Job Costing - Forecasting Methods

Forecasting can be done via three different methods: amounts, productivity, and units. Below is a short description of the methods. These methods can be mixed and matched within a single job depending on the cost code and type of work.

Amount

This method allows projections to be made based on the costs posted against the budgeted cost at the category level. This is the most common method for lump sum type costs.

Using this method, the projected final cost is determined by current costs incurred divided by percent complete. The user may enter either an override to the % complete or an override to the projected final cost.

Unit

This method allows projections to be made based on units posted at the category level against the budgeted units at the same category level.

Using this method, the projected final cost is determined by current costs incurred divided by percent complete. The user may enter either an override to the percent complete or an override to the projected final cost. The user may also enter the projected override in the unit cost or the unit quantity.

Productivity

This method allows projections to be made based on units complete at the cost code level.

The productivity method uses units in place to determine percent complete. Unit projections are done by entering the unit budget at the cost code level through the Assign Cost Codes screen. Actual costs are posted to the cost code/category level. Units complete are entered against the cost codes. The posting of the units complete transaction will update the percent complete of all “P” forecast method categories using the rate of productivity of the unit complete at the cost code level. Overrides using this method are done via go forward yield or rate changes.

When using any of these methods, there is the ability to freeze the projection. This means that the projected final amount will not be updated by the system when costs/units are posted.