FINANCIAL: Budgets

With Procore Financials, we will be utilizing Cost Types, which are applied to each Cost Code.  Cost Types are a way to identify and classify your project’s job costs and will also generate reports.

• Approved Cost Types are:
  • Subcontracts
  • Purchase Orders
  • Labor
  • Equipment
  • Material
  • Tax
  • Other

Here is a general description of what each Cost Type means

• Subcontract:  Any commitment that is written
• Purchase Order: Any purchase order that is written (this DOES NOT include miscellaneous purchase orders that are written out of the Procore forms module)
• Labor: This is for Brinkmann labor only (inclusive of all field labor, and management staff)
• Equipment: Examples of this would include any equipment rentals or purchases that occur
• Material: Examples of this would include miscellaneous material purchases such as rock for a temporary road, lumber for safety rails, or other material purchases
• Tax: When issuing a Purchase Order, itemize tax on the PO, and create a Cost Type for this amount.  This allows/ensures that we are collecting the appropriate tax for each purchase.
• Other: Use this cost type for any other item not listed above.
  • Most general conditions other than management and will fall under this cost type.
  • General holds for other misc. cost will fall under this cost type until determined how it will be spent.  (i.e., Miscellaneous Drywall)

When setting up your project, you do NOT need to know specifically which cost types each budget line needs to be assigned to for each cost code.  Through Budget Modifications, you can transfer money between cost code AND cost type.  See Budget Changes page HERE for more information.

The main budget view is company-wide, and includes a general financial health of the entire project.  Individual budget views can be created on a company-level.  To discuss possible revised Budget Views please contact Jared Cox.  New budget views will need to be applied to projects on a by-project basis.

A snapshot is a good way to get a single view of how the budget looks at that moment in time.  It is a manual function that should be done by the 15th of each month alongside of monthly projections.  This allows you to have a captured record of the data the Accounting Dept uses for your reference.

Snapshots can be found by accessing the "Snapshot" field in the filter bar above the budget columns.

Budgets should be sent to the ERP directly following a snapshot.

Think of the budget columns in two large groupings:

• Original Budget Amount through Projected Budget: Represents contractual agreement with client. 
• Committed Cost to Estimated Cost of Completion is dollars that is actually spent.

There are two types of column calculations:

• Source Column: Pulling information from another tool (commitments, prime, etc.)
  • These items are hyper linked to their source.  You can click on the item and open a pop up window to clarify.
• Calculated Column: Calculated Column = Takes information from source columns and does the associated math for the column. (Example: Contract + Approved Change Order = Amount)

• Description: The Cost Code (Phase) - "Cost Type"
  • Cost Types include Subcontracts, Labor, Material, Tax, etc.
  • NOTE: The format of the Cost Codes was created from an original setup structure in Vista.  Unfortunately, the numbering format cannot be adjusted at this point.
• Original Budgeted Amount: Source Column - This is the original budgeted amount set up with Accounting at the point of set up.
• Approved Budget Changes: Source Column - Budget Change Amounts (ICO's)
• Approved COs: Source Column - All Change Orders in Approved Status
• Revised Budget: Calculated Column - Original Budget amount + Approved Budget Changes + Approved Change Orders
• Pending COs: Source Column - Change Orders in Draft Status
• Projected Budget: Calculated Column - Revised Budget + Pending CO's
• Committed Cost: Source Column - Approved Subcontracts and Purchase Orders + Approved Change Orders
• Direct Cost Details: Source Column - Invoices, expenses, misc invoices in Approved status
  • These items are hyperlinked to their source
• Job to Date Costs: Source Column - Overall costs inclusive of Subcontractor Invoices, Payroll, etc  (This will be Sub Invoices, Concur, etc only if you are using cost types correctly)  
  • You should never have a Direct Cost on a phase code that is either Subcontract or Purchase Order.
• Pending Cost Changes: Source Column - This is all commitments and change orders that are out for signature.  (If there are items here you need to contact subs to get signed change orders.
• Projected Costs: Calculated Column - Commitment + Expenses + Pending Change Orders (No forecasting) (ignores job to date amounts)
• Forecast to Complete: Calculated Column - Anticipated costs above and beyond projected cost.
  • Thunderbolt = automatic logic to determine an amount.
  • Click item to adjust amount manually.  If you have a single lump sum item you would need to set a singular date, with a singular week and the full amount that applies.
• Estimated Cost at Completion: Calculated Column - Anticipated expenditure amount. Projected Cost + Forecast to Complete
• Projected Over Under: Calculated Column - Projected Budged - Estimated Cost at Completion

• The ROM column on the budget screen, after projected budget is complete, will include amounts only when a PCO hasn't been created. 
  • Open status will put it in the column.
  • PCO creation will cause the amount to drop off
• The ROM is not reflected in projections.  Projection columns include only cost and revenue. 

• TBD

Original Budget = comes from Vista based on your SOV breakdown provided at the point of New Project Setup

Budget Modifications = money moved from one phase code to another

Approved Change Orders = pulls from Prime contract tool and includes Prime contract potential change orders with approved status

Revised Budget = Sum of original budget + budget modifications + approved Prime Contract change orders

Pending Budget changes = Prime contract potential change orders with a pending status

Projected Budget = Revised budget + pending budget changes

*Approved change orders and pending budget changes pull from the potential change order status, NOT CO Requests or prime contract CO status

Committed costs = commitments (subcontracts and purchase orders) with approved status plus commitment change orders with approved status.

Direct Costs = pull from Vista.  These are direct costs that hit the project not associated with a commitment.

Job to Date Costs = ERP (Vista) Job cost

Pending Cost Changes = Commitments with a status of “out for signature”, commitment change orders with pending status and Purchase order contracts with status of submitted, received, processing, partially received. *Go over this.

Projected Costs = Committed costs + direct costs + pending cost changes

Forecast to Complete = projected budget – projected costs.    **This is auto calculated, can be changed to manually entered when doing forecasting.

Estimated Cost at Completion = Projected costs + forecast to complete

Projected over Under = Projected budget – estimated cost at completion