Financial Periods

Have you ever tried to plot a Budgeted vs actual curve/spread for previous three months in Primavera and wondered why is it distributing the values equally? At times we either forget to store financial periods or we don’t know how to use them. Let’s look at the following example;

We will study the following two cases to see how financial periods are an integral part of monitoring.

Case 1        – Updating an activity without storing any financial periods

Case 2        – Updating an activity and then store financial periods

Example Activity A that has duration of 1 month with a weekly update cycle and has resource R assigned to it.

 

Total Budgeted Units –            240 units

Actual Units –                           Week 1 – 33 units

Week 2 – 21 units

Week 3 – 24 units

Week 4 – 40 units

 

Case 1: We update the activity with actual units as described above without storing financial periods and then we generate an “Actual Units Spreadsheet”. As you can see, the units are spread uniformly between the weeks as opposed to being spread according to the Actual Units consumed per week.

 


 

 

Case 2: In this case while updating every week, we store Financial Period Values after scheduling and then we generate an “Actual Units Spreadsheet”. This time the Actual units are correctly distributed across the weeks.


The above example also holds true for Cost and Earned Value. Financial periods help store incremental values of different attributes of activities and resources.

The following data is stored when you store Financial Period data:

At the Resource Assignment Level:

  • Actual Cost
  • Actual Units

At the Activity Level:

  • Actual Expense Cost *
  • Actual Labor Cost *
  • Actual Labor Units *
  • Actual Material Cost *
  • Actual Nonlabor Cost *
  • Actual Nonlabor Units *
  • Earned Value Cost
  • Earned Value Labor Units
  • Planned Value Cost
  • Planned Value Labor Units

* Rolled up from the Resource Assignment level

Next post would be a tutorial on how to use and save Financial Periods so do come back and don’t forget to leave your comments.