Forecast Potential Revenue and Cost
Use Case
The project manager wants to include the potential impact of this change order on the project’s forecasted budget and revenue. The project controls manager asks the superintendent to indicate how likely the potential change order is to be executed by indicating a percentage of the estimated revenue and cost.
Under Additional details on the potential change order (PCO) record in InEight Change, you can indicate a revenue category that calculates a probablity percentage. This percentage factors with your forecasted revenue and cost in InEight Control.
Set up Revenue Categories
Revenue categories and probability percentages are customizable in your organization’s Master data libraries.
Follow the steps below to set up revenue categories.
Step 1
From the Main menu, select Master data libraries. Then select Revenue categories.
Step 2
To create a new revenue category, click the Add icon.
In the Add revenue category slide-out panel, input the appropriate details.
Step 3
When finished, click Save.
Your revenue categories will now be available to select for change orders.
Assign Revenue Categories
To assign a revenue category to a PCO, go to the Details tab of the PCO record. Under Additional details, expand the Revenue category. Select appropriate category from the drop-down menu.
The probability percentage is now associated with this PCO. You can return to the PCO record and update the revenue category as the change order progresses.
Review Forecasted Revenue and Cost
Once a PCO has been set up, the associated revenue and costs become available to review in InEight Control.
Review Forecasted Revenue In Control
Though a PCO may not yet be associated to a specific pay item, the potential impact of the PCO is still visible when forecasting revenue.
To review forecasted revenue in Control, go to Control > Workspaces > Pay Items. From here, locate the unapproved revenue line item. This is the total of all unapproved revenue that is not yet allocated to existing pay items.
Right click in the Unapproved revenue row and select Pay item details to review the unapproved change orders contributing to this amount.
Review the following details:
-
Approval probability
-
Total unapproved revenue (the total amount for this change order)
-
Adjusted forecast final revenue (the amount that will be included in the revenue forecast)
Review Pending Costs In Control
Any pending costs associated with the PCO can be reviewed, regardless of the approval stage of the PCO.
There is no approval probability factored into pending costs.
To review pending costs, go to Control > Workspaces > CBS. Make sure the Issue cost and Pending budget cost columns are in your view.
-
Issue costs are visible as soon as pricing is added to the issue.
-
Pending budget costs shows the pending costs defined for that cost item in your PCO.
Access the following links to learn more: