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Create a Budget Modification from a Change Event

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 Permissions:
    • 'Standard' or 'Admin' on the project's Change Events tool
    • 'Standard' or 'Admin' on the project's Budget tool.
  • Additional Information:
    • 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).

Steps

  1. Navigate to the project's Change Events tool.
  2. Locate the change event line item that you move money into using a budget modification.
  3. Click the cell in the Budget Modification column for that line item. 
    Note: To edit the cell value, a BLUE triangle icon must bee visible. If it is NOT visible, do the following:
    1. Check to see if the budget is unlocked. 
    2. Determine if you have been granted the appropriate permissions on the project's Budget tool.

      edit-field2.png
  4. Complete the following fields:
    • From. Select a cost code from the list. This is the cost code that you will transfer funds from.
    • To. This field is pre-filled with the selected change event line item. Editing this information not permitted. 
    • Transfer Amount. Enter the dollar amount of the transfer.
    • Notes. Enter any relevant notes about the budget modification. 
  5. Click Create
If you would like to learn more about Procore’s change events management software and how it can help your business, please visit our construction change order product page here.

 

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