If you need to track budgetary costs in your Microsoft Project schedules, you definitely need to know how to create and assign Budget Cost resources. In this guide, I’ll walk you through the steps to do just that!

If you would rather watch a YouTube video on this subject, click here or click the thumbnail below.

Step 1: Create Budget Cost Resources

To budget for different types of expenses in your project, you’ll need to create Budget Cost resources. In my example, I want to enter the budget for three types of expenses:

• Labor Budget
• Hardware Budget
• Travel Budget

Here’s how to create Budget Cost resources:

1. Apply the Resource Sheet view. 
2. Type in the names of the Budget Cost resources you want to track.  Using my example, I would need to enter the names of the three Budget Cost resources, which I would call Labor Budget, Hardware Budget, and Travel Budget.
3. For each resource, click the “Type” pick list and select the “Cost” item.
4. In the Initials column, add the dollar sign character ($) at the end of the initials for each resource to indicate these are cost resources, such as LB$ for the Labor Budget resource.
5. Double-click each Budget Cost resource individually. In the Resource Information dialog, select the “Budget” checkbox, and then click the OK button.

Step 2: Assign Budget Cost Resources to Your Project

Once your Budget Cost resources are set up, it’s time to assign them to the project. It’s not obvious how to assign Budget Cost resources in Microsoft, so here’s the secret:

1. Apply to the Task Usage view. 
2. Make sure the Project Summary Task is displayed, as this is mandatory for using Budget Cost resources. If you don’t see it, click the Task Usage Format ribbon tab and then select the “Project Summary Task” checkbox in the “Show/Hide” section of the ribbon.
3. Right-click on the “Work” column header and select the “Insert Column” item on the shortcut menu.
4. From the list of available task fields, select “Budget Cost” item.
5. Widen the Budget Cost column, if needed.
6. Select the Project Summary Task and then display the Assign Resources dialog.
7. Assign each of your Budget Cost resources to the Project Summary Task.
8. Close the Assign Resources dialog when finished.

Step 3: Enter Budget Cost Amounts

The final step is to enter the budgetary amounts in the Budget Cost column for each Budget Cost resource. Using my example, I might enter the following budgetary costs:

• Labor Budget: $775,000
• Hardware Budget: $25,000
• Travel Budget: $10,000

Wrapping Up

And that’s it! You’ve successfully created and assigned Budget Cost resources in your Microsoft Project schedule.

If you have questions, please add them in the “Leave a Reply” section below. Or if you watched the video, add your questions or comments there.  Please subscribe to my YouTube channel and leave “Likes” if you like the videos.

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

FAQ

What is Microsoft Project Dynamic Scheduling?

Microsoft Project Dynamic Scheduling is a feature within Microsoft Project that allows you to create flexible project plans, update schedules based on changing circumstances, and optimize resource allocation.

How can Microsoft Project Dynamic Scheduling benefit my project management?

Microsoft Project Dynamic Scheduling can benefit your project management by enabling efficient planning, increased productivity, and the ability to adapt to changes, allowing your projects to thrive.

What role does dynamic scheduling play in effective project management?

Dynamic scheduling plays a crucial role in effective project management by helping you stay on track, manage resources efficiently, and meet project goals.

What features does Microsoft Project offer for dynamic scheduling?

Microsoft Project offers various features and functions for dynamic scheduling, allowing you to create flexible project plans, update schedules in real-time, and optimize resource allocation.

How does dynamic scheduling optimize resource allocation?

Dynamic scheduling in Microsoft Project optimizes resource allocation by providing a flexible project schedule that can adapt to changes in resource availability, ensuring efficient utilization and maximizing productivity.

How does dynamic scheduling streamline project execution?

Dynamic scheduling streamlines project execution by providing a real-time, updated project schedule that enables effective communication, task prioritization, and timely decision-making throughout the project lifecycle.

How does dynamic scheduling enhance collaboration within Microsoft Project?

Dynamic scheduling enhances collaboration in Microsoft Project by offering collaborative features that promote effective communication, facilitate teamwork, and foster a shared understanding of project goals and progress among team members.

How does dynamic scheduling help track progress and manage risks?

Dynamic scheduling in Microsoft Project helps track progress and manage project risks by providing real-time updates and customizable reports that allow you to identify potential bottlenecks, mitigate risks, and take proactive actions to keep your project on track.

How can dynamic scheduling in Microsoft Project leverage data and insights for continuous improvement?

Dynamic scheduling in Microsoft Project provides valuable data and insights for continuous improvement by analyzing project performance metrics, identifying trends, and making data-driven decisions to enhance project outcomes and increase overall efficiency.