The aim of this post is to clarify the functionality of the Project Spread Profile within the IFS Budgeting and Forecasting module.
Refer to the following example
The objective is to allocate USD 10,000 across the activity dates, which span from August 1, 2022, to November 8, 2022. This allocation follows a profile comprising five intervals with distinct percentage distributions of 0%, 10%, 20%, 30%, and 40%, respectively. We need to compute the specific spread amount per period from 2022-08 to 2022-11.
Please note: The spreading calculation takes into account only working days based on the connected calendar to the project. In this instance, the connected calendar assumes 8x7 (meaning all seven days of the week are considered working days). The rule of thumb is to select only the working days during the period (start and date dates). The connected calendar to the project is referred.
Calculation Steps
- The amount to be spread should to be allocated per intervals as per the % distribution.
per interval allocation = amount to be spread * per interval % distribution
No of working days per interval = no of working days in between the start and end dates / no of intervals
per day allocation (per interval) = per interval allocation / no of working days per interval
- Then the allocated amount per interval should be distributed among the working days for the interval (in this case the assumption is, all seven days of the week are considered working days). The duration between start and end dates are 100. Therefore 20 days needs to be considered per interval.
- First interval should have 0% distribution, therefore no amount is spread for first 20 days.
Spread of 0% distribution in the first interval - Second interval should have 10% distribution, therefore 1,000 needs to be spread for second 20 days. Per day allocation is USD 50.
Spread of 10% distribution in the second interval -
Third interval should have 20% distribution, therefore 2,000 needs to be spread for the third 20 days. Per day allocation would be 100.
Spread of 20% distribution in the third interval -
Like-wise repeat the calculation for 30% and 40% distribution. Per day allocation is 150 and 200 for the fourth and fifth intervals.
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Finally sum up the amounts, period wise. eg: Amount allocated for dates in the period 2022-08 should be the total amount spread for the respective period, 2022-08
Spread amounts per period as per the manual calculation Following illustrates the screen capture, which shows the results of the spread per period
Number of period and number of intervals in the Project Spread Profile are two different things. It is easily misunderstood as % distribution for interval 1 corresponds to the period 1 which is not the correct idea behind.
For an example, if it is required to spread the ETC evenly within period, the Project Spread Profile can have 1 interval with 100% distribution. In such scenario, the spread per period changes with the number of days per period only.