How is the baseline used for cost tracking?
How is the baseline used for cost tracking? In the reports, you will find two types of cost information; absolute and relative to either:
- The situation how it was once projected: The Baseline
- The current phase in the project: The Status date
Just like any other information on tasks and assignments, cost information is also stored when saving the baseline. Correct baseline use is therefore one of the most important prerequisites for using valuable and valid cost reports.
A quick recap
The baseline is set through the Project tab > Set Baseline > Set Baseline > select the correct Baseline > OK. The baseline should be set only once all relevant parties agree on the schedule, including the cost projections. Typically, the first time the baseline is set, is once the Project Initiation Document (PID) has been approved. Also, we recommend you to ask for an acknowledgement from these parties that the right situation is now baselined. You want to take every chance to avoid miscommunication and debate at a later stage, for instance when you show your (cost) report that lays out actuals against this baseline.
Cost tracking in your organization
Is the baseline used for cost tracking in your organization? If not, what is blocking you?
Start a discussion in the comments below.