PIMS User Guides

Monthly Reporting Cycle

Introduction

During the main execution of the project, the Cost Team will be expected to produce a set of Cost Reports on a regular basis, typically monthly. Cost Reports are composed of many different types of data, including Contracts data, Progress data, Actual Expenditure data, and Forecast data. Each of these types of data must be updated in Pims before running the Cost Reports.

Monthly Reporting Process

Figure 18: Mothly Report step-by-step overview

The form: Monthly Status Reporting will guide you through the process of performing the monthly status reporting.

Figure 19: Monthly Status Reporting Form with a step-by-step workflow

What sections are enabled will depend on what step you are at. For example, if you have Set the Current Cut Off, but not completed step 2 (“Updates and Verification”), only Step 2 will be available.

1. Set Cut Off

Before you start reporting the updated cost and progress information, you will have to set the current cut off date. After you have selected a date, you will be asked to confirm your action.

2. Updates and Verification

Update and verify contract register and estimates register. If the Preliminary Input functionality is to be used, cost, progress and forecast should be updated using the Preliminary Input form. If not, this is done using the Monthly Actuals form (step 3)

3. Status Reporting

Update the actual cost, progress, forecast and commitments. See separate section for documentation. If the separate “Status Reporting” module is implemented, you can also prepare a new status report by clicking on “Prepare Status Report”. Click the “Set Step as Completed” when done.

4. Approval

If Approved, step 1 will be enabled. If rejected, step 2 will be enabled

Using Preliminary Input

The Preliminary Input functionality is optional, and can be skipped. If your Pims configuration is set to require Preliminary Input, the process of performing the cutt-off bases updates will typically be as follows:

At the start of each reporting period, when the Cut-off date has been updated, the reporting of actuals and forecast can be performed. The latest cost data can then be imported into the Monthly Actuals screen, and checked for accuracy. This information will be imported from two sources. Firstly from the Contracts register, and secondly from the Preliminary Input register. The following diagram shows the information which is imported into the Monthly Actuals screen from these sources:

Figure 20: Data Import to the Monthly Actuals Form

As can be seen from this schematic, all data will be imported, apart from the ‘Earned Value’ figures. This will be calculated on the Monthly Actuals screen itself. For more detailed information about the Monthly Actuals screen, see separate section.

The Preliminary Input and contract registers will be updated by the Cost Engineers who are assigned to each of the main deliverables on the project. It is therefore important that they have completed their updates of these registers before importing the data into the Monthly Actuals register. The imports on the Monthly Actuals screen are therefore performed near the end of the monthly reporting cycle. This can be shown in a timeline as follows:

Figure 21: Timeline Diagram of the Reporting Period

In this timeline diagram we see that the Monthly Actuals values are updated after the Contracts register and the Preliminary Input registers have been updated by the other users. After the Monthly Update has been performed, the Forecast Phasing can be applied. This is usually performed by the other Cost Engineers, each for their own area of responsibility. See separate section for more information about Forecast Phasing.

The process of updating the Preliminary Input screen consists of several steps. An overview of these steps is provided in the following section. We will then cover each of the monthly update steps described in more detail, showing how they can be performed in the system.

The Preliminary Input screen has collated together key cost and progress information from the contract register, estimates registes. This is shown in the following diagram:

Figure 22: Imported and Manually input to the Preliminary Input Form

Whilst most of the data on the Preliminary input screen is imported from the other registers, the Cumulative % Complete is entered on the Preliminary Input screen itself. The Cumulative % Complete is explained in more detail in separate section.

Update Contracts

Users who are responsible for managing contracts should continually keep these contracts up to date in the system. This includes registering any Change Orders and also any Potential Changes in the system. On the Contracts screen, these changes are registered on the ‘Cost Breakdown tab’, as shown below:

Figure 23: Update Cost Breakdown tab in the Contracts Form

The total of all contract elements is called the Contract Forecast (note that this value includes all potential changes to the contract. This value will be imported into the Estimate Register in order to update the Forecast at Complete value.

Contractors Baseline

The contractor’s reported actuals and forecast are reported in the Contractors Baseline tab page. Note that all values entered should be the total cumulative value to date, not the value for this period only.

Figure 24: Update the Contractors Baseline tab in the Contracts Form

Update the Work Pack Estimates register

It is usually the case that each member of the Cost Team will be responsible for a particular set of Work Packages. They will be responsible for making sure that the Estimate lines for these Work Packages are updated and correct before monthly cost reports are submitted. This is done using the Work Pack Estimate screen, as shown below:

Figure 25: Update the Work Pack Estimates Form

The users should go through each of their work packs, and update the estimate for them. There are two stages to this:

The cost engineers should update the estimates for each of the Work Packages they are responsible for managing. Once this has been done, the new Forecast at Complete value can be imported into the Preliminary Input screen.

Preliminary Input

Preliminary Input screen is used by Cost Engineers to collect all the latest contract, progress, actual cost and forecast information ready for monthly reporting. The security will generally have been set up so that each Cost Engineer will only see the Work Packages which they have responsibility for managing.

An example screen is shown below:

Figure 26: Update the Preliminary Input Form

Monthly Actuals – When Preliminary Input is enabled

The Monthly Actuals screen is usually used by the Lead Cost Engineer, who has been given overall responsibility for reporting costs for the whole project. The purpose of the screen is to gather all the cost data which will be shown on the monthly cost reports, and to make sure that this data is correct.

The screen shows a list of all the Work Packages on the project, with the report values shown in columns:

Figure 27: Monthly Actuals Form

The report values shown on the screen will be reset at the start of each reporting period when the period cut-off date is changed. If the preliminary input functionality is enabled, the values in the Monthly Actuals screen are imported from the Preliminary Input register, and the contracts register, as illustrated in the diagram below:

Figure 28: Import to the Monthly Actuals Form

These two imports are performed using the options provided in the toolbar at the top of the screen:

Import from Preliminary Input
The Import from Preliminary Input option provided in the toolbar, will import the latest Forecast at Complete, Cumulative % Complete, and Actual Cost values from the Preliminary Input register.
Import Commitments
The Import Commitments option will import the latest ‘Commitment to Date’ value from the commitment register.

As well as importing and checking this imported data, the Actuals screen is also used to determine the ‘Earned Value’ column, which is shown on Cost Reports.

The Earned Value is calculated on the Monthly Actuals screen when the values from the Preliminary Input register have been imported. The formula for this calculation is:

[Earned Value] = [Current Control Estimate] * [Cumulative % Complete]

The Current Control Estimate is shown in the CCE column on the screen. Note that this value is automatically kept up to date on the Preliminary Input screen, and does not need to be imported.

The Earned Value is used on reports in order to help assess whether contractors are performing their work as expected. The Earned Value represents how much of the budget can reasonably be expected to have spent, in order to achieve the progress the contractor has made to date. For example, if the contractor has performed 50% of their work, then it is reasonable to expect that 50% of the agreed budget (CCE) has been used. The Earned Value can then compared to the Actual cost reported by the contractor. If there is a significant discrepancy between these values, then this will merit further investigation. For more information about Earned Value analysis, see separate section.

Monthly Actuals – When Preliminary Input is not enabled

If the Preliminary Input functionality is not enabled, the Monthly Actuals form will appear as this:

Figure 29: Monthly Actuals Form if Preliminary Input is not enabled

The following columns are shown in the grid:

Column Description
Work Pack ID The ID of the Work Pack
Title Title of Work Package
PM Short for Progress Measurable. Also referred to as “Measurable”
Current Period
Earned The Earned Amount for the current cut off period
Actual Cost The Actual Cost for the current cut off period
Cumulative to Cut Off
Actual Progress The cumulative actual progress as reported up to, and including current cut off
Actual Cost The cumulative actual cost as reported up to, and including current cut off
Earned The cumulative earned value as reported up to, and including current cut off
Committed The cumulative committed cost as reported up to, and including current cut off
Project Total
CCE The Current Control Estimate
Forecast The Project Forecast (also refered to as Forecast at Complete)

Project Baseline

In the Project Baseline tab page, there is a summary of key cost and progress information, shown as cummulative up to previous cut off + current periodic values = cumulative up to current cut off.

Contractors Status

In this page you will see the cost as reported in the Contracts module, summarized pr contract against the selected Work Package:

Figure 30: Contractor Status for Contracts with connections to the selected Work Pack

Column Description
Contract No Contract Number
Title Title of Contract
Total Planned The total planned cost against the contract
Planned Cost The cumulative planned cost
Actual Cost The cumulative actual cost
Planned Prog The cumulative planned progress
Actual Prog The cumulative actual progress
Total Committed The total committed cost
Forecast The contract forecast

Import Commitments

To update the commitment value for the current cut off, click the button in the toolbar.

Set Earned = Actual

Pressing the Set Earned=Actual button will set the Earned Value equal to Actual Cost for the currently selected work package. Note that for non-measurable work packages, earned will automatically be set to Actual Cost, unless Actual Cost is exceeding the current control estimate (CCE). If so earned will be set equal to current control estimate (CCE).

Updating the Project Forecast (Forecast at Complete)

Depending on the configuration of the Pims version you are running the project forecast is updated in different ways:

  1. Project Forecast is Equal to Work Packs New Estimates

    Running with this setting, the project forecast will automatically be updated to reflect the cost populated in the work packs new estimates

  2. Project Forecast is set in Preliminary Input/Monthly Actuals

    Running with this setting, the project forecast can be set using the “Set Forecast” button available in Preliminary Input (or directly input input Monthly Actuals, if not using the Preliminary Input functionality). The forecast value can then be overridden, and not necessarily match the estimate details.

Time Phasing the Project Forecast (Forecast at Complete)

The Forecast Time Phasing screen is used to determine how the forecast cost is expected to be utilized during the remainder of the project. The forecast value should be determined for each month, on a work pack by work pack basis. The Forecast Time Phasing screen looks as follows:

Figure 31: Forecast Time Phasing Form

Each Cost Engineer on the project will usually be responsible for time-phasing the Forecast at Complete value for each of the Work Packages they are responsible for. These work packages will be listed on the right-hand side of the screen. To change the time-phasing for a work package, it should first be selected on this list. The details of this work package will then be presented, as shown above.

The monthly phasing values are listed by month vertically down the left hand side of the screen. The Forecast values can be entered manually into this grid. This can be done either by typing the forecast cost directly, or by entering a percentage value for the expected utilization. The preferred input method should be selected using the Input option in the Time Phasing Options section of the screen. This can be set to either ‘Cost’ or ‘Progress’ respectively.

If ‘Progress’ is selected, then the forecast percentage of utilization is entered into the Forecast Progress column. The Forecast Cost value for the month will then be calculated by multiplying the progress with the total Forecast at Complete value for the Work Package. This value is taken from the latest information in the Work Pack Estimate screen, and is shown in the Cost Summary box at the top of the screen.

Rather than typing in each of the monthly forecast values directly, it is also possible to calculate the values based on a selected profile curve. The profile curves are defined using the Standard Profiles tab under the Project Control Basis Setup options. An example profile curve is shown below:

Figure 32: Standard Profiles Form

To use a curve, select it using the Std Profile pull-down list in the Time phasing Options section. Note that if you want to enter values manually, rather than using a profile, then you should select the ‘MA’ option on the list, which stands for ‘Manual’.

To use a curve, select it using the Std Profile pull-down list in the Time phasing Options section. Note that if you want to enter values manually, rather than using a profile, then you should select the ‘MA’ option on the list, which stands for ‘Manual’.

The forecast will be spread from the Start Date to the Finish dates, which have been selected for the Work Pack. If the Current cut-off date is later than the Start Date, then the spread will go from the current month to the Finish date. The value will be spread from the Actual expenditure to date value, to the Forecast at Complete value shown in the Cost Summary section. These values are taken from the Monthly Actuals screen, as described in the previous section.

Once you have selected the Start and Finish dates, and a Profile, you can update the Forecast values. This is done by selecting the Phase According to Profile option in the toolbar. This can optionally be performed for all work packages, or for only the work package which is currently selected.

The Update Schedule based on Spread toolbar option will change the Start and Finish dates according to the values which have been manually entered in for the work pack, based on the first and last months for which forecast values have been entered.

The monthly Cost Reports can be output after all forecast has been time-phased for all Work Packages in the Project. The printing and preparation of Cost Reports is handled in the following section.