| How to use cost forecast |  |
| ERP LN uses one of the following methods for a project cost forecast. The method is determined by the Leading Forecast Method list in the PPC Parameters (tpppc0500m000) session: Estimate-at-completion (EAC): The expected total cost at the end of the project. Estimate-to-complete (ETC): The expected cost for the remaining work. Estimated-extra-costs (EEC): The total expected cost for all remaining work that is not yet budgeted. The decision of the Leading Forecast Method results in different representations of the forecast in: Control Inquiries (tpppc4850m000). Performance Measurement (tpppc5840m000). Performance-Measurement using EVM (tppss0702m000). Display Financial Analysis (tppss0701m000). Generate Financial Interim Results (tpppc2260m000). If the leading forecast method is the estimate at completion (EAC): The estimated extra cost (EEC) is not displayed during entry of the Estimate at completion (EAC). 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) - Estimate at completion (EAC). The forecast cost in the Control Inquiries (tpppc4850m000) session shows the entered forecast amount and forecast quantity. The estimate at completion (EAC) in the Performance Measurement (tpppc5840m000) session and the Performance-Measurement using EVM (tppss0702m000) session shows the entered forecast amount. 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 (ATC) figure. The following calculation is used: Estimate to complete (ETC) = Estimate at completion (EAC) - Actuals. In the tpppc2260m000 session, the forecast amount is taken into account. The entered Estimate at completion (EAC) is transferred to an Estimate to complete (ETC). The following calculation is used: Estimate to complete (ETC) = Estimate at completion (EAC) - Actuals. If the leading forecast method is Estimate to complete (ETC): The Estimated extra cost (EEC) is not displayed during entry of the Estimate to complete (ETC). 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) - Estimate to complete (ETC)- Actual costs. The Control Inquiries (tpppc4850m000) session shows the entered forecast amount and forecast quantity. The Estimate at completion (EAC) in the Performance Measurement (tpppc5840m000) session and the Performance-Measurement using EVM (tppss0702m000) session is calculated from the entered forecast amount. The formula used in this calculation is Estimate at completion (EAC) = Actuals + Estimate to complete (ETC). In the Display Financial Analysis (tppss0701m000) session, the entered Estimate to complete (ETC) forecast amount can be displayed as planned cost. In the Generate Financial Interim Results (tpppc2260m000) session, the Estimate to complete (ETC) forecast amount can be taken into account. If the leading forecast method is Estimated extra cost (EEC): During entry of the forecast, the values of the other forecast methods are not calculated and shown as zero. The Variance at completion (VAC) in the Control Inquiries (tpppc4850m000), the Performance Measurement (tpppc5840m000), and the Performance-Measurement using EVM (tppss0702m000) is Cost variance (CV) - Estimated extra cost (EEC). Where Cost variance (CV) is performed (BCWP) - Actuals. The forecast cost in the Control Inquiries (tpppc4850m000) session shows the entered forecast amount and forecast quantity. The Estimate at completion (EAC) in the Performance Measurement (tpppc5840m000) session and the Performance-Measurement using EVM (tppss0702m000) session cannot be calculated and is set to zero. In the Display Financial Analysis (tppss0701m000) session, the entered Estimated extra cost (EEC) forecast amount can be displayed as additional planned cost on top of the budget. In the Generate Financial Interim Results (tpppc2260m000) session, the Estimated extra cost (EEC) forecast amount can be taken into account. |