Budget vs actual and EAC

Extracted from Real Estate Project Accounting Handbook · Appendix C Template 1 Cost Tracking
Example from Template 1 of Appendix C: a sample condominium project of 247 units with an approved budget of THB 1,054 m.

Total budget–
Cumulative actual spend–
% of budget used–
EAC–
Variance (budget − EAC)–

Watch threshold% of the category budget. If the overrun is below this threshold, the status is Watch

Cost by category (THB)
Cost category	Budget	Actual YTD	EAC	% used	Variance	Status
				–	–	–
				–	–	–
				–	–	–
				–	–	–
				–	–	–
				–	–	–
				–	–	–
				–	–	–
Total	–	–	–	–	–

Budget vs EAC

EACBudget

Results are calculations for learning purposes. The figures entered are hypothetical examples, not real project data.

How to use

Enter the budget from the approved project budget
Update actual YTD every month from the accounting system
Adjust the EAC when the project manager re-estimates the remaining cost
Categories with a Watch or Over status require a root-cause analysis and a report to management

Status formula

Variance = Budget − EAC
On Budget when Variance ≥ 0 · Watch when the overrun is below the threshold · Over when the overrun is at or above the threshold

If the EAC changes by more than 3%, review the cost per unit used to record cost of sales (see the quarterly closing checklist)

Budget vs actual and EAC

Budget vs EAC

How to use

Status formula

Tools to use together