Understanding Non-Resource Costs

Managing project costs effectively requires tracking both resource and non-resource expenses to ensure accurate budgeting, financial control, and decision-making. Non-resource costs refer to all project-related expenditures that are not tied to human resources, such as software licenses, hardware, travel, equipment, and operational expenses. These costs can be planned in advance as forecasts and later tracked as actuals when expenses are incurred.

Fluid provides a structured approach to managing non-resource costs, allowing organisations to forecast planned expenses and compare them against actual costs in real-time. This visibility ensures that financial commitments are met, variances are managed proactively, and budgets remain under control. 

Initial Setup for Non-Resource Costs

Before adding non-resource costs to a project, the following must be configured:

• Currencies – Ensure that the organisation’s financial reporting currency and exchange rates are set up correctly.
  
  
• Expense Categories and Expense Types – Define the cost classifications to organise and track expenses effectively.

For detailed steps on configuring these settings, refer to the Financial Setup Guide.

Types of Non-Resource Costs

Non-resource costs are tracked in two ways:

• Forecasts – Planned expenses that are estimated in advance based on project requirements and expected spending. These provide visibility into upcoming financial commitments and help with budgeting and approvals.
  
  
• Actuals – The real costs incurred as the project progresses. These are recorded once an expense has been processed and can also be uploaded into Fluid from ERP systems or financial ledgers for accuracy.

Understanding and managing non-resource costs is essential for effective project financial control, ensuring that budgets remain accurate, overspending is avoided, and financial reporting is aligned with organisational objectives. The next articles will cover how to set up forecasts, record actuals, and report on non-resource costs in Fluid.