Create and Manage Budgets in Resource Management

Budgets

Resource Management helps you better budget and track projects. When you set up a new project, you can select one of three ways to track your progress: time, currency, or expenses. 

Time Budgets

A time budget is the allocated labor for a project expressed in work hours or days. The hours worked by your team weigh against this budget.

Currency Budgets

Currency budget is the allocated labor for this project expressed in a currency amount. The hours worked by your team, mutlipled by their bill rates, weigh against the budget.

Expense Budgets

Expenses are non-labor related project costs. Examples of expenses are costs incurred when hiring outside vendors, ordering prototypes or travel costs. Use Expense Categories to estimate  costs at the beginning of the project and track incurred expenses for these categories. Expense categories might include travel, materials or consultants.

If project contractors or consultants bill your project a fixed fee for work performed, you may want to add that person as an expense rather than project labor. Estimate the fee and then enter the cost of the consultant when you receive the invoice.

Budgeting Expenses by Category

Use Categories to estimate and track specific expenses. You can use predefined categories or create your own. 

When you add a predefined expense category to your budget you will see the suggested cost for that category, or you can use the calculator to set the cost for a category item.

For example, estimate travel expenses for a project using the expense tracking tool or budget the time you anticipate needing for marketing, billable tasks or meetings using the fee or time tracker.

Bill rates are the hourly rates charged for work performed. When you track fees for a project, incurred hours * the bill rate = incurred fees for a project. New projects use your organization’s default bill rate matrix from Account Settings.

To use bill rates, first create a default bill rate matrix in Account Settings. 

If you have custom rates for a project or client, you can edit bill rates in Project Settings so they apply only to that project. Changes to the default matrix will not affect bill rates set  in Project Settings.

Default BIll Rates

Te create a default bill rate matrix:

1. In the top right corner, click Settings and then click Account Settings. 
2. On the left side bar, click Bill Rates
3. Add your roles, disciplines, rates, and people, and then click Save. 
    

When you add a resource to a project, settings for that person determine their bill rate. Resources can have a custom bill rate or a bill rate tied to their Role and Discipline.

Custom Bill Rates

To view or edit bill rates for team members:

1. Go to the project and, in the top right corner, click Project Settings.
2. Scroll down to Bill Rates. 

Varied Bill Rates

If resources have more than one rate for a project, you can set custom rates for each phase of the project. When the team member report hours for that specific phase, Resource Management will assign the correct bill rate for the phase. 

For example:

Tamika works as a Creative Director for $150/h. She also works as a Designer for $100/h on the same project. Set bill rates for each of Tamika's roles in Project Settings. 

Then, create two phases for the project, Creative Direction and Design.

Now, assign Tamika to both phases. When Tamika enters time, or you make assignments on the schedule for either phase, appropriate rates apply.