Calculating Data in Financial Summary
This section describes how PPM calculates data in a financial summary.
Calculating Forecasted Labor Costs From Staffing Profile
You can specify whether forecasted labor costs on the financial summary are to be calculated (rolled up) from the staffing profile. If this option is selected, separate, noneditable forecast lines are automatically created in the financial summary to reflect the staffing profile estimates, including the percentage split between capital and operating costs.
The forecast labor cost of a staffing profile equals to the total sum of forecast labor costs of all positions in this staffing profile. The forecast labor cost of a particular position is calculated as follows:
Forecast Labor Cost of a Position = Sum (Forecast Labor Cost of Assignment/Promise of the position) + (Unmet Demand * Cost rate of the position)
where,

Forecast Labor Cost of Assignment = Total committed effort of the assigned resource * Cost rate of the resource/position
Note: Starting from version 9.31, you can decide to use the cost rate of the resource role or the position role to calculate the forecast labor cost of assignment. If you set the
SP_RESOURCE_ROLE_RATE_ENABLE
parameter totrue
, the forecast labor cost of assignment is calculated by the cost rate of the resource role. If you set this parameter tofalse
, the forecast labor cost of assignment is calculated by the cost rate of the position role. By default, this parameter is set totrue
. When the resource has no role defined, and you set the parameter totrue
, the cost rate of the position role is used.  Forecast Labor Cost of Promise = Total promised effort of the assignment * Cost rate of the position
The cost rate of a position/resource is determined by the cost rule described in Best Matching Strategy.
Note: If there is over allocation on assignments, the unmet demand becomes negative. The negative unmet demand values are ignored in the calculation by default.
Starting from version 9.31.0001, you can decide whether the negative unmet demand value should be ignored by using the following parameter in the server.conf
file:
Parameter Name  Usage, Description  Value 

IGNORE_NEGATIVE_UNMET_DEMAND 
If you set this parameter to If you set this parameter to 
Default value: Valid values: 
The following table describes cost factors used for calculating the forecast labor cost.
The forecast labor cost is not updated immediately when you change cost factors described in Table 42. Cost factors and entities to which they apply. Instead, it is recalculated base on the latest cost factors when the SPFS sync service is triggered by effort or status change of the position or assignment. PPM does not keep or consider historic cost rates after you change cost factors.
Note: If you change the cost rate by clicking the Add New Rate button on the Edit Cost Rule page and specify a effective start date in the popup window, PPM keeps and considers historic cost rates when calculating the forecast and actual labor costs for periods earlier than the effective start date.
For more information about calculating forecast labor cost, see Configuring Financial Summary Settings.
Best Matching Strategy
PPM calculates a score for each cost rule and considers the rule with the highest score as the best matching one. Cost rate of a position/resource used in the calculation of forecast labor cost is the one defined in the best matching rule.
Before calculating a score for a cost rule, PPM checks whether the cost rule and the position/resource contain the same cost factor and whether values of the factor are the same. If yes, the cost factor is considered matching. Then, scores of cost rules are calculated as follows:

If a cost rule contains no matching cost factors, it is considered not applicable and gets 1 point.

If a cost rule contains one or more matching cost factors, PPM assigns 2^{n} points to each matching factor according to its priority. Priorities of cost factors are configured on the Change Cost Factors page (Open > Administration > Financials > Change Cost Factors). In the Selected Columns field, all cost factors are listed according to their priorities from top to bottom.
For example, if a cost rule contains four cost factors and they are all matching factors, the factor of top priority gets 2^{4} = 16 points; the one of second priority gets 2^{3} = 8 points; the one of third priority gets 2^{2} = 4 points; and the last one gets 2^{1} = 2 points. The score of this cost rule is the sum of all points its factors get. In this example, it is 16 + 8 + 4 + 2 = 30 points.

If a cost factor contains no value, it is considered as a wildcard factor. PPM assigns one point to each wildcard factor.
 Besides matching and wildcard factors, all other cost factors get no point.

If a cost rule is not the default one, add one point to its score. Therefore, if a cost rule contains the same cost factors with the default cost rule, it gets a higher score than the default one.
Note: There is at least one matching rule, that is, the default rule which cannot be deleted and whose cost factors are all wildcard factors.
Actual Labor Cost Period Break Down
The actual efforts you log in time sheets and work plans are in a continuous range. However, when rolling up the actual labor cost to the financial summary, PPM breaks it down into periods. The cost of each month is calculated as follows:
Actual Labor Cost of month n = Total Actual Cost * Working days in month n / Total working days during the period when actual efforts are logged
For example, a resource has been working on a task from July 17^{th} to August 20^{th}, 2013 and costs USD $10000. Data used when calculating the actual labor cost of this resource is as follows:

Total actual cost is USD $10000.

Total working days from July 17^{th} to August 20^{th} is 25 days.

Working days in July is 11 days.

Working days in August is 14 days.
Note: Working days are calculated according to the calendar of the resource.
Therefore, actual labor cost of this resource in July is USD $10000*11/25 = USD $4400, while that in August is USD $10000*14/25 = USD $5600.
The calculation of actual labor cost is the same for part time and full time resources.
For more information about calculating forecast labor cost, see Configuring Financial Summary Settings.
Net Present Value and Total Nominal Return
For information about net present value and total nominal return, see Appendix A of Portfolio Management User Guide.