| # To use cost objects and cost components Project provides you with two techniques for categorizing cost objects into logical groupings that you can use for analysis purposes. You can group cost objects of the same type by control code. You can group cost objects of any type by cost component. To use control codes For analysis purposes, you can group cost objects of the same type under a common parent cost object called a control code. For example, you could create a materials cost object called Plastering and you could make this the control code for all plastering-related materials. When maintaining your element or activity budget, you would enter that control code on every budget line which contains plastering-related materials. Later on, you could use the Generate Budget Cost Analysis (tpptc3200m000) session to generate reports showing budgeted costs and quantities. A cost object can function as its own control code. To use cost components For analysis purposes, you can group cost objects of any cost type under a common cost component code. For example, you could create a cost component called Plumbing, and enter that cost component on every budget line which contains plumbing-related materials, labor, equipment, subcontracting or sundry costs. When you create a cost object in the Project Definition module, you can assign it to a cost component. However, when you come to enter the cost object on a budget line of an actual budget (in the Project Planning module), you can assign it to a different cost component. Depending on the cost control levels you have set in the General Project Parameters (tppdm0100s000) session, assigning a cost component to a cost object can be mandatory. Later on, you could analyze the actual budget with the Generate Budget Cost Analysis (tpptc3200m000) session, and output reports by cost component. When defining revenue codes, you can assign a cost component to a revenue code, and in this way you can analyze invoiced amounts by cost component. Related topics To use standard cost objects To use project-specific cost objects |