Forecast the budget for portfolio

As a project or portfolio manager, you can forecast the future costs of projects and portfolios based on the actual cost and changed project requirements.

After budget planning and approval, during the project execution, as the project manager, you can re-estimate (forecast) the planned costs for future periods. This forecast is based on the actual cost incurred and other changes in projects. The forecasted project costs get rolled-up to the portfolio and, as the portfolio manager, you can create the forecast plan for the portfolio.

An example of the quarterly forecasting process for the April quarter is shown:
Figure 1. Budget forecasting

When the forecast period is open for a given period,

  • As the project manager:
    • review actual cost for current and past periods and edit the estimated cost for the forecast period and all future periods. For example, if the forecast period is open for April 2016, the estimated cost for April and future months can be edited.
      Note: As the project manager, you cannot edit the costs for past periods. For example, in this case, the cost for months prior to April cannot be edited.
    • forecast (re-estimate) the cost plans for the projects, when required. The forecasted project costs are rolled-up to the portfolio.
  • As the portfolio manager:
    • review the re-estimated costs for all the projects in a portfolio in the portfolio workbench.
    • decide to include new projects or exclude a few projects using portfolio planning view when the budget target changes during the fiscal year.
    • create the forecast plan for the portfolio with changed project estimates, and submits the plan to the investment committee for review.
    • update the forecast plan for the portfolio based on feedback from the investment committee and repromotes it.
    Note: As the portfolio manager, you can also view budgeted, actual, and forecasted cost for the projects in the ITFM Budget Console.
Note:
  • The forecast period for the fiscal period must be open to create the forecast plan for a portfolio. For example, open the forecast period for FY17: Apr to create a forecast plan in April.
  • The budget period for a fiscal period must be closed to open a forecast period for the corresponding fiscal period.
  • Only one forecast period can be open at a time.