Project budgets

  • Budget standard costs (GESICB)
  • Cost type (GESPJCC)
  • Parameter values (ADVAL)
  • Project management (GESPJM)
  • Revised standard costs (GESICA)
  • Simulated standard costs (GESICS)
  • Standard costs (GESICD)
  • Work centers (GESMWS)

TC chapter / PJM group

  • PCCCOD - Default labor cost type
  • PCCCODDEF - Default cost type
  • TASBUDAUT - Budget automatic creation

 

Reminder: Cost structureOne budget level can be linked with none (zero) or many (N) tasks. The cost structure must mirror the financial reporting for the company.

Note that the cost type provides the connection between the operational structure and the cost structure at the budget line level. This ensures a budget can be reconciled with an expense.

You can create or update budget detail records manually or automatically.

Creating a simple cost structure

Open: Projects > Projects > Project management

Follow the setup described below to create a simple cost structure. The objective is to create a cost structure that mirrors the operational structure.

  1. Set the TASBUDAUT - Budget automatic creation parameter (TC chapter, PJM group) to Yes.
  2. Enter your project header information.

    3. Check the Budget auto. creation check box in the General section is selected. This check box defaults to the value defined in the TASBUDAUT parameter.

    Project management (GESPJM): General section, Management block

  3. Click Task planning.

    4. For each new task level or sub-level, enter the required data.

    Leave the Budget code field blank.

    Check the Budget creation check box is selected.

    Project management (GESPJM): Task control fields

To save your new task, click Save.

A new budget code is created that mirrors the new task.
The budget code and description are the same as the task code.
The status of the new budget code is determined by the status of the project.
The new budget code is defined as chargeable, by default.
Reminder: Budget codesEach budget code represents a financial phase of the project.
Reminder: Task codesEach task code corresponds with an operational phase of the project.

See also

General parameters

Project operational structure

Automated budget creation

Open: Projects > Projects > Project management

You can automatically create or update budget detail records based on associated and planned project task operations, or based on associated and planned project task products. This guarantees budget integrity.

Before you start

The following must be complete and accurate before you can run the process for generating budget lines automatically:

  1. The project definition is complete.
    • The current stage in the project cycle, as displayed in the Status field in the Home section, is New, Launched or Delivered.

      • Project management (GESPJM)

  2. The project Cost structure is complete.
    • Each level in the Cost structure is at status New or Open.

      • Project management (GESPJM): Project cost structure

  3. The project Task planning is complete.
    1. Each level in the Task planning is at status New, Planned, Launched or Started.

      2. Project management (GESPJM): Task planning

    2. Prerequisites for labor tasks to be included in the budget line generation process:
      1. Task operations are assigned to a work center.
        • The work center is assigned to a cost type.

          If the work center is not assigned to a cost type, the budget lines generation process will use the cost type assigned to the task category.

          If the task category is not assigned to a cost type, the budget lines generation process will use the cost type defined in the PCCCOD - Default labor cost type parameter (TC chapter, PJM group).

          • The labor data on the cost type is complete and up to date.
    3. Prerequisites for material requirements tasks to be included in the budget line generation process:

      1. For a purchased product attached to a material task, the forecast cost is defined in the Manual budget field (in the Products section).

        • A cost type is assigned to the purchased product.

          If the product is not assigned to a cost type, the budget lines generation process will use the cost type assigned to the task category.

          If the task category is not assigned to a cost type, the budget lines generation process will use the cost type for products defined in the PCCCODDEF - Default cost type parameter (TC chapter, PJM group).

      2. For a manufactured product attached to a material task, the budgeting method (Standard cost, Revised standard cost, Budget cost, Simulated cost) is defined in the Primary budgeting method field (in the Products section).

        The budget line generation process will use the associated cost breakdown from the appropriate product "standard costs" function (Standard costs (GESICD), Revised standard costs (GESICA), Budget standard costs (GESICB), Simulated standard costs (GESICS)).

        • Standard cost groups are assigned to project cost types (Cost type function (GESPJCC) | Cost group link section).
  4. The default processing options for the budget lines generation run are defined in local menu 7716 - Budget automation processing options.
    5. Do not amend or delete the values in local menu 7716 - Budget automation processing options.

Reminder: Project cost typesProject cost types define types of cost that can affect a project such as raw materials, labor costs and expense notes.

Reminder: Project task categoriesProject task categories define types of tasks used in projects such as design, assembly and quality assurance.

See also

Project cost types

Work centers

General parameters

Project costing: Cost type initialization rules

Valuation methods

Budget lines generation process: Summary diagram for labor tasks


Running the budget lines generation process

Access to the budget lines generation functionality is only available from within the project cost structure (via the Cost structure action).

  1. Highlight the source level for which budget detail records are to be created or updated:
    • Highlight the top (or parent) level to process your project as a whole.

      • The Budget code field is blank if budget lines are being created or updated for your project.

    • To process an individual budget code, highlight the required level.
  2. Click the Generate budget lines action.

    3. Generate budget lines is available from both the Action panel and the Actions menu for the highlighted level.

    Project management (GESPJM): Generate budget lines action

  3. Leave the default processing options defined in local menu 7716 - Budget automation processing options.

    4. Alternatively click or clear the check boxes as required for the displayed budget code:

    Include all sub-budgets: Should all selected budget codes and child codes be processed?

    Use task products: You must select this check box to process material tasks.

    Use task operations: You must select this check box to process labor tasks.

    Overwrite existing budget lines?: Should all existing automatically generated budget lines be updated?
    As the budget automation process can be executed multiple times for a selected budget code, use this option to overwrite existing budget lines. Manually created budget lines are not changed.

    Write log file: Should a log file be created so that the budget automation process can be analyzed?

    Delete all existing lines: Should all existing budget lines be deleted and new lines built from scratch?
    As the budget automation process can be executed multiple times for a selected budget code, use this option to delete all existing budget lines first. Manually created budget lines are not deleted or changed.

  4. To create or update the budget detail records, click OK.

    5. The log file, if created, includes details of the budget code tasks, sub-tasks and operations that have been processed. The cost type information is also included.

    Reminder: Budget codes and Project cost typesA budget code represents a financial phase of the project and a project cost type represents a type of cost to be implemented. This enables the costs of the project to be matched.

If budget lines were created for the whole project, every budget code that is a chargeable budget level will now have task products and task operations at the origin of the budget.

Budget lines generation process: Results

On completion of the budget lines generation process the cost structure is updated and associated budget lines generated. If budget lines were created for the whole project, every budget code that is a chargeable budget level will now have task products and task operations at the origin of the budget.

Budget lines created from task operations

  1. The cost type is based upon the operation resource (work center) cost type, if defined, or the task category cost type, or the PCCCOD - Default labor cost type parameter (TC chapter, PJM group) cost type.
  2. The budget line quantity is based upon the Planned load.
  3. The unit of measure is based on the cost type unit of measure, that is the operation unit has been converted to that of the cost type unit of measure.
  4. The calculated budget amount is based on the Planned load multiplied by the Cost type labor Rate for the planned date of the operation.

Automatically generated budget lines will display the value Operations in the Source column.

Budget lines created from product tasks

  1. The budget amount is either:
    1. The manually entered budget amount, if the product attached to the task is a purchased product.

      2. The cost type is based upon the product cost type, if defined, or the task category cost type, or the PCCCODDEF - Default cost type parameter (TC chapter, PJM group) cost type.

    2. The sum of the costs of each level of the product, based on the Primary budgeting method (BUDVLTCOD field) defined for the task product line, if the material requirements task is for a semi-finished or finished manufactured product. If the defined Primary budgeting method returns no value, the additional Secondary budgeting method is used.
      3. The default primary and secondary budgeting method for a manufactured product can be defined at the product-site level, using the Valuation methods function (GESTCM), and amended using the Primary budgeting method and Secondary budgeting method on the task product line.

      The budget line generation process will use the associated cost breakdown from the appropriate product "standard costs" function (Standard costs (GESICD), Revised standard costs (GESICA), Budget standard costs (GESICB), Simulated standard costs (GESICS)) to initialize the budget amounts.

      The cost types will be determined by using the standard cost groups from the appropriate product "standard costs" function if standard cost groups are assigned to project cost types (Cost type function (GESPJCC) | Cost group link section).

Budget detail records can only be created automatically for project task operations, and product tasks. Budget detail records cannot be created automatically for cost types related to Expense codes (GESTES).
  1. Create a "dummy" cost type for a work center.
  2. Set the labor Unit to the same code as the project currency.
  3. Set the labor Rate to 1.

You can now use the budget automation functionality to create a budget line.

Reminder:The actual amount will be obtained from the expense form entry line. The cost type come will be obtained from the expense code or the PCCCODFIN - Default financial cost type parameter (TC chapter, PJM group) if a cost type has not been defined for the expense code.

Updating budgets

Open: Projects > Project management

You can update forecast quantities or amounts throughout the project lifecycle.

Click Cost structure.
Forecasts can be updated directly in the Budget lines section or via the Budget updates action.

To update a budget line click the Magnifying glass icon in the Detail field.

Project management (GESPJM): Budget lines, Detail icon

Dynamic (real time) quantity and financial overview data is displayed if you use the Budget update action or Magnifying glass icon. This data is subdivided to report on data defined by the customized report structures. The default master structure reports on committed and actual quantities and costs, remaining quantities and costs, and provisional quantities, costs and margins. Changes to the remaining quantities and costs immediately impact the provisional cost price of the project.

If using the default master reporting structure use the Remaining fields (quantities and costs) to re-estimate the budget instead of changing the original or initial budget figures
The dynamic overview data displayed is defined by the customized report structures for the financial view defined as the default view from those activated in miscellaneous table 388 - Financial view.
Changing the forecast quantities or amounts will directly affect the provisional costs for the project.

Using the default master structure report, the example budget line above demonstrates the following:

  • Total calculated budget = 20 hours x 60 euros = 1,200 euros.
  • A labor task for 10 hours is "launched" for this budget code.
  • Time entries totaling 8 hours have been recorded against this task code.

The resulting figures are therefore:

  • Financial status block:
  • Committed quantity = 2 hours (= remaining workload on launched tasks)
  • Actual quantity = 8 hours (= total sum of time entries)
  • Remaining block:
  • Left to commit quantity = 10 hours (= original Budget quantity - Committed quantity - Actual quantity + re-estimated Budget remaining quantity)
  • Budget remaining quantity = 12 hours (= original Budget quantity - Committed quantity - Actual quantity)
  • Total block:
    • Provisional quantity = 20 hours = Maximum (Budget quantity, Committed quantity + Actual quantity + Left to commit quantity)
    • Quantity variance = blank (= Budget quantity - Provisional quantity)
The Provisional quantity and Provisional cost price remain unaltered. They match the original entered budget figures.

Using the default master structure report and the same example budget line as Example: Original budget line above, this example re-estimates the budget using the "remaining" fields.

The example budget line now demonstrates that an estimated additional 5 hours are required for this budget task.

The resulting figures are therefore:

  • Financial status block = unchanged.
  • Remaining block = quantities increased by 5 hours.
    • Left to commit quantity (compared to the original budget) = 15 hours (= Remaining quantity re-estimated)

    In this example the remaining for commitments has been re-estimated at 15 hours. As a consequence, the re-estimated figure replaces the original Left to commit quantity.

    • Budget remaining quantity = 17 hours
  • Total block:
    • Provisional quantity = 25 hours
    • Margin quantity = -5 hours
    • Total calculated budget = 1,420 euros
The unit price of the re-estimated budget can be different from the unit price of the initial budget.
The Provisional quantity and Provisional cost price have increased. This is represented by negative budget margin quantities and percentages.
See also

Miscellaneous tables

Project overviews