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Create a Budget Modification

Objective

To transfer money from one line item on a (locked) budget to another without using a Prime Contract Change Order. 

Things to Consider

  • Required User Permissions: 'Standard' or 'Admin' on the Budget tool
  • Budget Modifications are designed to give a Project Manager the flexibility to more accurately manage the "current" budget over the lifecycle of a construction project. Transfer allocated funds as necessary to make more realistic adjustments as budgeted items become over/under budget.
  • Budget modifications may not be visible to your client.
  • You can only create a budget modification to a locked budget. 
  • The "Budget Modifications" report displays an exhaustive and detailed record of all budget modifications. (The Reports tab must be active. Requires 'Admin' user permissions on the Budget tool.)
  • If you added a line item to the budget (for $0) after it's locked, you will not be allowed to delete the line item if it's ever associated with a budget modification.
  • By default, you can only transfer money from one line item to another, which result in net-zero transactions. However, there is an advanced configuration setting that allows you to add or subtract money to/from a specific line item that will increase/decrease budget totals accordingly. To enable the add/subtract option, go to the tool's advanced configuration settings and mark the "Allow Budget Modifications Which Modify Grand Total" checkbox. (Requires 'Admin' user permissions on the Budget tool.)

Steps

  1. Go to a project's Budget tab.  
  2. Determine where you're going to make your budget modification. Be sure to take notice of the specific Cost Codes and Categories of the affected line items. (e.g. 02-900; M)

    budget-modification-before.png
     
  3. Click the Create Budget Modification button.  (The button will not be visible if the budget is not locked or you do not have at least 'Standard' level user permissions.)
  4. Specify how you're going to reallocate/transfer the amount. In the example below, we're transferring $2000.00 to a line item that belongs to a different cost code division.

    Example 1: Transfer Money Between Line Items

    transfer-money-between-line-items.png

    Example 2: Add/Subtract Money To/From a Line Item  

    add-money-to-line-item.png

     
  5. Click Create.
  6. Changes are highlighted under the "Budget Modifications" column. Related sub-totals will also reflect the changes accordingly. Subtracted amounts are enclosed in parentheses. (e.g. ($2,000.00)) Results from Example 1 are shown below.
    results-example1.png
     
  7. Remember, you can view the "Budget Modifications" report to view a detailed record of all changes including the name of the person who made the change, as well as a timestamp. (A link to the report can be found in the right pane under the Budget tab.)
    results-example2.png

 

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Last modified
08:54, 13 Oct 2016

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