Calculating Remaining Targeted Revenue and Remaining Budgeted Cost

You might want to represent work that is targeted but has not yet been planned or scheduled in a project's forecast. You can do this by displaying the unscheduled backlog for the project which consists of the following calculations:

  • Remaining targeted revenue: the value of the project's Targeted Revenue field minus the total revenue already forecasted for the project.
  • Remaining budgeted cost: the value of the project's Budgeted Cost field minus the total cost already forecasted for the project.

The values are never less than zero. If the total already forecasted is greater than the target, the remaining value is zero instead of a negative amount. This is so the forecast total reflects the work that is actually planned rather than being adjusted back down to the target.

To calculate the remaining targeted revenue for a project, the following must be true:

  • The Calculate Remaining Targeted Revenue field must be selected on your active services forecast setup record.
  • The Targeted Revenue field must be populated on the project record.
  • The "Deliverable" or one of the equal split options must be selected for the Revenue and Cost Targets Forecast Method field on the project record.
Note:

Leaving the Targeted Revenue field blank does not prevent the calculation from running. Instead, the remaining targeted revenue is calculated as zero, rather than being omitted.

To calculate the remaining budgeted cost for a project, the following must be true:

  • The following fields must be selected on your active services forecast setup record:

    • Enable Cost Forecasting
    • Calculate Remaining Budgeted Cost
  • The Budgeted Cost field must be populated on the project record.
  • The "Deliverable" or one of the equal split options must be selected for the Revenue and Cost Targets Forecast Method field on the project record.

For more information, see Services Forecast Setup Fields and Project Fields.

Excluding Expenses from the Calculation

By default, expense records and expense budgets are included in the forecasted totals that are deducted from the target. If your expenses don't contribute to the project targets, you can exclude them. To exclude expense records and expense budgets from these calculations, select Exclude Expenses from Remaining Targets on the active services forecast setup record. This setting applies only to the remaining value calculations and does not exclude expenses or expense budgets from standard forecast calculations. It only affects the total that is deducted from the target when calculating the remaining values. It does not change how expense budgets are categorized. Expense budget records always have a forecast type of "Backlog". For more information, see Services Forecast Setup Fields.

For example, a project has a Budgeted Cost of $2,000,000. It has $1,500,000 of actual and planned costs and an expense budget of $120,000.

If Exclude Expenses from Remaining Targets is selected, the expense budget is left out of the total that is deducted from the target, and the remaining budgeted cost is $2,000,000 - $1,500,000 = $500,000. If the setting is deselected, the expense budget is included in the deducted total, and the remaining budgeted cost is $2,000,000 - $1,620,000 = $380,000.

Distributing the Remaining Values Across Time Periods

The Revenue and Cost Targets Forecast Method field on the project determines how the remaining values are distributed across the project's forecast time periods:

  • Deliverable: the whole remaining value is allocated to the project's final forecast period.
  • An equal split option, for example, "Equal Split: Months": the remaining value is spread equally across the project's forecast periods, starting from the current open period.
  • Any other method, or no method selected: no remaining values are calculated.

The remaining values are recorded in the Unscheduled Revenue and Unscheduled Costs fields on the revenue and cost forecast type records.

An equal split option spreads the value only across open time periods from the current open period, so it is not placed in closed periods.

The deliverable option places the whole value on the project's final forecast period. If that period is closed for forecasting, for example, if the project has already ended, the amount is recorded in the Unfulfilled Unscheduled Revenue and Unfulfilled Unscheduled Costs fields instead.

The remaining values, together with expense budgets, are categorized with a forecast type of "Backlog". This enables you to distinguish them from actuals and standard forecast values.

For more information about how the remaining targeted revenue is calculated for each method, see Deliverable Recognition Method for Revenue Forecasting and Equal Split Recognition Method for Revenue Forecasting.

For more information about how the remaining budgeted cost is calculated for each method, see Deliverable Recognition Method for Cost Forecasting and Equal Split Recognition Method for Cost Forecasting.