Forecasting
The forecasting function is used to compare actual numbers to budgets and can be calculated at any time. The forecast is independent from the WIP calculation and posting. A forecast is based on and linked to a budget version and each forecast can have its own number so you can look back in previous forecasts. When calculating a forecast it is possible to use a progress %. Without this % the forecast calculation assumes that the budget is met. The Estimate To Complete (ETC) is then the difference between Budget and Actual, all lines which were not budgeted are shown as overrun. The progress % adds an additional parameter to the calculation which interprets either the actual or the budget as per setting below. Before calculating a forecast you must select the amount of detail you want the forecast to be based on with the forecast parameters.
Set the forecast parameters
- From the Project Card select Project > Project Budgets
- From the Project Budgets page select Budgets > Budget Card.
- On the Budget Card make the following settings on the Forecasting tab:
| Setting | Option | Description |
|---|---|---|
| Base for ETC Calculation | Select the base for the calculation of the estimate to complete. The progress % can be set on the Project Task, as well as on the ETC quantities or amounts, can be set on the Project Task Forecast lines. | |
| Budget | The progress percentage is applied to the value found in the budget. | |
| Actual | The progress percentage is applied to the value found in the project ledger entries. | |
| Include in forecast | Select what detail to include in the Forecast: | |
| [blank] | type only, (Item, Resource, G/L account). | |
| Include Resource Group or Item Category | The detail lines will be created per resource group or item category. | |
| Include Number | The detail lines will be created as per the actual item, resource nrs. and g/l account numbers. | |
| Include All | The detail lines will be created with all fields mentioned above. | |
| Include Cost Type in Forecast | The project cost type from the budget is included when the forecast is calculated if this field is selected, resulting in forecast lines per ProjectCost Type. | |
| Use for Quantity Forecasting | The quantity from the budget line is included in the forecast if this field is selected. The system sums the quantity per unit of measure code. For example, you can create a forecast based upon hours. | |
| Fix Quantity/Cost Ratio | The ratio between the quantity and the cost is fixed if this field is selected. So, when you change the quantity, the costs are automatically updated and vice versa. |
Create a forecast
- From the ProjectCard select Project > Project Budgets
- From the ProjectBudgets page select Process > Calculate Forecast to create a new, or update an existing forecast
- In request page make the following selections (note that you can only calculate a forecast based on the active budget):
- Action: Select Create or Update to either create a new forecast or update the current forecast.
- Include actual until: Select the date to specify until when actual numbers must be included.
- Filter: is automatically set to the current Project and active budget.
See Also