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How Workfront Calculates Finances

Definition of Terms

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 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 taskTotalBudgetedCostWorkPerformed = 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 taskTotalBudgetedCostWorkPerformed = 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 the Project Level

PIM = Hour-Based

### Simple example: Project has no child tasks

PIM = Hour-Based

EAC Method = Calculate at project level

1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is \$100.00.
2. 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%
1. Recalculate Finance
2. 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
3. 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
4. CPI / EAC for Tasks 2 and 3 are:
Task  2 = .12 / 83.33  hrs
Task 3 = .24 / 62.5 hrs
5. 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
6. 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

1. 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:
2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is \$100.00.
3. 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%
1. Add 50 hours directly to the project (More>Hours>Log Hours).
2. 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
3. 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
4. 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
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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

1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is \$100.00.
2. 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%
1. 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
1. 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
1. From Project Actions, run Recalculate Finance
2. CPI for Task 1 = .14
3. 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
4. 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
5. Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / \$8,433.33
Task 3 = .44 / \$6,950.00
6. 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
7. 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

1. 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:
2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is \$100.00.
3. 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%
1. 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.
1. 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
1. 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
1. From Project Actions, run Recalculate Finance
2. 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
3. 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
4. The CPI/EAC for Tasks 4, 5, and 6 are determined the same way so I’ll just provide those values below:
5. 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

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
6. 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=
7. 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
8. 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
9. 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

PIM= Hour-Based

### Simple Example: Project has no child tasks

PIM = Hour-Based

1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is \$100.00.
2. 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%
1. Recalculate Finance
2. 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
3. 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
4. CPI / EAC for Tasks 2 and 3 are:
Task  2 = .12 / 83.33  hrs
Task 3 = .24 / 62.5 hrs
5. 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
6. EAC for Project = 270.83 hrs calculated as follows
EAC for Project = 125 + 83.33 + 62.5
EAC for Project = 270.83 hrs

### Complicated Example: Project has child tasks

PIM = Hour-Based

1. 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:
2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is \$100.00.
3. 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%
1. 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.
2. Run Recalculate Finance
3. 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
4. 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
Task 4 = .4 / 25 hrs
Task 5 = .75 / 20 hrs
Task 6 = 1.2 / 16.67 hrs
6. 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 = 25 + 20
EAC for Task 3 = 45 hrs
8. 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 = 50 + 45
EAC for Task 1 = 95 hrs
10. 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
11. 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

1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is \$100.00.
2. 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%
1. 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
1. 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
1. From Project Actions, run Recalculate Finance
2. 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
3. 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
4. Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / \$8,433.33
Task 3 = .44 / \$6,950.00
5. 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
6. EAC for the project is \$28,783.33