{"id":661,"date":"2016-09-21T15:24:43","date_gmt":"2016-09-21T03:24:08","guid":{"rendered":"http:\/\/help.psoda.com\/?page_id=661"},"modified":"2025-03-14T00:20:26","modified_gmt":"2025-03-14T00:20:26","slug":"a470","status":"publish","type":"page","link":"https:\/\/www.psoda.com\/help\/a470\/","title":{"rendered":"Budget items"},"content":{"rendered":"\r\n\r\n
\"budget<\/a>Budget items are the individual line-items of a \"Budget<\/a>budget<\/a> on a \"Programme<\/a>programme<\/a>, \"Project<\/a>project<\/a>, \"Subproject<\/a>sub-project<\/a> or \"Change<\/a>change request<\/a>. Budget items can be any costs baseline for the parent asset<\/a> for example hardware, resources, 3rd party licences etc.\r\n\r\nA budget item is dependent on two attributes of the parent asset:\r\n\r\n\r\n\r\n\r\n
Start date<\/th>\r\nIf the asset start date is set then the month intervals for the budget item will be based on that start date.<\/td>\r\n<\/tr>\r\n
Budget intervals<\/th>\r\nThe number of months allowed in the budget item is set using this asset attribute.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nBudget items can contain:\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Baseline<\/th>\r\nThis is the original budget for the item. It may be locked through \"Workflow<\/a>workflow<\/a>.<\/td>\r\n<\/tr>\r\n
Approved changes<\/th>\r\nOnce the budget item has been baselined any changes must be \"Pass<\/a>approved through the steering committee and can then be added to this field.<\/td>\r\n<\/tr>\r\n
Plan<\/th>\r\nThis is the planned budget allocation for this item, which can be adjusted as needed during the planning phase. It serves as a guide for expected costs before a baseline is set.<\/td>\r\n<\/tr>\r\n
Savings<\/th>\r\nThis is the savings related to this initiative.<\/td>\r\n<\/tr>\r\n
Deferrals<\/th>\r\nThis is any deferrals related to this initiative.<\/td>\r\n<\/tr>\r\n
Total budget<\/th>\r\nThe total budget adds up the baseline, approved changes, savings and deferrals.<\/td>\r\n<\/tr>\r\n
Contingency<\/th>\r\nThis is any contingency related to this initiative.<\/td>\r\n<\/tr>\r\n
Total contingency<\/th>\r\nThis is the contingency added to or subtracted from the total budget line. The total contingency calculation can be set in the budgets tab of the organisation settings, with the default being to add to total budget.<\/td>\r\n<\/tr>\r\n
Uncommitted forecast<\/th>\r\nThis is the forecast from the programme\/project manager for this budget item. This forecast should not include committed expenditure. If the uncommitted forecast is left blank then Psoda will automatically calculate it as the sum of the baseline and approved changes minus the committed forecast.<\/td>\r\n<\/tr>\r\n
Forecast changes<\/th>\r\nYou can capture any changes to your forecast here if you do not want to change the Uncommitted Forecast line.<\/td>\r\n<\/tr>\r\n
Committed forecast<\/th>\r\nThis is a forecast of the committed expenditure on the programme\/project.<\/td>\r\n<\/tr>\r\n
Total forecast<\/th>\r\nThe total forecast adds up the uncommitted forecast, forecast changes and committed forecast.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nBudget items also show:\r\n\r\n\r\n\r\n\r\n\r\n
Actual<\/th>\r\nThis is the actual expenditure against this budget item. It is calculated by adding all the expenses logged for this budget item.<\/td>\r\n<\/tr>\r\n
Variance<\/th>\r\nThe variance is calculated to show the difference between the planned and the actual expenditure. The variance calculation is explained in more detail below.<\/td>\r\n<\/tr>\r\n
Estimate at completion (EAC)<\/th>\r\nThe estimate at completion shows the total expected cost of the budget item by adding the actual values to the forecasted values.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nWhen costs are captured against the project they can be allocated to an applicable budget item. That way you can track the actual expenditures against the original baselines.\r\n\r\nBudget items can be grouped into sub-groups of the budget<\/a>, down to as many levels as is required. The baselines from the items are summed into the sub-group; and ultimately into the budget.\r\n\r\nA workflow<\/a> can also be selected for each budget<\/a>. When you \"Add<\/a>add the budget item<\/a> you can select the Standard Budget Item Workflow<\/strong>, or you can \"Add<\/a>add a new workflow<\/a> for budgets specific to your organisation<\/a>.\r\n

Calculating variance<\/h4>\r\nVariance shows the difference between the planned and the actual expenditure. It is calculated as follows:\r\n