Issues faced in CPM forecasting

[#1]

Problem Statement

We are currently working on SAP Commercial Project Management – Forecasting and are facing a few challenges related to the calculation logic and execution sequence. The details are outlined below.

What We Have Done So Far in SAP CPM

- Created a CPM Project
- Completed Financial Planning
- Transferred plan data to Project System (PS)
- Posted actual costs
- Adjusted future quantities in adjust forecast
- Executed forecasting using options like:
               - Forecast based on Actual
               - Forecast based on EAC

Our Observations

Observation 1: Miscalculation of EAC (Estimate at Completion)

- After adjusting the quantity, the ETC (Estimate to Complete) is calculated correctly based on the remaining plan.
- However, the EAC is not summing up the actuals to date + ETC. Instead, it is only showing the ETC value.
- We would like to understand:
               - Where is the EAC calculation logic configured in the backend?
              - Is there a way to ensure EAC includes both actuals and ETC?

Observation 2: Forecast Execution Sequence

- We are unsure about the correct sequence to execute the following forecasting steps:
              - Calculate EAC
               - Forecast Based on Actual
               - Forecast Based on EAC
               - Get Plan Rate
              - Revaluate
               - Insert
- Is there a recommended or mandatory sequence for these steps to ensure accurate forecasting?

Observation 3: Forecasting Method Confusion

- We need clarification on the difference between:
               - Forecast Based on Actual
               - Forecast Based on EAC
- Specifically, how do these methods impact the calculation of ETC and EAC?

Expectation from the Expert

We would appreciate your guidance on the following:
1. Where is the EAC calculation logic configured in the system (e.g., planning function, BAdI, or backend table)?
2. What is the correct sequence to execute forecasting steps for accurate results?
3. Clarification on the functional difference between 'Forecast Based on Actual' and 'Forecast Based on EAC'.

[venkatamandavilli]

In SAP Commercial Project Management (CPM) – Forecasting, the behavior you’re seeing for EAC and ETC is usually due to which forecasting mode you’re using and how the system is configured for EAC calculation.

What CPM supports

According to SAP, CPM supports two main forecasting approaches:

1. Forecast based on actuals

   • EAC = Actuals from past periods + planned future amounts

   • ETC = planned future amounts only

   • This matches the formula:

     EAC=Actual Cost (AC)+ETC\text{EAC} = \text{Actual Cost (AC)} + \text{ETC}EAC=Actual Cost (AC)+ETC

     productive+2

2. Forecast where ETC is recalculated based on actuals, but EAC is kept constant

   • In this mode, the system does not automatically set EAC = AC + ETC; EAC may be fixed or calculated differently.

From your description:

After adjusting the quantity, the ETC is calculated correctly based on the remaining plan.

However, the EAC is not summing up the actuals to date + ETC. Instead, it is only showing the ETC value.

This strongly suggests your scenario is using the second forecasting mode (constant EAC or custom EAC logic) instead of Forecast based on actuals.

What to check

To get EAC = Actuals to date + ETC, confirm:

1. Forecasting mode / method

   • In your forecasting configuration, ensure the method is set to “Forecast based on actuals” (EAC = AC + ETC).

   • Make sure it’s not set to a mode where EAC is kept constant or calculated by a different formula.

2. Actuals posting

   • Verify that actual costs/revenues are posted correctly and are visible in the relevant periods.

   • If actuals are not recognized by the forecasting run, EAC will look like it only shows ETC.

3. Custom addition or overrides

   • Check if there’s any custom logic, enhancement, or manual override on EAC that sets it directly to ETC or ignores actuals.

4. Documentation alignment

   • SAP’s official forecasting documentation describes exactly this behavior and the two modes, so you can compare your setup with the described behavior.

If you’re still seeing EAC = ETC only

If the mode is correctly set to “Forecast based on actuals” and actuals are posted, then this is likely a configuration or enhancement issue and should be opened with SAP (or your internal ABAP/Basis team) as a potential bug or custom code interference.

[Ken_Melching]

Look here for CPM Forecasting info:

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/d6c1ceb7e0074cd1a8f28dad8a1a649c/1c16d11effd34cb78c6...

[Vincent-Raucaz]

We observe the same processing sequence on our RISE 2025 FPS01 instance.

The amounts transferred to PS on budget 0 to recalculate the EBRR are duplicated (the EAC is transmitted on each budget period).

The EAC display in Web Dynpro fails to position the actuals for past periods and the valued ETC for future periods. Where can I find the SAP documentation explaining how these functions work?