Share this page

# How forecast and actual cost are calculated

This section describes how Forecast Labor Cost, Forecast Non-Labor Cost, Actual Labor Cost, and Actual Non-Labor Cost are calculated for lifecycle entities.

Item | Description | Formula | Notes
--- | --- | --- | ---
Proposal |
Forecast Labor Cost | Calculates the forecasted labor costs from the staffing profile. It equals to the total sum of forecast labor costs of all positions in the staffing profile. | Forecast Labor Cost of a position = Forecast Labor Cost of Assignment/Promise of the position + Unmet Demand * rate determined by cost rule of the position where, Forecast Labor Cost of Assignment = Total committed effort of the assigned resource * rate determined by cost rule of the resource/position Forecast Labor Cost of Promise = Total promised effort of the assignment * rate determined by cost rule of the position For information about how the cost rate of a position/resource is determined, see How cost rules are picked. | Same as it is for projects.
Actual Labor Cost | Calculate the actual labor costs from time logged against the proposal request | Actual Labor Cost = Sum of (time sheet actual effort * rate determined by cost rule for each resource) For information about how the cost rate of a position/resource is determined, see How cost rules are picked. | Same as it is for projects.
Project |
Forecast Labor Cost | Calculate the forecasted labor costs from the staffing profile. It equals to the total sum of forecast labor costs of all positions in the staffing profile. | Forecast Labor Cost of a position = Forecast Labor Cost of Assignment/Promise of the position + Unmet Demand * rate determined by cost rule of the position where, Forecast Labor Cost of Assignment = Total committed effort of the assigned resource * rate determined by cost rule of the resource/position Forecast Labor Cost of Promise = Total promised effort of the assignment * rate determined by cost rule of the position For information about how the cost rate of a position/resource is determined, see How cost rules are picked. | Your administrator can decide whether over-allocation (the negative unmet demand value) should be ignored in the calculation of Forecast Labor Cost by using the `IGNORE_NEGATIVE_UNMET_DEMAND` parameter. For details, see the IGNORE_NEGATIVE_UNMET_DEMAND parameter in Server parameters. Your administrator can decide to use the cost rate of the resource role or the position role to calculate the forecast labor cost of assignment by using the parameter `SP_RESOURCE_ROLE_RATE_ENABLE`. For details, see the SP_RESOURCE_ROLE_RATE_ENABLE parameter in Server parameters.
Actual Labor Cost | Calculate the actual labor costs from the work plan and time sheets | If time sheets are used: Actual Labor Cost = Sum of (time sheet actual effort * rate determined by cost rule for each resource) | The actual efforts you log against time sheets and work plans are in a continuous range. However, when rolling up the actual labor cost to the financial summary, OpenText PPM breaks it down into periods. The cost of each month is calculated as follows: Actual Labor Cost of the month X = Total Actual Cost * Working days in month X / Total working days during the period when actual efforts are logged Example: For example, if a resource has been working on a task from July 17th to August 20th, 2013, and cost USD $10,000, then The total working days is 25 days in which the working days of July is 11 days and the working days of August is 14 days. The actual labor cost of this resource in July is USD $10,000 * 11 / 25 = USD $4,400, while the actual labor cost in August is USD $10,000 * 14 / 25 = USD $5,600.
If time sheets are not used: Actual Labor Cost = Sum of (actual effort * rate determined by cost rule for each resource) For information about how the cost rate of a position/resource is determined, see How cost rules are picked.
Actual Non-Labor Cost | Calculate the actual non-labor costs from the work plan | Actual Non-Labor Costs = Sum of (actual non-labor costs for each task) |
Asset |
Forecast Labor Cost 1 | Calculate the forecasted labor costs from the staffing profile (all labor costs are set to operating). It equals to the total sum of forecast labor costs of all positions in the staffing profile. | Forecast Labor Cost of a position = Forecast Labor Cost of Assignment/Promise of the position + Unmet Demand * rate determined by cost rule of the position where, Forecast Labor Cost of Assignment = Total committed effort of the assigned resource * rate determined by cost rule of the resource/position Forecast Labor Cost of Promise = Total promised effort of the assignment * rate determined by cost rule of the position For information about how the cost rate of a position/resource is determined, see How cost rules are picked. | Same as it is for projects.
Actual Labor Cost | Calculate the actual labor costs from time logged against the asset (all labor costs are set to operating) | Actual Labor Cost = Sum of (time sheet actual effort * rate determined by cost rule for each resource) For information about how the cost rate of a position/resource is determined, see How cost rules are picked. | Same as it is for projects.

https://admhelp.microfocus.com PPM 8942
Tips to improve your search results... OpenText™ Project and Portfolio Management Help Center PPM Help 26.2-26.3 All View Local Help Center View Online Help Center Version: