Project management Accounting -9

foreign

okay uh hello everyone welcome back again for the project management

accounting Basics Concepts line d365

today we are going to discuss about the project Badges and food case

normally a project budget means it's comparing the more comparing on monitor

sorry companies controls uh monitor project Revenue expand this show by

comparing with the actual normally companies will do control and monitor of

expenditure and project course by comparing the actuals and our

organizations can allocate money and resources to the ah to make the

budgetary budgetary goals OK and when the project budget is required means

when we are using cost tracking analysis and regulations Revenue tracking audit

rail of budget charges then we'll use the project budget

so we have a few prerequisites for project budgeting workflow is needed and

pro for cash model we have original and

original and revision forecast models that we are going to discuss now and

normally vaginal budget means uh Pro it will flow like this uh project created

from Project created to budget tracking internal and original budget created uh

submitted approved and budget will be activated in the revision budget it will

be revision right so no need to create the budget sorry no need to create the project project is already created under

the original budget so for revision purpose create the revision submit the

revision and approve then revision will be activated

OK those are the few things and in the parameters we can see

project related scheduling this we already discussed uh for cash we have I

estimated forecast model default one we can map here terms of payments for

expense terms of payments for items hovers so these default ones not

mandatory things it's a default setups okay

and we have cost control here it is default one is the method is remaining

budget and the original budget is defaulted as this one and total

remaining budget controls we have used budget control if you want to use the budget

control you need to enable it and the transactions type control it is revenue

and cost we have defaulted here and allows overruns

okay hello uh this one budget control outside hierarchy and budget control

intervals these are the few Fields available in the project

management parameters let's we'll start creating the budget first let me create

one new project so that will create a new project budget as well as

no and we'll use the controls as well for that project

ah I'll use

simple wording basic uh

project

I'll use some existing group I am using time and material project

only and

customer selecting the person project pin ISO

create project

once the project is created thanks

so we have project budget tab here this is enabled

actually normally if you want to enable this feature

this use budget control need to be enabled otherwise it won't enable the

field so it is enabled because automatically because it uh parameter

level we already enable this feature see here project budget is grayed out if

I enable this particular feature it will enable the

project budget when the toggle is enabled then project will be a project budget

will be available let's start it with let's start with project budget

before that I'll explain for you

here transaction type control see we checked right just now in the parameters

it's defaulted to revenue and cost what are the transaction type control only

cost purpose only revenue or revenue on cost and now we selected uh cost only

let's see and overrun defaults if you want to allow

you can allow it otherwise Warn and disallow the over and we can do that

budget control interval you want to project to date a year to day totally

your current year total budget uh what is the control for the budget

you can select from here so these are the things I want to explain here

let me click on Project budget

see when when I click project budget I have only cast tab here only cost is

available because we have mentioned transaction type control only for the

cost if you want the control for the only both revenue and cost then you need

to select the revenues and calls then click on Project budget you will get

both the cost and revenue tabs see here

it will come like this so now what I am

going to do is that let me enter the

um budget

hmm basic

and control

taking new cost controller and cost budget I am giving for example category

Erp development for this by for this one

uh I have spent and my cost is 5000 okay

and let me go to revenues

revenues you can do um you can create manually or you can do

generate from calls as well once the from the cost once the line is generated

here you can say that uh what is the profit for the sorry what is the revenue

generated for this Revenue budget for this uh particular project

I given seven thousand and save it

let's submit it

so now project budget see as I said you project uh project budget need to be

created then uh approve submitted approved then budget will be activated

so that is the process right we created project as well

and let's see the workflow history how it has been set up

if it is automatic approved then it will be good

so completed it's automatic approval so once it is complete completed

refresh it it will change to approved status this is original budget we selected uh

remaining remaining budget is remaining so once it is approved and

uh once it is approved then budget will be activated

so this is the creation of budget and the second scenario is that revision of

revision budget as we said that we have two types of budgets original budget and

revision budget ah now we created the original budget and now we are going to

discuss about budget revision for example this Erp development we have

budgeted 5000 as a virginal budget but it's gone beyond that so we are

requesting uh some more budget uh

budget hovers for that budget for that

Erp Dev category so for that you need to revise your

budget right once it is approved enter a revision to align the budget with the

approved change order so once uh once the approval given we need to revise our

budget that will be under foreign

so before that we have project budget balances we can check from here what are

the budget balances available for this project see here we have uh total cost

of 5000 budget and approved budget also 5000 and returning budget currently it

is 5000 now and hover budget it is hover only right everything we given only one

budget type so then let's start with revision

we have here new revision and revisions

so we have new before that is there anything

so I need to revise this uh new region means newly created revision if I want

to revise this budget I can click this revised by jet

once click on new uh change order 0 1 you can give as a

reference you have region date when it's supposed to be revised and requested

date then creation of reusion this is the uh

budget we allocated previously original budget for the cost cost it is uh so you

can give here a revision amount or new budget it will be uh

six thousand and this is new budget of for revenue is

10 000. so this is our revised budget once the

revision you updated when the revision once the revision is updated same way

you need to submit for the workload workflow once it is submitted it will be activated

this is the another concept revision of budget

and any points I missed

next is this one okay so next concept is that

project budget allocation budget allocation is name itself we know

uh distribution of budgeted amounts over

specific periods of time this is optional not a mandatory thing

for this allocation based on your GL fiscal calendar GL General set Ledger

setup Ledger firm we can see that physical calendar what is available for

this particular legal entity allocation period type cannot change your budget

control interval it is is important when it is when it comes to the

allocation so you can adjust the system provided allocation so normally it will provide

the system will provide the allocation that you can manually update as well if

you want to update depends up depends on your budgets

scenario create a revenue budget

uh maybe I'll use this one only cost budget and revenue budget I created

if you want to allocate the budget

let me close it

foreign

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so here we have what type of

budget is transaction type how however Revenue expense driven item Revenue

these uh these are the types we have

let me

so I clicked

him

let me go to the project again project budget

we have created the budget already

if you click new revision it will ask for the revision of the budget

same way as we discussed revision of the budget

so I'm not giving anything here let me go to another project

um we can create the project or we can use

this project as well which we created previously

so with a new

budget

Here video Revenue will get 1000 rupees

1000 here you have alkid budget uh from when to when entering array

given from date and to date by time period by year by quarter by period how

you need to divide this amount I given by period and mine is our

Revenue I given that I selected that

and it's allocated the like this ah 1000 divided by two well it is become

into decimal so I'll change it to 12000 to get the round fig or allocations

so now it is thousand per month

this is system generated allocation

so once this is done click ok now it is allocated the budget

once is allocated we can do the reallocation as well in the reallocation

we can edit the changes for example

500 for them first month

second month it is 1500 so this is our reallocation we can do

that as well

okay this is reallocation

or budget is not submitted I think

let me submit it so now budget is submitted once it is

approved it will go to approved status then we'll test the result

so here it is submitter status still

it's approved now meanwhile I'll go to project to check the

scenario of the budget controls are different

for this project so use budget controls revenue and cost

only over total budget we given here

I am giving current period current period my budget is

500 but overall my budget is 10 12 000

right so let's start with our Journal

let me go to lines

new

here I have given Erp

Dev for example 10 hours I am giving

for the 10 hours what will be what is the price it is 350 only

let me go with

21 hours with the 21 hours

our price is 350 means 500 now maybe

I'll go with two Awards

let me post it

so today till now what we discussed we have uh original budget and revision

budget uh original budget will start with the project created tracking uh

dragging on and original budget created submitted approved active revision

budget will start the uh

revisions created submitted uh proved then revision

it's not active then we created the project budget very simple project we

discussed about that we created the revision for that and we did allocation

now and the allocation we given

let me check the voucher What will what is posted for this transaction

it's called posted actually

manage tab poster transaction

thank you

oh 398 schema let me go with 20 hours

wow so I'm creating one more hover journal for just testing purpose whether

that control is working or not budget control

is there anything we missed that I am going to check now Erp there

21 hours

which posted

let's see the budget project budgets

one mod thing I need to explain here details we can do these things as well

individual resource level we can make the budget control

here 12 000 it is coming and

we allocated right

we have approved allocation it is 500 oh sorry sorry sorry sorry

we are red uh which

thing so period eight we are

we are in the period eight foreign