What is 'earned value' in SAP PS - Project System?

earned value - Overview

• Component: PS

• Component Name: Project System

• Description: The value of services performed in a project. The term "earned value" describes the costs incurred to bring a project element to its current degree of completion. To calculate the earned value, the system multiplies the degree of completion by a planning factor, such as the original plan or the budget.

earned value - Details

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  Key Concepts: 
  Earned value is a concept used in the SAP Project System (PS) component to measure the progress of a project. It is calculated by multiplying the planned value of a project by the percentage of completion. The earned value is then compared to the actual cost of the project to determine if it is on track or over budget. 
  
  How to use it: 
  In order to use earned value, you must first define the planned value of a project. This can be done by estimating the total cost of the project and dividing it by the number of tasks that need to be completed. Once this is done, you can then calculate the earned value by multiplying the planned value by the percentage of completion for each task. 
  
  Tips & Tricks: 
  It is important to keep track of earned value throughout a project in order to ensure that it is on track and within budget. Additionally, it can be helpful to compare earned value with actual cost in order to identify any potential issues or areas where costs may be higher than expected. 
  
  Related Information: 
  Earned value is closely related to other concepts such as cost variance and schedule variance, which are also used in SAP Project System (PS) to measure progress and identify potential issues. Additionally, earned value can be used in