The Lean Budget Report provides the Planned, Allocated and Actual cost values for ARTs and Teams across PIs in a tabular format. The cost calculation considers the user stories tagged to PI and Teams and ART as its base and renders the comparative analysis of the actual vs. planned.

Understanding the Aggregation factor

Before we look at the report, it is important to understand the aggregation factor for the Planned, Allocated and Actual cost.
Direct Cost
Direct Cost is calculated by aggregating or rolling up the values entered in the Direct Cost field of all the cards created at the lowest level of your SAFe instance.
For example, if the Team Board is set at the lowest level, then the Direct Cost entered in the card types like User Story, Technical Story, Issue, or Defect is considered for such aggregation.
Indirect Cost
Indirect Cost is calculated by aggregating the values entered in the Indirect Cost field of all the cards created anywhere other than the lowest level of your SAFe instance.
For example, if the Team Board is set at the lowest level, then the Indirect Cost will be aggregated from the cards like Epic, Feature, Capability created at the Portfolio, Solution and Program level Board.
Planned
The value will be as per the planned values entered on the Plan Budget page.
Allocated

Level Allocation in Currency
Team Not Applicable as at this level, you calculate the actual cost based on the To-Dos
Program Feature = [ Sum (User Story level Estimates in respective UOM (for example Story Point) x Aggregation factor defined in the Conversion Grid) ] + InDirect Cost
Solution Feature = [ Sum(Feature level Estimates in respective UOM x Aggregation factor defined in the Conversion Grid) ] + InDirect Cost
Portfolio Sum of planned budget of capability cards OR [ Sum (Feature level Estimates in respective UOM x Aggregation factor defined in the Conversion Grid) ] + InDirect Cost

Actual

The base for the Actual cost calculation will be based on the preference you have defined in the Admin Policy. The preference will drive the auto computation of direct cost rollup which will be used for actual cost calculations.

If you have set the Actual cost to be derived based on the effort entered on the TODO’s on the team level board work items as Yes:
  • Then you need to navigate to the Board Policy (Board Editor > Board Policy) of the Team Work Board  and click the first option of the Actual Cost calculation:

.

  • Clicking the first option will ensure that the Actual Cost be derived from the actual effort (hours) entered on the To-Dos on a card, which will be converted into the Dollar value based on the conversion factor defined in the 1 hour of effort in TODO field on the Admin Policy (Admin > Settings > Admin Policy ) page.

Clicking the second option will ensure that the Actual Cost be derived from the Estimate entered on a card and con

If you have set the Actual cost to be derived based on the effort entered on the To-Dos on the team level board work items as No,
  • then the system will look up to the value for the At which level to enable manually field in the Admin Policy and find the level that you have defined. The Work Board of this level will be the base from which the actual cost will be extracted.
  • Next, you need to go the Board Policy of the Work Board corresponding to that level and click the Based on Estimate enter on a card(Recommended for Kanban teams) option. This will ensure that the Actual Cost is derived from the Estimate on the cards (generally entered in the Estimate field ) being converted into the Dollar value based on the conversion factor defined in the Currency Conversion grid.

Let us understand the calculation factor behind the actual cost when you select different levels:

  • Team: The actual cost will be as the sum of the direct cost of user stories allocated to a PI and Team. The direct cost of a User Story is derived from the sum of the actual cost of its To-Dos.
  • Program: The actual cost will be calculated as the sum of the direct cost of the Feature cards allocated to a PI and Team.
  • Solution: The value of the actual cost will be NA as the Capability cards are not allocated to a PI or Team.
  • Portfolio: The value of the actual cost will be NA as Theme or Epic cards are not allocated to a PI or Team.
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