Best practices

Best Practice: NLRs vs. Fixed Cost/Price or Manually Set Budgeted Cost/ Actual Revenue work items

  1. Use a Non-Labor Resource if an item has no work effort value associated (and so should not affect a project’s expected work progress calculations), has no scheduling or dependency information that can affect the work plan, or has variable pricing over months (like materials).
  2. Use Fixed cost or fixed prices when you need to assign delivery to an individual and collaborate around it.
  3. Use Fixed Costs/ Fixed Price if a work item’s cost does not vary with duration or is not likely to be used outside of one project and therefore not needed for cross-project reporting.

Best Practice: NLRs for IT/PMO Organizations

IT/PMO organizations frequently run a spectrum of projects from large infrastructure upgrades to minor updates.

  • If your organization run as a cross-charges other business units, you should consider using both the Cost & Revenue fields of the NLRs where the Revenue fields represent the cost to the other internal organizations.
  • Use the categories of the NLRs to track the common categories
  • Use the CAPEX/OPEX fields - this is especially important for IT product development projects where Capital Expenditure (CAPEX) may have tax credits associated and should be accurately tracked.

Best Practice: NLRs for Professional Services teams

Professional Services delivery / consulting organizations can consider the Non-Labor Resources as somewhat similar to a Product List if they are providing packaged materials (such as training materials). Additionally NLRs should be used for variably-priced items such as bandwidth, travel budget (where expenses are being reported in 3rd party systems) or even media spend for digital marketing-type projects.

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