Cost Planning With The Easy Cost Planning Method

Purpose

You can use the Easy Cost Planning costing method with special enhancements to cost services for planning costs in a BOS. You can calculate overhead costs separately and distribute them appropriately among specific costing items. Furthermore, you can calculate additions and deductions for costing items flexibly.

Process Flow

The BOS structure forms the basis for the costing structure. You can branch to Easy Cost Planning from any area in a BOS (BOS initial node, outline level, service line). The system transfers the appropriate sub-hierarchy as the costing structure.

Using Easy Cost Planning, you enter the elements that cause costs (the required resources such as material, wages, external work, or equipment, as well as the required quantities such as number of hours, units or meters) as costing items for the service lines. (see Calculating Service Lines ) .

For composite of service lines, you carry out a cost estimation for the subitems and these costs are cumulated to the main item.

You can set the lot size indicator for the first time, but subsequently the lot size cannot be changed.

For subitems, the system also considers the main item quantity.

Example: If you set the lot size indicator, the lot size by default, is one. If you do not set the lot size indicator, the quantity of the service line is used. If you enter ten as the quantity, the lot size is also set to 10. If the quantity or the lot size indicator is later changed, the lot size remains unchanged.

You can represent planning forms by using costing models. To save time and effort involved in entering data, and to ensure security of planning, you can use these predefined costing models as planning forms (see Processing Costing Models and Assignment of Attributes ).

Example Example

A costing model can contain the material and the wage portion for the service "lay cables, assembly type on saddle.” You can then use this as a template in different planning objects, whereby the required resources (material and wage) are automatically included in the costing.

You can determine the estimated quantities for the costing items using characteristics that are assigned to the costing models. Additional derivation rules can be entered for complex relationships between the characteristics and the estimated quantities for the costing items. In this way, the template can take different configurations into account. In other words, depending on whether it is laid above the intermediate floor, the resources and quantities can change for one meter of cable with a cable stake body or a protective casing.

End of the example.

Recommendation Recommendation

We recommend that you create a costing model for the lot size of one of a service line.

End of the recommendation.

You have the following options for determining base costs.

  • You can use master data (material master records and labor costs stored in the system). The system valuates your entries with the prices stored in the system.

  • You can copy the quotation prices for the chosen supplier or subcontractor manually as base costs for the external procurement of certain costing items (see Triggering Execution Services ).

  • If costing items exist that cannot be provided with base costs from master data or vendor and subcontractor quotations, estimate the base costs and enter them manually.

Depending on the specific conditions of the project, the base costs and quantities can be corrected by additions and deductions in order to determine the basic costs and basic quantities.

Example Example

Examples for additions and deductions are:

End of the example.

  • The size of the construction site

  • Possible future changes in price for the raw materials required

  • Logistical positioning of the usage location

  • Qualifications of employees

The overhead costs for a BOS are calculated separately so that they can be distributed among the individual costing items of the service lines (see Calculating Overhead Costs ).

Caution Caution

The value of the costing items in overhead costs calculation has no effect on the overall value of the BOS. These costs only have an effect on the individual budgeted costs for the service lines after the assessments have been distributed.

End of the caution.

The additions, deductions and assessments can be assigned (see Calculating Additions and Deductions and Distributing Assessments ).

The system determines the basic costs from the base costs plus any additions, deductions and assessments.

Further additions and deductions to the basic costs and the basic quantities result in the target costs and the target quantities.

Result

The system transfers the basic costs to the costing sheet for the service line as basis for determining the sales price For more information, see Sales Price Determination .

You can transfer the target costs to the WBS elements as a standard value for the execution of the project.For more information, see Cost Transfer to the Project .