The EAC Workbench is a tool for predicting EAC (Estimate At Completion) values for a Project Forecast. It accomplishes this by efficiently incorporating both system-generated and user-entered data. The EAC Workbench handles calculations for both cost and revenue-related EAC, using the Project's defined Base Currency.
To initiate the calculation process, begin by creating a Project Forecast. Then, use the connected EAC Workbench to calculate EAC (Estimate at Completion) and ETC (Estimate to Complete) values. Finally, copy the values to the Project Forecast to continue with the Budgeting and Forecasting process in IFS Cloud.
EAC Workbench utilizes the Active Budget of the Project at the time of the Project Forecast's creation as the foundation for its calculations. Budget Transfers between forecast lines and Estimated Budget Changes offer the flexibility to fine-tune budget values for each forecast line. This is achieved by computing the Adjusted Budget This Forecast value. In instances where there are no Budget Transfers or Estimated Budget Changes applied, the Adjusted Budget This Forecast value will remain identical to the Active Budget recorded at the time of the Project Forecast's creation.
Adjusted Budget This Forecast = Active Budget (when the Project Forecast was created) + Budget Transfers + Estimated Budget Changes
The Budget Transfer feature enables the redistribution of the Active Budget amount (which corresponds to the Active Budget at the time of Project Forecast creation) between forecast lines within the same Forecast. Importantly, this redistribution maintains the total Active Budget value for the entire Project unchanged.
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 Adjustment can be entered manually to adjust the EAC according to anticipated future changes, such as contingencies or expected rate adjustments. It can also be used for forecasting miscellaneous work not covered by other categories. Estimated Future Commitment can be positive or negative
Estimated Future Commitment (EFC) = Unplanned Cost/ Revenue + Estimated Future Commitment Adjustment
Here is how Unplanned Cost and Unplanned Revenue are calculated:
Unplanned Cost = Active Budget + Budget Transfer + Estimated Budget Change + Unapproved CCO included in Planned Cost + Approved CCO included in Planned Cost + Active CCO included in Planned Cost - Planned Cost
Unplanned Revenue = Active Budget + Budget Transfer + Estimated Budget Change + Unapproved CCO included in Planned Revenue + Approved CCO included in Planned Revenue + Active CCO included in Planned Revenue - Planned Revenue
Contract Change Order (CCO) 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. CCO values will be displayed based on their status in the Manage Contract Change Order assistant. If the CCO 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 CCO values can be retrieved using Manage Change Order Connections.
EAC = Planned Cost/ Revenue + Unapproved CCO Value not included in Planned Cost/ Revenue+ Approved CCO Value not included in Planned Cost/ Revenue+ Active CCO Value not included in Planned Cost / Revenue+ Estimated Future Commitment (EFC)
EAC = Total Committed Cost + ETC
Total Committed Cost = Used Cost + Committed Cost
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 command.