Forecast the budget for portfolio

The project and portfolio managers can forecast the future costs of their projects and portfolios based on the actual cost and changed project requirements.

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

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

When the forecast period is open for a given period,

  • The project managers:
    • 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 Apr 2016, the estimated cost for Apr and future months can be edited.
      Note: Project managers cannot edit the costs for past periods. For example, in this case, the cost for months prior to Apr cannot be edited.
    • forecast (re-estimate) the cost plans for the projects, when required. The forecasted project costs get rolled-up to the portfolio.
  • The portfolio manager:
    • reviews the re-estimated costs for all the projects in a portfolio in portfolio workbench.
    • decides to include new projects or exclude few projects using portfolio planning view, when the budget target changes during the fiscal year.
    • creates the forecast plan for the portfolio with changed project estimates, and submits the plan to investment committee for review.
    • updates the forecast plan for the portfolio based on feedback from investment committee and re-promotes it.
    Note: Portfolio Manager can also view budgeted, actual and forecasted cost for the projects in 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.