LESSON 4-6: Managing Project Costs Manually
This tutorial describes how to:
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1. Costs and Funds app.
Use the Costs and Funds app to plan and manage your project budget and track actual costs. Get started on the Cost Sheet page. Project costs are organized by cost breakdown structure. Add new CBS codes to the project or import workspace codes. If you use workspace codes, costs can roll up to the workspace level.
2. Budget page.
Now let's look at how to enter costs. On the Budget page, enter costs that make up the initial project budget and assign CBS codes to each. First, let's add a custom field to track our transactions by project phase. When we enter a transaction, we'll select the phase from a list of values.
3. Create a configured field for budget details.
In Summary and Settings, at the workspace level, create a configured field for budget details. Use the list type and enter the project phases as the sublist values. Now let's enter budget line items to create the original project budget. At a budget line item, enter a name, assign the CBS code, the cost category, and then enter the original cost.
All transactions are written to the item details, including the creation of the original cost. Let's add a column for our custom field. We can now select the project phase for the transaction.
4. Set the original budget and submit for approval.
After all the line items are entered, the original budget is set and can be submitted for approval. Select users to notify and submit. Users receive notifications and decide whether to approve or reject the budget.
5. Budget changes and budget transfers.
Once approved, the original budget is set. Line items can not be edited. However, we can use budget changes to increase or decrease the cost of a line item and use budget transfers to move costs between line items. In this project, a design change is required related to the new signage.
We'll transfer cost from the contingency budget to the signage budget. First, we'll use a budget change to increase the contingency budget so it is not depleted after the transfer. Add a budget change and then add the change details.
Select the line items it applies to and enter the amounts the items will be increased or decreased. Once again, we'll add a column to set the project phase. The change is created as a draft and requires approval.
With the change approved, we see the updated cost of the budget item. Now let's enter the budget transfer to move contingency cost to the signage budget. Add a transfer. Then add the transfer details. For a budget transfer, the details include the line items and the cost being transferred between them.
The transfer is approved. Now let's look at the transaction details for the budget items. In addition to the original cost, we see a budget change and transfer listed in the item details. Click the ID of a change or transfer to navigate to the transaction.
6. Actual Costs.
Now let's look at how to enter actual costs. Add a cost, the first month of the project, for example. Then enter its detailed line items, including CBS code and cost of each item. Actuals are initially assigned a status of pending and can be confirmed by an authorized user.
7. Recalculate costs on the Cost Sheet.
Back on the Cost Sheet, recalculate costs to ensure the budget and actual costs are up to date. The totals are displayed for the entire project as well as broken down by CBS.
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