Examples of KPI Value Calculations
A key performance indicator (KPI), if enabled for use, can be defined against one of two calendars: accounting calendar or project accounting calendar.
To generate KPI values, you enter a KPI period determination date for the application to determine the accounting calendar period and project accounting calendar period. This example shows you how current period, prior period, and prior quarter KPI values are calculated.
Scenario
Vision Corporation designs and implements heavy engineering projects for government and private customers. The Finance department is interested in measuring revenue and margin on the accounting calendar, and budget to actual variance of labor effort on the project accounting calendar. The KPIs defined for this purpose are Period-to-Date (PTD) Revenue Variance Percentage on the accounting calendar and PTD Labor Effort Variance Percentage on the project accounting calendar.
The following table shows the accounting calendar used by InFusion Corporation.
|
Period Name |
Period Start Date |
Period End Date |
Quarter Name |
Quarter Start Date |
Quarter End Date |
|---|---|---|---|---|---|
|
Jun-09 |
1-Jun-09 |
30-Jun-09 |
Q2 |
1-Apr-09 |
30-Jun-09 |
|
Jul-09 |
1-Jul-09 |
31-Jul-09 |
Q3 |
1-Jul-09 |
30-Sep-09 |
|
Aug-09 |
1-Aug-09 |
31-Aug-09 |
Q3 |
1-Jul-09 |
30-Sep-09 |
|
Sep-09 |
1-Sep-09 |
30-Sep-09 |
Q3 |
1-Jul-09 |
30-Sep-09 |
|
Oct-09 |
1-Oct-09 |
31-Oct-09 |
Q4 |
1-Oct-09 |
31-Dec-09 |
|
Nov-09 |
1-Nov-09 |
30-Nov-09 |
Q4 |
1-Oct-09 |
31-Dec-09 |
The following table shows the project accounting calendar used by InFusion Corporation.
|
Period Name |
Period Start Date |
Period End Date |
Quarter Name |
Quarter Start Date |
Quarter End Date |
|---|---|---|---|---|---|
|
W1-Apr-09 |
4-Apr-09 |
10-Apr-09 |
Q2 |
4-April-09 |
3-Jul-09 |
|
W1-Sep-09 |
2-Sep-09 |
9-Sep-09 |
Q3 |
4-Jul-09 |
3-Oct-09 |
|
W2-Sep-09 |
10-Sep-09 |
17-Sep-09 |
Q3 |
4-Jul-09 |
3-Oct-09 |
|
W3-Sep-09 |
18-Sep-09 |
25-Sep-09 |
Q3 |
4-Jul-09 |
3-Oct-09 |
|
W4-Sep-09 |
26-Sep-09 |
3-Oct-09 |
Q3 |
4-Jul-09 |
3-Oct-09 |
|
W1-Oct-09 |
4-Oct-09 |
10-Oct-09 |
Q4 |
4-Oct-09 |
3-Jan-10 |
|
W2-Oct-09 |
11-Oct-09 |
18-Oct-09 |
Q4 |
4-Oct-09 |
3-Jan-10 |
|
W3-Oct-09 |
19-Oct-09 |
26-Oct-09 |
Q4 |
4-Oct-09 |
3-Jan-10 |
|
W4-Oct-09 |
27-Oct-09 |
3-Nov-09 |
Q4 |
4-Oct-09 |
3-Jan-10 |
Assume the KPI period determination date is October 2, 2009. In the calendar shown, October 2, 2009, occurs in the period OCT-09 on the accounting calendar, but in the W4-SEP-09 period on the project accounting calendar.
The following scenario describes how the current period, prior period, and prior quarter KPI values are calculated based on different KPI period determination dates.
KPI Values Generated on October 3, 2009
The first generation of KPI values occurs on October 3, 2009. On the KPI watchlist, the key performance indicator PTD Labor Effort Variance Percentage shows the current period as W4-Sep-09, prior period as W3-Sep-09, and prior quarter as Q2. The key performance indicator PTD Revenue Variance Percentage shows the current period as Oct-09, prior period as Sep-09, and prior quarter as Q2.
This table displays how the current period, prior period, and prior quarter KPI values are calculated for the date October 3, 2009 on the accounting and project accounting calendars.
|
KPI Period Determination Date |
Generation Date |
Period Name for Generation Date |
KPI Name |
Is KPI Value Current? |
Current Period |
Prior Period |
Prior Quarter |
|---|---|---|---|---|---|---|---|
|
3-Oct-09 |
October 3 |
W4-Sep-09 |
PTD Labor Effort Variance Percentage |
Yes |
W4-Sep-09 |
W3-Sep-09 |
Q2 |
|
3-Oct-09 |
October 3 |
Oct-09 |
PTD Revenue Variance Percentage |
Yes |
Oct-09 |
Sep-09 |
Q2 |
KPI Values Generated on October 4, 2009
KPI values are generated again on October 4, with a KPI period determination date of September 25, 2009. Even though the KPI period determination date is prior to the previous generation date, the KPI values generated on October 4 for September 25, 2009 are marked as current.
This table displays how the current period, prior period, and prior quarter KPI values are calculated for the date October 4, 2009 on the accounting and project accounting calendars.
|
KPI Period Determination Date |
Generation Date |
Period Name for Generation Date |
KPI Name |
Is KPI Value Current? |
Current Period |
Prior Period |
Prior Quarter |
|---|---|---|---|---|---|---|---|
|
3-Oct-09 |
October 3 |
W4-Sep-09 |
PTD Labor Effort Variance Percentage |
No |
W4-Sep-09 |
W3-Sep-09 |
Q2 |
|
3-Oct-09 |
October 3 |
Oct-09 |
PTD Revenue Variance Percentage |
No |
Oct-09 |
Sep-09 |
Q2 |
|
25-Sep-09 |
October 4 |
W3-Sep-09 |
PTD Labor Effort Variance Percentage |
Yes |
W3-Sep-09 |
W2-Sep-09 |
Q2 |
|
25-Sep-09 |
October 4 |
Sep-09 |
PTD Revenue Variance Percentage |
Yes |
Sep-09 |
Aug-09 |
Q2 |
KPI Values Generated on October 10, 2009
KPI values are again generated on October 10, 2009 with a KPI period determination date of October 10, 2009. These KPI values are now used for the current period, prior period, and prior quarter.
This table displays how the current period, prior period, and prior quarter KPI values are calculated for the period October 10, 2009 on the accounting and project accounting calendars.
|
KPI Period Determination Date |
Generation Date |
Period Name for Generation Date |
KPI Name |
Is KPI Value Current? |
Current Period |
Prior Period |
Prior Quarter |
|---|---|---|---|---|---|---|---|
|
3-Oct-09 |
October 3 |
W4-Sep-09 |
PTD Labor Effort Variance Percentage |
No |
W4-Sep-09 |
W3-Sep-09 |
Q2 |
|
3-Oct-09 |
October 3 |
Oct-09 |
PTD Revenue Variance Percentage |
No |
Oct-09 |
Sep-09 |
Q2 |
|
25-Sep-09 |
October 4 |
W3-Sep-09 |
PTD Labor Effort Variance Percentage |
No |
W3-Sep-09 |
W2-Sep-09 |
Q2 |
|
25-Sep-09 |
October 4 |
Sep-09 |
PTD Revenue Variance Percentage |
No |
Sep-09 |
Aug-09 |
Q2 |
|
10-Oct-09 |
October 10 |
W1-Oct-09 |
PTD Labor Effort Variance Percentage |
Yes |
W1-Oct-09 |
W4-Sep-09 |
Q3 |
|
10-Oct-09 |
October 10 |
Oct-09 |
PTD Revenue Variance Percentage |
Yes |
Oct-09 |
Sep-09 |
Q3 |