Monitor Build Plan Budget

Modified on Tue, 26 Mar 2024 at 06:38 AM

Monitor Build Plan Budget

Budget tab in the Build Plan

Budget details represent the allocation of budgeted/actual revenue and expenses over financial accounts.

Pending Budget shows the amount from the last pending BP Budget. There can be only one pending Budget at the same time. All amounts are taken from the pending Budget.

Initial Budget columns shows the first approved or obsolete BP Budget details.

Current Budget — the information from the last approved Budget. Again, there can be only one approve Budget per time, because the previous one will be obsolete after its revision.

For the Committed Budget column, we take:

Revenue from the total of Sales Order lines allocated to PO lines minus invoiced amount (receivable + paid amount).

Expenses include:

The total from BOMs in the Pending and Sent to Warehouse stages
The amount from all approved VIM Purchase Orders. This amount within a Financial Account = VIM PO Balance
- VIM PO Balance = PO Total - Inv Approved Amount - Inv Paid Amount.

Actual Budget shows actual spend expenses and received profit.

Revenue — from CIM Invoice Financial Distributions.

Expenses are from Financial Distributions of source types: VIM Invoices, Bill of Materials, Time Keeping, CODs.

Remaining column = Current - (Committed + Actual).

Budget Indicators

Budgeted key figures:

Pass Thru COGS $ = the total of Pass Through Budget Costs.
Service Revenue $ = Planned Revenue (Sales Order Amount) - Pass Thru COGS
Direct Cost COGS $ = the total of Direct Budget Costs.
Gross Profit Margin $ = Service Revenue - Direct Cost COGS
Overhead $ = Gross Profit Margin * % of OH expenses
Profit Margin $ = Gross Profit Margin - Overhead

Planned/actual figures on Budget tab:

% of Planned = (Committed + Actual) / Current

% of Total = (Committed + Actual) / Current Total

Totals
*Total Revenue Gross Profit Margin* = Total Expenses - Planned Revenue
*Current WIP* = Variance Under Spend - Variance Under Billed, as calculated in WIP dashboard.
*Variance Under Spend* = Total Spend - Adjusted Spend Total Spend = Current Spend Adjusted Spend = Planned Spend * EC, %
*Variance Under Billed* = Current Revenue - Adjusted Revenue Current Revenue = Total of all BP Invoices Adjusted Revenue = Planned Revenue EC, %*
*Adjusted P&L* = Total Revenue Gross Profit Margin - Current WIP

If a Build Plan doesn't have an approved Budget or no Budget at all, then we take the percentage of WIP from the system constant and calculate current WIP using the formula: 

WIP = Actual Spend + (Actual Spend * % WIP from the constant) – Actual Revenue.

Profit Margins
Service Revenue Gross Profit Margin % = Gross Profit Margin / Service Revenue
Service Revenue Profit Margin % = Profit Margin / Service Revenue
Total Revenue Gross Profit Margin % = Total Revenue Gross Profit Margin / Planned Revenue
Total Revenue Profit Margin % = Profit Margin / Planned Revenue
Profit Margin = Total Revenue Gross Profit Margin - Overhead Allowance (according to Overhead Type)

Labor Hours

Current Budget — from the Budget Items with hour unit of measurement.

Actual Budget — hours from Time Keeping Financial Distributions.