Budget and Contract Tables
In Cost Management, there are two overviews of the financial information. The information is presented in tables on the Budget and Cost tabs. These tables allow you to track incoming and outgoing cash for your project.
- Budget table: Organizes incoming budget, outgoing cost, and change, by the preferred budget coding structure.
- Contract table: Organizes incoming budget, outgoing cost, and change, by supplier contract.
The tables contain the same overall financial information only organized differently for your preference. There are five main sections:
- General: Containing the defining information about the line item such as budget code.
- Budget: Containing the incoming values for the project that will be paid to your company.
- Cost: Containing the outgoing project expenditure.
- Forecast: Containing the cost projections.
- Variance: Containing the money lost or gained for budget items.
How Change Orders Populate the Budget and Contract Tables
Selecting In, Out, Budget Only, or Contingency as an option for scope determines whether a change order cost item populates the budget and cost fields, or only cost.
Scope can be selected as follows:
- In Scope: When you select this option, the change order cost item will only update the Cost section of the table. This means that the cost of the change order will be included in your project's total cost, but it will not affect the project's budget.
- Budget Only: When you select Budget Only, the change order cost item will only update the Budget section of the table. This means that the cost of the change order will be included in your project's budget, but it will not affect the project's total cost.
- Out of Scope: When you select this option, the change order cost item will update both the Budget and Cost sections of the table. This means that the cost of the change order will be included in both your project's budget and total cost.
- Contingency: When you select Contingency, the change order cost item will be treated as an Out of Scope Potential Change Order (PCO) that has a separate budget to bill against. This means that the cost of the change order will be included in a separate contingency budget rather than the project's main budget. It will affect both the project's contingency and total cost.
The specific columns are outlined in the following sections.
Budget Columns
The values populate and move across the columns in the budget section as the budget status changes.
- Original Budget: Populates as the budget is entered or imported.
- Internal Budget Transfers: Populates by internal budget transfers.
- Approved Owner Changes: The sum of the Approved value of cost items with a budget status of Approved or Executed.
- Revised Budget: Populates with the sum of the Original Budget, Internal Adjustments, and Approved Owner Changes.
- Pending Owner Changes: The sum of the value of cost items with a budget status of Open, Submitted, Accepted, or Revise and Resubmit.
- Projected Budget: The sum of the Revised Budget and Pending Owner Changes.
In the following image the colors represent the column that values appear in, based on their budget status. The value entered comes from the cost stage of the cost item.
Cost Columns
The values populate and move across the columns in the cost section as the cost status changes.
Original Commitment: The projected or actual initial contract cost.
Note. If there is no contract linked with this budget, the Original Commitment value will be equal to the Revised Budget value. Consequently, the Variance column will display a zero.
Approved Change Orders: Approved contract change orders.
Uncommitted Change Orders: Cost items that have their budget status approved or executed, but cost status is not approved or executed.
Pending Change Orders: Contract change orders that are not yet approved or rejected. They are calculated on cost item's Proposed Value (if Committed Value is empty) or Committed Value with cost status of Proposed or Accepted.
Reserves: Allowance calculated using the "Estimated" value of a cost item with a cost status of Open, Pricing, or Revise and Resubmit.
Commitment & Changes: The sum of Original Commitment, Approved Change Orders, Pending Change Orders, and Reserves. The Original Commitment column populates Contracted Commitment, unless it's empty - then, Revised Budget.
Projected Cost: Includes original cost, approved change orders, pending change orders, and reserves. Populates the value from the Actual Cost when it's greater than the Commitment & Changes column's value calculation. Otherwise, the Commitment & Changes column's value is shown.
Actual Cost: The sum of Approved Expense, Approved Cost Payment Application, and Direct Input. Direct Input shows any expenses processed in a company's ERP system and integrated to Cost Management.
The colors in the following image represent the column that values appear in, based on their cost status. The value entered comes from cost stage of the cost item.
Forecast Columns
The values populate and move across the columns in the forecast section as the cost status changes.
- Forecast Adjustments: Manual adjustment for expected cost changes.
- Forecast Cost to Complete: The amount that will be spent to complete the project.
- Forecast Final Cost: Sum of Original Commitments, Approved Owner Changes, Pending Owner Changes, and Reserves.
Variance Columns
The values populate and move across the columns in the variance section as the cost status changes.
- Variance: The difference between Projected Budget and Forecast Final Cost. If the Projected Budget value is 11,900 and Projected Costs value is 9,900, the value in the Variance column is 2,000.
- Forecast Variance: The amount of money made or lost due to midproject adjustments.