How To : Calculate a Forecast
The forecasting function is used to compare actuals to budgets. The starting point is the budget, when calculating the forecast the settings on the Budget line determine the amount of detail included in the forecast:
- Include Group No.: The group number from the budget is included when the forecast is calculated if this field is selected resulting in forecast lines per group (Resource Group or Item Category / Product Group).
- Include No.: The (resource, item, g/l account) number from the budget is included when the forecast is calculated if this field is selected resulting in forecast lines per number.
- Include Cost Type in Forecast: The job cost type from the budget is included when the forecast is calculated if this field is selected, resulting in forecast lines per Job Cost 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.
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.
- Base for ETC Calculation: Select the base for the calculation of the estimate to complete:
- Budget - The progress percent is applied to the value found in the budget.
- Actuals - The progress percent is applied to the value found in the job ledger entries.
The progress %, as well as the ETC quantities or amounts, can be set on the Job Task Forecast lines.