I run a Professional Services business, and we are currently leveraging the Resource Management module for capacity and forecasting. We have created ways through formulas and sheet templates to account for cost rates, we would love a more systematic approach much like the bill rate function already present.
A resource cost rate, for our organization, is define as: internal hourly cost incurred by the organization to utilize a specific resource (person/role) on a project.
- It represents what the company pays (or attributes as cost) for that resource’s time.
- It is used for cost estimation, budgeting, and margin analysis (not for customer billing).
This would be applied to the person or the Discipline\Role if organizations blend their cost structure (which is what we do with administration allocation\overhead included)
This could also be included in scenario plans to understand project margin impact for resource changes.
