### How are Earned Value fields calculated?

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calendar_today

#### Products

Clarity PPM SaaS Clarity PPM On Premise

#### Issue/Introduction

Need clarifications on how financial fields are calculated and what their definition is

How are financial values calculated? ACWP, BAC, BAC Cost, BCWS, BCWP, CPI, SPI

#### Environment

Release: CODFSS99000-15.3-PPM SAAS FedRAMP-Sandbox-Small Environment
Component:

#### Resolution

Lets use an example to try to clarify these figures.

1. Create a project that spans from 01/01/18 to 31/07/2018
2. Add a team member and assign him to a task with the same dates as above
3. Note that ETC and allocation figures are set to 1216 hours
4. This gets calculated as resource working days x calendar availability: 152 working days x 8 working hours per days
5. Financially enable the project, associate a rate matrix to the project and add a financial department and location
6. On the rate matrix we have added a catch all row (to be used for any configuration) with a 140 USD row
7. Run the Rate Matrix Extraction job ( It is crucial to run this job prior to the Post Timesheets job, otherwise ACWP values will not be calculated)
8. Submit a timesheet
9. Run the Post Timesheet job.
10. Run the Update Earnev value and Cost Totals job
11. ACWP is now calculated: 5600 USD > 40 timesheet hours x 140 USD per hour
12. Let create a baseline
13. Next values are now calculated:
BAC is 1216 (Total effort: ETC + Actuals)
BAC Cost is 170240 USD > 1216 (Total effort hours) x 140 (rate specified at rate matrix)
14. Run the Update Earned Value and Cost Totals job
15. Following values have now been calculated:
BCWS 141397.96 USD > BAC Cost up to today (28/06/18) or based on As of date
This is the portion of the total BAC Cost of 170240 USD till 28/06/18
BCWP is calculated at task level and at project level:
BAC x % Complete. We set the % complete at 25% > 170240 USD x 25% > 42560 USD
b. At project level:
Sum of [BCWP] for all Level 1 Tasks. On this case with only one task, the same value as above: 42560 USD
16. Run the Update earned Value and Cost Totals job
17. Following values are now calculated:
CPI: BCWP / ACWP > 42560 USD / 5600 USD > 7.6
SPI: BCWP / BCWS > 42560 USD / 141397.96 USD > 0.30

Definitions of the fields are as below:

Earned Value Calculations
BAC:  Baseline at Completion
BAC: (Sum of all the assignment level Actual Cost values for the project) + ETC (Cost) at the time the baseline is recorded. This will include future posted actual costs.
Baseline required:  Yes

BCWS:  Budgeted Cost of Work Scheduled
BCWS:  Sum of the BAC through a point in time.  That point in time is the Project As Of Date, if set, else the current system date.
Baseline required:  Yes

BCWP:  Budgeted Cost of Work Performed (a.k.a EV)
BCWP:  Depends on the Earned Value Calculation Method
Baseline Required: Yes
Earned Value Calculation Method -
• Percent Complete
Task Level: BCWP = BAC * %Complete
Project Level:  BCWP = Sum of [BCWP] for all Level 1 Tasks
• 0/100:
If % Complete is 100, BCWP = BAC, else BCWP = 0
• 50/50:
If % Complete is > 0 but < 100, BCWP = BAC / 2
If % Complete = 100, BCWP = BAC
If % Complete = 0, then BCWP = 0
• Level of Effort (LOE)
BCWP = BCWS
• Weighted Milestones  - use BCWP Override field – not calculated by Clarity
• Milestone Percent Complete (PC) - use BCWP Override field – not calculated by Clarity
• Apportioned Effort (AE) - use BCWP Override field – not calculated by Clarity

ACWP:  Actual Cost of Work Performed
ACWP:  Sum of the actuals on the project through a point in time.  That point in time is the Project As Of Date, if set, else the current system date.  If you have future posted actuals, they will not be included in this calculation unless your As Of date is at or beyond the last date of posted actuals.
Baseline Required:  No
Detail Task Level: ACWP = Sum of all assignment Actual Cost values for the task
Project Level:       ACWP = Sum of ACWP for all Level 1 Summary Tasks

EAC: Estimate at Completion
EAC:  Aggregated Total for the cost of all actuals over time
EAC = ACWP + [(BAC – BCWP) / CPI] where CPI = BCWP / ACWP
Baseline Required: Yes

EAC (T): Estimate at Completion (Cost of Total Effort)
EAC (T) = ACWP + ETC (Cost)
Baseline Required: No

EAC (AT): Estimate at Completion (Atypical)
EAC (AT) = ACWP + (BAC – BCWP)
Baseline Required: Yes

ETC (Cost): Cost of Estimate to Complete
ETC (Cost) = remaining labor cost (ETC * billing rate) + remaining non-labor cost
Baseline Required: No

ETC (AT): Atypical cost of Estimate to Complete
ETC (AT) = BAC – BCWP
Baseline Required: Yes

ETC (T): Typical cost of Estimate to Complete
ETC (T) = (BAC – BCWP) / CPI where CPI = BCWP / ACWP
Baseline Required: Yes

CV: Cost Variance
CV is the amount of what has been accomplished versus what has been spent
CV = BCWP – ACWP
Baseline Required: Yes

SV: Schedule Variance
SV is the amount of work performed versus what is scheduled to date
SV = BCWP - BCWS
Baseline Required: Yes
CPI: Cost Performance Index
CPI is the ratio of work performed to money spent
CPI = BCWP / ACWP
CPI >= 1 -> favorable – at or under budget
CPI < 1 -> unfavorable – over budget
Baseline Required: Yes

SPI: Schedule Performance Index
SPI is the ratio or work performed to work scheduled
SPI =BCWP / BCWS
SPI >= 1 -> favorable – ahead of schedule
SPI < 1 -> unfavorable – behind schedule
Baseline Required: Yes