Tempo Budgets forecasting scenarios

How is the projected end date/end cost calculated in Tempo Budgets

Tempo Budgets predicts two financial scenarios according to the progress of your scope and the assumptions that you have made for your project. These two scenarios are 1. forecasting based on performance and 2. forecasting based on known costs. The forecasting scenario based on performance is based on the progress of the scope of the Folio and the already elapsed working days of your Folio. The forecasting scenario based on known costs is based on the availability of your staff and all other planned costs. A Folio's overview page always displays the financial forecasting scenario based on performance. The cost's and the revenue's summary page display both forecasting scenarios.

From the example below we explain in detail how the forecasted end date and the forecasted end cost of your Folio is calculated. Our sample Folio looks like:

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The schedule bar in the progress section tells us that according to our workload calendar (defining the working days of the year) that we have 150 working days in the Foio's time period between the start date (1st march 2018) and the end date 30th September 2018). Until today (20th August 2018) have passed 121 working days. Our costs until today are 7,250$. That means the daily cost burning rate is  7,250$ / 121 days = 59,92 $/day. We see further that the progress of the Folio's scope is 38.51% (more about the progress calculation here). Based on the progress and the elapsed working days Tempo Budgets now calculates the projected working days (and end date). Tempo Budgets assumes that your progress will continue with the same pace which means we use a simple calculation as:

Total working days = 100% / 38.51% x 121 working days = 314 working days (rounded - 314.20 is the exact number) . Starting from our start date (1st march 2018) and according to our workload calendar Tempo Budgets is now calculating the 16th of May 2019 as the projected end date. Based on calculated working days we can now calculate the estimated end cost assuming we burn as much money in the rest of the project as we already did so far. So the projected end costs can be computed by:

Total project costs = 314.20 days x  59,92 $/day = 18.826.86$ (some rounding errors) or we could also use the progress to calculate the projected end costs by computing:

Total project costs = 100% / 38.51% x 7,250$ = 18.826,28$.

Looking at the cost graph below of the financial section will show us the projected end date/ projected end cost of our Folio (with some rounding errors). 

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Based on the calculated numbers we are now able to understand better the calculated figures from the traffic light section on the top of the overview page.

We have calculated a projected number of working days of 314 but only estimated 150 days (you see that number in the schedule bar of the progress section. That means we are 164 days behind schedule (314 days - 150 days = 164 days).

We have an estimated/ total planned cost of my Folio of 9,000$. Tempo Budgets has forecasted that our projected end costs will be 18.826,28$ at the estimated completion date. That means our costs are 109% over budget. This number is computed by:

(18.826,28$ / 9,000$ - 1) x 100% = 109,2%.