A purchase can pass through several project-cost categories without becoming a new cost at every step. Datum’s forecast combines open commitments, allocated inventory, project WIP, production actual and uncommitted forecast. Procurement actual supports the review but is not added to that forecast again.
A project buys material, receives it, holds it for the job and uses it in production. The supplier also sends a bill, which is later paid. Those records describe different parts of the work. Adding every document value together would overstate the cost.
One purchase, several records
The purchase order describes an obligation. Receipt and stock records describe material that has arrived. Project allocation and WIP describe where resources are held for the work. Production records explain use or completion, while bills and payments describe purchasing and settlement.
The precise transitions depend on the supported workflow. A receipt is not automatically a production expense, and a payment is not another use of the material. Follow the source events and their classifications rather than inferring the forecast from document names.
The five forecast categories
Datum's project-cost aggregation adds five categories to calculate forecast at completion:
| Category | What to examine |
|---|---|
| Open commitment | Outstanding obligations still represented as commitments |
| Project-allocated inventory | Inventory value assigned to the project |
| Project WIP | Value recorded in the project's work-in-progress category |
| Production actual | Cost recorded as production actual by the relevant project events |
| Uncommitted forecast | Estimated remaining work not already covered by the other categories |
Use the records behind each amount to establish what it covers. The same amount should not remain in two contributing categories merely because two documents refer to it.
A forecast without double counting
Consider this illustrative project position. The amounts below are already classified into distinct categories; this is a reporting example, not an automatic posting sequence.
| Category | Amount |
|---|---|
| Open commitment | $8,000 |
| Project-allocated inventory | $4,000 |
| Project WIP | $3,000 |
| Production actual | $12,000 |
| Uncommitted forecast | $5,000 |
| Forecast at completion | $32,000 |
Against a current cost budget of $30,000, the forecast variance is budget minus forecast: −$2,000. The project is forecast to exceed its cost budget by $2,000.
If a supported event moves $1,000 from allocated inventory to project WIP, and nothing else changes, allocated inventory becomes $3,000 and WIP becomes $4,000. The forecast remains $32,000. The location of the cost changed; the amount did not increase.
Why procurement actual is separate
Datum also exposes procurement actual, original cost budget and current cost budget as supporting measures. They are not additional terms in the five-category forecast.
Suppose procurement actual is $10,000 in the example. The forecast remains $32,000, not $42,000. The purchasing measure supports a different review, and some or all of its value may already be represented by held material or production cost. It is not a sixth category to add.
Similarly, a budget is the comparison target rather than another cost. Keep both the original baseline and the current approved budget visible when reviewing scope changes.
Review how the cost moved
When a forecast changes, identify the category and source event that changed it. An amount moved between categories calls for a different explanation from a new obligation, a revised estimate or a cost correction.
- Check the project and milestone scope.
- Compare the same effective date and currency basis.
- Inspect the event's source record and any correction or reversal.
- Check whether fulfilled work also reduced the related commitment or remaining forecast.
- Compare the current budget with the updated forecast.
This is why committed and actual cost need precise definitions, and why a late cost amendment needs a traceable destination.
What to check in your setup
Use a representative project to confirm which purchasing, inventory and production events feed your available project-cost workflow. Include a partial receipt, a change and a reversal in that walkthrough.
Agree responsibility for maintaining uncommitted forecast and reviewing unsupported or incomplete source information. Your edition's standard modules, implementation services and any custom development should be clear in the proposal. The choice of native or external accounting remains separate from the operational forecast.
Related questions
Is procurement actual added to forecast at completion?
No. In Datum’s project-cost aggregation it is a supporting measure. Adding it to the five forecast categories would risk counting purchasing cost again when that cost is already represented elsewhere.
Is project WIP the same as production actual?
No. Datum tracks them as distinct project-cost categories. Read the source event and workflow to understand what is held in WIP and what has been recorded as production actual.
Does paying a bill increase the project forecast?
A payment is not a reason to count the purchase again. Changes to the forecast need the appropriate project-cost event and classification; cash settlement answers a different question.
Is the project forecast a general-ledger balance?
No. It combines actual, held and forward-looking categories for project management. Reconcile financial reporting using the applicable accounting records rather than treating the forecast as a journal total.