The Budget (v10.xx)

The Budget (v10.xx)

A project budget is automatically created when a new project is initialized using the wizard. Depending on the setup, a project may have one or multiple budgets. Projects with multiple budgets are divided into periods. For more details on budgets by period, refer to the advanced budget management chapter. This section covers the default configuration: one budget per project.

There are two ways to access a project’s budget:

Click on the "Budget" link in the "Cost & Budget" section of the Project Description document.


Or, navigate to the [Projects] tab, select "Costs & Budget" from the contextual navigation menu, choose "Budget," and open the desired budget.



The Budget Form allows you to define all aspects of the project’s budget according to these categories:

  1. Internal work (labor): Hours worked by internal resources.
  2. External work (labor): Hours worked by external resources (e.g. subcontractors, partners).
  3. Investment & Expenses (non-labor): Non-labor related costs (e.g. purchases, travel costs, rentals).


There are two types of Budget Formats, a detailed budget and a flat non-detailed one. They both originate from the same form but depending on the selected format, the available options will be different.

Creating a Budget Document

There are several ways to create a Budget Document, though it is possible to create a project without one too:

Click on "Create" -> "Budget" in the Project Description.


Or, use the [Create] menu and select "Budget".




The Budget Header






Project

Main identifier stating the project the budget belongs to. It can be the project name or name and code, depending on what has been defined in the General setup document of the [Projects] module. The project name and code are entered in the Project description document and are included in all of the project documents. The label is a direct link to the "Project description" document.

Project leader

The main leader of the project (as opposed to the project leader substitute)

Deadline

End date for budget activities

Version

Document version


Non-detailed Budget Definition


For a non-detailed budget, a pool of days for labor will be defined, split across internal and external resources. Total billable internal and external costs will be defined if applicable. And global non-labor costs will also be defined.








Billing mode

Possible billing mode options are:

Fixed price
Non billable
Time and material

Not editable, the value is inherited from the project description.

Detailed budget

Select "No" for not detailed budget.


Days
Amount of labor budgeted for internal resources.
Internal labor

Budget

Budgeted cost for labor by internal resources.

Billing

Amount of billable labor budgeted for internal resources.

Not displayed if project is not billable.


Margin

Budgeted margin on internal labor cost. Computed = Budgeted – billing.

Not displayed if project is not billable.





External labor

Days

Amount of labor budgeted for external resources.

Budget

Budgeted cost for labor by external resources.

Billing

Budgeted billing amount for labor by external resources.

Not displayed if project is not billable.


Margin

Budgeted margin on external labor cost. Computed = Budgeted – billing.

Not displayed if project is not billable.




Investments & Expenses

Budget

Budgeted amount for non-labor costs

Billing

Budgeted billing amount for non-labor costs.

Not displayed if project is not billable.


Margin

Budgeted margin on non-labor cost. Computed = Budgeted – billing.

Not displayed if project is not billable.





Total

Days

Total budgeted labor days (workload)

Budget

Total budgeted cost for the project

Billing

Total budgeted billable amount. Not displayed if project is not billable.


Margin

Budgeted total margin on internal labor cost. Computed = Budgeted – billing.

Not displayed if project is not billable.


Detailed budget


As its name suggests, this budget format allows you to include more layers of detail in your budget. Instead of just defining high level of labor and non-labor related costs, the detailed budget allows costs to be defined at a more granular level; by activity type.


The axis or axes used to make up the budget are defined in the General setting of the [Portfolio] module. For the purposes of this chapter we will be focusing on the default single axes selection, which can be defined as activity and cost types. For more information see the chapter on advanced budget management.


The first is somewhat the same as that of the non-detailed budget, however now it displays consolidated totals of the information detailed out on the [Internal Labor], [External Labor] and [Inv. & Exp] tabs.




  1. [Description] tab




Billing mode

Possible billing mode options are:

Fixed price
Non-billable
Time and material
Not editable (inherited from the project description document)

Detailed budget

Select "Yes" for detailed budget.







Internal labor

Days

Amount of labor budgeted for internal resources.

Computed as the total number of days defined in the [Internal labor] tab.

Budget

Budgeted cost for labor by internal resources.

Computed total based on the costs defined in the [Internal labor] tab.


Billing

Budgeted billable amount for labor by internal resources.

Computed as the total amount defined in the [Internal labor] tab.

Not displayed if the project is not billable.

Margin

Budgeted margin on internal labor cost.

Computed as = Budgeted – Billing.

Not displayed if the project is not billable.







External labor


Days



Budget

Amount of labor budgeted for external resources.

Computed as the total number of days defined in the [External labor] tab.

Budgeted cost for labor by external resources.

Computed total based on the costs defined in the [External labor] tab.


Billing

Budgeted billable amount for labor by external resources. Computed as the total amount defined in the [External labor] tab.

Not displayed if the project is not billable.


Margin

Budgeted margin on external labor cost. Computed as = Budgeted – Billing.

Not displayed if the project is not billable.





Investments & Expenses

Budget

Budgeted amount for non-labor costs.

Computed total based on the costs defined in the [Inv & Exp] tab.


Billing

Budgeted billable amount for non-labor costs.

Computed as the total amount defined in the [Inv & Exp] tab.

Not displayed if the project is not billable.

Margin

Budgeted margin on non-labor cost. Computed as = Budgeted – Billing.

Not displayed if the project is not billable.








Total

Days

Total amount of days budgeted for labor (workload).

Budget

Total cost budgeted for the project.

Billing

Total budgeted billing amount.

Not displayed if the project is not billable.


Margin

Budgeted total margin on internal labor cost. Computed as = Budgeted – Billing.

Not displayed if the project is not billable.


  1. The [Internal labor] tab

This tab is used to detail the workload and costs associated with internal labor. Users can input as many lines as necessary in the grid; with each line representing one activity type. The list of available activity types is created as part of the keyword configuration in the setup of the module.




Grid buttons


Add New

Add a new line to the budget.


Remove a selected line from the budget.





Grid

Activity type

The activity type for which the budget line is defined.

Days

The number of days budgeted for labor by internal resources.

Budget

The budgeted cost for labor by internal resources.

Billable

The budgeted billable amount for labor by internal resources.

Not displayed if project is not billable.

Margin

The budgeted margin on internal labor cost.

Not displayed if project is not billable.


  1. The [External labor] tab

This tab functions similarily to the [Internal labor] tab, but the values here are specified for external labor.


  1. The [Inv & Exp] tab

This tab is used to define non-labor related costs, referred to in Cerri Project as "Investments and expenses". Users can create multiple entries in the data entry form, typically categorized by cost type. The available cost types are defined in the keyword configuration settings.



Grid buttons

Add New

Add a new line to the budget.


Remove a selected line from the budget.




Grid

Cost type

Type of cost the budget line is being defined for.

Budget

Budgeted cost.

Billable

Budgeted billable amount.

Not displayed if project is not billable.

Margin

Budgeted margin.

Not displayed if project is not billable.



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