This chapter contains the topic:
After you create the job master record and cost code structure for each of your projects and jobs, you can enter your budget information. Budget information includes the dollar amounts and/or units related to each line item account of a cost code structure.
For example, assume you are contracted to build a large regional airport. The airport is your project, and each subproject within it, such as the main terminal building, the automated baggage system, the airport access road, and so on, is a separate job. You set up a cost code structure and enter budget information for the accounts related to each job.
Each job can be divided into a number of work items, each of which can be broken down further into various tasks. For example, the work items related to the main terminal building job might include site work, concrete, masonry, and so on.
You enter the following budget information for the site-work work item.
| Account Number | Description | UM | Budget Units | Budget Dollars |
|---|---|---|---|---|
| 5001.02000 | Site Work | |||
| 5001.02200 | Clearing and Grading | CY | 241 | |
| 5001.02200.1355 | Equipment | HR | 180 | 4,750.00 |
| 5001.02200.1360 | Subcontracts | LS | 1 | 215,000.00 |
| 5001.02600 | Sewer Work | |||
| 5001.02600.1340 | Labor | MH | 610 | 15,000.00 |
| 5001.02600.1341 | Regular | |||
| 5001.02600.1342 | Premium | |||
| 5001.02600.1343 | Burden | |||
| 5001.02600.1350 | Materials | LF | 6,900 | 313,950.00 |
| 5001.02600.1355 | Equipment | HR | 200 | 5,100.00 |
| 5001.02600.1360 | Subcontracts | LS | 1 | 165,000.00 |
| 5001.02800 | Paving and Surfacing | |||
| 5001.02800.1340 | Labor | MH | 1,200 | 21,600.00 |
| 5001.02800.1341 | Regular | |||
| 5001.02800.1342 | Premium | |||
| 5001.02800.1343 | Burden | |||
| 5001.02800.1350 | Materials | 15,000.00 | ||
| 5001.02800.1355 | Equipment | HR | 800 | 20,000.00 |
| 5001.02800.1360 | Subcontracts | 550,000.00 |
You can enter budget information for any of the accounts you track with your cost code structure. In addition, you can enter both unit and dollar amount budget information for any line item. For example, you can budget 1200 man-hours for labor on the paving and surfacing task. Each hour, or unit, of labor costs 18.00, so you can also enter a dollar amount budget of 21,600.00 for the line item.
In the above table, the UM column represents the units of measure for the budgeted units. They are:
CY for cubic yards
HR for hours
LS for lump sum
MH for man-hours
LF for linear feet
Note:
Units of measure are user defined codes that can represent any units you choose.You can enter budget amounts for any units you choose. A unit is anything that can be measured incrementally.
Budgets are classified as one of the following:
Original
Revised
Original budgets refer primarily to the amounts and quantities set up at the beginning of a project or job. However, original budgets are not date sensitive and can be changed at any time during the project or job. When you change original budget information, the system updates the amounts and quantities in the BORG (Budget Original) field of the Accounts Balances table. The system does not keep an audit trail record of changes to original budget information.
You can lock original budget information to prevent it from being changed. You must enter a change order to revise a locked budget. A budget that is changed in this way is a revised budget. You can use change orders to create an audit trail record of the individual changes to your original budget information.
In addition, when you lock a budget, the system keeps a record of the original amounts and quantities in the BORG field of the Account Balances table. This allows you to compare the revised budget with the original budget.
For example, assume you increase the original budget for subcontracts in the clearing and grading task of the site-work work item by 100,000.00. The system:
Displays a new budget amount of 315,000.00 for the line item
Changes the original budget in the BORG field from 215,000.00 to 315,00.00
Does not create an audit trail record of the change
After you change the line item, you lock the budget.
Later in the job you make another change to the same line item. Either unlock the budget and change the BORG amount, or create a change order to enter a budget revision. Assume you enter a budget revision for -65,000.00. The system:
Displays a revised budget amount of 250,000.00 for the line item
Retains a record of the original 315,000.00 budget in the BORG field of the Account Balances table
Can create an audit trail record of the -65,000.00 change to the line item
Complete the following tasks:
Work with an original budget
Change an original budget
Lock a budget
Enter a budget revision