Budget & Cost Tracking

 

Rate Management	Cost Centers
Multi-Currency Management	The Budget
Non Labor Costs, Investments & Expenses	The Labor Costs in the "Task" Document
Tracking Costs and Budgets

 

Introduction

 

Geniusproject has been designed to support multi-currency and multi-rate management. This chapter presents cost and budget management features. It should be treated as a guideline and not a rule since each organization typically has its own rules with regards to cost management.

The first financial component that is addressed in Geniusproject is "Rates Management". A "rate" in the application can refer to one of two things; a resource’s internal cost or their external/ billable cost.

Geniusproject supports several levels of resource rates management and multi-rates management for each company and resource in the [Resources] module. Geniusproject provides the flexibility to assign standard rates to companies and resources while allowing for specific rate changes at the project or task level. A standard/ default rates document is defined during the setup of the "Resources" module. It includes default rates as well as rates by activity type if "Multi-rate management" has been enabled in the General setup document.

The second financial component addressed in Geniusproject is the project budget. Project budgets can either be global, one for an entire project, or broken out across periods. They are used to forecast or capture planned labor (internal and external) and non-labor costs and can be built using one or two axes, for example by activity type and/or cost center.

The third financial component Geniusproject addresses is multi-currency management. It is possible to define one main currency and up to ten secondary currencies, and company and resource rates can be defined using any one of them. If multiple [Projects] modules exist, each module can have any one of the currencies defined in the [Portfolio] module as its main currency, and a secondary currency can be used primarily for display purposes. The same goes for "Archive" or "Consolidation" databases. It is also possible to define monthly exchange rates in order to be more accurate.

 

Rate Management

 

Geniusproject supports multi-rate and multi-level rate management for the different companies and individuals listed in the Resources module. Geniusproject offers the flexibility to assign default rates to companies and resources while allowing specific rate changes at the project or task level. In this document, "Rate" includes two elements, the internal cost of the resource, and the resource’s billable cost.

The "Standard rates" document lets you capture default rates and rates by activity type, provided that "Multi-rate management" has been enabled in the "General" setup document.

 

Multi-Rate Management

 

Multi-rate management is an optional feature, which can be enabled in the "General" setup document of the [Resources] module.

Multi-rate management allows companies to assign different rates to their resources depending on the type of work or activity they are performing in a project.

Geniusproject supports up to 11 different rates for companies and resources.

Each resource will have a "default" rate and then up to ten other potential rates that will vary depending on the activity type of the tasks they are working on. When calculating a resource’s cost for work on a particular task, the system will automatically use the rate associated to the activity type defined in the task. If the activity type has not been defined, or if there is no specific rate assigned to the activity, the system will automatically use the default rate.

Note: The activity types are defined in the "General" setup document of the Resources module, as well as the "Keywords lists" setup document of each of the Projects modules.

 

Assigning Rates

 

In the Resources module, The "Standard rates" setup document lets you define default rates, as well as standard rates by activity type, when "Multi-rates management" has been enabled in the "General" setup document.

When creating a resource, their rates are populated with the standard rates for the company and location they belong to. It is however, possible to change the resource’s rates by deselecting "Import the rates" on the Rates tab of their profile document.

 

It is possible to change the rates allocated to a resource for all projects in a Projects module. Rates can be changed directly in the "Resource" record of a Projects module, after the "Resource" and "Company" documents have been published to it. To do so the "Import the rates"" option must be disabled.

It is possible to change the rates allocated to a resource at the individual project level. By selecting "Rate" from the Create menu in the Project Description form, a new "Rates" definition record can be defined, unique to the active project.

Note: The "Project Description" form must be in edit mode.

You can also change a resource’s rates at the task level by clicking on the icon on the Resources tab of the Task form. See "Rate updates" below.

How Genius Project Manages Rates

 

We have included the chart below to demonstrate further Geniusproject’s of allocating a rate to a task.

 

 

Tracking Task Cost

 

Geniusproject offers two possible ways to post time so workload costs can be tracked:

• Using the Timesheets module: Users enter their workload details in a timesheet. They user can also propose a new "remaining" time, that must be accepted or rejected by the project manager.
• Without using the Timesheets module: Users can enter their workload details directly in the assignment form. The user can also specify the "remaining". Once the assignment is saved, the task will automatically be updated with the new information and the effective and remaining costs will be calculated automatically in the task, using the resource’s rate.

 

Updating Rates

 

If a company’s list of standard (default) rates has been modified, you can update them in all the companies by using the Actions \ Update resources rates action located in the Standard rates setup view.

When creating a new resource, they will inherit the standard rates from the company and location they belong to.

If the company’s rates have been modified, the changes can be applied to all company resources by navigating to the General tab of the Resources module setup and selecting Update the resources rates from the Actions menu.

Resources can be published to or updated in the different Projects module(s), by navigating to the Resources tab -> Resource list view in the contextual navigation menu and selecting either of the Publish option from the Destinations dropdown menu. . The resources" rates are updated at the same time if the "Import the rates" option is enabled in the "Resource" documents in the Projects module(s), or if the resource was not previously published in the Projects module(s).

 

Cost Centers

 

As an alternative to basing rates on resource type, Geniusproject also offers the option of using cost centers. Each resource can be linked to one cost center.

Cost centers are defined in the General setup document of the Resources module. They can then be selected in the Rates section of each Resource document.

Once the cost centers are defined in the "Resource" documents, and the resources are published in all destination modules (see Resources administration), then the cost centers are automatically available in the Timesheets module.

• Timesheets
• Timesheet details
• Expense report
• Expense details

In the Projects module, the cost center is automatically available and used for calculation in the following documents:

• Timesheet details
• Assignments

It is also possible to select the cost center in the Cost documents of the Projects module, with the exception of "Cost" documents created from the "Expense sheet" where the field "Cost center" is computed from the "Expense detail" document.

The cost centers could also be used in detailed Budgets to categorize budget lines.

There are no standard views showing information categorized by cost center, but they can easily be developed and added. See Customize  Geniusproject for further information.

 

Multi-Currency Management

 

Geniusproject lets you manage a main currency and up to 9 secondary currencies.

The main and secondary currencies are defined in the Currencies tab of the "General" setup of each Projects module.

Therefore it is possible:

• To capture costs documents in any currency entered into the system.
• To see task costs in both the main currency and the first secondary currency.
• To create views using either the main currency or the first and/or secondary currency.

 

Updating the Exchange Rate

 

Geniusproject lets you define exchange rates by month for the secondary currencies. If there is no exchange rate for the current month, the default rate defined in the "General" setup form is used.

To create monthly exchange rates, access the Projects modules "Setup" context, select the Exchange rate view and use the New periodic rates action.

 

The Budget

 

A project budget is always created with the creation of a new project. Depending on the setup there can be one or several budgets for a project. Projects with multiple budgets have been broken out into periods. To find out more about budgets by period, see the chapter on advanced budget management. The chapter deals solely with the default configuration, one budget per project.

There are two ways to access a project’s budget:

• Click on the "Budget" link in the "Cost & Budget" of the Project Description document.

 

• Or, navigate to the Projects tab.
• Select Costs & Budget from the contextual navigation menu.
• Select Budget and then the budget you would like to open from the choices in the content window.

The budget form allows you to define all aspects of the project’s budget. Geniusproject defines the budget using the following axes (categories):

• Internal work (labor): All of the hours worked by "internal" resources.
• External work (labor): All of the hours worked by "external" resources (subcontractors, partners, etc.).
• Investment & Expenses (non-labor): All non-labor related costs (purchases, travel costs, rentals, etc.).

There are two types of budget formats, a detailed budget and a flat non-detailed one. They both originate from the same form but depending on the selected format, the available options will be different.

 

The Budget Header

 

 

Non-Detailed Budgets Definition

 

For a non-detailed budget, a pool of days for labor will be defined, split across internal and external resources. There will be a defined total for internal cost as well as external cost if the project billable.

A global amount will also be defined for investments and expenses, all non-labor costs.

 

Detailed Budget

 

As its name suggests, this budget format allows you to include more layers of detail in your budget. Instead of just defining high level of labor and non-labor related costs, the detailed budget allows costs to be defined at a more granular level; by activity type.

The axis or axes used to make up the budget are defined in the General setting of the Portfolio module. For the purposes of this chapter we will be focusing on the default single axes selection, which can be defined as activity and cost types. For more information see the chapter on advanced budget management.

The first is somewhat the same as that of the non-detailed budget, however now it displays consolidated totals of the information detailed out on the Internal Labor, External Labor and Inv. & Exp tabs.

 

The Description Tab

 

Billing mode	Possible billing mode options are: •Fix price •Not billable •Time and material Not editable. Inherited from the project description document.
Detailed budget	Select "Yes" for detailed budget.
Internal labor	Days	Amount of labor budgeted for internal resources. Computed. Total number days defined on the [Internal labor] tab.
	Budget	Budgeted cost for labor by internal resources. Computed. Total of cost defined in the Internal labor tab.
	Billing	Budgeted billable amount for labor by internal resources. Computed. Total amount defined on the Internal labor tab. Not displayed if project is not billable.
	Margin	Budgeted margin on internal labor cost. Computed = Budgeted – billing. Not displayed if project is not billable.
External labor	Days	Amount of labor days budgeted for external resources. Computed. Total number of days defined on the External labor tab.
	Budget	Budgeted cost for labor by external resources. Computed. Total cost defined in the External labor tab.
	Billing	Billable amount budgeted for labor by external resources. Computed. Total amount defined in the External labor tab. Not displayed if project is not billable.
	Margin	Budgeted margin on external labor cost. Computed = Budgeted – billing. Not displayed if project is not billable.
Investments & Expenses	Budget	Budgeted amount for non-labor costs. Computed. Total of costs defined in the Inv & Exp tab.
	Billing	Budgeted billable amount for non-labor costs. Computed. Total amount defined in the Inv & Exp tab Not displayed if project is not billable.
	Margin	Budgeted margin on non-labor cost. Computed = Budgeted – billing. Not displayed if project is not billable.
Total	Days	Total amount of days budgeted for labor (workload).
	Budget	Total cost budgeted for the project.
	Billing	Total budgeted billing amount. Not displayed if project is not billable.
	Margin	Budgeted total margin on internal labor cost. Computed = Budgeted – billing. Not displayed if project is not billable.

 

The Internal Labor Tab

 

This tab is used to define the detailed breakdown of workload and costs for internal labor. The user can add as many lines as necessary to the grid; one activity type per line. The list of available activity types is created as part of the keyword configuration in the setup of the module.

 

 

 

The External Labor Tab

 

Same as the Internal labor tab however values are defined for external labor. 

 

The Inv. & Exp. Tab

 

This tab is used to define the details non-labor related costs, referred to in Geniusproject as "Investments and expenses". The user will be able to create as many entries as necessary in the data entry form. Normally input by cost type. The cost types of are defined in the configuration of keywords.

 

 

  

Non Labor Costs, Investments & Expenses

 

All non-labor related costs (purchases, travel expenses, rentals, etc.) can be tracked using "Costs" documents.

By entering the costs and their planned values in advance, it is possible to have a more complete overview of the anticipated and fixed budget.

 

Creating a cost

 

To create a new cost:

• From the Projects tab navigate to the Costs & budgets view in the contextual navigation menu.
• Click New cost.

 

 

Cost Header

 

 

Defining the Cost Details

 

 

 

Adding Additional Information to Cost Description - The Content Tab

 

This is where you can add more information about the cost. 

 

Collaborating on the Cost - The Genius Live! Tab

 

The Genius Live! tab provides a complete history of collaboration, modifications, approvals and revisions of the Cost. For more information please see the chapter "Collaborating with Genius Live!".

 

Attaching Files to a Cost - The Attachment Tab

 

This section allows for the attachment of external files, see "Manage file attachments" in the document management section for more details.

Users can attach files to the cost form to store any additional information pertaining to it. It is however recommended to store each significant file attachment as a single document in Geniusproject. This will allow users to distribute, publish, or manage access rights for any attached file independently.

 

Linking Documents to a Cost - The Linked Documents Tab

 

This tab contains all of the links the cost has to other documents that are part of the project. Geniusproject offers the ability to save links between related project documents. For more information on this topic see the chapter "Linking documents".

 

Deleting a Cost

 

There are three possible ways to delete a cost:

• Directly in Genius Planner if the cost was converted into a deliverable into a Gantt.
• Directly from the Cost form. Click Delete on the menu action bar.
• From a view. Select the cost(s) to be deleted and click Delete on the view menu action bar.

 

 

The Labor Costs in the "Task" Document

 

The "Task" document is the description of a project task and includes the list of all associated assignments. It is not to be confused with the assignment document, which includes only one resource, and where the person assigned to the task enters their time spent. In the task, we find the elements linked to cost management. It is in this document that we can manage the following elements:

• Activity type, which will determine the rate to apply in the case of multi-rate management.
• Definition of a special resource rate for a task.
• Specify whether the task’s billable amount is fixed or controlled.

In addition to these elements, the task includes the workload for each resource, and allows you to calculate the anticipated, actual, remaining and re-estimated costs by applying the rate associated to the resources.

 

Tracking Costs and Budgets

 

Geniusproject provides a number of views and documents so organizations can track financial progress across projects.

Geniusproject is a flexible, open solution allowing users to create reports and views as needed. It is also possible to interface with external applications, such as an ERP.

 

The Views

 

The "Cost tracking" views, found under "Costs & Budgets" in [Projects] tab contextual navigation menu, contain the elements necessary to track project financial progress. They display forecasted, planned,, used and remaining budgets and allow for financial tracking of hours worked by resources, purchases and investments, margins and invoicing.

 

The Budget Tracking by Project View

 

This is one of the cost tracking views included with Geniusproject’s default setup. It consolidates information from budgets, assignments, timesheets and costs.

• The "Budget" columns display values defined in forecasted budgets.
• The "Planned" columns display values based on planned tasks and assignments.
• The "Actual" columns display the values for actual time and costs.

The view consolidates information by project and cost type. If the budget is broken down by period then the information will be categorized by period, then project, then type.

The view provides a very detailed breakdown of labor and non-labor related costs and their differences from what was forecasted in the budget. The data in this view is only accurate if timesheets are being used.

 

Budget Value.

 

Actual value from a timesheet line.

 

Planned value for an assignment & Planned and actual values for a cost.

 

The Financial Indicators by Month View

 

This is one of the cost tracking views included with Geniusproject’s default setup. The values are pulled from the project overviews and displays financial indicators by month. The elements are added up at the project level, and at the top level, including sub-projects.

This view provides a clear vision of the evolution of projects costs from month to month.

 

The Project Cost Tracking View

 

This is one of the cost tracking views included with Geniusproject’s default setup. It’s a simple configurable view that lists project tasks and costs with their forecasted/ planned and actual costs.

 

 

The Project Cost Tracking by Phases View

 

This is one of the cost tracking views included with Geniusproject’s default setup.

This view shows financial information based on planned, actual and remaining workload as well planned, actual and billable amounts for non-labor related costs. These values come from project tasks and costs, and are displayed according to a project’s work breakdown structure (WBS). These elements are also added up at the project level, and at the top level, including sub-projects.

This view is very useful in identifying time and costs that exceed the budget.

 

Cost Tracking Charts and Dashboards

 

Geniusproject includes several standard graphs and dashboard used for tracking costs, such as "Costs by month" available in the "Dashboard & Charts" contextual navigation menu from the [Projects] tab.