brotherton-erpnext/erpnext/docs/user/manual/en/projects/articles/project-costing.md

# Project Costing

Each project has multiple task associated with it. To track actual costing of a Project, primarily in terms of services, user has to create Time Log based on actual time spent on Project-Task. Following the steps on how you can track actual service cost against Project.

#### Activity Type

Activity Type is a master of service offered by your personnel. You can add new Activity type from:

`Project > Activity Type > New`	

#### Activity Cost

Activity Cost is a master where you can track billing and costing rate for each Employee, and for each Activity Type.

<img alt="Activity Cost" class="screenshot" src="/docs/assets/img/articles/Screen Shot 2015-06-11 at 4.57.01 pm.png">

#### Time Log

Based on Actual Time spent on the Project-Task, Employee will create a time log.

<img alt="Time Log" class="screenshot" src="/docs/assets/img/articles/Screen Shot 2015-06-11 at 4.59.49 pm.png">

On selection of Activity Type in the Time Log, Billing and Costing Rate will fetched for that Employee from respective Activity Cost master. 

<img alt="[Time Log Costing" class="screenshot" src="/docs/assets/img/articles/Screen Shot 2015-06-11 at 5.00.06 pm.png">

Multiplying these rates with total no. of Hours in the Time Log gives Costing Amount and Billing Amount for the specific Time Log.

#### Costing in Project and Task

Based on total Time Logs created for a specific Task, its costing will be updated in the respective Task master. 

<img alt="Costing in Task" class="screenshot" src="/docs/assets/img/articles/Screen Shot 2015-06-11 at 5.02.54 pm.png">

Same way, Project master will have cost updated based on Time Log created against that Projects, and tasks associated with that Project.

<img alt="Costing in Project" class="screenshot" src="/docs/assets/img/articles/Screen Shot 2015-06-11 at 5.02.29 pm.png">

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