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.

  1. In the Generate Cost Forecast by Cost Object (tpppc2216m000) session or the Generate Cost Forecast 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.

    In the Generate Cost Forecast by Cost Object (tpppc2216m000) session or the Generate Cost Forecast 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.


  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.

  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.