Calculation example - calculate EAC at the Project Level

Last update: Thu Aug 11 2022 00:00:00 GMT+0000 (Coordinated Universal Time)

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Work Management

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User

EAC method: Calculate at the project level

PIM = Hour-Based
PIM= Cost-Based

PIM = Hour-Based pim-hour-based

Simple example: project has no children tasks
Complicated example: project has children tasks

Simple example: project has no children tasks simple-example-project-has-no-children-tasks

PIM = Hour-Based

EAC Method = Calculate at project level ****

Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.

Add Planned and Actual hours to each task and % Complete according to the table below:

table 0-row-4 1-row-4 2-row-4 3-row-4 layout-auto
Task	Pln Hrs	Act Hrs	% Complete
Task 1	5 hrs	25 hrs	20%
Task 2	10 hrs	25 hrs	30%
Task 3	15 hrs	25 hrs	40%

Recalculate Finance on the project.
CPI for Task 1 = .04 calculated as follows:
CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
ELSE CPI = 1
CPI for Task 1 = 1 / 25
CPI for Task 1 = .04
EAC for Task 1 = 125 hrs calculated as follows:
EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours/CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 1 = 5 / .04
EAC for Task 1 = 125 hrs****
CPI / EAC for Tasks 2 and 3 are:
Task 2 = .12 / 83.33 hrs
Task 3 = .24 / 62.5 hrs
CPI for Project = .13 calculated as follows:
CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
ELSE CPI = 1
CPI for Project = 10 / 75
CPI for Project = .13
EAC for Project = 225 hrs calculated as follows:
EAC for Project = IF CPI <> 0 THEN EAC = Planned Hours/CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Project = 30 / .13333
EAC for Project = 225 hrs

Complicated example: project has children tasks complicated-example-project-has-children-tasks

PIM = Hour-Based

EAC Method = Calculate at project level

Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

Add planned/ actual hours each task and % Complete according to the table below.

note note
NOTE
For Tasks 1 and 3, you are only adding actual hours.

Task

Pln Hrs

Act Hrs

% Complete

Task 1

10 hrs

Task 2

5 hrs

10 hrs

20%

Task 3

10 Hrs

Task 4

10 hrs

40%

Task 5

15 hrs

10 hrs

50%

Task 6

20 hrs

10 hrs

60%

Add 50 hours directly to the project (More>Hours>Log Hours).
CPI for Task 2 = .1 calculated as follows:
CPI for Task 2 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
ELSE CPI = 1
CPI for Task 2 = 1 / 10
CPI for Task 2 = .1
EAC for Task 2 = 50 hrs calculated as follows:
EAC for Task 2 = IF CPI <> 0 THEN EAC = Planned Hours/CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 2 = 5 / .1
EAC for Task 2 = 50 hrs
The CPI / EAC for Tasks 4, 5, and 6 are as follows:
Task 4: .4 / 25 hrs
Task 5: .75 / 20 hrs
Task 6: 1.2 / 16.67 hrs
CPI for Task 3 = .38 calculated as follows:
CPI for Task 3 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
ELSE CPI = 1
CPI for Task 3 = 11.5 / 30
CPI for Task 3 = .38
EAC for Task 3 = 65.22 hrs calculated as follows:
EAC for Task 3 = IF CPI <> 0 THEN EAC = Planned Hours/CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 3 = 25 / .383333
EAC for Task 3 = 65.22 hrs
CPI for Task 1 = .25 calculated as follows:
CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
ELSE CPI = 1
CPI for Task 1 = 12.5 / 50
CPI for Task 1 = .25
EAC for Task 1 = 120 hrs calculated as follows:
EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Task 1 = 30/ .25
EAC for Task 1 = 120 hrs
CPI for Project = .22 calculated as follows:
CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
ELSE CPI = 1
CPI for Project = 24.5 / 110
CPI for Project = .22272
CPI for Project = .22
EAC for Project = 224.49 hrs calculated as follows:
EAC for Project = IF CPI <> 0 THEN EAC = Planned Hours/CPI
ELSE EAC = Planned Hours + Actual Hours
EAC for Project = 50 / .22272
EAC for Project = 224.49 hrs

PIM= Cost-Based pim-cost-based

Simple example: project has no children tasks
Complicated example: project has children tasks

Simple example: project has no children tasks simple-example-project-has-no-children-tasks-1

PIM = Cost-Based

EAC Method = Calculate at project level

Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
Add planned/ actual hours to each task and % Complete according to the table below:

Task

Pln Hrs

Pln Lbr Cost

Act Hrs

Act Lbr Cost

% Complete

Task 1

5 hrs

$500.00

25 hrs

$2,500.00

20%

Task 2

10 hrs

$1,000.00

25 hrs

$2,500.00

30%

Task 3

15 hrs

$1,500.00

25 hrs

$2,500.00

40%

Add expenses to each task according to the table below:

Task

Expense

Planned Amount

Actual Amount

Task 1

Task 1 Exp 1

$300.00

$400.00

Task 1

Task 1 Exp 2

$500.00

$0.00

Task 2

Task 2 Exp

$200.00

$100.00

Task 3

Task 3 Exp

$800.00

$700.00

Add two expenses to the project (i.e. not tied to a task) as follows:

Expense

Planned Amount

Actual Amount

Project Exp 1

$1,000.00

$1,500.00

Task 1 Exp 2

$2,500.00

$0.00

Based on the above values, the Incurred/ Not Incurred Costs are determined as follows:

Task

Not Incurred Planned Expense

Incurred Planned Expense

Incurred Actual Expense

Task 1

$500.00

$300.00

$400.00

Task 2

$0.00

$200.00

$100.00

Task 3

$0.00

$800.00

$700.00

Project

$3,000.00

$2,300.00

$2,700.00

From Project Actions, run Recalculate Finance
CPI for Task 1 = .14

CPI****for Task 1 = .14 calculated as follows:
CPI for Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN

code language-none
`CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)`

ELSE CPI = CPI_Labor
CPI****for Task 1 = (100+300) / (2500+400)
CPI for Task 1 = 400 / 2900
CPI for Task 1 = .14****

EAC****for Task 1 = $13,400.00
CPI Labor for Task 1 = IF Actual Labor Cost <> 0 THEN

code language-none
`CPI_Labor = TotalBudgetedCostWorkPerformed/Actual Labor Cost`

ELSE CPI_Labor = 1
CPI Labor for Task 1 = 100/2500
CPI Labor for Task 1 = .04 EAC Labor for Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost/CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor****for Task 1 = 500.00/.04
EAC Labor****for Task 1 = $12,500.00
EAC Expense****for Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense****for Task 1 = $400.00 + $500.00
EAC Expense****for Task 1 = $900.00
EAC****for Task 1 = EAC Labor + EAC Expense
EAC****for Task 1 = $12,500.00 + $900.00
EAC****for Task 1 = $13,400.00

Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / $8,433.33
Task 3 = .44 / $6,950.00

CPI for Project = .32 calculated as follows:
CPI****for Project = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN

code language-none
`CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost)/ActualLaborCost + IncurredActualExpenseCost)`

ELSE CPI = CPI_Labor
CPI****for Project = (1000 + 2300) / (7500 + 2700)
CPI****for Project = 3300 / 10200
CPI****for Project = .32

EAC for Project = $28,200.00 calculated as follows:
CPI Labor****for Project = IF Actual Labor Cost <> 0 THEN

code language-none
`CPI_Labor = TotalBudgetedCostWorkPerformed/Actual Labor Cost`

ELSE CPI_Labor = 1
CPI Labor****for Project = 1000 / 7500
CPI Labor****for Project = .13333
CPI Labor****for Project = .13

EAC Labor****for Project = IF CPI_Labor <> 0 THEN

code language-none
`EAC Labor = Planned Labor Cost/CPI_Labor`

ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor****for Project = 3000/ .13333
EAC Labor****for Project = $22,500.00

EAC Expense****Project =

code language-none
`IncurredActualExpenseCost + NotIncurredPlannedExpense`

EAC Expense****Project = $3000.00 + 2,700.00
EAC Expense****Project = $5,700.00

EAC****Project = EAC Labor + EAC Expense
EAC****Project = $22,500.00 + $5,700.00
EAC****Project = $28,200.00

Complicated example: project has children tasks complicated-example-project-has-children-tasks-1

PIM = Cost-Based

EAC Method = Calculate at project level

Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

Add planned/actual hours each task and % Complete according to the table below.

note note
NOTE
For Tasks 1 and 3, you are only adding actual hours.

Task

Pln Hrs

Pln Lbr Cost

Act Hrs

Act Lbr Cost

% Complete

Task 1

10 hrs

$1,000.00

Task 2

5 hrs

$500.00

10 hrs

$1,000.00

20%

Task 3

10 Hrs

$1,000.00

Task 4

10 hrs

$1,000.00

10 hrs

$1,000.00

40%

Task 5

15 hrs

$1,500.00

10 hrs

$1,000.00

50%

Task 6

20 hrs

$2,000.00

10 hrs

$1,000.00

60%

Add 50 hours directly to the project (More>Hours>Log Hours) so that there is $5,000.00 of actual labor cost recorded directly to the project. ****
Add expenses to each task according to the table below (I’ve added a blank row in between each task to make it easier to read):

Task

Expense

Planned Amount

Actual Amount

Task 1

Task 1 Exp 1

$300.00

-$400.00

Task 1

Task 1 Exp 2

-$500.00

$800.00

Task 1

Task 1 Exp 3

$400.00

$0.00

Task 2

Task 2 Exp 1

$500.00

$700.00

Task 2

Task 2 Exp 2

-$400.00

$0.00

Task 2

Task 2 Exp 3

-$200.00

$600.00

Task 2

Task 2 Exp 4

$700.00

-$200.00

Task 3

Task 3 Exp

$0.00

$1,000.00

Task 4

Task 4 Exp 1

$800.00

$0.00

Task 4

Task 4 Exp 2

-$100.00

$300.00

Task 4

Task 4 Exp 3

-200.00

$0.00

Task 5

Task 5 Exp 1

$700.00

$800.00

Task 5

Task 5 Exp 2

-$100.00

$300.00

Task 5

Task 5 Exp 3

-$400.00

-$200.00

Task 6

Task 6 Exp 1

$600.00

$700.00

Task 6

Task 6 Exp 2

$500.00

-$300.0

Add two expenses to the project (i.e. not tied to a task) as follows:

Expense

Planned Amount

Actual Amount

Project Exp 1

$1,000.00

$1,500.00

Task 1 Exp 2

$2,500.00

$0.00

Based on the above values, the Incurred/Not Incurred Costs are determined as follows:

Task

Not Incurred Planned Expense

Incurred Planned Expense

Incurred Actual Expense

Task 1

$400.00

-$500.00

$800.00

Task 2

-$400.00

$300.00

$1,300.00

Task 3

$0.00

$1,000.00

Task 4

$600.00

-$100.00

$300.00

Task 5

$0.00

$600.00

$1,100.00

Task 6

$0.00

$600.00

$700.00

Project

$2,500.00

$1000.00

$1,500.00

From Project Actions, run Recalculate Finance
CPI for Task 2 = .17 calculated as follows:
CPI Task 2 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
CPI****Task 2 = (100+300) / (1000+1300)
CPI****Task 2 = 400 / 2300
CPI****Task 2 = .17

EAC for Task 2 = $5,900.00
CPI Labor****Task 2 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
CPI Labor****Task 2 = 100/1000
CPI Labor****Task 2 = .1

EAC Labor****Task 2 = IF CPI_Labor <> 0 THEN

code language-none
`EAC Labor = Planned Labor Cost/CPI_Labor`

ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor****Task 2 = 500.00/.1
EAC Labor****Task 2 = $5,000.00 EAC Expense Task 2 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense****Task 2 = $1,300.00 + -$400.00
EAC Expense****Task 2 = $900.00

EAC****Task 2 = EAC Labor + EAC Expense
EAC****Task 2 = $5,000.00 + $900.00
EAC****Task 2 = $5,900.00

The CPI/EAC for Tasks 4, 5, and 6 are determined the same way so I’ll just provide those values below:
Task 4: .23 / $3,400.00
Task 5: .64 / $3,100.00
Task 6: 1.06 / $2,366.67

CPI for Task 3 = .31 calculated as follows:
CPI****Task 3 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN

code language-none
`CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost)/(ActualLaborCost + IncurredActualExpenseCost)`

ELSE CPI = CPI_Labor
CPI****Task 3 = (1,150 + 500) / (3000 + 2400)
CPI****Task 3 = 1650 / 5400
CPI****Task 3 = .31 EAC for Task 3 = $9,521.74 calculated as follows:
**CPI Labor Task 3** = IF Actual Labor Cost <> 0 THEN

code language-none
`CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost`

ELSE CPI_Labor = 1
CPI Labor****Task 3 = 1150/3000
CPI Labor****Task 3 = .383333
CPI Labor****Task 3 = .38

EAC Labor****Task 3 = IF CPI_Labor <> 0 THEN

code language-none
`EAC Labor = Planned Labor Cost / CPI_Labor`

ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor****Task 3 = $2,500.00 / .383333
EAC Labor****Task 3 = $6,521.74

EAC Expense****Task 3 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense****Task 3 = $2,400.00 + $600.00
EAC Expense****Task 3 = $3,000.00

EAC****Task 3 = EAC Labor + EAC Expense
EAC****Task 3 = $6,521.74 + $3,000.00
EAC****Task 3 = $9,521.74

CPI for Task 1 = .16 calculated as follows:
CPI****Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN

code language-none
`CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)`

ELSE CPI = CPI_Labor
CPI****Task 1 = (1250 + 300) / (5000 + 4500)
CPI****Task 1 = 1550 / 9500=
CPI****Task 1 = .16

EAC for Task 1 is $17,100.00 calculated as follows:
CPI Labor****Task 1 = IF Actual Labor Cost <> 0 THEN

code language-none
`CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost`

ELSE CPI_Labor = 1
CPI Labor****Task 1 = 1250 / 5000
CPI Labor****Task 1 = .25

EAC Labor****Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor****Task 1 = $3,000.00 / .25
EAC Labor****Task 1 = $12,000.00

EAC Expense****Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense****Task 1 = $4500 + 600
EAC Expense****Task 1 = $5,100.00

EAC****Task 1 = EAC Labor + EAC Expense
EAC****Task 1 = $12,000.00 + 5,100.00
EAC****Task 1 = $17,100.00

CPI for Project is .25
CPI****for Project = IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN

code language-none
`CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost)/(ActualLaborCost + IncurredActualExpenseCost)`

ELSE CPI = CPI_Labor

CPI****for Project = (2450 + 1900) / (11000 + 6700)
CPI****for Project = 4350 / 17700
CPI****for Project = .25

EAC for Project = $32,248.98 calculated as follows:
CPI Labor****for Project = IF Actual Labor Cost <> 0 THEN

code language-none
`CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost`

ELSE CPI_Labor = 1
CPI Labor****for Project = 2450 / 11000
CPI Labor****for Project = .22272
CPI Labor****for Project = .22

EAC Labor****for Project = IF CPI_Labor <> 0 THEN

code language-none
`EAC Labor = Planned Labor Cost / CPI_Labor`

ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Labor****for Project = $5,000.00 / .22272
EAC Labor****for Project = $22,448.97959
EAC Labor****for Project = $22,448.98

EAC Expense****Project = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Expense****Project = $3,100.00 + $6,700.00
EAC Expense****Project = $9,800.00

EAC****Project = EAC Labor + EAC Expense
EAC****Project = $22,448.98 + 9,800.00
EAC****Project = $32,248.98

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