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?
Best answer by Sumedha
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