Spread Project Budget or Forecast Amount
Explanation
Use this activity to spread project budget or forecast amounts. Cost or revenue spreading is typically performed
on a budget/forecast line when the Estimated to Complete (ETC) cost, committed cost, and/or revenue need to be
allocated into specific time periods where they are most likely to occur. You can manually spread cost or revenue
into accounting periods, as well as receive assistance in distributing the budgeted or forecasted amount using
predefined spreading profiles. Optionally, committed costs reported through purchase orders and subcontracts with a
Subcontract Valuation Plan can be spread using the planned dates defined on the corresponding source objects.
Spread Options
Use the Spread Cost/Revenue function to distribute values for one or multiple budget/forecast
lines. You can spread project forecast costs and revenue using several options:
- Spread Only ETC:
Use this option to spread only the ETC amount. Cost or revenue can be spread, or both can be spread if the
activity is performed from the header of the Project Forecast page. A predefined spread
profile can also be used.
-
Spread Only the Committed Cost:
This option is available when at least one cost element on the project forecast is enabled for committed cost
spreading and contains a committed cost. Committed cost can be spread using predefined profiles or planned
dates from connected source objects. The Spread using Dates from Source option must be
selected to use these planned dates.
Supported source objects include:
- Purchase orders – For
regular purchase orders, the spread period is based on the Planned Receipt Date on the order
line. For stage payment orders (non‑inventory, no part lines), the spread period is based on the
Expected Approval Date or the Stage Payment Begin Date if the
Expected Approval Date is not available.
Rental purchase orders are not currently supported with this spread option.
- Subcontracts –
Planned Invoice Date from active Subcontract Valuation Plans.
- Spread Both ETC and Committed
Cost:
Both ETC and committed costs can be spread together. A predefined profile can be used for both, or a combination
where ETC uses a spread profile and committed cost uses dates from the source.
-
Spread with a Profile:
When spreading with a profile, the following options are available:
- Use Spread Profile from Line: This
option spreads cost or revenue as defined on the budget/forecast line.
- Override Spread Profile on Line:
This option enables the selection and entry of spread profiles different from those defined on the
budget/forecast line.
The cost/revenue spread amounts can be viewed and modified in Forecast Spread
Details.
Prerequisites
- A project budget/forecast line with an ETC amount that
has not only been generated from resource forecast connections, should exist.
- To spread committed cost, the associated cost elements
must be enabled for committed cost spreading. Cost elements can be enabled either on the PCE Code
Part tab in the Project Setup Parameters page or in the
Cost/Revenue Elements page.
- The Cut-Off Date specified on the
project budget/forecast version should reside on an accounting period that exists for the company of the
project.
- To spread committed costs reported through sub
contracts, an active Sub Contract Valuation Plan with planned invoice dates must exist for the associated sub
contract.
System Effects
- The adjusted part of the ETC amount is spread over the
accounting periods between (and including) Start Date and End Date.
- Depending on the spread method used, the committed
amount for cost elements that are enabled for committed cost spreading is distributed across the accounting
periods between the Start Date and End Date, or according to the planned dates
defined on the source objects.
- The Spread Profile option is selected
to indicate that the cost/revenue has been spread into accounting periods.
- The ETC Spread Date Exception is
enabled if amountshave been spread outside the Start Date and End Date.
- If the Start Date and End
Date are not specified, the system fetches them from the Project work breakdown structure based on start
and end dates of the Project, Sub Project, and Activity of the budget/forecast line.