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Procore

(Beta) Create Budget Changes

 In Beta
Note to users participating in the 'Budget Changes' beta program. The information below details a feature that is available to Procore users taking part in the Beta Participant Program for Budget Changes. For more information about this release, see Budget: (Beta) New 'Budget Changes' Feature for Change Management in Project Financials.

Objective

To create budget changes using the project's Budget tool. 

Background

A budget change moves your budget's funds from a specific cost or revenue area to another cost or revenue area. Users can create budget changes to ensure your team has a method for moving and auditing budget values between the job activities and work packages associated with your construction project. With the 'Create New Budget Change' form, users can add both Amount-Based and Unit/Qty Based adjustments from one line item to another -- which moves the quantities of materials, labor, and funds you need to complete activities.  

Example

Depending on whether you use your budget to track cost or revenue, you can create budget changes to move dollar amounts between budget codes. Some common uses for a budget change include:

  • Transfer Funds. A fund transfer is a budget change that moves funds from one (1) budget code to one (1) or more other budget code(s). 
  • Move Expenditures. If you use your budget to track expenditures, you can move expenses from one (1) budget code to one (1) or more other budget code(s). 
  • Move Revenue. If you use your budget to track your project's revenue, you can move revenue from one (1) budget code to one (1) or more other budget code(s). 
 Tip
What is a budget code? To learn more about the budget code concept in Procore, see What is a budget code in WBS?

Things to Consider

  • Required User Permissions:
    • To create a budget change, 'Standard' level permissions or higher on the project's Budget tool. 
  • Additional Information:
    • There is no limit to the number of budget changes you can create on a project. 
    • A budget change can contain an unlimited number of adjustments.
    • An adjustment can contain one or multiple line items. 
  • Limitations:
  • For companies using ERP Integrations:

Prerequisites

Steps

Add General Information

  1. Navigate to the project's Budget tool. 
  2. Click the Budget Changes tab. 
  3. Click Create and select the Budget Change option. 
    create-budget-change.gif
  4. Enter the following information about the budget change:
    budget-change-add-general-information.png
     Note
    An asterisk (*) below denotes a required field. 
    • Number*
      Accept the default budget change number. Procore assigns new adjustment numbers in sequential order. For example; 1, 2, 3, and so on. 
    • Title
      Enter a title for the budget change. 
    • Status*
      Select the current status of the budget change. Procore assigns the 'Draft' status to new adjustments. 
    • Description
      Enter a more detailed description of the budget change. 
  5. Continue with adding one (1) or more adjustments. 

Add Adjustments

In a Procore budget, an adjustment refers to the line item on the original budget that you want to change. After selecting the line item to adjust, you can then add one (1) or more line items to the adjustment. Each line items represents how you want to allocate the funds associated with the adjustment.  

  1. Scroll to the 'Adjustments' section.
     Notes
    • Procore automatically adds the first adjustment line item in the 'Adjustments' table for you. 
    • To add another adjustment to the budget change, simply click the Add Adjustment button. 
    first-adjustment-line-item.png
  2. Enter the following information for the adjustment line item:
    • Budget Code
      Select a budget code from the drop-down list or click Create Budget Code to add a new one. See What is a budget code in Procore's WBS? 
    • Description
      Enter a description for the adjustment. 
    • Quantity
      Enter the number of units.
    • Unit
      Select the Unit of Measure (UOM) from the drop-down list. 
       Notes
    • Unit Cost
      Enter the cost per unit. 
    • Amount
      Procore automatically calculates the subtotal for you, based on the Quantity, Unit, and Unit Cost Entries
    • Change Event Line Item
      If the Change Events tool is active on the project, select a change event line item to link the budget change's adjustment line item to a specific change event line item. Associating your budget change with a change event provides Procore Project Financials users with greater insight into the impact of adjustments on the cost and scope of a project.  
       Important
      If you do NOT link a budget change's adjustment line item to an existing line item in a change event, Procore automatically creates a new change event for your budget change. Procore also adds the adjustment as a line item to the new change event. You can then update the change event as needed with the project's Change Events tool. To learn more, see Change Events.
    • Optional: Comment
      Enter any helpful comments about the budget change in this box. 

Add Line Items to Adjustments

After adding an adjustment, you can add lines to that adjustment to reallocate the budget to one (1) or more budget codes. 

  1. After adding one (1) or more adjustments, click Add Line and select the desired adjustment from the drop-down list. 
    add-adjustment-number.png
     Note
    • Procore automatically numbers adjustments on a budget change in sequential order.
    • You can add one (1) new line item or multiple line items to the adjustment. Each line item defines how you want to allocate the budget amount for the selected line item being adjusted. 
  2. Enter the following for each line item that you add to the adjustment:
    • Budget Code
      Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code in Procore's WBS? 
    • Quantity
      Enter the number of units.
    • Unit
      Enter the units for the adjustment. 
       Notes
    • Unit Cost
      Enter the cost per unit. 
    • Amount
      Procore automatically calculates the subtotal for you, based on the Quantity, Unit, and Unit Cost Entries
    • Change Event Line Item
      If the Change Events tool is active on the project, select a change event line item to link the budget change's adjustment line item to a specific change event line item. Associating your budget changes with a change event provides Procore Project Financials users with greater insight into the impact of adjustments on the cost and scope of a project.  
       Important
      If you do NOT link a budget change's adjustment line item to an existing line item in a change event, Procore automatically creates a new change event for your budget change. Procore also adds the adjustment as a line item to the new change event. You can then update the change event as needed with the project's Change Events tool. To learn more, see Change Events.  
    • Optional: Comment
      Enter any helpful comments about the budget change in this box. 
  3. Click Save

Add Production Adjustments

If your company is tracking production quantities on the budget, you can also create budget changes to adjust your project's production quantities. To learn more, see What are 'production quantities'?

Add Line Items to Production Adjustments

After selecting the line item for the production adjustment as detailed above, you can then add one (1) or more line items to represent how you want to reallocate the budgeted production quantities. To learn more about tracking production quantities in Procore Project Financials, see What are 'production quantities'?

See Also

 

If you would like to learn more about Procore's budget management software and how it can help your business, please visit our construction budgeting software product page icon-external-link.png.