Examples: Cost to complete methods
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Microsoft Dynamics AX provides six cost-to-complete methods that you can select in the Create estimate form. The method that you select is used to distribute the values of an estimate for a project. For more information, see Create estimate (class form).
The As previous estimate method uses the method that was selected for the previous estimate period. The From cost template method uses the method that was specified as the default for the cost template in the Estimate template form. For more information, see Estimate template (form).
This topic illustrates how each of the other four cost-to-complete methods affects the estimates for a project. The first two tables provide the data assumptions for the estimate examples. The remaining tables provide examples of estimates that are posted in the month of August and consumed in September.
Estimate assumptions
Estimate posted in August
Cost line |
Transaction type |
Forecasting |
Actual |
Cost to complete |
Total |
|---|---|---|---|---|---|
Development |
Hour |
Yes |
70,000 |
30,000 |
100,000 |
Test |
Hour |
No |
60,000 |
20,000 |
80,000 |
Subcontractor |
Expense |
Yes |
25,000 |
5,000 |
30,000 |
Travel |
Expense |
No |
10,000 |
2,000 |
12,000 |
Hardware |
Item |
No |
80,000 |
0 |
80,000 |
Software |
Item |
Yes |
35,000 |
7,000 |
42,000 |
Totals |
280,000 |
64,000 |
344,000 |
Consumed cost in September
Cost line |
Transaction type |
Actual transactions in September |
Forecast transactions in the forecast model |
|---|---|---|---|
Development |
Hour |
20,000 |
12,000 |
Test |
Hour |
16,000 |
5,000 |
Subcontractor |
Expense |
3,000 |
3,000 |
Travel |
Expense |
1,000 |
2,000 |
Hardware |
Item |
0 |
0 |
Software |
Item |
8,000 |
0 |
Totals |
48,000 |
22,000 |
Cost to complete methods
Method: Total cost – actual
Cost line |
Transaction type |
Forecasting |
Actual |
Cost to complete |
Total |
|---|---|---|---|---|---|
Development |
Hour |
Yes |
90,000 |
10,000 |
100,000 |
Test |
Hour |
No |
76,000 |
4,000 |
80,000 |
Subcontractor |
Expense |
Yes |
28,000 |
2,000 |
30,000 |
Travel |
Expense |
No |
11,000 |
1,000 |
12,000 |
Hardware |
Item |
No |
80,000 |
0 |
80,000 |
Software |
Item |
Yes |
43,000 |
-1,000 |
42,000 |
Totals |
328,000 |
16,000 |
344,000 |
Method: Total budget – actual
Cost line |
Transaction type |
Forecasting |
Actual |
Cost to complete |
Total |
|---|---|---|---|---|---|
Development |
Hour |
Yes |
90,000 |
||
Test |
Hour |
No |
76,000 |
||
Subcontractor |
Expense |
Yes |
28,000 |
||
Travel |
Expense |
No |
11,000 |
||
Hardware |
Item |
No |
80,000 |
||
Software |
Item |
Yes |
43,000 |
||
Totals |
328,000 |
Method: Remaining budget
Cost line |
Transaction type |
Forecasting |
Actual |
Cost to complete |
Total |
|---|---|---|---|---|---|
Development |
Hour |
Yes |
90,000 |
12,000 |
102,000 |
Test |
Hour |
No |
76,000 |
5,000 |
81,000 |
Subcontractor |
Expense |
Yes |
28,000 |
3,000 |
31,000 |
Travel |
Expense |
No |
11,000 |
2,000 |
13,000 |
Hardware |
Item |
No |
80,000 |
0 |
80,000 |
Software |
Item |
Yes |
43,000 |
0 |
43,000 |
Totals |
328,000 |
64,000 |
350,000 |
Method: Set cost to complete to zero
Cost line |
Transaction type |
Forecasting |
Actual |
Cost to complete |
Total |
|---|---|---|---|---|---|
Development |
Hour |
Yes |
90,000 |
0 |
90,000 |
Test |
Hour |
No |
76,000 |
0 |
76,000 |
Subcontractor |
Expense |
Yes |
28,000 |
0 |
28,000 |
Travel |
Expense |
No |
11,000 |
0 |
11,000 |
Hardware |
Item |
No |
80,000 |
0 |
80,000 |
Software |
Item |
Yes |
43,000 |
0 |
43,000 |
Totals |
328,000 |
0 |
328,000 |
See also
About methods for calculating the cost to complete a project