What is 'estimate at completion' in SAP SRD-PRO-PMN - PRO-Project Management?

estimate at completion - Overview

• Component: SRD-PRO-PMN

• Component Name: PRO-Project Management

• Description: The budget for a task and any underrun or overrun costs.

estimate at completion - Details

• 
  Key Concepts: 
  Estimate at Completion (EAC) is a term used in SAP SRD-PRO-PMN PRO-Project Management to refer to the estimated total cost of a project at the end of its completion. It is calculated by taking the original budget for the project and adjusting it for any changes that have occurred during the course of the project. 
  
  How to use it: 
  The EAC can be used to help project managers better understand the financial implications of their decisions. It can also be used to compare the actual cost of a project with its original budget, allowing managers to identify areas where costs have exceeded expectations and take corrective action. 
  
  Tips & Tricks: 
  When calculating the EAC, it is important to take into account any changes that have occurred during the course of the project, such as changes in scope, resources, or timeline. Additionally, it is important to consider any external factors that may have impacted the cost of the project, such as inflation or currency fluctuations. 
  
  Related Information: 
  The EAC is closely related to other terms such as Earned Value Management (EVM) and Cost Variance (CV). EVM is a method used to measure progress on a project by comparing actual costs with planned costs. CV is a measure of how much a project's actual cost differs from its planned cost.