Equal Split Recognition Method for Cost Forecasting

The Equal Split recognition method is also sometimes called the Ratable recognition method and relates to expense budgets.

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. For more information on Revenue Forecasting calculations, see Equal Split Recognition Method for Revenue Forecasting.

Cost Forecasting looks at the Recognition Method field on a record, which must contain one of the Equal Split options, such as "Equal Split: Months". A cost forecast record and a cost forecast type record are created for each monthly time period to store the expense budget values.

Warning:

To forecast expense budgets accurately, you must have budget allocations configured. Values are only displayed in the Amount Remaining and Amount Consumed fields on the budget record if there is a budget allocation. For more information on budget allocations, see Track Consumption of Individual Budgets and Setting up PSA to Track Consumption of Individual Budgets.

Budget records that meet the following criteria are included:

  • The recognition method is set to any of the following:

    • Equal Split: Months
    • Equal Split: Months/Actual Days in Part Periods
    • Equal Split: Months/Part Periods
    • Equal Split: Days
    • Equal Split: 4,4,5
  • The budget type is either Billable Expenses or Non-Billable Expenses
  • The value in the Remaining Amount field is greater than 0

The value in the Remaining Amount field is equally split between whichever is the later of the following dates and the project end date:

  • Effective date of the budget
  • First open time period
  • Project start date

The costs are placed in the Unscheduled Costs field on the cost forecast record that is associated with the relevant time period.

If the date used is after the project end date, the full amount from the budget record is placed in the Unscheduled Costs field on the cost forecast record associated with the final time period on the project.

If all of a project's time periods are closed, 0 is displayed in the Unscheduled Costs field on the cost forecast record associated with the final time period on the project but the budget's full remaining amount is displayed in the Unfulfilled Unscheduled Costs field. For more information on this field, see Cost Forecast Fields.