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Understanding project budgeting

This explains the budgeting features available in the Project Accounting module. Use it to help you to decide whether or not you will use budgeting.

You select which levels of the project structure you want to record budgets against, and whether you want to record budgets for cost and/or revenue items.

Once you have set up your budgets, you can enter revised budgets for jobs that are subject to change, and to track changes from the original budget values. Any budget analysis produced will automatically use the revised budget rather than the original.

Your budgets are totalled and carried forward, up each level in the project structure. For example, if you use project item budgets, these are added together to create the budget for the relevant group level. You cannot enter a budget at both levels.

You do not have to set a budget for each level of your project structure. You can choose to set a budget at project item level for one section of your project, and at grouping level for another section of the same project.

Total and period budgets

Budgets can be entered as a total amount or as an amount per accounting period.

To set up and enter budgets for your projects

  1. Project Accounting settings

    Choose whether you want to record and budgets for all your projects. Once selected, choose the type of budgets that you want to use for all your projects.

    Choose whether to use cost and/or revenue budgets and whether you want to set budgets for the whole project, groups, or project items.

    Once selected here, the Display and track budget options are available on the Display Features tab when creating Project Item Types, Grouping Levels and Project Levels in the Project Structure settings.

  2. Project Structure settings

    Choose whether to record and track cost budgets and/or revenue budgets for each Project Level, Project Item Type and Grouping Level in the Project Structure settings.

    Once selected here, the cost and/or revenue budget options are available when creating project items and groups.

  3. Project Items and Groups.

    Set the default budget quantity and value for cost and/or revenue budgets for each project item and group.

    Once entered here, these default values are applied each time the project item or group is added to a project's structure.

  4. Projects.

    Enter the required budget values for individual projects. The project values can be entered at project, group or project item level, depending on the options chosen in the Project Accounting settings.

    You also choose here whether to use total or period budgets.

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