Forecasting known future costs

How are the "known future costs" in Tempo Budgets calculated?

In a previous article I explained how the projections based on performance are calculated. But Tempo Budgets also predicts a cost scenario based on "known future costs". "Known future costs" are costs that will accrue when my staff is working on the scope of a Folio until the projected end date according to the commitment of the staff to the Folio. In this article I will explain this scenario in detail using a simple use case.

In the example Folio GreenCloud 2018 I assigned a Tempo Team (GreenCloud Wikkkieea) to the Folio with a commitment of 10%. The team GreenCloud Wikkkieea consists of 5 team members (Bob Johnson, David Carsen, Eric, Brian and Robert Penn). When we pull up the "Staff workload report" from the report section we will the remaining availability of my staff members until the scheduled end of my project (31.12.2018). 

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From the staff section of my Folio I see the hourly cost rate of my team members (if I have the permission to view the cost rates).

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Based on the remaining availabilty and the cost rates for the team members the remaining costs until the scheduled end of my project are calculated as:

Remaining availability x cost rates

That results in remaining costs for Bob of 144$ (1.6 hours x 90$/hour), David 3,168$, Eric 1,496$, Brian 1,290$ and Robert 2,640$, in total 8,738$. The reason why Bob´s availabilty is so little is because of his team membership ends in two days (end of October).

But that´s not the whole story. Because my Folio might be ahead or behind schedule the known future costs might be different for the calculated number above. From the Folios overview page I see that my Folio is running late and I am 170 days behind schedule.

The assumption is that my staff is working on the Folio with the predicted commitment. The "additional costs" would be calculated as:

Team member commitment x workload x days behind schedule x cost rates x Commitment to the Folio

Robert, e.g. has a commitment to the team GreenCloud Wikkkieea of 75% and a workload of 8 hours a day (according to his workload scheme). That results in an additional known cost of:

0.75 x 8 hours x 170 days x 100 $/hour x 0.1 = 10,200 $. If we repeat the same steps for the other staff members we would calculated a remaining known cost for David of 12,240$, Eric 5,780$ and Brian 10,200$, in total 33,320$. Bob does not have any remaining costs as his memberships ends before the scheduled end date.

That makes a predicted known future cost of 8,738$ (until the scheduled end of the Folio) + 33,320$ (because we are behind schedule) in total 42,058$. When we switch to the costs overview page we will see exactly the calculated financial figure:

Might worth a mention: ALL actual costs (labour and other expenses) and recorded future actual non-labour costs are added and included to the known future costs.