Examples: Cost to complete methods

Article
11/29/2021

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
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	Total
Development	Hour	Yes	90,000	90,000
Test	Hour	No	76,000	76,000
Subcontractor	Expense	Yes	28,000	28,000
Travel	Expense	No	11,000	11,000
Hardware	Item	No	80,000	80,000
Software	Item	Yes	43,000	43,000
Totals			328,000	328,000