You can forecast and track costs on a Cost Estimate at line item level. Cost Forecasting can be used to calculate the total budget remaining when a Supplier Invoice is raised against a line item, or if manually captured. If a line item cost less than what was estimated, the remaining amount can be used to cover costs on other line items that were underestimated. This functionality can be enabled, or disabled if not in use.
The Margin Variance column is enabled independently of the Cost Forecast column and is hidden by default. If the Cost Forecast column is disabled, the Margin Variance field will be automatically populated with a calculated value of the difference between the Cost and Actual Cost value. If the Cost Forecast column is enabled, the Margin Variance field will populate a calculated value of Cost subtracting Actual Cost, and again subtracting the Cost Forecast. The Margin Variance column will only populate once a Supplier Invoice is captured against a line item.
Find out how to:
Enabling the Cost Forecast per CE line
- Click the Settings button on the Ribbon.
The Configuration screen appears.
- Click the Company Configuration group to expand it, and then select Company Details.
The Company Details screen appears.
- Click the Company Settings tab, and check the Enable Cost Forecast on CE Line Level checkbox.
Click the Save button to save your changes.
The Forecast Column will now be enabled on CEs.
The Cost Forecast column will be hidden by default on the CE. To unhide this column, click on the column list drop down button on the CE and check the Cost Forecast checkbox.
Manually calculating the Cost Forecast
There are two ways of calculating Cost Forecast:
a. The Cost Forecast value can be automatically calculated with a formula. This formula, which will be calculated once a Supplier Invoice is created, is the total difference of the Cost amount and the Actual Cost amount of a CE line item.
b. You can manually enter the Cost Forecast value by clicking on the Cost Forecast Edit button on a CE line item.
- Click the Cost Forecast Edit button on the line item that you want to calculate the Cost Forecast.
In this example, the Cost Forecast Edit button was selected against the Casting Director line item.
The Cost Forecast dialog appears.
- Enter the Cost Forecast value in the field.
- Click the OK button.
- Once satisfied with changes made to the Cost Sheet, click the Save button.
To calculate the Margin Variance, navigate to the Margin Variance column on the CE, from where you can see the values.
To unhide the Margin Variance column, click on the column heading drop down button and check the Margin Variance checkbox.
Margin Variance when Cost Forecast is enabled
When a Supplier Invoice has been captured against a line item, the Margin Variance field will populate a calculated value of Cost minus Actual Cost and minus the Cost Forecast.
Margin Variance when Cost Forecast is disabled
When a Supplier Invoice has been captured against a line item, the Margin Variance field will populate a calculated value of the difference between Cost and Actual Cost.