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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

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

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

Component:

Component:

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:

a. At task 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

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:

a. At task 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 -

Project Level: BCWP = Sum of [BCWP] for all Level 1 Tasks

If % Complete = 100, BCWP = BAC

If % Complete = 0, then BCWP = 0

**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

Summary Task: ACWP = Sum of ACWP for Child Tasks

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

Earned Value Calculations

BAC: (Sum of

Baseline required: Yes

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: Depends on the Earned Value Calculation Method

Baseline Required: Yes

Earned Value Calculation Method -

**Percent Complete**:

Project Level: BCWP = Sum of [BCWP] for all Level 1 Tasks

**0/100**:

**50/50**:

If % Complete = 100, BCWP = BAC

If % Complete = 0, then BCWP = 0

**Level of Effort (LOE)**

**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: 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

Baseline Required:

Detail Task Level: ACWP = Sum of all assignment Actual Cost values for the task

Summary Task: ACWP = Sum of ACWP for Child Tasks

Project Level: ACWP = Sum of ACWP for all Level 1 Summary Tasks

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) = ACWP + ETC (Cost)

Baseline Required:

EAC (AT) = ACWP + (BAC – BCWP)

Baseline Required: Yes

ETC (Cost) = remaining labor cost (ETC * billing rate) + remaining non-labor cost

Baseline Required:

ETC (AT) = BAC – BCWP

Baseline Required: Yes

ETC (T) = (BAC – BCWP) / CPI where CPI = BCWP / ACWP

Baseline Required: Yes

CV is the amount of what has been accomplished versus what has been spent

CV = BCWP – ACWP

Baseline Required: Yes

SV is the amount of work performed versus what is scheduled to date

SV = BCWP - BCWS

Baseline Required: Yes

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 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