The EAC Workbench can be used to predict EAC values for a Project Forecast in a structured manner, using system values as well as user entered values. EAC Workbench can be used to calculate both cost and revenue-related EAC, using the Project's defined Base Currency.
To start the calculation, create a Project Forecast, and then use the connected EAC Workbench to calculate EAC and ETC values. Finally, copy the values to the Project Forecast to continue with the Budgeting and Forecasting flow in IFS Cloud.
EAC Workbench uses the Active Budget of the Project when the Project Forecast was created, as the basis for the calculation. Budget Transfers between forecast lines and Estimated Budget Changes provide the flexibility to adjust the budget values for each forecast line by calculating the Adjusted Budget This Forecast value. If there are no Budget Transfers or Estimated Budget Changes, Adjusted Budget This Forecast value will be as same as the Active Budget when the Project Forecast was created.
Adjusted Budget This Forecast is calculated as follows:
Adjusted Budget This Forecast = Active Budget (when the Project Forecast was created) + Budget Transfers + Estimated Budget Changes
The Budget Transfer feature allows for the redistribution of the Active Budget amount (the Active Budget at the time of Project Forecast creation) between forecast lines within the same Forecast, while keeping the total Active Budget value for the Project unchanged. This feature only affects the Adjusted Budget This Forecast value of the selected Forecast lines and has no impact on the Active Budget of the Project.
Estimated Budget Changes can be entered to a Forecast line to provide for future anticipated changes in the Active Budget, thus calculating an accurate Adjusted Budget This Forecast for the selected Forecast line. An Estimated Budget Change can be positive or negative. This has no effect on the Active Budget of the Project, only affects the Adjusted Budget This Forecast value in the EAC workbench.
Estimated Future Commitment Adjustments can be entered manually to adjust the EAC according to changes anticipated in future like contingency or an expected rate change. It also can be used to forecast for miscellaneous work, not covered by anything else. An Estimated Future Commitment can be positive or negative.
Estimated Future Commitment is calculated as follows:
Unplanned Cost = Adjusted Budget This Forecast - Planned Cost/ Revenue + CCO Value included in Planned Cost/ Revenue
Estimated Future Commitments (EFC) = Unplanned Cost/ Revenue + Estimated Future Commitment Adjustments
Contract Change Order values can be used to predict better values for EAC. Contract Change Orders in any status can be connected to an EAC Workbench created for that particular Project. Contract Change Order values will be displayed based on their status in the Manage Contract Change Order assistant. If the Change Order agreement is already updated into the Sub Contract/ Sales Contract, it would be considered for the calculation via Planned Cost/ Revenue of the Sub Contract/ Sales Contract obtained through a snapshot. If it is not yet updated, then the Contract Change Order values can be retrieved using Manage Change Order Connections.
EAC value on EAC Workbench is calculated as follows:
EAC = Planned Cost/ Revenue + CCO Value not included in Planned Cost/ Revenue + Estimated Future Commitments (EFC)
In return, ETC is calculated using:
EAC = Total Committed Cost + ETC
Where Total Committed Cost is:
Total Committed Cost = Used Cost + Committed Cost
In case of Revenue Forecasting:
EAC = Preliminary Revenue + Posted Revenue + ETC
Once the EAC values are finalized, EAC can be copied to the connected Project Forecast using Copy EAC to Forecast action command.