Use the Estimate To Complete (ETC) feature to store estimated hours and amounts required to complete active projects. ETC hours and amounts can be compared to incurred hours and amounts to arrive at the Latest Revised Estimate At Completion (LREAC). The LREAC can also be compared to the original overall budget for the job. The percent complete is identified both inclusive of and exclusive of purchase commitments.
If you already know the LREAC but not the ETC, you can import project budgets into the LREAC fields and allow the system to arrive at ETC amounts by subtracting incurred costs from LREAC amounts.
If you know the percent complete but not the ETC or LREAC amounts, you can use this percentage to arrive at ETC amounts. Using the actual costs incurred as this percentage of the LREAC amount, the system will calculate the ETC amount as the difference.
The system uses the ETC Direct Cost, ETC Indirect Cost, and ETC Fee tables to store incurred and estimated information for ETC amounts. It uses the ETC GLC Hours and ETC PLC Hours tables to store incurred and estimated information for ETC hours. Incurred costs are updated from the PROJ_SUM and PROJ_BURDEN_SUM tables. Incurred hours are updated from the Labor History table. Budgeted amounts are updated from the Project Total Budget Direct, Project Total Budget Indirect, and Project Total Budget Fee tables. Budgeted hours are updated from the Project Total Budget GLC and Project Total Budget PLC tables.
Timing is very important when using the ETC features. To set up and use the ETC capabilities, use the sequence of steps outlined as follows:
Import Inception-to-Date Costs Incurred: Initialize the project ETC by using the Update Incurred Cost for ETC utility (Projects » Budgeting and ETC » Estimate to Complete) to import inception-to-date costs into the ETC tables. You can run this utility for a range of projects. You select the fiscal year, period, and subperiod of the update. Project costs and hours in the PROJECT_SUM, PROJECT_BURDEN_SUM, and LABOR_HISTORY tables are summarized ITD and copied into the ETC tables.
Import Project Budgets: Import the Project Total Budget into the LREAC fields using the Revise ETC screen (Projects » Budgeting and ETC » Estimate to Complete). Create ETC amounts by importing project budgeted amounts into the LREAC fields. With this utility, you can update ETC amounts and hours with budget minus incurred values or update the LREAC with a percent complete. If you choose the latter option, you can identify the project percent complete. The utility will multiply incurred costs by the percent entered to arrive at LREAC amounts. The utility will plug the ETC amounts and hours with the difference.
Maintain ETCs: Enter amounts, hours or percentages for ETC amounts or hours. You can enter the ETC, the LREAC, or the Percent Complete, and the system will calculate the other two variables:
ETC = LREAC - Incurred
LREAC = Incurred + ETC
Pct Complete = Incurred/LREAC
Create ETC Report Tables: Once ETC amounts and hours are final, you must create the report tables. This process updates the report tables with new ETC amounts and hours. It also updates the report tables with header information needed on the reports. Both ETC reports and inquiries are run from the report tables.
Print ETC Reports/View Inquiries: You can view or print out ETC amounts and hours once the report tables are created.
Once you have established ETCs, follow this process every month:
Post all journals to the Ledger.
Compute Indirect Rates.
Run the Compute Burden Cost screen (Projects » Cost and Revenue Processing » Project Cost Processing) to apply rates to projects.
Update ETCs with actual costs incurred. Determine whether you want to burden ETCs with actual or target rates.
Revise ETC amounts with budget minus incurred costs or update LREAC amounts using percent-complete amounts.
Run the Create ETC Report Tables process (Projects » Budgeting and ETC » Estimate to Complete Reporting & Inquiry) to update the report table data.
Print preliminary reports for review and distribute to project managers.
After project manager's review, enter updated ETC, LREAC, or percent complete hours/amounts.
Run the Create ETC Report Tables screen again to update the report table data with the updated ETC data.
Print final ETC report and distribute to project managers.
Update the Est to Complete or Est at Comp field in the Basic Revenue Info screen (Projects » Project Setup » Revenue Setup) with new ETC or EAC amounts.
Run the Compute Revenue screen (Projects » Cost and Revenue Processing » Revenue Processing) to bring the estimated amount forward.