To load cost from resources, first you need to create the required resources, labor, non-labor, material. This will depend on your project and industry.
For instance, you create a labor resource (Programmer) with unit rate of $20/hour.
This resource is allocated to an activity (through Activity Details >> Resources >> Assign) and budgeted units are specified.
Let’s assume in our case the budgeted units are 50 hours, i.e. the resource (Programmer) will work for 50 hours on the assigned task. In other words, the task in question needs 50 hours of the said resource. So the budgeted units are manually entered in the proper field under activity details.
Now, at the specified rate of $20/hour Primavera will calculate the activity’s cost as follows:
Budgeted Cost = Budgeted Units x Unit Rate = 50 hr x $20/hr = $ 100
Note that Primavera’s budgeted cost calculation shown above can be overridden simply by manually entering the cost value in the relevant tab of activity details. Also, instead of hours and hourly rates, days or other time units may also be used.
If your project has materials (e.g. a construction project) the activity cost will be derived from the materials (e.g. quantity of tiles x unit rate from bill of materials).
In some cases loading costs in this manner becomes too cumbersome because to populate an entire BOM (or BOQ) is a very time consuming process. As a workaround, people create and designate a resource as VALUE or COST or whatever. This resource is then assigned to all activities and appropriate cost value is entered for all activities.
Sometimes people use the option of ‘Expense’ to load cost information. Although this works but strictly technically speaking, expenses are a one time additional expenditure, overheads, etc. and not really related to the budget values.