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How is Progress calculated via Physical Percent Complete Calculation Method

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Currently, our project task setup for Physical Percent Complete Calculation Method is set to Cost and is not getting the correct progress for the record line that don't have costs yet only planned hours. We get the progress physical percent complete as 100%

When we set it up the Physical Percent Complete Calculation Method to 'Effort' we get the expected physical percent complete as 9%

Is there any explanation why we need to update to Effort and what's the difference of them? Thank you for your help!

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23D and 22D

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