Earned value is a powerful tracking and budgeting feature in Project. Despite the slew of intimidating acronyms that defines it (like AC, BCWP, TPI, EV, and the like), it isn’t especially complicated. Earned value helps you answer questions like, “Looking at the amount of work done so far in this project, how much money were we supposed to have spent?” Which then leads to other questions like, “Will we finish on time?” All incredibly important questions to answer for your project, right?
Here’s the tricky thing (and great thing) about earned value. It marries time with money because it multiplies currency by scheduled time (or percent complete, in the jargon of professional project managers).