Activity Cost
Overview
Activity Cost — Business Overview
Activity Cost is a setup document in Dafater used to define the standard cost of performing specific project activities. It helps businesses consistently estimate, track, and control project expenses by assigning a cost value to each type of activity carried out during project execution.
What Activity Cost Is Used For
Activity Cost allows an organization to: - Define how much it typically costs to perform a specific activity (for example, design work, site visits, testing, or consultations). - Ensure project costing is consistent and aligned with internal cost standards. - Support accurate project budgeting, pricing, and profitability analysis. - Provide a reliable basis for calculating project expenses as work progresses.
In simple terms, it answers the question:
“How much does this type of work usually cost us?”
Prerequisites and Setup Requirements
Before using Activity Cost, the business should have: - A clear list of project activities commonly performed in projects. - An agreed understanding of how costs are measured (for example, per hour, per task, or per occurrence). - Basic project structures already defined in Dafater, so activities can be linked to real project work.
This setup is usually done once and reviewed periodically.
Typical Workflow and Business Process Fit
Define Activity Costs
The business sets up Activity Cost records for each standard activity, including the expected cost value.Use in Project Planning
When planning a project, these predefined costs help estimate total project expenses quickly and accurately.Apply During Project Execution
As activities are performed, their predefined costs are used to calculate actual or expected project costs.Review and Control
Managers compare planned costs with actual outcomes to monitor profitability and efficiency.
Activity Cost works quietly in the background, supporting better project financial control without manual recalculation.
Key Business Scenarios Where Activity Cost Is Essential
- Project Budgeting: Estimating costs before committing to a client or internal project.
- Client Pricing: Supporting transparent and justifiable pricing for project-based services.
- Cost Control: Identifying high-cost activities and opportunities for efficiency improvements.
- Profitability Analysis: Understanding which activities drive costs and which generate value.
- Standardization Across Teams: Ensuring all teams use the same cost assumptions.
Important Considerations for Users
- Keep Costs Realistic: Activity costs should reflect actual business expenses, not guesses.
- Review Regularly: Update costs when labor rates, overheads, or operating conditions change.
- Avoid Overcomplication: Use clear, meaningful activity categories rather than too many similar ones.
- Align with Business Strategy: High-value or premium activities may intentionally carry higher costs.
- Consistency Matters: Once defined, activity costs should be used consistently across projects.
Activity Cost is a small but powerful setup tool in Dafater that supports accurate project costing, better decision-making, and healthier project margins.
Basic Information
- Module: Projects
- Document Type: Setup
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| activity_type | Activity Type | Link | ✓ | Activity Type | Defines type of activity for costing and billing analysis |
| employee | Employee | Link | Employee | Employee performing the activity for cost and billing tracking | |
| employee_name | Employee Name | Data | - | Full name of the employee linked to this activity | |
| department | Department | Link | Department | Department responsible for the activity and related costs | |
| billing_rate | Billing Rate | Currency | - | Rate charged to customers for this activity | |
| costing_rate | Costing Rate | Currency | - | Internal cost rate incurred for performing this activity | |
| title | title | Data | - | Short title describing the activity cost record |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Projects User | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Activity Type | Links to | Projects |
| Department | Links to | Setup |
| Employee | Links to | Setup |