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We are investigating how we can use Project forecasting in a way to follow up the forecasted total cost of a project (activity). 

Now, we have entered estimates for all activities. 

Planned cost driver: Estimated Cost

Progress method: Manual

Our idea is to have the estimated cost as the initial EAC. BUT if the actual costs exceed the EAC we would like the actual cost in relation to the manually entered cost progress to be calculated as the EAC. 

Example 1: 

Estimated cost = 1000 USD

Actual cost = 1500 USD

Cost progress = 100%

This would lead to EAC = 1500 USD

Example 2: 

Estimated cost = 1000 USD

Actual cost = 1500 USD

Cost progress = 50%

This would lead to EAC = 3000 USD

This is definately not how IFS is designed. But whatever alternative we try out, we end up with the estimated cost of 1000 USD either as the ETC or the EAC of the budget. 

With the forecast option “EAC Recalculated” we end up with 1000 USD as ETC and 2500 USD as EAC.

With the forecast option “ETC Recalculated” we end up with -1500 USD as ETC and 1000 USD as EAC. 

Please let me know, is there a way to set up the parameters to at least come to the result as explained in example 1? I.e. actual costs are higher than the estimate, 100% cost progress and EAC ends up with the actual costs instead of the estimate?

Or is the proposed way of working to always enter the ETC values manually in the Estimate, rather than the complete estimate?

Hi Marie,

There is no option to set up Actual cost as EAC. Let me explain the fuction of recalculate ETC or EAC. For new projects you normally use ETC Recalculation method then you can see the remaining budgeted value from ETC as the project goes on. When creating a forecast for  already started project, you have two options.

  1. Define a forecasted vale for the remaining work and create the forecast using EAC recalculation method. Then your EAC value will be ajdusted by adding already consumed cost for the project to ETC value.
  2. Define a forecasted vale for the completion of the project and create the forecast using ETC recalculation method. Then your ETC value will be ajdusted based on already consumed cost for the project

As I mentioned above there is no set up in the core application to achive your requirement but we can try writting a custom action to update the EAC value as per your rule but again, if the forecast is at Approved state then that will not be allowed either.

If you want to have different forecast as the project progress then the option is to creare different version and assign new farecased value for the new version however no option to copy the actual cost as described above.

 

Best Regards,

Sumedha

Since the calculation of ETC and EAC does not work as expected we have decided to use project forecasting for follow up on actual figures only. We have also added some custom fields that are calculated as per our requirements. 

// Marie

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