To create a budget modification from the Change Events tool.
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.
- Transfers created using budget modifications will not be reflected on the Prime Contract's Schedule of Values or the Prime Contract Invoices, 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).
- Go to your project's Change Events tab.
- Find the change event line item you want to use a budget modification to move money into.
- 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.
- 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.
- Click Create.