A contract budget is a specification of the total available budget for a cost type. The subject "Contract Budgets" registers and changes contract budgets.
Different budgets can be allocated to different contracts within a cost category. In this way a budget overrun can be detected as early as possible.
Contract budgets can only be registered for cost types from the master roll up category "Costs". They cannot be used for "Revenues" and "Results".
For example, a budget of EUR 500,000 is available for the purchase of five homes that will be demolished. Per home a contract is created in the cost category "Purchase houses", with a contract budget of EUR 100,000 for each home. After the negotiations with the first resident, it is clear that EUR 120,000 must be paid for this house. An order of EUR 120,000 is therefore determined already. The negotiations with the other residents are not completed yet, but a budget overrun of EUR 20,000 is already visible.
The entry fields are:
- "Project": The project to which the contract budget belongs.
- "Cost Type": The cost category on which the contract budget is registered. Only cost categories of the master roll up of type "Costs" can be chosen.
- "Contract": The contract to which the contract budget relates.
- "Contract Budget": The specific amount for this contract.
- "Release Deviation": If checked, any budget surplus on this contract budget is used to offset deficits elsewhere.
- "Explanation": An informative explanation, such as the reason for the creation of a specific contract budget.
- "Documents": The linked documents, see Linking Documents.
- "Expected Maturity": The date on which the cash flow for this contract budget is expected to begin.
- "Expected Maturity End": The date on which the cash flow for this contract budget is expected to end. The maturity date is only relevant if the cash flow projection method needs it.
- "Distribution Method": The method used to distribute the cash flow of the revenue over time, based on the expected maturity and the expected maturity end date.
The other fields are:
- "Unallocated Budget on Cost Category": The budget that is still available for this cost category.
- "Size": The size of the linked documents.