This grid compares how much planned effort/burn is forecasted each month by taking the amount of hours planned x rate, and shows the amount of planned billing/revenue next to it.
Video Summary:
Planifi's Forecast Revenue Grid, also known as the 'Billing Revenue versus Planned Spend Grid', is a unique tool that compares your project's projected billing or revenue against its planned effort or spend. This functionality provides a holistic view of your project's financial status, helping you align your remaining contract value with the expected workload.
The grid, accessible from the top menu, takes the billing or revenue projection data, which forecasts the expected billing or revenue based on your project schedules and remaining contract value, and compares it with the planned effort or spend. The planned effort or spend is calculated based on the project plan. For instance, if an employee is scheduled to work 100 hours in March with a rate of $100 per hour, the grid multiplies these to forecast a planned spend of $10,000.
The Forecast Revenue Grid essentially tells you how much contract you have remaining (i.e., how much you can earn or invoice) compared to how much effort you're planning to expend or how much you're planning to charge to the project based on planned time data.
This can be helpful in several ways. For example, if you're forecasting to do $150,000 in billing but only planning to do about $40,000 to $50,000 worth of work, this might indicate a potential windfall. Alternatively, it could suggest that more planning is required. Conversely, if you have a limited amount of remaining contract dollars, but the forecast shows you're planning to do a substantial amount of work, this could indicate a potential overspend.
It's important to note that the grid considers the timing of billing cycles. This means you might be performing work in one month and looking at the planned billing for the next month.
In conclusion, Planifi's Forecast Revenue Grid is a valuable tool for ensuring alignment between the remaining contract value and planned effort, offering a clear picture of your project's financial status and aiding effective project management.