Burdening › How to Apply Burdening in Earned Value Calculations

How to Apply Burdening in Earned Value Calculations

Indirect costs are calculated by burdening rates to the project's cost base (that is direct cost). The burdening matrix values are converted into the contract's defined currency and the burdened costs are returned in that currency. The burdening is applied to the total cost (cost rate * unit) and not the per unit cost rate.

Matrix levels are used in burdened cost calculations. Burdened costs are stored based on the role and rate type you define for the burden matrix levels.

Use the following process to apply burdening in earned value calculations:

1. Create and define one or more cost/rate matrices.
2. Create the burdening classes.
3. Create the burdening matrices.
4. Create the project.
5. Financially enable the project.
6. Set the project's EV calculation method.
7. Associate the cost/rate matrices to the project's four resource types.
8. Associate burdening matrices to the project.
9. Assign staff to project tasks.
10. Create a cost plan using the team allocations.
11. Schedule the Rate Matrix Extraction job.
12. Baseline the project.
13. Calculate and record earned value data.

Note: Contact your CA Clarity PPM administrator or see the Administration Guide for more information. on creating financial matrices and on how to schedule job runs.

Note: Contact your project manager or see the Project Management User Guide for information. on creating and managing projects, which includes information on setting the project's EV calculation method and calculating and recording earned value data.