Video 25 of 26 ยท Govern

Budget and Forecasting

Read the Budget Register, adjust the budget, run the monthly forecast, and see your margin in the Financial Summary

← Progress Claims to Your ClientDelegation of Authority →
Watch the Budget and Forecasting video
Watch the Budget and Forecasting video on YouTube
Watch the video walkthroughhttps://youtu.be/7jCw63YbeUE

In this walkthrough, you'll track cost and margin on a project in the Deep Space web app. We'll read the Budget Register, move budget and post costs, run the monthly forecast, and read the Financial Summary. Then we'll cover the questions we get most.
The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)
  1. Build an Estimate and Proposal Win
  2. Multi-Trade Tender Win
  3. Set Up Your Workspace Set Up
  4. Add Users and Give Them Access Set Up
  5. Company Settings: Get Your Documents Ready Set Up
  6. Connect Xero and Map Your Cost Codes Set Up
  7. Folder Templates and Project Documents Set Up
  8. Document Templates vs Contract Templates Set Up
  9. Email Templates and Sending Documents Set Up
  10. Head Contract Setup Set Up
  11. Build Your Programme Set Up
  12. Subcontracts: Award to Executed Set Up
  13. DS Site: Invites, Inductions and Site Sign-on Build
  14. Drawings to Site and Subbies Build
  15. Run Your Programme on Site Build
  16. RFIs, Notices and the Project Inbox Build
  17. Inbox to Xero: How the Money Flows Move the Money
  18. Purchase Orders Move the Money
  19. Process Supplier Invoices Move the Money
  20. Subbie Claims: Inbox to Payment Schedule Move the Money
  21. Retentions and Security Move the Money
  22. Variations, End to End Move the Money
  23. Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
  24. Progress Claims to Your Client Move the Money
  25. Budget and Forecasting Govern
  26. Delegation of Authority Govern

Read the Budget Register

The Budget Register, under Commercial, is your cost source of truth. The summary shows original and revised budget, comm
The Budget Register, under Commercial, is your cost source of truth. The summary shows original and revised budget, committed, actuals to date, remaining, and variance. Banners flag draft provisional sums and draft variations that aren't in the budget yet.
Show info explains every column. Spend moves left to right. Pending commitments, then committed, then open commitment, t
Show info explains every column. Spend moves left to right. Pending commitments, then committed, then open commitment, then actuals to date once it's invoiced. A purchase order sits in committed. It becomes an actual when there's an approved invoice, a certified subbie claim, or a manual entry behind it.
Each cost code shows its original budget, approved variation cost, revised budget, projected budget, open commitment, co
Each cost code shows its original budget, approved variation cost, revised budget, projected budget, open commitment, committed, actuals and remaining.
Click a code to open it. You'll see its forecast, forecast to complete and variance, plus tabs for its contracts, variat
Click a code to open it. You'll see its forecast, forecast to complete and variance, plus tabs for its contracts, variations, transactions and notes.

Change the budget

To move budget between codes, click New Budget Adjustment. Give a reason, then add lines from one code to another. It go
To move budget between codes, click New Budget Adjustment. Give a reason, then add lines from one code to another. It goes for approval and leaves a full audit trail.
For costs without a purchase order, like a credit card spend or a payroll journal, click Manual Entry. Pick direct cost
For costs without a purchase order, like a credit card spend or a payroll journal, click Manual Entry. Pick direct cost or manual journal, then split it across cost codes. You can link it to a purchase order or subcontract so it isn't counted twice.

The monthly forecast

Each month, open Forecasting and Final Account, Monthly Forecast. Pick the month and click Create Draft Forecast. It car
Each month, open Forecasting and Final Account, Monthly Forecast. Pick the month and click Create Draft Forecast. It carries forward last month's forecast and refreshes from the Budget Register.
The draft shows every cost code with its budget, committed, actuals and remaining. Forecast to complete is the column yo
The draft shows every cost code with its budget, committed, actuals and remaining. Forecast to complete is the column you edit. Flags warn you where the forecast is over what's left.
Click a forecast cell, enter your best estimate of the cost still to come, add a note to explain it, and save.
Click a forecast cell, enter your best estimate of the cost still to come, add a note to explain it, and save.
Save the draft, then click Validate. It points out forecasts that could double count committed cost, and big variances t
Save the draft, then click Validate. It points out forecasts that could double count committed cost, and big variances that need a note.
When it's right, click Approve Forecast. The summary shows forecast to complete, and estimate at completion, which is ac
When it's right, click Approve Forecast. The summary shows forecast to complete, and estimate at completion, which is actuals plus outstanding commitments plus forecast to complete.

Track the movement

The Variance tab compares this forecast with the budget and with last month's approved forecast, code by code, so you ca
The Variance tab compares this forecast with the budget and with last month's approved forecast, code by code, so you can see what moved.
Cash Flow plots cost out, cash in from your claims, and the net position month by month across the programme.
Cash Flow plots cost out, cash in from your claims, and the net position month by month across the programme.

The Financial Summary

The Financial Summary brings it all together. Revenue from the head contract, cost from the Budget Register and approved
The Financial Summary brings it all together. Revenue from the head contract, cost from the Budget Register and approved forecast, and the margin between them. Nothing here is typed. Every value is derived.
The margin bridge shows how margin moved between two approved forecasts, and which codes moved it. Cash shows billing le
The margin bridge shows how margin moved between two approved forecasts, and which codes moved it. Cash shows billing less cost, work in progress and retention.

Common questions

The Budget Register is less than our contract value. Where's our margin?

The register is a cost document. Margin sits inside your sell price by default, so look for it in the Financial Summary. To post margin to its own cost code, change the margin method in Project Settings, Commercial Defaults.

The Budget Register is less than our contract value. Where's our margin?
The register is a cost document. Margin sits inside your sell price by default, so look for it in the Financial Summary. To post margin to its own cost code, change the margin method in Project Settings, Commercial Defaults.

My purchase order isn't showing in actuals.

An approved purchase order is committed. It becomes an actual when the supplier invoice is approved against it.

My purchase order isn't showing in actuals.
An approved purchase order is committed. It becomes an actual when the supplier invoice is approved against it.

Validation says the forecast is above the uncommitted budget.

Forecast to complete should only cover cost not yet committed. Lower it so committed cost isn't counted twice, or add a note if it's right.

Validation says the forecast is above the uncommitted budget.
Forecast to complete should only cover cost not yet committed. Lower it so committed cost isn't counted twice, or add a note if it's right.

I need to change a forecast I've already approved.

Open that month and use Correct approved forecast.

I need to change a forecast I've already approved.
Open that month and use Correct approved forecast.

How do I record costs that have no purchase order?

Use Manual Entry, Direct Cost, and allocate it to the right cost codes.

How do I record costs that have no purchase order?
Use Manual Entry, Direct Cost, and allocate it to the right cost codes.

How do I move budget from one code to another?

Raise a Budget Adjustment from the Budget Register. It moves budget between codes without changing the total, and goes for approval.

How do I move budget from one code to another?
Raise a Budget Adjustment from the Budget Register. It moves budget between codes without changing the total, and goes for approval.

Quick reference

Need a hand? Email help@deepspacegroup.ai

← Progress Claims to Your ClientDelegation of Authority →