Lesson 7 of 10·4 min
Phasing and forecasts: when the budget is expected to be used
An annual or project total does not explain when resources are needed. Two projects with the same total can have very different funding and capacity requirements if one spends heavily at mobilisation and the other spends mainly near completion.
Phasing distributes the plan across periods. Its purpose is to make timing assumptions visible so the business can coordinate procurement, execution and financial expectations.
DNA's distribution choices
DNA supports manual, linear, bell-curve, front-loaded and back-loaded distributions for forecast periods. Linear distribution spreads the amount evenly over the selected months. A bell curve concentrates more in the middle. Front-loaded and back-loaded methods shift more toward the beginning or end.
These are planning shapes, not observations of completed work. Choosing a method does not establish that suppliers will invoice in that pattern or that customer collections will follow it.
A simple timing comparison
A USD 60,000 activity spans six months. A linear plan allocates USD 10,000 per month. If equipment purchase dominates the early months, a front-loaded pattern may better represent the expected resource need. If acceptance and final services dominate later work, a back-loaded plan may be more appropriate.
The appropriate method follows the work. An attractive-looking curve is not a reason to choose it. When the actual commercial schedule differs from a standard shape, manual period amounts may explain the plan better.
Project life and fiscal periods
DNA distinguishes project timelines from ordinary fiscal views and can represent project months across years. An activity from November through February is one continuous period of work, but it spans two calendar-year portions. The displayed month and year must be understood before comparing or importing period values.
The distribution uses the activity's start and end dates and the applicable displayed months. The implementation rounds period amounts and assigns the remaining difference to the final period so the distributed total reconciles. A small final-period difference can therefore be rounding, not a separate business event.
Revising timing without hiding scope
A delayed activity may move cost to later periods without changing the total. A scope increase changes the amount as well. These are different changes and deserve different explanations.
Forecast lines are derived from the budget lines and then carry their own dates and distributions. For project cost forecasts, save validation prevents distributed amounts above the related budget line under the reviewed rule. Passing that check does not prove that the timing is realistic.
A useful forecast explains the expected pattern and why it changed. It supports early decisions about resources and commitments while preserving a clear comparison with what eventually happens.
Not marked. Answer every question to finish the lesson.
