As a performance metric, the Estimate at Completion (EAC) represents the projected total cost of your project or task when it completes.
As a setting, it allows you to define how the EAC value should be calculated.
- Setting How to Calculate EAC
- Understanding How to Calculate EAC Based on the Performance Index Method
- Locating the EAC in a Project or a Task
As part of project system preferences, the system administrator can define how to calculate the EAC. EAC can be calculated in one of the following two ways:
For more information about setting up project preferences in Workfront, including how to calculate the Estimate at Completion, see "Setting Project Preferences."
As a project manager, you can also change this preference at the project level, in the Finance sub-tab of the project. For more information about editing the Finance sub-tab of a project, see "Managing the Project Finance Sub-tab."
- EAC for the parent task and project are determined by entering the actual hours/actual labor cost into the EAC Formulas
- Includes Actual Hours/costs and expenses added directly to the parent task or project
- EAC for the parent task and project are determined by summing up the EAC for each direct child task
- Excludes Actual Hours and expenses added directly to the parent task or project
In Workfront, the calculation for EAC depends on the selected Performance Index Method (PIM) of the project. For more information about setting the PIM for your system or for your project, see "Setting the Performing Index Method (PIM)."
EAC = Total Planned Hours / CPI*
*If Cost Performance Index (CPI) = 0, EAC = Total Planned Hours + Actual Hours. This occurs when hours have been captured, but project/task is at 0% complete.
For more information about calculating CPI, see "Calculating Cost Performance Index."
The EAC of a project is calculated using the following formula:
EAC= EAC Labor + EAC Expense
EAC Labor = IF CPI Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
CPI Labor = IF Actual Labor Cost <> 0 THEN CPI Labor = Total Budgeted Cost Work Performed / Actual Labor Cost
ELSE CPI Labor = 1
The following fields are taken into account when calculating the EAC:
- Total Budgeted Cost Work Performed (BCWP) = The result of multiplying the budgeted cost of the work planned (budgeted cost) and the percent of the task that has been completed so far.
For information about the total Budgeted Cost Work Performed (BCWP), see "Calculate Budgeted Cost Work Performed (BCWP)."
- For a non-parent task:
Total Budgeted Cost Work Performed = Planned Hours * (Percent Complete/100)
- For a parent task:
Total Budgeted Cost Work Performed = the sum of the Total Budgeted Cost Work Performed field for all direct child tasks.
- For a project:
Total Budgeted Cost Work Performed = the sum of the Total Budgeted Cost Work Performed field for all top level tasks (parents and standalone tasks).
- For a non-parent task:
- EAC Expense = the result of adding the Incurred Actual Expense Cost to the Not Incurred Planned Expense Cost. It is calculated by the following formula:
Incurred Actual Expense Cost + Not Incurred Planned Expense
- Incurred Actual Expense Cost = The sum of the Planned Amount field for all expenses where the Actual Amount field > 0. For example, if you create an expense for Task 1 and enter $500.00 in the Planned Amount field and an amount > 0 in the Actual Amount field (i.e. $600.00), the Incurred Planned Expense Cost for this task is $500.00.
- Not Incurred Planned Expense = The sum of the Planned Amount field for all expenses where the Actual Amount field = 0. For example, if you create two expenses for Task 1 where for the first expense the value in the Planned Amount field is $500.00 and the value in the Actual Amount is $600.00 and for the second expense, the value in the Planned Amount field is $300.00 and the value of the Actual Amount field is $0.00, the value of the Not Incurred Planned Expense for this task is $300.00.
- Navigate to the project or task where you want to view the EAC.
- Select the Project Details tab or the Task Details tab, depending on whether you are viewing EAC for a project or task.
- Click Finance.
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