In this article:
- What is the Extended Budget Information setting
- How to set up the Revenue and Budget in Extended Budget Information mode
1. What is the Extended Budget Information setting
The Extended Budget Information setting is an organisation-wide setting (affecting ALL projects) enabled in Custom settings.
This setting allows us to distinguish between the budget and the revenue of the project, so you can manage the budgeted costs while simultaneously tracking the profitability and margin against revenue. Previously these two were not separated.
New setting available | Separate Revenue and Budgets on fixed price projects
All the budget settings on projects are the same as in standard budgets, you can still choose whether your project budget should be counted in time or in fees, hours or days and if the budget method should be fixed price or t&m participant.
With the Extended Budget Information setting enabled, on the left panel of your budget board you will see:
Revenue - fixed or t&m price of your project with which you invoice the customer, if it is a fixed price project - you will enter it manually, if it's a t&m participant project - it will be calculated automatically from participants' scheduled hours.
Budget - regardless the selected budget method (fixed or t&m participant), you will be able to input it manually. This will be your planned budget for resources' time or costs, depending on the 'Budget type' and 'Time Increment' settings.
Profitability - will be the difference between the Total Revenue (resources' and expenses' revenue) and Total Cost (resources' and expenses' costs).
Margin - will be the result of dividing the Profitability by Total Revenue.
2. How to set up the Revenue and Budget in the Extended Budget Information mode
When you create a new project, select the 'Budget Type' and 'Time Increment' of your project. That will define if your project budget will be displayed in time or in fees and if the budget calculations should be based on hours or days
If your project already exists and has been set up differently, you can always change the budget type and time increment settings.
When your project is created, to set up the Revenue and Budget, edit the project data by clicking the pencil icon in the middle of the page. If your project is multi-phase, select the phase you want to set up and click the pencil icon next to the phase drop-down.
Now, define wheter your project/phase is fixed price or t&m participant, select one of the options from the drop down menu.
If you have selected the t&m participant option, then you will have to enter only the Budget.
If your project is Fixed Price, then enter both: the Revenue and the Budget.
For further details on how to set up these projects, please see below;