How to Complete a Cost Forecast using PM Cost Projections

Before you start

In order to complete an accurate forecast, it is important that the cost inputs are complete and inclusive of all known actual and committed costs incurred by the project on the date of the forecast.

To ensure that the costs recorded in Viewpoint are accurate, it is important to understand and pay attention to accounting cut off dates on the finance calendar and ensure that payables are reviewed prior to the monthly deadline. It is also important to stay on top of processing paperwork such as owner change orders, subcontract change orders, and vendor purchase orders as soon as practical as these alter the financial position of the project and will reflect on the final output of your cost forecast.

Start forecasting no sooner than PM start date on finance calendar

Synergy Projects publishes a finance calendar for the year that details all of the important cut-off dates for financial activities within the organization. Each month a specific date is identified that marks the start of the forecasting period for that month. Do NOT start your monthly forecast prior to this date, as this ensures that all accounting functions leading up to forecast (vendor payables, subcontract payables, payroll, etc.) have been completed and batches have been closed. If you begin your forecast ahead of the start date, you risk not having complete cost information posted to Viewpoint which reduces the accuracy of the forecast.

Keep up to date with payable approvals and progress invoices

The finance calendar also identifies dates for approving vendor invoice payables, for submitting personal expenses, and for submitting monthly progress claims to owners. It is critical that these functions remain up to date and that due dates for these activities are enforced. Respecting the cut-off dates for these activities ensures that the costs and revenues are captured in the correct month leading to forecast accuracy and smooth functioning of the business overall.