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How Workfront Calculates Finances

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:
TotalBudgetedCostWorkPerformed = Planned Hours * (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 (parents and standalone tasks). 

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 

  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

  1. 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 

  1. CPI / EAC for Tasks 2 and 3 are:

Task  2 = .12 / 83.33  hrs

Task 3 = .24 / 62.5 hrs

 

  1. 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

 

  1. 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:

Task 1

  Task 2

  Task 3

     Task 4

     Task 5

Task 6

 

  1. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

 

  1. 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

 

  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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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



  1. 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 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

 

  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

 

  1. 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

 

  1. Here are the CPI / EAC values for Task 2 and Task 3:

Task 2 = .19 / $8,433.33

Task 3 = .44 / $6,950.00

 

  1. 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

 

  1. 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:

 

Task 1

  Task 2

  Task 3

     Task 4

     Task 5

Task 6

 

  1. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

 

  1. 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 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



  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

CPI Task 2  = .17

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  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

 

  1. 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

 

  1. CPI / EAC for Tasks 2 and 3 are:

Task  2 = .12 / 83.33  hrs

Task 3 = .24 / 62.5 hrs

 

  1. 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

 

  1. 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

  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:

 

Task 1

  Task 2

  Task 3

     Task 4

     Task 5

Task 6 

  1. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
  1. 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

  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

  1. 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

  1. 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

 

  1. EAC for Task 3 = EAC Task 4 + EAC Task 5

EAC for Task 3 = 25 + 20

EAC for Task 3 = 45 hrs

 

  1. 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

 

  1. EAC for Task 1 = EAC Task 2 + EAC Task 3

EAC for Task 1 = 50 + 45

EAC for Task 1 = 95 hrs

 

  1. 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

 

  1. 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

 

  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 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

 

  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

 

  1. 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



  1. Here are the CPI / EAC values for Task 2 and Task 3:

Task 2 = .19 / $8,433.33

Task 3 = .44 / $6,950.00

 

  1. 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

 

  1. 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

 

  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:

 

Task 1

  Task 2

  Task 3

     Task 4

     Task 5

Task 6

 

  1. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

 

  1. 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 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



  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

CPI Task 2  = .17

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. 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

 

  1. EAC for Task 1 = EAC Task 2 + EAC Task 3

EAC for Task 1 = 5900 + 6500

EAC for Task 1 = $12,400.00

 

  1. 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

 

  1. EAC for Project = EAC Task 1 + EAC Task 6

EAC for Project = $12,400.00 + $2,366.67

EAC for Project = $14,766.67