# Calculation example - calculate EAC at the Project Level

## EAC method: Calculate at the project level

### PIM = Hour-Based pim-hour-based

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

PIM = Hour-Based

EAC Method = Calculate at project level ****

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

2. 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%
3. Recalculate Finance on the project.

4. 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

5. 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****

6. CPI / EAC for Tasks 2 and 3 are:
Task  2 = .12 / 83.33  hrs
Task 3 = .24 / 62.5 hrs

7. 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

8. 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

1. 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:

2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is \$100.00.

3. 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.
Pln Hrs
Act Hrs
% Complete
10 hrs
5 hrs
10 hrs
20%
10 Hrs
10 hrs
10 hrs
40%
15 hrs
10 hrs
50%
20 hrs
10 hrs
60%
1. Add 50 hours directly to the project (More>Hours>Log Hours).

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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 simple-example-project-has-no-children-tasks-1

PIM = Cost-Based

EAC Method = Calculate at project level

1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is \$100.00.
2. Add planned/ actual hours to each task and % Complete according to the table below:
Pln Hrs
Pln Lbr Cost
Act Hrs
Act Lbr Cost
% Complete
5 hrs
\$500.00
25 hrs
\$2,500.00
20%
10 hrs
\$1,000.00
25 hrs
\$2,500.00
30%
15 hrs
\$1,500.00
25 hrs
\$2,500.00
40%
1. Add expenses to each task according to the table below:
Expense
Planned Amount
Actual Amount
Task 1 Exp 1
\$300.00
\$400.00
Task 1 Exp 2
\$500.00
\$0.00
\$200.00
\$100.00
\$800.00
\$700.00
1. 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
1. Based on the above values, the Incurred/ Not Incurred Costs are determined as follows:
Not Incurred Planned Expense
Incurred Planned Expense
Incurred Actual Expense
\$500.00
\$300.00
\$400.00
\$0.00
\$200.00
\$100.00
\$0.00
\$800.00
\$700.00
Project
\$3,000.00
\$2,300.00
\$2,700.00
1. From Project Actions, run Recalculate Finance

2. CPI for Task 1 = .14

3. 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****

4. 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

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

6. 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

7. 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

1. 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:

2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is \$100.00.

3. 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.
Pln Hrs
Pln Lbr Cost
Act Hrs
Act Lbr Cost
% Complete
10 hrs
\$1,000.00
5 hrs
\$500.00
10 hrs
\$1,000.00
20%
10 Hrs
\$1,000.00
10 hrs
\$1,000.00
10 hrs
\$1,000.00
40%
15 hrs
\$1,500.00
10 hrs
\$1,000.00
50%
20 hrs
\$2,000.00
10 hrs
\$1,000.00
60%
1. 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. ****
2. 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):
Expense
Planned Amount
Actual Amount
Task 1 Exp 1
\$300.00
-\$400.00
Task 1 Exp 2
-\$500.00
\$800.00
Task 1 Exp 3
\$400.00
\$0.00
Task 2 Exp 1
\$500.00
\$700.00
Task 2 Exp 2
-\$400.00
\$0.00
Task 2 Exp 3
-\$200.00
\$600.00
Task 2 Exp 4
\$700.00
-\$200.00
\$0.00
\$1,000.00
Task 4 Exp 1
\$800.00
\$0.00
Task 4 Exp 2
-\$100.00
\$300.00
Task 4 Exp 3
-200.00
\$0.00
Task 5 Exp 1
\$700.00
\$800.00
Task 5 Exp 2
-\$100.00
\$300.00
Task 5 Exp 3
-\$400.00
-\$200.00
Task 6 Exp 1
\$600.00
\$700.00
Task 6 Exp 2
\$500.00
-\$300.0
1. 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
1. Based on the above values, the Incurred/Not Incurred Costs are determined as follows:
Not Incurred Planned Expense
Incurred Planned Expense
Incurred Actual Expense
\$400.00
-\$500.00
\$800.00
-\$400.00
\$300.00
\$1,300.00
\$0.00
\$0.00
\$1,000.00
\$600.00
-\$100.00
\$300.00
\$0.00
\$600.00
\$1,100.00
\$0.00
\$600.00
\$700.00
Project
\$2,500.00
\$1000.00
\$1,500.00
1. From Project Actions, run Recalculate Finance

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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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