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Project Analysis Report

Posted: Wed Aug 03, 2016 3:14 pm
by grahameldridge
The purpose of the report is to provide users with an overview of their portfolio of projects financial performance and to assist financial reviewers in consolidating month end work in progress calculations.

The information below describes each number based field and where in UniPhi data is populated:

A - Agreed Fee
The agreed fee represents either the signed off contractual amount agreed with the client (including any approved variations to the original contract amount) OR if no evidence exists of an agreed fee, it displays the "Invoiced" value. The agreed fee is automatically recognised when a signed off document with contract deliverables exists in UniPhi and variations are marked as approved.
B - Final Forecast Fee
The final forecast fee is the estimate total fee possible for this particular project. This can be adjusted by changing deliverable values or adding possible variations. This figure drives the revenue earned to date calculation. It is essential that remaining hours and any disbursement costs are forecasted (see below). It is costs that determine % complete and % complete that determines revenue earned to date. So if you add variations to a fee then add the hours that will be required to implement the variation to the resource plan.
C - Invoice To Date
This value is derived from the phased actual for the project and is imported from your accounts system. UniPhi imports values in batches and hence there can be a delay between entering an invoice and seeing its value in the report
D - Forecast Cost at Completion
This is made up of submitted timesheet hours multiplied by the historical rates for each resource plus the remaining hours multiplied by the current rate plus any actual and forecasted disbursements. Timesheet hours are updated every time a person submits hours on the job. Remaining hours can be adjusted at any time. Forecast disbursements are updated in the costs tab against the disbursement code listing (This is all detailed later in this document). Disbursements are imported from the relevant accounting system.
E - Actual cost to date
Actual costs are timesheet hours multiplied by the historical cost rates for each resource plus actual costs displayed in the costs tab (generally project disbursements).
F – % Complet
% Complete is measured by dividing the actual costs to date by the forecast cost at completion.
G - Total Revenue Earned to Date
Total revenue earned to date is calculated by multiplying the % complete by the final forecast fee. This represents the accounting concept of recognising only revenue you have earned not what you have invoiced.
H - WIP
WIP or "work in progress" is calculated by subtracting invoiced to date from revenue earned to date. Negative WIP means you have invoiced ahead of effort. This will result in an accrual adjustment to revenue down to recognise what has been earned. The reverse is true for positive WIP. WIP is thus a current asset that makes up a part of the companies working capital. The lower the WIP the better.
I - Profit Margin to date
The invoiced profit margin is used to compare against the earned profit margin to test for glaring forecasting errors. The margin is calculated by dividing the invoiced profit to date by the invoiced revenue to date value.
J - Forecast Profit Margin
This metric displays the expected profit margin at completion. A significant difference between invoiced and at completion margins indicates forecast error. The most likely culprit is the remaining hours estimate.
K - Invoiced in Period
Displays the value of invoices raised in the period (i.e. current month). The current reporting month is a filter selected in the report. It defaults to the latest closed accounting period.
L - Actual Cost in Period
Displays the value of costs in the current month. The difference between K and L is the invoiced profit.
M - Contract Backlog
Contract backlog represents the value of forecast fees yet to be contracted. Hence it is the difference between the agreed fee and invoiced to date. The total contract backlog represents the volume of work that is committed but not yet invoiced. If this number is trending down then the business is invoicing more than it is winning in new work and hence is contracting as a business. This ratio is known as booked to burn ratio
N - Awarded Backlog
Awarded backlog is the difference between the agreed fee and the final forecast fee. It represents the amount yet to be awarded by the client.
O - Total Backlog
Total backlog represents work yet to be invoiced and is the sum of the two backlog figures