| Estimate-at-completion (EAC)Estimate-at-completion (EAC) is forecasting the final stage of
the project. The advantage is that the cost forecast is hardly influenced by
changes in the actual costs or the budget. Therefore, you do not have to
register frequently and still be accurate. To calculate the
variance-at-completion (VAC), at least one valid registered cost forecast is
required for each piece of budgeted work in the project scope. Step 1. In the Generate Cost Forecast by Cost Object (tpppc2216m000) session or the Generate Cost Forecast Input by Activity/Cost type (tpppc2226m000) session, select the Generate from Budget check box and generate cost
forecast. The initial estimate-at-completion uses your budget by default. Step 2. If you want to insert the cost forecast periodically, you
can do this in the following ways: - If parts of the project scope require a new forecast,
insert a new cost forecast in the Cost Forecast Overview (tpppc2816m000) session for the current date.
- If a large part of the project scope requires a new cost
forecast, entering a new forecast can be laborious, therefore, you must
generate the forecast records for the new date. Subsequently, you can go
through the generated cost forecast records and modify the forecast
values.
Step 3. You can generate the forecast records in the following
ways: Select the Generate from Budget check box to generate cost
forecast. Select this check box if changes occur in the entire
budget. The advantage of this check box is that budget changes are visible if
you enter new values. The disadvantage of selecting this check box is that the
new forecast (budget value) overrules the existing forecast values for parts of
the project scope that had no changes in the budget. Select the Generate from Previous Date check box to generate
cost forecast. Select this check
box if the budget is completely changed. The advantage is that previous
forecast values are visible if you enter new values.
If you want to monitor the result of the EAC
procedure: - The variance at completion (VAC) in the Control Inquiries (tpppc4850m000) session, the Performance Measurement (tpppc5840m000) session, and the Performance Measurement using EVM (tppss0702m000) session is: budget at completion (BAC) minus estimate
at completion (EAC).
- The entered forecast amount can be displayed as planned
cost in the Display Financial Analysis (tppss0701m000) session.
- The entered estimate at completion (EAC) is transferred to
an estimate to complete (ETC) figure. The following calculation is used:
estimate to complete (ETC) = estimate at completion (EAC) minus actuals.
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