This activity is used to define the consumption point on a company. The consumption point is the point at which the cost of the project is considered to be consumed out of the budget.
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Depending on the consumption point defined, the budget will be consumed from that point onwards for all forecasts belonging to the selected company. A consumption point effects the remaining budget in the following ways:
Consumption Point | Remaining Budget Calculation |
Create Pur Req Line | EAC - (Used Cost + Committed Cost + Cost of all PO’s not released + Cost of PRs Released + Cost of PR’s not released) |
Release Pur Req Line | EAC – (Used Cost + Committed Cost + Cost of all POs not released + Cost of PRs released) |
Create Pur Ord Line | EAC – (Used Cost + Committed Cost + Cost of all PO’s not released) |
Release Pur Ord Line | EAC – (Used Cost + Committed Cost) |
Use the following procedure to define a consumption point: