Definition of Terms
Term |
Definition |
Actual Hours |
The hours recorded against the task (via Log Hours button). For parent tasks = children Actual Hours + Actual Hours on the parent task. For projects = Actual Hours logged on the project +Actual Hours logged on standalone or children tasks in the project. Example: If from the Updates tab for Task 1, you click ‘Log Time’ and enter 25 hours, the Actual Hours = 25. |
Actual Labor Cost |
The result of multiplying the actual hours by the rate. Example: If the task is set up such that the Cost Type = ‘User Hourly’ (Task Details>Finance) and the user’s cost/hr on their profile is $100.00/hr, then if you record 5 actual hours, the Actual Labor Cost = $500.00. |
IncurredActualExpenseCost |
The sum of the Actual Amount field for all expenses where the Actual Amount field > 0. Example: If you create an expense for Task 1 and enter $600.00 in the Actual Amount field, the Incurred Actual Expense Cost for this task is $600.00. ************ IMPORTANT ************* If the value in the Actual Amount field for an expense is negative, the system will ignore that expense record. For example, if the value in the Planned Amount field is $200.00 but the value in the Actual Amount field is -$300.00, the system will ignore this entire expense record which means you would not include the $200.00 planned value or the -$300.00 actual value in any calcualations. |
IncurredPlannedExpenseCost |
The sum of the Planned Amount field for all expenses where the Actual Amount field > 0. 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. |
NotIncurredPlannedExpense |
The sum of the Planned Amount field for all expenses where the Actual Amount field = 0. 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. |
Percent Complete |
The value entered into the % Complete field for a task. |
Planned Hours |
The value entered into the Pln Hrs field on the task (i.e. 10 Hours) |
Planned Labor Cost |
The result of multiplying the planned hours by the rate. Example: If the task is set up such that the Cost Type = ‘User Hourly’ (Task Details>Finance) and the user’s cost/hr on their profile is $100.00/hr, then if you record 10 planned hours, the Planned Labor Cost = $1,000.00. |
TotalBudgetedCostWorkPerformed |
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 a non-parent task: |
Differences Between the Two EAC Methods
EAC Method = Calculate at Project Level Method
- 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 Method = Roll Up From Tasks/Subtasks Method
- 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
Formulas
PIM= Hour-based
TotalBudgetedCostWorkPerformed
For a non parent task:
TotalBudgetedCostWorkPerformed = Planned Hours * (Percent Complete/100)
For a parent task:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all single children tasks.
For a project:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top level tasks (This includes only first level parents, not secondary level parents, etc).
CPI
IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
EAC
IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
PIM =Cost-Based
TotalBudgetedCostWorkPerformed
For a non parent task:
TotalBudgetedCostWorkPerformed = Planned Labor Cost * (Percent Complete/100)
For a parent task:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all direct child tasks.
For a project:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top level tasks.
CPI
IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
EAC
EAC = EAC Labor + EAC Expense
For EAC Labor, we first need to determine CPI_Labor.
CPI_Labor = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
EAC Labor = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Expense = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Method: Calculate at Project Level
PIM = Hour-Based
Simple example: Project has no child tasks
PIM = Hour-Based
EAC Method = Calculate at project level
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- Add planned/actual hours to each task and % Complete according to the table below:
Task |
Pln Hrs |
Act Hrs |
% Complete |
Task 1 |
5 hrs |
25 hrs |
20% |
Task 2 |
10 hrs |
25 hrs |
30% |
Task 3 |
15 hrs |
25 hrs |
40% |
- Recalculate Finance
- CPI for Task 1 = .04 calculated as follows:
CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 1 = 1 / 25
CPI for Task 1 = .04
- EAC for Task 1 = 125 hrs calculated as follows:
EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 1 = 5 / .04
EAC for Task 1 = 125 hrs
- CPI / EAC for Tasks 2 and 3 are:
Task 2 = .12 / 83.33 hrs
Task 3 = .24 / 62.5 hrs
- CPI for Project = .13 calculated as follows:
CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Project = 10 / 75
CPI for Project = .13
- EAC for Project = 225 hrs calculated as follows:
EAC for Project = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Project = 30 / .13333
EAC for Project = 225 hrs
Complicated Example: Project has child tasks
PIM = Hour-Based
EAC Method = Calculate at project level
- Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
- Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- Add planned/actual hours each task and % Complete according to the table below (Note: For Tasks 1 and 3, you are only adding actual hours):
Task |
Pln Hrs |
Act Hrs |
% Complete |
Task 1 |
10 hrs |
||
Task 2 |
5 hrs |
10 hrs |
20% |
Task 3 |
10 Hrs |
||
Task 4 |
10 hrs |
10 hrs |
40% |
Task 5 |
15 hrs |
10 hrs |
50% |
Task 6 |
20 hrs |
10 hrs |
60% |
- Add 50 hours directly to the project (More>Hours>Log Hours).
- CPI for Task 2 = .1 calculated as follows:
CPI for Task 2 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 2 = 1 / 10
CPI for Task 2 = .1
- EAC for Task 2 = 50 hrs calculated as follows:
EAC for Task 2 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 2 = 5 / .1
EAC for Task 2 = 50 hrs
- The CPI / EAC for Tasks 4, 5, and 6 are as follows:
Task 4: .4 / 25 hrs
Task 5: .75 / 20 hrs
Task 6: 1.2 / 16.67 hrs
- CPI for Task 3 = .38 calculated as follows:
CPI for Task 3 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 3 = 11.5 / 30
CPI for Task 3 = .38
- EAC for Task 3 = 65.22 hrs calculated as follows:
EAC for Task 3 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 3 = 25 / .383333
EAC for Task 3 = 65.22 hrs
- CPI for Task 1 = .25 calculated as follows:
CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 1 = 12.5 / 50
CPI for Task 1 = .25
- EAC for Task 1 = 120 hrs calculated as follows:
EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 1 = 30/ .25
EAC for Task 1 = 120 hrs
- CPI for Project = .22 calculated as follows:
CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Project = 24.5 / 110
CPI for Project = .22272
CPI for Project = .22
- EAC for Project = 224.49 hrs calculated as follows:
EAC for Project = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Project = 50 / .22272
EAC for Project = 224.49 hrs
PIM = Cost-Based
Simple Example: Project has no child tasks
PIM = Cost-Based
EAC Method = Calculate at project level
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- Add planned/actual hours to each task and % Complete according to the table below:
Task |
Pln Hrs |
Pln Lbr Cost |
Act Hrs |
Act Lbr Cost |
% Complete |
Task 1 |
5 hrs |
$500.00 |
25 hrs |
$2,500.00 |
20% |
Task 2 |
10 hrs |
$1,000.00 |
25 hrs |
$2,500.00 |
30% |
Task 3 |
15 hrs |
$1,500.00 |
25 hrs |
$2,500.00 |
40% |
- Add expenses to each task according to the table below:
Task |
Expense |
Planned Amount |
Actual Amount |
Task 1 |
Task 1 Exp 1 |
$300.00 |
$400.00 |
Task 1 |
Task 1 Exp 2 |
$500.00 |
$0.00 |
Task 2 |
Task 2 Exp |
$200.00 |
$100.00 |
Task 3 |
Task 3 Exp |
$800.00 |
$700.00 |
- Add two expenses to the project (i.e. not tied to a task) as follows:
Expense |
Planned Amount |
Actual Amount |
Project Exp 1 |
$1,000.00 |
$1,500.00 |
Task 1 Exp 2 |
$2,500.00 |
$0.00 |
- Based on the above values, the Incurred/Not Incurred Costs are determined as follows:
Task |
Not Incurred Planned Expense |
Incurred Planned Expense |
Incurred Actual Expense |
Task 1 |
$500.00 |
$300.00 |
$400.00 |
Task 2 |
$0.00 |
$200.00 |
$100.00 |
Task 3 |
$0.00 |
$800.00 |
$700.00 |
Project |
$3,000.00 |
$2,300.00 |
$2,700.00 |
- From Project Actions, run Recalculate Finance
- CPI for Task 1 = .14
- CPI for Task 1 = .14 calculated as follows:
CPI for Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI for Task 1 = (100+300) / (2500+400)
CPI for Task 1 = 400 / 2900
CPI for Task 1 = .14
- EAC for Task 1 = $13,400.00
CPI Labor for Task 1 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor for Task 1 = 100/2500
CPI Labor for Task 1 = .04
EAC Labor for Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor for Task 1 = 500.00/.04
EAC Labor for Task 1 = $12,500.00
EAC Expense for Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense for Task 1 = $400.00 + $500.00
EAC Expense for Task 1 = $900.00
EAC for Task 1 = EAC Labor + EAC Expense
EAC for Task 1 = $12,500.00 + $900.00
EAC for Task 1 = $13,400.00
- Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / $8,433.33
Task 3 = .44 / $6,950.00
- CPI for Project = .32 calculated as follows:
CPI for Project = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI for Project = (1000 + 2300) / (7500 + 2700)
CPI for Project = 3300 / 10200
CPI for Project = .32
- EAC for Project = $28,200.00 calculated as follows:
CPI Labor for Project = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor for Project = 1000 / 7500
CPI Labor for Project = .13333
CPI Labor for Project = .13
EAC Labor for Project = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor for Project = 3000/ .13333
EAC Labor for Project = $22,500.00
EAC Expense Project = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense Project = $3000.00 + 2,700.00
EAC Expense Project = $5,700.00
EAC Project = EAC Labor + EAC Expense
EAC Project = $22,500.00 + $5,700.00
EAC Project = $28,200.00
Complicated Example: Project has child tasks
PIM = Cost-Based
EAC Method = Calculate at project level
- Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
- Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- Add planned/actual hours each task and % Complete according to the table below (Note: For Tasks 1 and 3, you are only adding actual hours):
Task |
Pln Hrs |
Pln Lbr Cost |
Act Hrs |
Act Lbr Cost |
% Complete |
Task 1 |
10 hrs |
$1,000.00 |
|||
Task 2 |
5 hrs |
$500.00 |
10 hrs |
$1,000.00 |
20% |
Task 3 |
10 Hrs |
$1,000.00 |
|||
Task 4 |
10 hrs |
$1,000.00 |
10 hrs |
$1,000.00 |
40% |
Task 5 |
15 hrs |
$1,500.00 |
10 hrs |
$1,000.00 |
50% |
Task 6 |
20 hrs |
$2,000.00 |
10 hrs |
$1,000.00 |
60% |
- Add 50 hours directly to the project (More>Hours>Log Hours) so that there is $5,000.00 of actual labor cost recorded directly to the project.
- Add expenses to each task according to the table below (I’ve added a blank row in between each task to make it easier to read):
Task |
Expense |
Planned Amount |
Actual Amount |
Task 1 |
Task 1 Exp 1 |
$300.00 |
-$400.00 |
Task 1 |
Task 1 Exp 2 |
-$500.00 |
$800.00 |
Task 1 |
Task 1 Exp 3 |
$400.00 |
$0.00 |
Task 2 |
Task 2 Exp 1 |
$500.00 |
$700.00 |
Task 2 |
Task 2 Exp 2 |
-$400.00 |
$0.00 |
Task 2 |
Task 2 Exp 3 |
-$200.00 |
$600.00 |
Task 2 |
Task 2 Exp 4 |
$700.00 |
-$200.00 |
Task 3 |
Task 3 Exp |
$0.00 |
$1,000.00 |
Task 4 |
Task 4 Exp 1 |
$800.00 |
$0.00 |
Task 4 |
Task 4 Exp 2 |
-$100.00 |
$300.00 |
Task 4 |
Task 4 Exp 3 |
-200.00 |
$0.00 |
Task 5 |
Task 5 Exp 1 |
$700.00 |
$800.00 |
Task 5 |
Task 5 Exp 2 |
-$100.00 |
$300.00 |
Task 5 |
Task 5 Exp 3 |
-$400.00 |
-$200.00 |
Task 6 |
Task 6 Exp 1 |
$600.00 |
$700.00 |
Task 6 |
Task 6 Exp 2 |
$500.00 |
-$300.00 |
- Add two expenses to the project (i.e. not tied to a task) as follows:
Expense |
Planned Amount |
Actual Amount |
Project Exp 1 |
$1,000.00 |
$1,500.00 |
Task 1 Exp 2 |
$2,500.00 |
$0.00 |
- Based on the above values, the Incurred/Not Incurred Costs are determined as follows:
Task |
Not Incurred Planned Expense |
Incurred Planned Expense |
Incurred Actual Expense |
Task 1 |
$400.00 |
-$500.00 |
$800.00 |
Task 2 |
-$400.00 |
$300.00 |
$1,300.00 |
Task 3 |
$0.00 |
$0.00 |
$1,000.00 |
Task 4 |
$600.00 |
-$100.00 |
$300.00 |
Task 5 |
$0.00 |
$600.00 |
$1,100.00 |
Task 6 |
$0.00 |
$600.00 |
$700.00 |
Project |
$2,500.00 |
$1000.00 |
$1,500.00 |
- From Project Actions, run Recalculate Finance
- CPI for Task 2 = .17 calculated as follows:
CPI Task 2 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI Task 2 = (100+300) / (1000+1300)
CPI Task 2 = 400 / 2300
CPI Task 2 = .17
- EAC for Task 2 = $5,900.00
CPI Labor Task 2 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor Task 2 = 100/1000
CPI Labor Task 2 = .1
EAC Labor Task 2 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor Task 2 = 500.00/.1
EAC Labor Task 2 = $5,000.00
EAC Expense Task 2 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense Task 2 = $1,300.00 + -$400.00
EAC Expense Task 2 = $900.00
EAC Task 2 = EAC Labor + EAC Expense
EAC Task 2 = $5,000.00 + $900.00
EAC Task 2 = $5,900.00
- The CPI/EAC for Tasks 4, 5, and 6 are determined the same way so I’ll just provide those values below:
Task 4: .23 / $3,400.00
Task 5: .64 / $3,100.00
Task 6: 1.06 / $2,366.67
- CPI for Task 3 = .31 calculated as follows:
CPI Task 3 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI Task 3 = (1,150 + 500) / (3000 + 2400)
CPI Task 3 = 1650 / 5400
CPI Task 3 = .31
EAC for Task 3 = $9,521.74 calculated as follows:
CPI Labor Task 3 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor Task 3 = 1150/3000
CPI Labor Task 3 = .383333
CPI Labor Task 3 = .38
EAC Labor Task 3 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor Task 3 = $2,500.00 / .383333
EAC Labor Task 3 = $6,521.74
EAC Expense Task 3 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense Task 3 = $2,400.00 + $600.00
EAC Expense Task 3 = $3,000.00
EAC Task 3 = EAC Labor + EAC Expense
EAC Task 3 = $6,521.74 + $3,000.00
EAC Task 3 = $9,521.74
- CPI for Task 1 = .16 calculated as follows:
CPI Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI Task 1 = (1250 + 300) / (5000 + 4500)
CPI Task 1 = 1550 / 9500
CPI Task 1 = .16
- EAC for Task 1 is $17,100.00 calculated as follows:
CPI Labor Task 1 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor Task 1 = 1250 / 5000
CPI Labor Task 1 = .25
EAC Labor Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor Task 1 = $3,000.00 / .25
EAC Labor Task 1 = $12,000.00
EAC Expense Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense Task 1 = $4500 + 600
EAC Expense Task 1 = $5,100.00
EAC Task 1 = EAC Labor + EAC Expense
EAC Task 1 = $12,000.00 + 5,100.00
EAC Task 1 = $17,100.00
- CPI for Project is .25
CPI for Project = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI for Project = (2450 + 1900) / (11000 + 6700)
CPI for Project = 4350 / 17700
CPI for Project = .25
- EAC for Project = $32,248.98 calculated as follows:
CPI Labor for Project = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor for Project = 2450 / 11000
CPI Labor for Project = .22272
CPI Labor for Project = .22
EAC Labor for Project = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor for Project = $5,000.00 / .22272
EAC Labor for Project = $22,448.97959
EAC Labor for Project = $22,448.98
EAC Expense Project = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense Project = $3,100.00 + $6,700.00
EAC Expense Project = $9,800.00
EAC Project = EAC Labor + EAC Expense
EAC Project = $22,448.98 + 9,800.00
EAC Project = $32,248.98
EAC Method: Roll up from tasks/subtasks
PIM = Hour-Based
Simple Example: Project has no child tasks
PIM = Hour-Based
EAC Method = Roll up from tasks/subtasks
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- Add planned/actual hours to each task and % Complete according to the table below:
Task |
Pln Hrs |
Act Hrs |
% Complete |
Task 1 |
5 hrs |
25 hrs |
20% |
Task 2 |
10 hrs |
25 hrs |
30% |
Task 3 |
15 hrs |
25 hrs |
40% |
- Recalculate Finance
- CPI for Task 1 = .04 calculated as follows:
CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 1 = 1 / 25
CPI for Task 1 = .04
- EAC for Task 1 = 125 hrs calculated as follows:
EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 1 = 5 / .04
EAC for Task 1 = 125 hrs
- CPI / EAC for Tasks 2 and 3 are:
Task 2 = .12 / 83.33 hrs
Task 3 = .24 / 62.5 hrs
- CPI for Project = .13 calculated as follows:
CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Project = 10 / 75
CPI for Project = .13
- EAC for Project = 270.83 hrs calculated as follows
EAC for Project = EAC Task 1 + EAC Task 2 + EAC Task 3
EAC for Project = 125 + 83.33 + 62.5
EAC for Project = 270.83 hrs
Complicated Example: Project has child tasks
PIM = Hour-Based
EAC Method = Roll up from tasks/subtasks
- Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
- Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- Add planned/actual hours each task and % Complete according to the table below (Note: For Tasks 1 and 3, you are only adding actual hours):
Task |
Pln Hrs |
Act Hrs |
% Complete |
Task 1 |
10 hrs |
||
Task 2 |
5 hrs |
10 hrs |
20% |
Task 3 |
10 Hrs |
||
Task 4 |
10 hrs |
10 hrs |
40% |
Task 5 |
15 hrs |
10 hrs |
50% |
Task 6 |
20 hrs |
10 hrs |
60% |
- Add 50 hours directly to the project (More>Hours>Log Hours) so that there is $5,000.00 of actual labor cost recorded directly to the project.
- Run Recalculate Finance
- CPI for Task 2 = .1 calculated as follows:
CPI for Task 2 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 2 = 1 / 10
CPI for Task 2 = .1
- EAC for Task 2 = 50 hrs calculated as follows:
EAC for Task 2 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 2 = 5 / .1
EAC for Task 2 = 50 hrs
- CPI / EAC for Task 4, Task 5, and Task 6:
Task 4 = .4 / 25 hrs
Task 5 = .75 / 20 hrs
Task 6 = 1.2 / 16.67 hrs
- CPI for Task 3 = .38
CPI for Task 3 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 3 = 11.5 / 30
CPI for Task 3 = .38
- EAC for Task 3 = EAC Task 4 + EAC Task 5
EAC for Task 3 = 25 + 20
EAC for Task 3 = 45 hrs
- CPI for Task 1 = .25 calculated as follows:
CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Task 1 = 12.5 / 50
CPI for Task 1 = .25
- EAC for Task 1 = EAC Task 2 + EAC Task 3
EAC for Task 1 = 50 + 45
EAC for Task 1 = 95 hrs
- CPI for Project = .22 calculated as follows:
CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
CPI for Project = 24.5 / 110
CPI for Project = .22272
CPI for Project = .22
- EAC for project = EAC Task 1 + EAC Task 6
EAC for project = 95 + 16.67
EAC for project = 111.67 hrs
PIM = Cost-Based
Simple Example: Project has no child tasks
PIM = Cost-Based
EAC Method = Roll up from tasks/subtasks
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- Add planned/actual hours to each task and % Complete according to the table below:
Task |
Pln Hrs |
Pln Lbr Cost |
Act Hrs |
Act Lbr Cost |
% Complete |
Task 1 |
5 hrs |
$500.00 |
25 hrs |
$2,500.00 |
20% |
Task 2 |
10 hrs |
$1,000.00 |
25 hrs |
$2,500.00 |
30% |
Task 3 |
15 hrs |
$1,500.00 |
25 hrs |
$2,500.00 |
40% |
- Add expenses to each task according to the table below:
Task |
Expense |
Planned Amount |
Actual Amount |
Task 1 |
Task 1 Exp 1 |
$300.00 |
$400.00 |
Task 1 |
Task 1 Exp 2 |
$500.00 |
$0.00 |
Task 2 |
Task 2 Exp |
$200.00 |
$100.00 |
Task 3 |
Task 3 Exp |
$800.00 |
$700.00 |
- Add two expenses to the project (i.e. not tied to a task) as follows:
Expense |
Planned Amount |
Actual Amount |
Project Exp 1 |
$1,000.00 |
$1,500.00 |
Task 1 Exp 2 |
$2,500.00 |
$0.00 |
- Based on the above values, the Incurred/Not Incurred Costs are determined as follows:
Task |
Not Incurred Planned Expense |
Incurred Planned Expense |
Incurred Actual Expense |
Task 1 |
$500.00 |
$300.00 |
$400.00 |
Task 2 |
$0.00 |
$200.00 |
$100.00 |
Task 3 |
$0.00 |
$800.00 |
$700.00 |
Project |
$3,000.00 |
$2,300.00 |
$2,700.00 |
- From Project Actions, run Recalculate Finance
- CPI for Task 1 = .14 calculated as follows:
CPI for Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI for Task 1 = (100+300) / (2500+400)
CPI for Task 1 = 400 / 2900
CPI for Task 1 = .14
- EAC for Task 1 = $13,400.00
CPI Labor for Task 1 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor for Task 1 = 100/2500
CPI Labor for Task 1 = .04
EAC Labor for Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor for Task 1 = 500.00/.04
EAC Labor for Task 1 = $12,500.00
EAC Expense for Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense for Task 1 = $400.00 + $500.00
EAC Expense for Task 1 = $900.00
EAC for Task 1 = EAC Labor + EAC Expense
EAC for Task 1 = $12,500.00 + $900.00
EAC for Task 1 = $13,400.00
- Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / $8,433.33
Task 3 = .44 / $6,950.00
- The CPI for the project = .32
CPI for Project = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI for Project = (1000 + 2300) / (7500 + 2700)
CPI for Project = 3300 / 10200
CPI for Project = .32
- EAC for the project is $28,783.33
EAC for Project = EAC Task 1 + EAC Task 2 + EAC Task 3
EAC for Project = $13,400.00 + $8,433.33 + $6,950.00
EAC for Project = $28,783.33
Complicated Example: Project has child tasks
PIM = Cost-Based
EAC Method = Roll up from tasks/subtasks
- Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
- Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- Add planned/actual hours each task and % Complete according to the table below (Note: For Tasks 1 and 3, you are only adding actual hours):
Task |
Pln Hrs |
Pln Lbr Cost |
Act Hrs |
Act Lbr Cost |
% Complete |
Task 1 |
10 hrs |
$1,000.00 |
|||
Task 2 |
5 hrs |
$500.00 |
10 hrs |
$1,000.00 |
20% |
Task 3 |
10 Hrs |
$1,000.00 |
|||
Task 4 |
10 hrs |
$1,000.00 |
10 hrs |
$1,000.00 |
40% |
Task 5 |
15 hrs |
$1,500.00 |
10 hrs |
$1,000.00 |
50% |
Task 6 |
20 hrs |
$2,000.00 |
10 hrs |
$1,000.00 |
60% |
- Add 50 hours directly to the project (More>Hours>Log Hours) so that there is $5,000.00 of actual labor cost recorded directly to the project.
- Add expenses to each task according to the table below (I’ve added a blank row in between each task to make it easier to read):
Task |
Expense |
Planned Amount |
Actual Amount |
Task 1 |
Task 1 Exp 1 |
$300.00 |
-$400.00 |
Task 1 |
Task 1 Exp 2 |
-$500.00 |
$800.00 |
Task 1 |
Task 1 Exp 3 |
$400.00 |
$0.00 |
Task 2 |
Task 2 Exp 1 |
$500.00 |
$700.00 |
Task 2 |
Task 2 Exp 2 |
-$400.00 |
$0.00 |
Task 2 |
Task 2 Exp 3 |
-$200.00 |
$600.00 |
Task 2 |
Task 2 Exp 4 |
$700.00 |
-$200.00 |
Task 3 |
Task 3 Exp |
$0.00 |
$1,000.00 |
Task 4 |
Task 4 Exp 1 |
$800.00 |
$0.00 |
Task 4 |
Task 4 Exp 2 |
-$100.00 |
$300.00 |
Task 4 |
Task 4 Exp 3 |
-200.00 |
$0.00 |
Task 5 |
Task 5 Exp 1 |
$700.00 |
$800.00 |
Task 5 |
Task 5 Exp 2 |
-$100.00 |
$300.00 |
Task 5 |
Task 5 Exp 3 |
-$400.00 |
-$200.00 |
Task 6 |
Task 6 Exp 1 |
$600.00 |
$700.00 |
Task 6 |
Task 6 Exp 2 |
$500.00 |
-$300.00 |
- Add two expenses to the project (i.e. not tied to a task) as follows:
Expense |
Planned Amount |
Actual Amount |
Project Exp 1 |
$1,000.00 |
$1,500.00 |
Task 1 Exp 2 |
$2,500.00 |
$0.00 |
- Based on the above values, the Incurred/Not Incurred Costs are determined as follows:
Task |
Not Incurred Planned Expense |
Incurred Planned Expense |
Incurred Actual Expense |
Task 1 |
$400.00 |
-$500.00 |
$800.00 |
Task 2 |
-$400.00 |
$300.00 |
$1,300.00 |
Task 3 |
$0.00 |
$0.00 |
$1,000.00 |
Task 4 |
$600.00 |
-$100.00 |
$300.00 |
Task 5 |
$0.00 |
$600.00 |
$1,100.00 |
Task 6 |
$0.00 |
$600.00 |
$700.00 |
Project |
$2,500.00 |
$1000.00 |
$1,500.00 |
- From Project Actions, run Recalculate Finance
- CPI for Task 2 = .17 calculated as follows:
CPI Task 2 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI Task 2 = (100+300) / (1000+1300)
CPI Task 2 = 400 / 2300
CPI Task 2 = .17
- EAC for Task 2 = $5,900.00
CPI Labor Task 2 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor Task 2 = 100/1000
CPI Labor Task 2 = .1
EAC Labor Task 2 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor Task 2 = 500.00/.1
EAC Labor Task 2 = $5,000.00
EAC Expense Task 2 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense Task 2 = $1,300.00 + -$400.00
EAC Expense Task 2 = $900.00
EAC Task 2 = EAC Labor + EAC Expense
EAC Task 2 = $5,000.00 + $900.00
EAC Task 2 = $5,900.00
- The CPI/EAC for Tasks 4, 5, and 6 are determined the same way so I’ll just provide those values below:
Task 4: .23 / $3,400.00
Task 5: .64 / $3,100.00
Task 6: 1.06 / $2,366.67
- CPI for Task 3 = .31 calculated as follows:
CPI Task 3 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI Task 3 = (1,150 + 500) / (3000 + 2400)
CPI Task 3 = 1650 / 5400
CPI Task 3 = .31
- EAC for Task 3 = EAC Task 4 + EAC Task 5
EAC for Task 3 $3,400.00 + $3,100.00
EAC for Task 3 = $6,500.00
- CPI for Task 1 = .16 calculated as follows:
CPI Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI Task 1 = (1250 + 300) / (5000 + 4500)
CPI Task 1 = 1550 / 9500
CPI Task 1 = .16
- EAC for Task 1 = EAC Task 2 + EAC Task 3
EAC for Task 1 = 5900 + 6500
EAC for Task 1 = $12,400.00
- Project CPI = .25 calculated as follows:
CPI for Project = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI for Project = (2450 + 1900) / (11000 + 6700)
CPI for Project = 4350 / 17700
CPI for Project = .25
- EAC for Project = EAC Task 1 + EAC Task 6
EAC for Project = $12,400.00 + $2,366.67
EAC for Project = $14,766.67
Thank you for taking the time to provide feedback. We appreciate and value your contribution to our site. Feedback provided here is regularly reviewed by our Product Documentation team. Please ensure your comments are specific to improving this help article. Any questions or requests outside this help article content should be directed to our Community User Forum or by submitting a ticket to customer support.