Budget records specify the costs that are earmarked for
a project, anticipated costs throughout the project, and transfers
and changes in the budget. You create budget records on the Budget page.
- Project original budget records
- Specify the budget amount that is initially earmarked for a project.
This value is measured in the currency that the overall capital project
cost uses. You can define the overall cost of a project by associating
various cost code records.
- For instance, a sum of $1,000,000 is defined as the capital outlay
for a project. This amount is broken into various components because
of the requirements of the project. For example, $25,000 might be
expended for buying the raw materials and $50,000 for the labor services
that are involved. These expenses can be specified under cost codes
that are created for this purpose. With this breakdown, you can manage
the stipulated amount that is defined for the project.
- Project budget forecast records
- Document the anticipated cost of a project. Forecasts can be made
periodically in the course of the project as conditions and expectations
change.
- The Project Budget Forecast record is an estimated amount, which
can be above or below the original estimated cost of the project.
The forecast is based on analysis of factors that are involved in
the project, and is used to track changing projections. All forecasts
use the same currency that is used for the project that the budget
belongs to.
- Project budget transfer records
- Reassign budget funds within the same funding source. This record
facilitates the transfer of money that is assigned from one cost code
record to another. A project budget transfer record can be used to
move funds between budget line items. After you transfer a budget,
and it is approved, it becomes the revised budget.
- For example, 5 million dollars is set aside as the original budget for the construction of a
building. A sum of $100,000 is allocated towards concrete and another $50,000 is allocated to iron
and steel requirements. At some point, the project manager realizes that only $75,000 is required
for concrete, but the steel requires an extra $25,000. You can create a project budget transfer
record to transfer the excess amount from the cost code for concrete to the cost code for
steel.
- Project budget change records
- Change and modify the budget that is defined for a project.
- For instance, a project is initially defined with a budget of
$3,000,000 for various activities. Over time due to uncertain elements,
the cost of budget shoots up and you must request for an increase
in the project amount allocated. You can create a Project budget change
record to specify the revised amount required.