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Procore

Create a Budget Modification

Objective

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

Background

The budget modification feature is designed to provide project managers with the ability to accurately adjust a project's current budget. With this feature, you can create modifications that transfer allocated funds between budget line items, which provides you with the flexibility to accurately adjust the budget as allocation amounts change over the course of a construction project.
Note: If your company has enabled the company's ERP Integrations tool, see Can budget modifications from Procore be exported to an integrated ERP system?

Things to Consider

  • Required User Permission:
    • To create budget modifications, 'Standard' level permission or higher on the project's Budget tool.
    • To configure the Budget tool, 'Admin' level permission on the project's Budget tool. 
  • Prerequisites:
  • Limitations:
    • By default, the Budget tool supports modifications that transfer amounts from one (1) budget line to another, which results in a "net zero" transaction and updates the Original Budget and Budget Modification amounts.
      (Note: If you want your project's budget to perform addition/subtraction to increase/decrease its totals, a user with 'Admin' level permission to the Budget tool can click the Configure Settings  icon and then place a checkmark in the 'Allow Budget Modifications Which Modify Grand Total' box). 
    • Budget modifications may not be visible to your client.
    • If you added a budget line item for $0 after locking the budget, you will not be permitted to delete that budget line item should it be associated with a budget modification.
  • Additional Information:
    • Line items with a "?" will not allow a user to create a Budget Modification into/from the line item. See Add a Partial Budget Line Item.
    • To view a detailed record of all budget modifications, see the Budget Modifications Report (see View Budget Reports). (Note: The' Reports tool must be active tool on the project. See Add or Remove Tools on a Project).
    • Once a budget modification has been created, it can not be edited or deleted. 
  • If your company has enabled the ERP Integrations tool:

Steps

  1. Navigate to the project's Budget tool.  
  2. Determine where you are going to make your budget modifications. Be sure to note the specific Cost Codes and Categories of the affected line items (e.g. 02-900; M).
    Note: If your company is using the ERP Integrations tool, the values in the Category column correspond to the Cost Type in your ERP system. See Assign Default Cost Types To Cost Codes.

    original-budget-budget-mod.png
  3. Click the Create Budget Modifications button.
    Note: Your budget must be locked (see Lock a Budget) and you must have 'Standard' level user permissions or higher in order for the button to be available.  
  4. Enter the cost code divisions that you are transferring money between, as well as the amount being transferred. In the example below, we are transferring $2000.00 from the Project Manager cost code and moving it to the Superintendent cost code.

    create-multiple-budget-modifications.png
     
    • To create multiple budget modifications, click Add Line Item and enter in the cost code divisions and amount. You can repeat this process to create up to seven budget modifications at once.
  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.

    budget-mods.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.)
    budget-mods-report.png

Next Step

If your company has enabled the ERP Integrations tool: