Setting Cost Code and Schedule Variance for Projects
Cost Code Variance is the allowable percent deviation (budgeted costs / actual costs in terms of the cost codes) that a project or group of projects is allowed to deviate within a period. Each record in the selection set for a cost code or group of cost codes is evaluated for this condition, and the overall group is evaluated. In the group, if the cost code variance exceeds the lower deviation, a yellow warning symbol is displayed on the Project/Job Period Costs form for the appropriate record. A project, project task, or project resource is evaluated against all cost codes as a group, with the project displaying a caution indicator if the cost code variance is exceeded for the current period. If the upper % deviation is exceeded, a problem indicator is displayed on the Project/Job Period Costs form for the appropriate record. If neither warning situation is present, a check mark is displayed.
Schedule Variance is the allowable percent deviation (budgeted costs / actual costs) that a project can have and still be considered in a state of control in terms of the schedule. Each record in the Project/Job Accumulated Cost By Period form is evaluated for this condition, and the overall project is evaluated in the Projects form as of the current state. On evaluation of the state of the project, project task, or project resource, the project is considered in danger of becoming out of control if the lower % deviation is exceeded for a point in time; a caution indicator is then displayed on the Project/Job Accumulated Cost By Period form for the appropriate record. If the project exceeds the upper % deviation, the project is considered out of control with a problem indicator displayed on the Project/Job Accumulated Cost By Period form. If neither warning situation is present, a check mark is displayed.
Priority Level
The Priority Level is a numeric value you assign as a warning priority between the Cost Code Variance and the Schedule Variance. You might assign Schedule Variance a '1' and Cost Code Variance a '2', but you can use other numeric values, the lowest one being the higher priority. The priority level comes into play only when Cost Code Variance and Schedule Variance have the same warning level. Only one warning displays (on the Project, Project Tasks, and Project Resources forms), and the priority level determines which warning displays if both have the same warning level. You can enter a value for both Priority Level fields that is the same. In this case, the Schedule Variance is given the priority.
Be aware of these priority level rules:
- If both the Cost Code Variance and Schedule Variance have a problem indicator, the indicator displays the one with the highest Priority Level (the lowest number in the Priority Level field).
- If both the Cost Code Variance and Schedule Variance have a caution indicator, then the indicator also displays the one with the highest Priority Level (the lowest number in the Priority Level field).
- If one has a problem indicator (and the other does not), the problem indicator is shown.
- If one has a caution indicator (and the other has a check mark), that variance's caution indicator is shown.
- If both have a check mark, then a check mark is displayed with the text "In Control."