This tab is divided into two sections: Units and Costs and revenues. Depending on your settings, however, the data in the different sections can influence each other. For more information about this, see the descriptions of the fields.
Estimate fields with the attribute S
Some of the fields in the Estimate column on the tab have the symbol S next to them. You cannot fill in an estimate field yourself if the S check box next to the field is selected. The values of fields with the Scheck box selected are calculated automatically by adding up the values of the corresponding fields on the project lines immediately below them (subprojects, actions, etcetera).
For each level you choose whether the underlying lines are to be added up.
Estimate fields controlling other fields
Sometimes you cannot fill in an estimate field yourself even if you deselect the Scheck box. The reason is that there are six of these fields belonging together, of which just one can be changed at a time. These fields are the following fields in the Estimate column:
Progress percentage (under Units)
Expected units
Unit forecast
Progress percentage (under Costs and revenues)
Expected costs
Costs forecast.
The settings of the Progress based on and Progress input field fields determine which of these fields is editable.
Order information
It is important to know that the Order information column can be filled with the correct data only if the project is linked to an order that contains the relevant information (for example, production files with calculation lines). If this link is not present or incomplete (for instance, because the project is linked to one production file for the order, and the order has two), the fields may be empty or have unrealistic values.
Also, in the Units section, the unit used in the underlying order must be the same as the unit set on the Units/costs tab. If the unit on the Units/costs tab is set to kilos, but the order units on the calculation lines are pieces, kilos and lengths, only the lines set to kilos can be added up. It is therefore important that you use the units consistently.
You can use projects to make calculations without using an order or a production order as input for the project. For example, to specify only engineering and production hours, all you have to do is add a project with two project lines.
The first project line is for Engineering. Enter "5,000" as the costs estimate on this line. On the second project line, for Production, enter "1,500".
Engineering:
Costs and revenues
Estimate
Preliminary costing
5,000
Production:
Costs and revenues
Estimate
Preliminary costing
1,500
If on the header line, below Costs and revenues, you now select the summation symbol S in the Estimate column, the values in the Preliminary costing fields of the underlying lines are added up, and the resulting value is displayed in the Preliminary costing (estimate) field on the project's header line:
Costs and revenues
Estimate
S
Preliminary costing
6,500
þ
This also enables you to estimate the budget on the underlying lines, for instance, and to have it added up and displayed on the parent line.
To see an estimated result, a sales sum is required. After you have entered a sales sum on the header line of the project, the expected result is immediately displayed in the PR result field:
Costs and revenues
Estimate
S
Preliminary costing
6,500
þ
Sales sum
9,000
¨
PR result
2,500
As an alternative method, you can estimate the hours and specify a rate. In that case, specify the unit for each subproject, phase or activity (for example, 'Hours'), and then enter the hourly rate in the Rate field. The estimated number of hours (in the Preliminary costing (estimate) field under Units) is now multiplied by the rate, and the result is displayed in the Preliminary costing (estimate) field under Costs and revenues. It will look like this:
Engineering:
Units
Costs and revenues
Estimate
Estimate
S
Preliminary costing
100
Preliminary costing
5,000
¨
Rate
50
Production:
Units
Costs and revenues
Estimate
Estimate
S
Preliminary costing
150
Preliminary costing
1,500
¨
Rate
10
Again, you can have the lines added up automatically and display the result on the header line of the project:
Units
Costs and revenues
Estimate
S
Estimate
S
Preliminary costing
250
þ
Preliminary costing
6,500
þ
Rate
The number of hours you have estimated is 250, and the amount of the associated costs is 6,500.
There is a project in Isah that already has a rough calculation added to it (see example 1 for ways to do this). The amount of the estimated costs in the Estimate column is 17,600 for this project.
The project now approaches a new phase: a sales order is created and linked to the project. Create a new production order for the sales order. This production order contains the preliminary costing figures. These preliminary costing figures are not complete when the project is started. This is actually quite common in practice; the preliminary costing figures will become more accurate as the project progresses.
At some point the preliminary costing figure under Order information will be 15,000. Engineering is already taking place and hours have been posted to the project, which together result in an actual costing figure of 2,400. You do know that the preliminary costing figures based on the order information do not give an accurate picture, but the progress percentage shown in Isah is based on these data, however:
Costs and units
Estimate
Order information
Preliminary costing
17,600
15,000
Actual costing
2,400
Progress percentage
16%
If the total costs to be incurred amounts to 15,000, and a sum of 2,400 has already been posted, then 16% of the total costs has been incurred, and 16% will be displayed in the Progress percentage field.
To get a reliable indication of the result forecast of this project, manually enter a more accurate progress percentage in the Estimate column. (This requires you to set the Progress based on fieldto 'Progress percentage - costs' and the Progress input field to 'Progress percentage'. These fields together determine in which field you can enter your own estimate.)
Based on the percentage you enter, the expected costs and the costs forecast are calculated to generate the result forecast. For example, you set the percentage to 10%:
The PR result is 4,900. Clearly, things are not quite going according to plan, because the result forecast is now 22,500 – 18,240 = 4,260 (Sales sum minus Estimated costs forecast).
Because you can adjust calculations in this way, it is easy to see much more reliable progress data and forecasts.
The project approaches completion and the progress percentage based on the order information is now 99%.
The calculation of the result forecast is becoming inaccurate, however, because you know that a particular purchase will incur more costs. If you could specify these costs, it would change the result forecast, and that is exactly what you want.
To be able to specify these costs, you need to adjust the progress calculation. The Progress based on field was already set to 'Costs', so you set the Progress input field option to 'Expected'. Now enter the sum in the Expected costs field.
The result forecast is now recalculated, and the new forecast will give a more accurate view of how things stand.
Fields
Units
To the right of the name Units, you can see the unit you set in the Hour unit field or in the Other unit field.
In this field, enter the units available for the project line. If you select the Scheck box, this field (Estimate column) is automatically filled with the sum obtained by adding up the values in the underlying project lines (subprojects, actions, and the like). You can no longer change the field now, unless you deselect the Scheck box.
You have full control of the units used. In general, you will use hours, but also other units are permitted. You will see the unit next to the name of the Units section of the form, for example Units (hours).
If you are using hours, the Hour unit field indicates whether they are machine hours, labor hours, or machine hours and labor hours added up ('hours'). To use a unit other than hours, enter the unit in the Other unit field.
This field shows the number of units expected to be required for the project line. In the left-hand column (Estimate), you can specify your own estimate; the right-hand column (Order information) lists the preliminary units, which are retrieved from the underlying calculation lines.
If you select the Scheck box, this field (Estimate column) is automatically filled with the sum obtained by adding up the values in the underlying project lines (subprojects, actions, and the like). You can no longer change the field now, unless you deselect the Scheck box.
If you enter your own estimate of the units, the sum in the Rate field is used to calculate the estimated costs. You will see these costs in the Preliminary costing field under Costs and revenues (Estimate column).
The unit to be used to express the preliminary costing figures can be found in the Hour unit or Other unit field. In general, you will use hours, but also other units are permitted. If you are using hours, the Hour unit field indicates whether they are machine hours, labor hours, or machine hours and labor hours added up ('hours'). To use a unit other than hours, enter the unit in the Other unit field.
This field shows the number of units actually used. This information is retrieved from the underlying order lines; the posted units are added up to arrive at the actual costing information.
The unit used is displayed in the Hour unit or Other unit field. In general, you will use hours, but also other units are permitted. If you are using hours, the Hour unit field indicates whether they are machine hours, labor hours, or machine hours and labor hours added up ('hours'). To use a unit other than hours, enter the unit in the Other unit field.
This field is one of the six fields that are linked to each other (see the general explanation of this tab, under Estimate fields controlling other fields). To enter the progress percentage in the Estimate column yourself, set Progress based on to 'Units' and set Progress input field to 'Progress percentage'. The percentage you then specify is used to calculate the other five fields.
If this field is not set as the input field, its contents are determined automatically:
If you choose 'Units' in the Progress based on field, the value of the Progress percentage field under Estimate, Units is calculated as follows:
(1 - Rounded value of (Expected units (estimate) / Preliminary costing units (estimate))) * 100
If you choose 'Costs' in the Progress based on field, the Progress percentage field under Estimate, Units is filled automatically with the value from the Progress percentage field under Estimate, Costs and revenues.
Order information
The progress percentage under Order information is calculated by comparing the expected usage of the units with the units already used. If, for example, the units are 'Hours', 100 hours were estimated in the preliminary costing stage, and 80 hours have already been posted to the actual costing data, the progress percentage is 80%.
Formally, the field value is determined as follows:
If the Preliminary costing field in the Order information column is '0', the progress percentage is also '0'. The reason for this is that the field value cannot be calculated if no preliminary costing figures are available.
If the Preliminary costing field in the Order information column is not '0', the field is calculated as follows:
This field is one of the six fields that are linked to each other (see the general explanation of this tab, under Estimate fields controlling other fields). To enter the expected units in the Estimate column yourself, set Progress based on to 'Units' and set Progress input field to 'Expected'. The number of units you then specify is used to calculate the other five fields.
If this field is not set as the input field, its contents are determined automatically:
If you choose 'Units' in the Progress based on field and 'Progress percentage' in the Progress input field field, the value in the Expected units field under Estimate is calculated as follows:
Preliminary costing units (estimate) * (1 - (Progress percentage in units (estimate) / 100))
If you choose 'Units' in the Progress based on field and 'Forecast' in the Progress input field field, the value in the Expected units field under Estimate is calculated as follows:
Forecast units (estimate) - Actual costing units (order information)
If you choose 'Costs' in the Progress based on field, the Expected units field under Estimate is filled as follows:
Preliminary costing units (estimate) * (1 - (Progress percentage in units (estimate) / 100))
Order information
The expected units in the Order information column are retrieved from the underlying order lines. These quantities are calculated automatically when the items of the project lines are calculated during the financial analysis of the order. The value of the expected units is the sum of the values in the Expected quantities column, taking into account only those lines that have the same unit as the unit indicated on the Units/costs tab.
This field is one of the six fields that are linked to each other (see the general explanation of this tab, under Estimate fields controlling other fields). To change the forecast of the total number of units you expect to use for the order in the Estimate column, set the Progress based on field to 'Units' and set the Progress input field field to 'Forecast'. The number of units you then specify is used to calculate the other five fields.
If this field is not set as the input field, its contents are determined automatically:
Expected units (estimate) + Actual costing units (order information)
Order information
The unit forecast in the Order information column is based on the underlying order lines. These quantities are calculated automatically when the items of the project lines are calculated during the financial analysis of the order. The unit forecast is the sum of the values in the Forecast quantities column, taking into account only those lines that have the same unit as the unit indicated on the Units/costs tab.
The value of this field is calculated automatically, both for theEstimate column and for the Order information column.
The result forecast under Units is the forecast of the units used. A positive value indicates that you have used fewer units (units are 'left over'); a negative value indicates that you have exceeded the expected usage. The forecast may be based on your estimated data (Estimate column) or on the data from underlying calculation lines (Order information column).
The data in the Estimate column are based on the data in the Preliminary costing (estimate) and Unit forecast (estimate) fields:
Result forecast (estimate) = Preliminary costing units (estimate) - Unit forecast (estimate)
The data in the Order information column are based on the data in the Preliminary costing (order information) and Unit forecast (order information) fields:
Result forecast (order information) = Preliminary costing units (order information) - Unit forecast (order information)
These two fields are linked. You can only fill in one of the two fields. The fields are used to specify the unit on which the values in the following fields are based: Budget, Preliminary costing, Actual costing, Expected units and Rate.
To use hours, enter the hour unit. You can choose from Machine hours, Labor hours, and Hours. If you choose 'Hours', the labor and machine hours are added up. This is useful for companies where some operations are registered in machine hours and others in labor hours.
To use a unit other than hours (for example, kilos or pieces), enter the unit in the Other unit field.
Note: If used consistently, the units in the order information alone can give you a good idea of the order progress, as the number of units specified on the underlying calculation lines are added up. If you choose 'Pieces', but some calculation lines have values in kilos, the lines with kilo values will be ignored. This means that the result shown on the Units/costs tab will be unreliable.
The Department, Capacity group and Rate fields are used primarily for setting up a rough calculation based on project lines. For example, after creating a main project, add a project line for each operation in the project. On these project lines, specify the department and the capacity group of the operation. The rate of the capacity group is automatically entered in the Rate field. You can change the rate in this field, if necessary.
The estimated number of units will now be used in the Preliminary costing field ('Machine hours', for example) to calculate the total estimated costs of the operation (Number of units * Rate). The total operation rate calculated is entered in the Preliminary costing field under Costs and revenues, Estimate.
Use these fields to control how the progress is to be determined.
Use the Progress based on field to indicate whether the progress is to be based on units (for example, hours) or on costs. Then use the Progress input field option to set the field in which you want to enter the progress if you do not want the automatic summation in the Order information column to be leading. The Progress input field option has three choices:
Progress percentage
Expected
Forecast
The Progress based on and Progress input field fields combined offer six scenarios:
Progress based on
Progress input field
The input field will be:
Units
Progress percentage
Units > Estimate > Progress percentage
Units
Expected
Units > Estimate > Expected units
Units
Forecast
Units > Estimate > Unit forecast
Costs
Progress percentage
Costs and revenues > Estimate > Progress percentage
Costs
Expected
Costs and revenues > Estimate > Expected costs
Costs
Forecast
Costs and revenues > Estimate > Costs forecast
Only one of these six fields can be changed at a time. The field you have selected from the foregoing options is the only field of the six that can be changed. The other five fields will be filled based on the figure you enter in the input field.
To have the project progress determined by another field, change the settings of the Progress based on and Progress input field fields.
In this field, enter the costs available for the project line. If you select the Scheck box, this field (Estimate column) is automatically filled with the sum obtained by adding up the values in the underlying project lines (subprojects, actions, and the like). You can no longer change the field now, unless you deselect the Scheck box.
This field displays the costs you expect to incur for the project line. In the left-hand column (Estimate), you can enter your own estimate; the right-hand column (Order information) lists the preliminary costs, which originate from the underlying calculation lines.
If you select the Scheck box, this field (Estimate column) is automatically filled with the sum obtained by adding up the values in the underlying project lines (subprojects, actions, and the like). You can no longer change the field now, unless you deselect the Scheck box.
Sometimes the Preliminary costing field is filled with an estimated sum, even though Sum is not selected. This is the case if in the Units form section, you have entered the estimated number of units in the Preliminary costing field under Estimate, and the Rate field contains a rate. In that case, the estimated costs will be calculated by multiplying the estimated number of units by the rate. You can overwrite this sum by your own estimate, if necessary.
This field shows the total sum of the actual costs incurred. This information is retrieved from the underlying order lines; the posted costs of, for instance, hours and materials are added up to arrive at the actual costing information.
This amount is calculated automatically during the financial analysis of the order and the underlying lines. You can see how the sum was calculated by opening the Financial analysis form from the Info menu. The actual costing figure is the sum of the amounts in the AC costs column.
The sum of the commitments in the Order information column is retrieved from the underlying order lines. The value of commitments is calculated by adding up the sums of all purchase order lines with parts that have been ordered, but have not yet been received.
This amount is calculated automatically during the financial analysis of the order and the underlying lines. You can see how the sum was calculated by opening the Financial analysis form from the Info menu. The sum of the commitments is the sum of the amounts in the Commitment column.
This field is one of the six fields that are linked to each other (see the general explanation of this tab, under Estimate fields controlling other fields). To enter the progress percentage in the Estimate column yourself, set the Progress based on field to 'Costs', and set the Progress input field field to 'Progress percentage'. The percentage you then specify is used to calculate the other five fields.
If this field is not set as the input field, its contents are determined automatically:
The value of this field is copied from the Progress percentage field under Estimate, Units.
Order information
The progress percentage under Order information is calculated by comparing the expected costs with the costs incurred. If, for example, the preliminary costs amount to 1,000 dollar, and the costs incurred amount to 800 dollar, then the progress percentage is 80%.
Formally, the field value is determined as follows:
If the Preliminary costing field in the Order information column is '0', the progress percentage is also '0'. The reason for this is that the field value cannot be calculated if no preliminary costing figures are available.
If the Preliminary costing field in the Order information column is not '0', the field is calculated as follows:
This field is one of the six fields that are linked to each other (see the general explanation of this tab, under Estimate fields controlling other fields). To enter the expected costs in the Estimate column yourself, set Progress based on to 'Costs' and set Progress input field to 'Expected'. The sum you then specify is used to calculate the other five fields.
If this field is not set as the input field, its contents are determined automatically:
If you choose 'Units' in the Progress based on field, the value of the Expected units field under Estimate is calculated as follows:
If you choose 'Costs' in the Progress based on field and 'Progress percentage' in the Progress input field field, the value in the Expected costs field under Estimate is calculated as follows:
If you choose 'Costs' in the Progress based on field and 'Forecast' in the Progress input field field, the value in the Expected costs field under Estimate is calculated as follows:
Costs forecast (estimate) - Actual costing costs (order information)
Order information
The sales sum in the Order information column is retrieved from the underlying order lines. This amount is calculated automatically during the financial analysis of the order and the underlying lines. You can see how the sum was calculated by opening the Financial analysis form from the Info menu. The expected costs are the sum of the amounts in the Expected costs column.
This field is one of the six fields that are linked to each other (see the general explanation of this tab, under Estimate fields controlling other fields). To change the costs forecast in the Estimate column, set the Progress based on field to 'Costs' and set the Progress input field field to 'Forecast'. The sum you then specify is used to calculate the other five fields.
If this field is not set as the input field, its contents are determined automatically:
If you choose 'Units' in the Progress based on field, the value of the Costs forecast field under Estimate is calculated as follows:
Expected costs (estimate) + Actual costing costs (order information)
If you choose 'Costs' in the Progress based on field, the value of the Costs forecast field under Estimate is calculated as follows:
Expected costs (estimate) + Actual costing costs (order information)
Order information
The costs forecast in the Order information column is retrieved from the underlying order lines. This amount is calculated automatically during the financial analysis of the order and the underlying lines. You can see how the sum was calculated by opening the Financial analysis form from the Info menu. The costs forecast is the sum of the amounts in the Costs forecast column.
In the Estimate column, enter the revenue you are expecting for this project.
If you select the Scheck box, this field (Estimate column) is automatically filled with the sum obtained by adding up the values in the underlying project lines (subprojects, actions, and the like). You can no longer change the field now, unless you deselect the Scheck box.
Order information
The sales sum in the Order information column is retrieved from the underlying order lines. This amount is calculated automatically during the financial analysis of the order and the underlying lines. You can see how the sum was calculated by opening the Financial analysis form from the Info menu. The sales sum is the sum of the amounts in the Sales sum column.
The invoiced sum in the Order information column is retrieved from the underlying order lines. This amount is calculated automatically during the financial analysis of the order and the underlying lines. You can see how the sum was calculated by opening the Financial analysis form from the Info menu. The invoiced sum is the sum of the amounts in the Invoiced and Actual period turnover columns.
The value of this field is calculated automatically, both for theEstimate column and for the Order information column.
The data in the Estimate column are based on the data in the Sales sum (estimate) and Preliminary costing (estimate) fields:
PR result (estimate) = Sales sum (estimate) - Preliminary costs (estimate)
The data in the Order information column are based on the data in the Sales sum (order information) and Preliminary costing (order information) fields:
PR result (order information) = Sales sum (order information) - Preliminary costing costs (order information)
The value of this field is calculated automatically, both for theEstimate column and for the Order information column.
Your result forecast may be based on your estimated data (Estimate column) or on the data from underlying calculation lines (Order information column).
The data in the Estimate column are based on the data in the Sales sum (estimate) and Costs forecast (estimate) fields:
Result forecast (estimate) = Sales sum (estimate) - Costs forecast (estimate)
The data in the Order information column are based on the data in the Sales sum (order information) and Costs forecast (order information) fields:
Result forecast (order information) = Sales sum (order information) - Costs forecast (order information)
Example 1: Making rough calculations for a project