Creating And Using Alternate Cost Rates In Microsoft Project

In this blog post article, I’m going to show you how to create and use alternate cost rates for your resources in Microsoft Project. Suppose that you have a project team member named Calvin Baker, who has different cost rates depending on the type of tasks to which he is assigned. For instance, Calvin might have a default rate of $30 per hour for documentation tasks, but a higher rate of $50 per hour for QA-related tasks. Let me walk you through how to set this up.

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Setting Up Alternate Cost Rates

Here’s how to set up alternate cost rates for a resource:

Open your project in Microsoft Project.
Navigate to the Resource Sheet view where you manage your project’s resources.
Double-click the name of the resource for which you want to set up alternate cost rates. Microsoft Project will open the Resource Information dialog.
Click on the “Costs” tab within the Resource Information dialog to view the cost details.
On the Costs page, you will see several cost rate tables labeled as A (Default), B, C, D, and E. These are the available cost rate tables. Select Cost Rate Table B (or any other appropriate table) for setting the alternate cost rate.
Enter the alternate cost rates in the Standard Rate and Overtime Rate fields.
Click the “Notes” tab and enter a note to explain how to use the alternate cost rates for the resource.
Click the “OK” button to save the changes to the resource’s alternate cost rates.

Applying Alternate Cost Rates to Tasks

Here’s how to apply the alternate cost rate after you have assigned the resource to a task:

Apply the Resource Usage to manage assignments and costs more effectively.
To better organize the tasks, display the “View” ribbon, click the “Group By” pick list, and select “Assignments Keeping Outline Structure.” This helps distinguish between different types of tasks.
Right-click on the Work column header, choose “Insert Column” on the shortcut menu, and then select “Cost Rate Table” to display which cost rate table each task is currently using. Using this method, also insert the “Cost” column to see the calculated costs for each task.
Identify the tasks to which the resource is assigned. You will notice that by default, these tasks are using Cost Rate Table A, which is the default value in the Cost Rate Table field.
Change the Cost Rate Table value from A to B (or to your chosen alternate table). This action updates the cost calculation based on the new alternate cost rate.
Use the fill handle (like in Excel) to apply the Cost Rate Table value to all relevant tasks.

That’s it! You’ve now successfully set up and applied alternate cost rates for resources in Microsoft Project.

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If you would like to have a formal class on using Microsoft Project, here is a link for my classes.

Hello there, esteemed Microsoft Project enthusiasts! It is with great pleasure that I introduce myself as Dale Howard Microsoft Project MVP, a seasoned veteran in the world of Microsoft Project. With a remarkable track record of being awarded the prestigious Microsoft Project MVP (Most Valuable Professional) title for an incredible 20 years in a row, I am humbled to share that I currently hold the distinguished position of being one of only 11 Project MVPs across the entire globe. To say that this achievement is exciting would be an understatement. It is a testament to my unwavering dedication, passion, and expertise in the Microsoft Project domain.

Why Should You Learn from Dale Howard Microsoft Project MVP?

Throughout my illustrious career, I have relentlessly pursued excellence, striving to be at the forefront of technological advancements and best practices in project management. Being a Microsoft Project MVP has endowed me with a wealth of knowledge and experience that I eagerly share with other users of this remarkable software. It has been my privilege to assist countless individuals and organizations in harnessing the full potential of Microsoft Project to effectively plan, execute, and monitor their projects. Through my extensive involvement in the Microsoft Project community, I have built a strong network of like-minded professionals, and together, we continuously strive to innovate and push the boundaries of project management excellence. As an MVP, I not only possess an in-depth understanding of Microsoft Project but also have access to exclusive resources, early product previews, and direct communication channels with the Microsoft Project development team. This unique advantage allows me to stay ahead of the curve, ensuring that I can provide the most up-to-date and relevant guidance to fellow Microsoft Project lovers.

Whether you are a seasoned project manager seeking to enhance your skills or a novice navigating the intricacies of project planning, I am here to assist you every step of the way. Through my articles, webinars, and training sessions, I aim to empower individuals and organizations to unlock the true potential of Microsoft Project, enabling them to achieve their project goals efficiently and effectively. Join me on this exhilarating journey as we delve into the realm of Microsoft Project, exploring its vast capabilities, uncovering hidden gems, and conquering the challenges that lie ahead. Together, we can transform the way projects are managed, revolutionizing the world of project management, one keystroke at a time. So, buckle up and prepare yourself for an unforgettable adventure in the fascinating universe of Microsoft Project.

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If you post a question about any of Microsoft’s PPM tools on the public message boards, look to see who the moderator or person that has answered the questions and you see, it’s frequently me answering your questions. Some people like to golf, I love Microsoft Project helping the community get to understand Microsoft Project much better.

Books I’ve Written on Amazon

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See Other Questions I Answer on the Message Boards

If you’ve got a question about Microsoft Project, Project Online or Project Server, check out some of these community post areas.
Microsoft Tech Community
Reddit Project Online Community
LinkedIn Project and Planner Group

Here’s some other blogs and message boards that I answer questions on:
https://www.mpug.com/author/dale-howard/
https://www.dalehowardmvp.com/microsoft-project-tips-and-tricks/
https://answers.microsoft.com/en-us/msoffice/forum/msoffice_project
https://www.reddit.com/r/MSProject/
https://answers.microsoft.com/en-us/profile/029b4dc7-350c-48f1-8f44-5f01718b3b30