allocation update.
If we have set cost allocation using the monthly rate, we can force a recalculation of cost allocation using the recalculate button.
The cost update recalculation is available only for historical months that have non-zero costs.
