There are three options under the Earned Value tab in Admin Preferences, namely;
- At Completion values with current dates,
- Budgeted values with current dates, and
- Budgeted values with planned dates.
These options enable selection of the manner in which planned values are required to be calculated.
The first one is pretty straightforward — Budgeted Values with Planned Dates. In this case planned values are directly calculated from the time and cost spread of the assigned baseline.
The first image below shows the allocation of activity duration, units and costs.
When the above schedule is designated the baseline, and is updated midway (Update1, or U1), 50% planned and 20% accomplishment is easily understood, ref. image 2 below.
In the update process, both activities are 20% complete with RD (remaining duration) of first activity as 20 days and that of the second activity as 10 days. This makes the current total (or at complete) duration 22 days and 12 days, respectively.
Now, if this updated version U1 is applied as a baseline (B2) to U1 then planned values may be calculated based on the updated dates shown in U1, from actual start to expected finish (i.e. 22 days, as explained above).
PV = elapsed duration / total duration * assigned cost = 2 / 22 * 1,000 = 90.91
In order to make the application disregard the original duration (10 days) which is stored in activity data, it has to be specified that “current’ date must be used. This is where we use the option of ‘Budgeted Values with Current Dates’.
The above calculation is with respect to changed total (at complete) duration. What about changed total (at complete) cost?
Let’s assume the Remaining Cost (and thereby the At Completion Cost) increases by $200. Meaning At Completion Cost = $ 1,200
In this case, just as the change in manner of calculating the spread of time was specified using Budgeted Values with Current Dates, we will specify the change in spread of cost over time by using the option of “At Completion Values with Current Dates”.
PV = 2 / 22 * 1,200 = $ 109.09