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Earned value calculation

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lynguyenalg
Occasional Advisor

Earned value calculation

How is earned value calculated? My understanding is that it is Baseline Cost * Percent Complete. Is that correct? Are there any other factors that would change the value of earned value?

Thank you for any assistance!
Ly Nguyen
3 REPLIES
Raja R. Bharath
Super Collector

Re: Earned value calculation

From Self-solve:

Earned value calculation can now be done in one of two ways: The PPM 7.1 pre service pack 7 way is to obtain the total planned cost from the baseline, then multiply that by the percent complete.

Beginning with 7.1 SP7, if a task or project is less than 100% complete, the EV (Earned Value) calculation is 0.
The EV calculation is 100 only if the task or project is 100% complete.
A server.conf parameter called EV_ALLOW_PRORATING has been added to control EV calculation.
The new way of calculating EV is when the parameter is set to false. The parameter default value is true.

Companies manage their project cost differently. For some, they donâ t want tasks which are still in progress to be included in earned value calculation.
Only 100% completed tasks should have earned values (that will be â Falseâ value).

Most of our customers use the default setting - EV_ALLOW_PRORATING=True

Does TRUE include tasks still in-work or only completed tasks?

Setting it to â Trueâ means all of the baselined tasks will be calculated to have earned values regardless if the task is 100% completed.
Raja R. Bharath
Super Collector

Re: Earned value calculation

From Release Notes:

Earned value calculation can now be done in one of two ways: The current (pre-SP7) way is to obtain the total planned cost from the baseline, then multiply that by the percent complete. Beginning with SP7, if a task or project is less than 100%, the EV calculation is 0. The EV calculation is 100 only if the task or project is 100% complete. A server.conf parameter has been added to control EV calculation: EV_ALLOW_PRORATING. The new way of calculating EV is when the parameter is set to false. The default is true.
Raja R. Bharath
Super Collector

Re: Earned value calculation

Does this help Ly Nguyen? We are planning to change our setting to false.
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