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Administrator Guide
Last Updated: 2023-06-23
Steps: Create Project Budgets

Steps: Create Project Budgets

Create a project with start and end dates.
A project cost plan gives you insight into approaching costs from your project assigned resources, while a project revenue plan helps you estimate future revenue from the contract billing process. To populate the final budget, we pull all dimensions from the plan structure and the project budget configuration. Budget lines pull from project worktags. Workday then creates a project budget schedule.
As the project progresses, you can update forecasts to include historical data with actuals along with future estimates, and use this information to revise your project.
You can also create a preliminary project budget without using a resource forecast:
  • Create a blank budget and schedule. Useful if there are no labor costs associated with the project, and the budget is maintainable through manual input.
  • Use the percentage allocation or estimated hours from the resource plan as the basis for a high-level budget.
(Optional) You can differentiate baseline budgets from forecast budgets using plan categories configured from the project hierarchy. Workday supports the assignment of a single plan for both a baseline and a forecast in a project.
  1. Define your project resource plan with project role assignments and consider:
    • Percent Allocation or Estimated Hours.
    • Project Resources.
    • Start and End Dates.
  2. (Optional) Create a resource forecast.
    1. Access the
      Create Resource Forecast for Project
       task.
    2. As you complete the
      Forecast Level View
       option, consider:
    Option Description
    Project
    Workday generates an upper-level forecast containing the worker and their forecasted hours.
    Project Plan Task
    Workday generates a detailed forecast including the worker and their:
    • Project tasks.
    • Forecasted hours for each task.
    Security:
    Manage: Project Resource Forecast
     domain in the Projects functional area.
  4. Access the project profile.
    1. Select the
      Financials
       tab.
    2. Select the
      Plan
       tab.
    3. Click
      Create Budget
      .
      Workday doesn't display the
      Create Budget
       button on the Plan tab when:
      • There isn't a project budget configuration on the project hierarchy or on the tenant.
      • A project budget configuration exists on the hierarchy or tenant, but the configuration disabled the creation of project budgets.
    4. As you complete the task, consider:
    Option Description
    Company
    This required field displays only when there isn't a company identified on the project.
    Worktags
    Enter any additional worktags that are required dimensions on the plan structure. This field doesn't display when required dimensions on the plan structure are on the project hierarchy.
    Example:
    Cost Center
     is a required dimension on the plan structure but isn’t defined on the project or the project budget configuration. Enter the
    Cost Center
     worktag here. Workday saves the
    Cost Center
     value to the project and will use it on the project budget.
    Plan Name
    Workday displays this name in the
    Project Budget
     grid. Access the grid on the
    Plan
     report of the
    Financials
     profile group of the project profile.
    Plan Calculation Type
    Select the revenue and cost inputs configured for the project hierarchy or tenant that you want to use as a base to build the project budget.
    Resource Forecast
    Displays when the plan calculation type includes a resource forecast as the basis for the creation of the budget.
    Revenue Calculation Method
    Select the basis for calculating revenue for the project budget:
    • Project Time and Expense
       - Workday creates a revenue plan using the contract line associated with the project, project phase, or project task level. When you have contract lines at the project phase or task level with the type time and expense, Workday uses the corresponding contract line at the most granular level for project phase or task to create the revenue plan line. Project budgets support both hourly and daily rates, depending on the contract rate sheet and billing rate rules.
    • Fixed Fee - Installment
       - Workday displays contract lines for fixed fee installments with generated revenue installments used to calculate the revenue plan.
    • Fixed Fee - Percent Complete (Hours)
       - Workday displays available fixed fee contracts that you can select to populate the
      Contract Amount
       field. Alternatively, you can enter a contract amount to preview how Workday calculates the budget. Workday creates the revenue plan using percent complete revenue recognition formula for each period based on actual and forecasted data: (Contract Amount * Percent Complete)/(Previously Recognized Revenue)
    Plan Structure
    Displays the plan structure configured on the plan calculation type for the project hierarchy.
    Forecast Source
    Select the type of forecast source for the project budget.
    Security:
    Manage: Project Budget
     in the Projects functional area.
  5. (Optional) To create another project budget by copying an existing budget, select
    Plan
    Copy Budget
     from the related actions menu on the plan.
    Security:
    Manage: Project Budget
     in the Projects functional area.
  6. To submit the budget for approval, select
    Plan
    Submit Plan for Approval
     from the related actions menu on the plan.
  7. (Optional) To apply the configuration of the plan line attributes to your project budget:
    1. Access the
      Maintain Project Budget Tenant Configuration
       task.
    2. Click the
      Plan Line Attribute Configuration
       tab.
    3. Click
      Update Attributes
       and complete the task.
    When you use Worksheets for project budgets, you must manually update the attributes on the plan lines in the project budget workbooks.
    Security:
    Set Up: Project Budget
     domain in the Projects functional area.
You can expand the resulting revenue and cost budget results to view amounts by budget period.
You can examine the Workday calculation details of a draft or approved plan. From the related actions menu, you can select
Plan
View Initial Calculation
on the budget line sourced from:
  • Ad hoc project time transactions (actual costs).
  • Journal lines (actual revenue).
  • Resource forecasts (revenue and cost forecast).
  • Resource plan estimated hours by project role (estimated cost and revenue).
  • Resource plan percent allocation by project role (estimated cost and revenue).
  • Revenue recognition installments (for Fixed Fee - Installment revenue plans only).
  • Time blocks (actual costs).
Calculated project budget lines don't include:
  • Manual changes to project budget lines.
  • The addition of budget lines for ledger accounts such as travel, equipment, or facilities.