Baseline Time Range

Last month actual

The actual cost of the previous month is directly used as the budgeted amount.

Example: If the actual cost of the previous month is $100 USD, the budgeted amount of the current month is $100 USD.

Current month forecast

The forecasted cost of the current month is used to calculate your budgeted amount. For details about the forecasting function, see When to Use Cost Forecasting.

Example: If the forecasted cost of the current month is $100 USD, the budgeted amount of the current month is $100 USD.

NOTE:

Ensure that the historical data is sufficient before using this baseline time range to calculate your budgeted amount.

Last several months average

The average value of actual costs in last several months is used to calculate your budgeted amount. The average value of the actual costs in last 1 to 12 months can be used.

Example: Select Last several months average > Last 3 months for Baseline Time Range. The actual costs for last three months are $90 USD, $120 USD, and $150 USD, respectively.

Last three months average = (90 + 120 + 150)/3 = 120. The budgeted amount for the current month is $120 USD.

Last several months compound growth rate

The compound growth rate of the last several months is used to calculate the budgeted amount. The average value of the actual costs in last 2 to 12 months can be used.

The formulas are as follows:

• Compound growth rate =
• Budgeted amount = x (1 + Compound growth rate)
• is the actual cost of the final month in the last n months, and is the actual cost of the first month in the last n months.

Example: Select Last several months compound growth rate > Last 3 months for Baseline Time Range. The actual costs for the last three months are $100 USD, $120 USD, and $200 USD, respectively.

Last three months compound growth rate = - 1 = 0.41. Budgeted amount for the current month = 200 x (1 + 0.41) = $282 USD

Last quarter actual

The actual cost of the previous quarter is directly used as the budgeted amount.

Example: If the actual cost of the previous quarter is $100 USD, the budgeted amount of the current quarter is $100 USD.

Current quarter forecast

The forecasted cost of the current quarter is used to calculate your budgeted amount. For details about the forecasting function, see When to Use Cost Forecasting.

Example: If the forecasted cost of the current quarter is $100 USD, the budgeted amount of the current quarter is $100 USD.

NOTE:

Ensure that the historical data is sufficient before using this baseline time range to calculate your budgeted amount.

Last several quarters average

The average value of actual costs in last several quarters is used to calculate your budgeted amount. The average value of the actual costs in last 1 to 4 quarters can be used.

Example: Select Last several quarters average > Last 2 quarters for Baseline Time Range. The actual costs for last two quarters are $90 USD and $120 USD, respectively.

Last two quarters average = (90 + 120)/2 = 105. The budgeted amount for the current quarter is $105 USD.

Last several quarters compound growth rate

The compound growth rate of the last several quarters is used to calculate the budgeted amount. The average value of the actual costs in last 2 to 4 quarters can be used.

The formulas are as follows:

• Compound growth rate =
• Budgeted amount = x (1 + Compound growth rate)
• is the actual cost of the final quarter in the last n quarters, and is the actual cost of the first quarter in the last n quarters.

Example: Select Last several quarters compound growth rate > Last 3 quarters. The actual costs for the last three quarters are $100 USD, $120 USD, and $200 USD, respectively.

Last three quarters compound growth rate = -1 = 0.41. Budgeted amount for the current quarter = 200 x (1 + 0.41) = $282 USD