Calculating Estimate at Completion (EAC) and Budget at Completion (BAC) based on Bottom Up Budget

A comprehensive project performance measurement using bottom‑up budgets enables more accurate planning, forecasting, and earned value analysis. You can evaluate the progress using the detailed activity‑level budget data in addition to the existing top‑down budgeting method. The bottom‑up budgeting provides a more granular and realistic view of the project performance by using the budget amounts defined at the activity and cost‑type levels.

You can select the budget source (Top-down or Bottom-up) in the Budget Type field, in the Generate Performance Measurement (tpppc5200m000) session. The Budget Cost Analysis Version field specified in the Budget Cost Analysis Versions (tpptc3500m000) session enables the system to identify the appropriate budget version for bottom‑up calculations. This ensures that time‑phased and baseline‑approved values are used consistently across performance measurements.

The updated performance measurement process leverages this data to calculate key performance indicators (KPIs) such as:

  • Planned Value (PV)
  • Earned Value (EV)
  • Budget at Completion (BAC)
  • Estimate at Completion (EAC)
  • Cost Variance and Schedule Variance
  • Cost and Schedule Performance Indices (CPI & SPI)

Calculating Budget at Completion (BAC)

You can calculate Estimate at completion and budget at completion in performance measurement to generate cost forecast for the bottom-up budget.

To calculate the Budget at Completion:

  1. Create an activity budget using the Activity Budget (tpptc2600m000) session.
    Note: You must ensure the baseline is approved for the activity.
  2. Generate budget by period for the activity using the Generate option from the Actions menu in the Project Budget by Period (tpptc3111m000) session.
  3. Specify the activity and click Generate in the Generate Time Phases budget cost analysis(tpptc3211m000) session.
  4. Click Generate Performance Measurement from the Actions menu in the Performance Measurement Activity (tpppc5540m000) session.
  5. Specify the project, select the Budget at Completion check box and the required information in the Generate Performance Measurement (tpppc5200m000) session.
  6. Specify the Until Period up to which the performance measurement must be generated for the activity.
  7. Click Generate. The cost amount is updated and summed up to the parent activity.

Calculate the Estimate at Completion (EAC)

To calculate the estimate at completion:

  1. Create an activity in the budget using the Activity Budget (tpptc2600m000) session.
  2. Specify the project and activity in the Generate Cost Forecast by Activity/Cost Type (tpppc2226m000) session.
  3. Select the Generate from Time Phased Bottom up Budget check box. Note:
    Note: To generate cost forecast by cost object, you must select the Aggregate from Cost Object check box and use the Generate cost Forecast by Cost Object (tpppc2216m000) session.
  4. Click Generate. The cost amount is updated in the cost forecast overview based on the cost object.
  5. Specify the project, select the Estimate at Completion check box and the required information in the Generate Performance Measurement (tpppc5200m000) session.
  6. Specify the Until Period up to which the performance measurement must be generated for the activity.
  7. Click Generate. The cost amount is updated and summed up to the parent activity.