Deliverable Recognition Method for Cost Forecasting

The Deliverable recognition method relates to projects containing records that are recognized on delivery, for example Time and Materials projects or fixed price projects with deliverable milestones. Records from the objects listed in this topic, such as Miscellaneous Adjustment, are included in cost forecast calculations.

Notes:

To use Cost Forecasting, ensure Enable Cost Forecasting is selected on the active revenue forecast setup record.

Cost Forecasting calculations work in a similar way to Revenue Forecasting ones. Any differences are listed on this page in the relevant section. For more information on Revenue Forecasting calculations, see Deliverable Recognition Method for Revenue Forecasting.

A cost forecast record is created for each monthly time period to store the values for each of the objects used in Cost Forecasting. For each cost source, a cost forecast type record is created, provided there are qualifying records within the months spanning the project duration.

When a cost forecast is run, if there is a related revenue forecast, the records are linked and values such as the margin are calculated. Related revenue forecasts are those in the same time period, with the same project and milestone, if applicable.

Records Included in Cost Forecasting Calculations

Calculating Accurate Mid Month Forecasts

Mid month cost forecasts are calculated in the same way as mid month revenue forecasts but using the cost rate in calculations instead of the bill rate. For more information, see Calculating Accurate Mid Month Forecasts.

Calculating with Closed Periods

Cost Forecasting treats closed periods in the same way as Revenue Forecasting does:

  • Scheduled and unscheduled costs within time periods that are closed for forecasting are excluded.
  • If you are using the integration between PSA and Revenue Management, costs pending recognition within closed periods are rolled over into the first open time period.

For more information, see Integration with Revenue Management and Calculating with Closed Periods.

Note:

If you are not using the integration between PSA and Revenue Management, you can configure PSA to retain total approved costs from the previous forecast run for any closed time period. For more information, see Retaining Actuals or Costs from the Previous Forecast Run in a Closed Period (Not Using the Integration with Revenue Management).