Reforecasting is a central component of the month-end process in Adeaca Project Business Automation. In the costing sheet, the Cost Breakdown Structure (CBS) is accounted for financially as of the current period. Central metrics of the costing sheet in terms of reforecasting includes:
- Budget at Completion (BAC)
- Cost to Complete (CTC)
- Estimate at Completion (EAC)
- Actual costs
- Committed costs
The main objective of reforecasting the project is to establish EAC and to project variances based on current expectations and progress to date. EAC is defined by cost category and at the lowest level of the defined CBS and subsequently rolled up to CBS parent accounts.
EAC can be automatically adjusted based on actual costs and cost commitments but can also be manually adjusted to reflect the most current expectations. EAC can also be computed based on related project metrics like remaining work in the WBS and completed quantities.
Changes to EAC can optionally be subject to workflow approval. Once EAC has been updated (and approved) the budget period is completed and committed to memory for historic audit and trend analysis.