How are the Committed or Actual Labor costs generated on the Financial Tab for the Project?

First of all let’s define and understand the differences between Committed Cost and Actual Cost. In order to do that, go ahead and read this article: What is the difference between Committed Cost and Actual Cost?

Look at the screenshot below, the Committed Cost has been marked with the blue square and the Actual Cost with the red square.

Committed Cost

We can set up the Committed Cost in the Financial tab by approving Purchase Orders and Subcontracts. It is important to make emphasis on the fact that once an agreement, like the ones mentioned, gets approved those will become part of the committed cost.

As you can see below, the amount shown in the approved Purchase Orders matches the amount shown in the row Materials in the column Committed Cost. The reason is because in this specific Project the Purchase Order was utilized to create a commitment with a vendor to procure materials.

Something similar happens with the Subcontractor row, the amount shown there matches with the total amount in the Subcontracts section.

Actual Cost

In Contractor Foreman the actual cost will be reflected in the Financial tab of the Project at the moment we complete a Timecard, we enter a Bill, we record an Equipment Timecard or we enter an expense.

The item types within the records will determine to what row the cost will be adding up. For example, if we generate a Bill from a Purchase Order (which has only material items), the amount in the bill will go to the Material row to the column actual cost. This applies mainly to Bills and Expenses. When it comes to Equipment timecards, this actual cost will go automatically to the Equipment row, actual cost column and the cost of the Timecards will go automatically to the Labor row, Actual cost column.