Objectives
Cost forecast values are stored in a separate plan version. You can evaluate these values in hierarchical reports or cost element reports through this plan version and value type. The standard SAP system works with the hierarchy report 12CTC1.
Before you can execute a cost forecast, make sure there are controlling versions that are specifically used for cost forecast in the Controlling General Version table.
During project execution, variances occur between the original cost and process planning and the actual costs of the project. Shifting activities within floats is sufficient to change the pattern of costs in a project. After the initial actual costs are incurred, it is necessary to check and possibly update remaining costs. This is the only way to preserve a base for realistic cost forecast during a project’s life cycle.
Use the cost forecast process to adapt cost planning to constantly changing circumstances. For the estimated costs at completion, the system determines and values remaining activities based on the planned, forecast, and actual commitment costs already incurred in the project to the updated cost to complete.
The cost forecast determines the remaining costs that are expected to be incurred to complete the project. Planned, actual, and commitment values confirm forecast dates, using forecast work as the basis.
You can make cost forecasts for projects with activities that are both appended and apportioned. The forecast looks at activity costs and costs of material components that are managed as collective stock. You cannot determine the cost to complete for simulation versions.
Based on planned, actual, and commitment values, the system determines the remaining costs in network activities. The system includes the following:
All actual and commitment values in the project.
The plan values for the network activities in Controlling version 0.
Forecast values from confirmations.
The system ignores the following:
WBS element plan values.
Network preliminary planning values.
Plan costs for material components in valuated project stock (planned for a later release).
Based on planned, actual, and commitment costs, the system determines what needs to be done in network activities and costs. The system records the value determined as cost to complete, by period, in a cost forecast version for internally processed activities, externally processed activities, general cost activities, and material components that are not maintained as part of project stock (valuated or non-valuated).
Values are usually determined from the first day of the current period, as part of the period-end closing process. You have the option to specify your own key date for the cost forecast. The system uses the key date to determine the cost distribution.
You determine residual costs similar to the way in which you calculate planned values. The basis for residual costs calculation is the planned costing variant defined in the network header for calculating planned costs.
If an activity is marked as complete or there is a final confirmation, the system sets the cost to complete to zero.