Change Order Automation for Project Budget Adjustments

Perform a detailed impact assessment on the project budget and then automatically update the budget when the change is approved. For example, record a change for a specific task and assignment and view the overall impact on the project budget. Upon stakeholder approval, implement these changes to the project budget automatically. Automation improves accuracy during assessment and implements the changes without any further involvement from the change order owner.

Perform a budget impact assessment by selecting the Budget and Forecast impact area in the Add Impact dialog box and then selecting the task and resource for which impacts are to be assessed. For example, if there is a scope increase that requires an additional 200 hours for a Consultant resource, enter 200 as the quantity. Conversely, if there is a scope decrease, enter -200. For rate-based resources such as Consultant, the amounts will be automatically calculated based on the rate settings of the current baseline budget version. Optionally, override the amounts by entering both the quantity and cost or revenue amounts.

Screenshot of the popup where budget impact details of change order is entered

Add Budget Impact Details for a Change Order

Navigate to the Manage Change Order Budget Impact page using the Modify in Budget View button to access detailed change impact information within the context of the current baseline budget. Review project budget figures, factoring in changes and their effect on the project margin. Choose the Edit Period Amounts action to adjust the change quantity or amounts of the change impacts for specific periods if required.

Screenshot of the page where change order budget impacts are managed in context of the current baseline budget

Manage Change Order Budget Impact

Once the change order is approved and moved to the implementation stage, select the Implement and Mark Complete action to include the budget impacts. This action will create a new baseline if the current baseline budget version isn't workflow enabled. Alternatively, if the baseline budget version is workflow enabled, a new version will be created and submitted for approval. The implementer will be notified once the budget version with the change amounts is approved. Additionally, you can also choose to send the notification to the Change Owner by defining a custom rule in the BPM task configuration.

Screenshot where the action which user can use to create a baseline budget which includes the budget impacts of the change order

Create a Baseline Budget by Including the Budget Impacts of the Change Order

The Change Impact Details REST resource can be used to create, view, update, or delete the impact details for a budget change impact.

Business Benefits:

Conveniently assess and view the financial impacts of a change order on the budget.
Effortlessly keep budgets up-to-date by automatically including change order impacts.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Project Execution Management No Longer Optional From: Update 24C

Tips And Considerations

To perform a detailed budget impact assessment and automatic implementation, the change order must be associated with a project that has a baseline budget version created using an approved financial plan type.

Automatic implementation is supported exclusively for budgets, and only one change order can be implemented at a time. Once a baseline budget version is created from the change impacts, the change order can only be closed and not moved to any other stage.

If there are any overrides in the current baseline budget, then they are carried forward while performing impact assessment.

You can continue to create baseline budgets from the Manage Budget Versions page, REST, or FBDI when an active change order exists given the following conditions are met:

Planning Options Attribute	Attribute Value in the New Version Compared to the Current Baseline Version
Planning Level	No change
Calendar Type	No change
Planning Resource Breakdown Structure	No change
Multiple Transaction Currencies	No change
Assign Resource in Single Currency for a Task	No change
Planning Currencies	No change
All other attributes	Can change

If there is a budget version with edits, baseline this version before implementing any change order to retain the edits, as the change order budget impacts are implemented only on the latest baseline budget version and manual edits aren't carried forward.

Change impact amounts for all impact areas can now be updated only in the impact assessment stage, removing the previous ability to update impacts in the review stage by the change owner.

The feature opt-in choice is set to Yes by default, making it ready for immediate use. If additional time is needed before activating this feature, you have the option to set the Opt-in choice to No.

Key Resources

Related Help: Change Orders in the Using Project Execution Management guide.
Based on Idea 512997 from the Project Management Idea Labs on Oracle Cloud Customer Connect.

Access Requirements

To use this feature you need these privileges:

Manage Project Changes (PJE_MANAGE_PROJECT_CHANGE_PRIV) to create a change order, perform impact assessment, review, approve, and implement a change order.

Manage Project Budget Working Version (PJO_MANAGE_PROJECT_BUDGET_WORKING_VERSION_DATA) to manage the change order's budget impact on the Manage Change Order Budget Impact page, where change impacts are displayed alongside baseline amounts.

Create Project Budget Baseline Version (PJO_CREATE_PROJECT_BUDGET_BASELINE_VERSION_DATA) to automatically implement a change order with budget impacts.