Hi All,
There is earned value adjustment shall be done in case Of Finishing the activity less than BAC.
Let me clarify the case with Negative impacts:
Act A1000 BAC =1,000,000 U.S.D ACT ST 01-DEC-15 ACT FS 30-DEC-15 Finished at 500,000 U.S.D
Options:
1- Update 100% and actual dates -impact showing EV=1,000,000 INSTEAD OF 500,000
2- Update 50% ,actual start and ETC=0 - Impact Showing the activity in progress while in reality it has been finished
3- Update 100% with actual dates and add new activity with -500,000 to B.L then
update -Impact BAC will change from 1,000,000 to 500,000 which not correct
I’m convinced with option 1 while my superior convinced with option 3 and I’m trying to convince
Please advise about the proper one and if there is any other option?
Thanks
Thanks SM H
in terms of you are client since no profit it will reflect unrealstic case when you are updating 100%
According to my understanding the 1st option is correct. You completed the task plus you saved money on that. Now if you want to make a change in budget after the execution of actiivty (for whatever reasons), you will have to go back to baseline scshedule and change the budget there, then your BAC will be calculated as $500k and your EV will also be calculated as $500K. This is the case where your EV calculation use a different schedule than the current schedule as baseline.
However, if you are using current schedule as baseline to calculate EV then, simply unactualize the activity progress and actual cost and re-assign the new budgeted value and then progress the activity (in this case 100%). The new EV will show $500k value.