Change Order Automation for Project Budget Adjustments

You can perform a detailed assessment of the change order impact on the project budget and then automatically adjust the budget when the change is approved. For example, record a change for a specific task and resource and view the overall impact on the project budget during assessment. Upon stakeholder approval, implement these adjustments to the project budget automatically.

Note:

• You can use change management for project budgets only if you have opted to implement Project Execution Management offering.
• Users must have the Manage Project Changes privilege to create a change order, perform impact assessment, review, and approve a change order.

Add Budget Impact Details to Change Order

To add budget impact details to the change order:

1. In the My Work work area, click Manage Change Orders in the panel drawer.
2. Click Create in the Manage Change Orders page.
3. Complete the fields as appropriate in the Create Change Order page. In the Impact Assessment section, click the Add Impact icon.
4. In the Add Impact dialog box, perform these actions:
   1. Select Budget and Forecast from the Impact area drop-down list.
   2. Select the task and resource for which impacts are to be assessed and enter the Quantity, Currency, Raw Cost, or Revenue as appropriate. For example, if there is a scope increase that requires an additional 100 hours for a Consultant resource, enter 100 as the quantity. Conversely, if there is a scope decrease, enter -100.
      Note: For rate-based resources such as Consultant, the amounts are 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.
   3. Click Save.

Manage Change Order Budget Impact

Click Modify in Budget View in the Add Impact dialog box to navigate to the Manage Change Order Budget Impact page and view and access detailed change impact information within the context of the current baseline budget. You can review project budget figures and factor in changes and their effect on the project margin. Select the Edit Period Amounts action to adjust the change quantity or amounts of the change impacts for specific periods, if required.

Note: Users must have the Manage Project Budget Working Version privilege to manage the change order's budget impact on the Manage Change Order Budget Impact page.

Include Change Order Impact on Project Budget

Once the change order is approved and moved to the implementation stage, the Implementer can select the Implement and Mark Complete action to include the budget impacts. This action creates 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 is created and submitted for approval. The change order Implementer is 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.

Note: In addition to the Manage Project Changes privilege, users must also have the Create Project Budget Baseline Version privilege to automatically implement a change order with budget impacts.

Considerations for Budget Impact Assessment

Here are a few points to keep in mind while performing budget impact assessment:

• 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.
• 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.
• 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 be updated only in the impact assessment stage.
• When there is an active change order for the project budget adjustments, you can continue to create new budget baselines provided the following planning options are unchanged from the previous baseline version:
  • Planning Level
  • Calendar Type
  • Planning Resource Breakdown Structure
  • Multiple Transaction Currencies
  • Assign Resource in Single Currency for a Task
  • Planning Currencies