Create a Budget Modification from a Change Event

Objective

To create a budget modification from the Change Events tool. 

Background

Creating a budget modification allows you to transfer funds from cost code to cost code, most likely for a change event that was "in scope" where there is no need to communicate with the owner (for example, a contingency or backcharge).

Things to Consider

• Required User Permissions:
  • 'Standard' or 'Admin' level permissions on the project's Change Events tool
    AND
  • 'Standard' or 'Admin' level permissions on the project's Budget tool.
• Additional Information:
  • Budget Modifications are designed to give a Project Manager the flexibility to more accurately manage the "current" budget over the lifecycle of a construction project. Transfer allocated funds as necessary to make more realistic adjustments as budgeted items become over/under budget.
  • Budget modifications may not be visible to your client.
  • Transfers created using budget modifications will not be reflected on the Prime Contract's Schedule of Values or the Prime Contract Invoices, since they are intended for internal budget adjustments.
  • Budget modifications will be reflected in the Budget Modification column in the Budget.
  • The "Budget Modifications" report displays an exhaustive and detailed record of all budget modifications. (The Reports tab must be active. Requires 'Admin' user permissions on the Budget tool.)
  • If you added a line item to the budget (for $0) after it's locked, you will not be allowed to delete the line item if it's ever associated with a budget modification.
  • By default, you can only transfer money from one line item to another, which results in net-zero transactions. However, there is an advanced configuration setting that allows you to add or subtract money to/from a specific line item that will increase/decrease budget totals accordingly. To enable the add/subtract option, go to the tool's advanced configuration settings and mark the "Allow Budget Modifications Which Modify Grand Total" checkbox. (Requires 'Admin' user permissions on the Budget tool).

Prerequisites

• Unlock a Budget

Steps

1. Navigate to the project's Change Events tool.
2. Locate the change event line item that you move money into using a budget modification.
3. Click the cell in the Budget Modification column for that line item. 

    Tip

   To edit the cell value, a BLUE triangle icon must be visible. If it is NOT visible, do the following:

   • Check to see if the budget is unlocked. 
   • Determine if you have been granted the appropriate permissions on the project's Budget tool.
   
4. Complete the following fields:
   • From. Select a cost code from the list. This is the cost code that you will transfer funds from.
   • To. This field is pre-filled with the selected change event line item. Editing this information not permitted. 
   • Transfer Amount. Enter the dollar amount of the transfer.
   • Notes. Enter any relevant notes about the budget modification. 
5. Click Create. 

See Also

• Create a Change Event
• Create a Budget Modification