This article explains how to update the budget or the estimate to complete of a project in Timmi Project.
What is the budget?
The budget is mandatory for fixed price projects and time & materials project.
The budget is an estimation of the cost of the project. At the creation of the project, it is also entered in duration (number of hours or days needed to complete the project), so that Timmi Project can calculate the average cost of a time unit on the project, and also convert in cost any future budget revision, entered in duration via the 'estimate to complete'.
You will find two budget values:
- The initial budget: estimation made before the project started, that was used to calculate the selling price
- The revised budget: estimation updated during the course of the project.
The gap between the initial and revised values of the budget is an indicator of the project's profitability.
If the budget has never been revised, then the revised budget will be equal to the initial budget.
For more information on the conversion of activities into costs, please read the following article: Conversion of activities into costs.
Update the cost to complete of a project
The update of a budget in Timmi Project is made through the estimate to complete.
The estimate to complete is the estimation of the remaining time needed to complete the project.
To update it, click on the project, then on the estimate to complete section of the Update tab:
Enter the revised estimate to complete. If your project financial details are itemized by task or resource, enter the estimate to complete for each item.
When the estimate to complete differs from the remaining budget (revised budget - cost up to date), then the budget will be revised.