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Create a Budget Modification from a Change Event (Next Gen)

Objective

To create a budget modification from the Change Events tool. 

Background

Creating a budget modification allows you to transfer funds from cost code to cost code, most likely for a change event that was "in scope" where there is no need to communicate with the owner (e.g. a contingency or backcharge change).

Things to Consider

  • Required User Permission: 'Standard' or 'Admin' on the project's Change Events tool and 'Standard' or 'Admin' on the project's 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.
  • This will not be available if the budget is not locked. 
  • Transfer created using budget modifications will not be reflected on the Prime Contract's Schedule of Values or the Prime Contract Payment Application, since they are intended for internal budget adjustments.
  • Budget modifications will be reflected in the Budget Modification column in the 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 your project's Change Events tab.
  2. Find the change event line item you want to use a budget modification to move money into.
  3. Navigate to the Budget Modification column for that line item and click into that box.


    Note: If you do not see the blue triangle in the top right corner of the box, verify that the budget is locked and you have appropriate permissions on the Budget tool.
  4. Fill out the following fields:
    • From: Select a cost code to transfer funds from.
    • To: This field is pre-filled with the change event line item you selected and can not be edited here.
    • Transfer Amount: Enter a dollar amount that you are transferring over.
    • Notes: Enter any additional notes for the budget modification. 

  5. Click Create

 

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