Projects Forecasts - EcoSys - 3.01 - Help - Hexagon PPM

EcoSys Projects Help (3.01)

PPMProduct
EcoSys
PPMCategory_custom
Help
Version_EcoSysStand
3.01

Forecast is used to update the selected project’s current forecast for the selected Project Period and determine the new Estimate-At-Complete (EAC) for each of the project’s objects based upon the selected Forecast Method

Time-phased projects require additional steps. If the enterprise mandates the viewing of time-phased forecast data in dashboards, even non-time phased projects must undergo the forecast time-phasing process. After the New EAC in the Forecast screen is validated, you can begin the time-phasing process by running the Refresh Time-Phased Forecast action which, using the current forecast as a basis, spreads ETC adjustments and the variances between the expected and actual costs, quantities and hours to one or more future periods. Then you can review initial results. By updating the Adjustment Method, Balance Method, Start Date, End Date, and Curve, then running Refresh Time-Phased Forecast, time-phased forecasts may be repeatedly updated and re-calculated during each forecast cycle until the working forecast represents the required value. Finally, you can manually spread line items of cost control objects with Time-Phased Forecast or Manual Details forecast method. 

Once forecast values are as desired and all validation checks have been passed, a forecast variance change can be created and submitted. The Submit Forecast Variance Change action creates a new forecast variance change and generates change line items by comparing the in-process values to the current forecast. Following this submission, the forecast variance change follows standard EcoSys change approval processes. Once approved, the current forecast will be updated, closing out the forecast update process for the project period.

Forecast Base

Forecast base is a concept applicable only in the context of time-phased forecasts. It consists of transactions sourced from the current forecast. The current forecast is originally created when the budget is approved. It is changed whenever additional budget is approved, changes are approved, or via approved forecast variances. Base forecast transactions, balance transactions (see below), and adjustment transactions (see below) together comprise the forecast.

If the forecast was approved the previous month, the base forecast for the selected project period will equal the current forecast for that period. If the approval of forecast variances for one or more periods was skipped, the base forecast for the selected project period will equal the current forecast for all skipped periods plus the current period’s forecast.

EcoSys Forecasts provides several charts to help you easily understand how the base, balance, and adjustments contribute to the calculation of an object’s forecast.

Balances and Balance Methods

A forecast’s balance is applicable only in the context of time-phased forecasts. Balances are transactions created to preserve EAC caused by the difference between the current period’s base and its expected actuals (actuals that match an object’s Resource, Cost Account, and UOM). The Balance Method defines how that difference is spread into the future periods. Balance Methods should be established at the beginning of the first project forecast and can be changed at any time during the life of a project. If no method is assigned to a cost control object, the system will default the method to Balance to Next.

If the approval of forecast variances for one or more periods was skipped, the balance for the selected project period will include expected actuals for all skipped periods plus the current period’s expected actuals.

Adjustment and Adjustment Methods

A forecast’s adjustment is applicable only in the context of time-phased forecasts. Adjustments are ETC transactions created to preserve EAC caused by unexpected actuals (actuals that do not match an object’s Resource, Cost Account, and UOM) or changes to EAC as a function of the Forecast Method.

Adjustment Methods should be established at the beginning of the first project forecast and can be changed at any time during the life of a project. If no method is assigned to a cost control object, the system will default the method Adjustment to Time-Phasing End

If the approval of forecast variances for one or more periods was skipped, the adjustments for the selected project period will include unexpected actuals for all skipped periods as well as the current period’s unexpected actuals.