Your project structure represents how your company wants to breakdown a capital project resources and cost, while the deliverables represent the capital project's output, typically as a list of capital assets and planned or actual cost settlement rules.

You need to allocate the costs from your WBS or project structure to the deliverables to:

• Understand what each asset actually costs
• Define the rules or cost allocation percentages to settle actual project costs during capital project execution to these assets
• To make sure that all your costs have been allocated somewhere (to an asset)

You can either allocate one or more WBS elements to an asset/deliverable, or you can allocate one or more deliverable/asset to your WBS elements. It is a "many to many" relationship.

To allocate your WBS element's costs to one or more deliverables, open the WBS tab and click on the pencil icon to open the WBS details popup:

1. Click on the ITEMS tab of the WBS details popup to see what assets your WBS costs are being allocated to
2. The table shows all assets your WBS costs are allocated to. Click the + to add a new cost allocation and select an asset from the list
3. When you first add a deliverable to your WBS it by default allocates 100% of the WBS' cost to that asset. Edit the % of your WBS cost you want to assign to each asset
   • The various % across all selected proposal line items for this WBS must add up to 100%
4. The allocated cost automatically appears; it is simply the sum of your WBS estimated costs multiplied by the %
   • Only costs which were previously estimated will be displayed here, however future estimated costs will automatically get allocated based on the same % splits so do not worry if the total costs look too low when you are still developing your estimates.

Instead of allocating your WBS to one or more deliverables from the WBS detailed popup, you can instead allocate your assets to one or more WBS elements from the SETTLEMENT RULES or ASSETS tab.

This time, click on the pencil from the SETTLEMENT RULES tab and click on the WBS tab in the popup:

1. The WBS tab will show you all WBS elements which have costs flowing to this proposal line item
2. Click the + to add a new work-package or activity cost allocation, or - to delete
3. Select the work-package who's costs are to be allocated to this deliverable.
   • If you select a WBS from the project structure, such as 1.1, then the costs for all work-packages below (such as 1.1.1, 1.1.2, 1.1.3 etc.) are also allocated to the same deliverable in the same %
   • You can select a WBS at any level of the project structure (excluding tasks or assets) initially but once a WBS is allocated to a deliverable or can no longer select WBS elements below an allocated WBS
4. The cost allocation percentage defaults to the maximum value permitted (the remaining unallocated % of that WBS element's cost) e.g. 100% initially, or defaults to 40% if 60% of the costs are previously allocated. Optionally reduce this percentage - because you intend to allocate the remaining portion of this WBS element's costs to another deliverable
   • For example, your project wants to split out Program Management costs (shown above) to its own work-package or WBS but Program Management is not an asset. You decide, perhaps arbitrarily, that 20% of your Program Management cost is going equally towards each of five assets. To achieve this, assign the Program Management WBS to all five deliverable/assets each with 20% allocation
5. Confirm or close the popup to save your changes.