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SAP Knowledge Base Article - PublicSymptom
How ETC and EAC value related to Professional services projects (Customer Projects) are calculated.
Environment
SAP S/4HANA Cloud Public Edition
Resolution
Understanding ETC Effort Calculation
ETC (Estimate to Complete) effort is calculated using the following formula:
ETC Effort = Planned Effort + Deviation Effort – Actual Effort
Let’s break this down:
- Planned Effort: Total effort initially scheduled.
- Actual Effort: Effort spent/booked.
- Deviation Effort: The difference between planned and actual efforts up to the forecast month.
-
- A positive deviation means more effort was spent than planned (overbooking).
- A negative deviation means less effort was spent (under booking).
- Deviation is considered for the overbooking or the under booking of efforts done in the periods before the forecast period.
- In the forecast period, there will be compensation of efforts that were overbooked or under booked in the previous periods.
Example Scenario 1:
A work package is planned from April to July with the following effort data (in hours):
|
Month |
Planned Effort |
Actual Effort |
|
April (4) |
8 |
10 |
|
May (5) |
7 |
8 |
|
June (6) |
8 |
8 |
|
July (7) |
16 |
0 |
Deviation Calculation:
To understand the deviation, subtract Actual effort from the planned Effort for each period till the forecast month:
|
Month |
Planned |
Actual |
Deviation |
|
April |
8 |
10 |
+2 |
|
May |
7 |
8 |
+1 |
|
June |
8 |
8 |
-3 |
|
July |
16 |
0 |
(Not yet considered) |
If the forecast month is set to June, deviations are calculated for April to May as follows.
- Total Planned Effort (Apr–May) = 8 + 7 = 15H
- Total Actual Effort (Apr–May) = 10 + 8 = 18H
- Total Deviation (Apr–May) = 2 (Apr) + 1 (May) = 3H
- Since there was an overbooking of 3 hours for the periods before the forecast month, the -3 indicates the compensation for the overbooking carried out before the forecast month.
The total deviation effort for the project will be the sum of these: 2 + 1 – 3 which in this case is 0.
ETC Effort Calculation:
Now, apply the formula:
ETC = Planned Effort (Total) + Deviation – Actual Effort (till forecast month)
ETC = 39 + 0 – 26 = 13H
So, 13 hours of effort remain to be completed based on current progress and deviation.
Example Scenario 2:
A work package is planned from April to July with the following effort data (in hours):
|
Month |
Planned Effort |
Actual Effort |
|
April (4) |
8 |
8.620 |
|
May (5) |
7 |
7.250 |
|
June (6) |
8 |
8 |
|
July (7) |
16 |
0 |
Deviation Calculation:
|
Month |
Planned |
Actual |
Deviation |
|
April |
8 |
8.620 |
0.620 |
|
May |
7 |
7.250 |
0.250 |
|
June |
8 |
8 |
-1 |
|
July |
16 |
0 |
(Not yet considered) |
The forecast month is set to June, deviations are calculated for April to May as follows.
- Total Planned Effort (Apr–May) = 8 + 7 = 15H
- Total Actual Effort (Apr–May) = 8.620 + 7.250 = 15.870H
- Total Deviation (Apr–May) = 0.620 (Apr) + 0.250 (May) = 0.870H
- Since there was an overbooking of 0.87 hours for the periods before the forecast month it is rounded off to the nearest integer value, which is 1. The -1 (it is always rounded off to the nearest integer for the forecast month) indicates the compensation for the overbooking carried out before the forecast month.
The total deviation effort for the project will be the sum of these:
0.620 + 0.250 – 1 which in this case is -0.130
Now, applying the ETC formula:
ETC = Planned Effort (Total) + Deviation – Actual Effort (till forecast month)
ETC = 39 – 0.130 – 23.87 = 15H
Example Scenario 3:
A work package is planned from April to July with the following effort data (in hours):
|
Month |
Planned Effort |
Actual Effort |
|
April (4) |
8 |
8.170 |
|
May (5) |
7 |
7.170 |
|
June (6) |
8 |
8 |
|
July (7) |
16 |
0 |
Deviation Calculation:
|
Month |
Planned |
Actual |
Deviation |
|
April |
8 |
8.170 |
0 |
|
May |
7 |
7.170 |
0 |
|
June |
8 |
8 |
0 |
|
July |
16 |
0 |
(Not yet considered) |
The forecast month is set to June, deviations are calculated for April to May as follows.
- Total Planned Effort (Apr–May) = 8 + 7 = 15H
- Total Actual Effort (Apr–May) = 8.170 + 7.170 = 15.340H
- Total Deviation (Apr–May) = 0.170 (Apr) + 0.170 (May) = 0.340H
- Since there was an overbooking of 0.340 hours for the periods before the forecast month it is rounded off to the nearest integer value since it is less than 0.5 it is rounded off to 0.
- So 0 indicates there is no compensation for the overbooking carried out before the forecast month.
The total deviation effort for the project will be the sum of these which is 0.
Now, applying the ETC formula:
ETC = Planned Effort (Total) + Deviation – Actual Effort (till forecast month)
ETC = 39 – 0 – 23.340 = 15.66 which is rounded off to the nearest integer value which is 16H.
Example Scenario 4:
A work package is planned from May to July with the following effort data (in hours):
|
Month |
Planned Effort |
Actual Effort |
|
May (5) |
8 |
6.5 |
|
June (6) |
9 |
9 |
|
July (7) |
10 |
0 |
Deviation Calculation:
|
Month |
Planned |
Actual |
Deviation |
|
May |
8 |
6.5 |
-1.5 |
|
June |
9 |
9 |
+2 |
|
July |
10 |
0 |
(Not yet considered) |
If the forecast month is set to June, deviations are calculated for the month of May as follows.
- Total Planned Effort = 8H
- Total Actual Effort = 6.5H
- Deviation = -1.5H
- Since there was an under booking of 1.5 hours for the period of May, the +2 (Since 1.5 is rounded off to the nearest integer which is 2) indicates the compensation for the under booking carried out before the forecast month.
The total deviation effort for the project will be the sum of these: -1.5 + 2 which in this case is 0.5
ETC Effort Calculation:
Now, apply the formula:
ETC = Planned Effort (Total) + Deviation – Actual Effort (till forecast month)
ETC = 27 + 0.5 – 15.5 = 12H
So, 12 hours of effort remain to be completed based on current progress and deviation.
The view I_ENGMNTPROJFCSTCUBE_2 can be used to get the actual plan deviation effort and actual plan deviation cost data.
Note: The ETC effort is an input value which does not support decimal values, hence the value calculated is rounded off in the app 'Review Customer Projects'.
Then the ETC Cost = ETC Effort * Average cost.
where Average Cost = Total Planned Cost / Total Planned Efforts.
The Estimate at completion (EAC) is calculated as follows:
EAC Effort = ETC Effort + Actual Effort
EAC Cost = ETC Cost + Actual Cost
See Also
Keywords
Review customer projects, ETC effort, ETC cost, customer projects, internal projects, CA-CPD-SS, SAP S/4HANA Cloud Public Edition, EAC cost, EAC effort. , KBA , CA-CPD-SS , S/4HANA Public Cloud – Professional Service Projects , How To
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