The budget is where you can list all the resources you think you’ll need for the project.
Basically, this is the place where you define (for a project):
- How many people you need;
- Which experience levels you need;
- Which tasks are needed to get the job done;
- Who will do what;
- The external costs;
- The selling price.
A user is able to approve a budget if one one of the following conditions is true:
- The user is the budget’s account and its role has the “approve” permission for budget
- The user is the budget’s manager and its role has the “approve” permission for budget
- The user’s role has the “approve other” permission for budget
Role based permissions for budget can be managed from the permissions section.
When a project reach 50% of probability, it’s a good practice to make a budget for it.
The budget section is composed by three main parts: project details, price details and the budget editor.
Positioned in the top left, this part shows project information details such as the client, project name, project type, PM name, duration and probability. In this section, you can also:
- see the budget consumption/project status graph
- add notes
Positioned in the top right, this part shows some details about the project’s price:
- Suggested net price: the price we think is good to sell your project, calculated by the costs;
- Final net price: regardless of the suggested net price, you can decide on your own what you think is the best price for the project;
- Margin: the difference between suggested net price and the costs;
- Contingency: life is unpredictable and the unexpected is behind every corner, so why not be prepared for it? A percentage of contingency means that you know your budget isn’t perfect so you’re estimating using more days, just in case. The contingency gives you more days which you can use at every user level but, on the other hand, the suggested net price will grow;
- Discount: the percentage of discount you want to apply to the suggested price;
This is basically a table where you can assign days to a given user level of a task. A task is a macro activity needed to complete the project, related tasks can be grouped into areas.
You can add new areas by using the “+ AREA” button: type in a meaningful name and hit enter.
For each external cost you can assign a markup: a percentage that indicates how much you want to earn on that external cost.
Positioned on the top of this section you can find the sum of the values for each column.
The first columns of the budget show how many work days you need for each user level:
- Ext. Cost: shows the sum of the external costs
- Days: the total amount of days
- Cost: the sum of the budget’s days multiplied by the cost of the user level that will take care of it. This value is also called internal costs
- Price: the suggested price we think is optimal to sell your project
- Select a project from the Pipeline and click on its budget button;
- Compile the budget;
- Submit the budget for approval by clicking on the top left button “submit for approval”;
- When the budget is approved by a supervisor, you will be able to plan some resource on the project and start working on it;
- Whenever you need to modify the budget, you can set it back to draft and restart from point
- Each time a new budget version is approved, it’s saved and you can access it through the dropdown list under the Price’s Detail panel.
When a budget is submitted, a supervisor can appreciate all the changes by looking at the orange labels. This makes the approval process easier and faster.
Not sure if a budget’s area will fit? Just switch it off! Switching off an area will remove it from the budget estimate. You can always switch an area back at a later date whenever you wish.
Want to see the difference between two approved budget versions? Hit the Compare versions button and select the two versions you want to compare. Use the Clear button to compare between two other versions and click Close to end the comparisons.
Make a task intercompany
If your company is part of a group you can transform a normal budget’s task into an intercompany task: a special kind of task which presents only external costs and which can be assigned to another company of your group, the selected company become the supplier for the task.
An intercompany task is used to track work done within the same group and its useful to have a clearer view on the profit & loss.
An intercompany task is expected to have just name and external costs, this means that you need to delete internal days and markup in order to complete the transformation.
Once you have created an intercompany task, you can invite a person (that is an employee belonging to the task’s supplier) to connect one of their projects to the task itself. The invited person will receive an email containing a link to connect the project.
When a project is successfully connected to an intercompany task, it becames an intercompany project: its final net price, currency and probability are updated to reflect the intercompany task’s external costs and intercompany task’s project’s probability.
Each time you update the probability of a project which presents intercompany tasks, the intercompany projects linked to that task are updated accordingly. Besides if you update an intercompany task’s external costs, the linked project’s final net is updated too.
You can send as many invitations as you want, but remember that just a project can be linked to an intercompany task.
If you delete an intercompany task, any connected project will be disconnected (they will not be automatically deleted).
Sometimes may be useful to use currencies in your budget, expecially when you work with clients or suppliers that use currencies different from yours.
Once you enable multicurrency for one of your budgets, you will be able to set final net price and external costs in currencies other than the company currency you’ve defined in your company settings.
Expressing a final net using a currency different from yours let you emit invoices using the same currency for that project.
Expressing an external cost using a currency different from yours let you emit orders using the same currency for that project.
Please consider tha currencies’ exchange rates refers to the budget’s creation date.
Be aware that you can always disable multicurrency for a budget, but if you have created orders using currencies you need to manually update them. Invoices are automatically updated instead.
Create a template
You can create a template from a budget by clicking on the following button:
Saving a template means saving a budget’s structure (areas and tasks), this can be re-used by you or other people in your company in order to speed up the creation of budgets belonging to similar projects.
Each time you want to create a new budget, WETHOD will ask if you want to start from scratch or if you prefer to use a previusly created template.
All the templates can be found in Projects > Toolbox > Budget Templates, here you can edit or delete them.