Using a time-phased budget

A time-phased budget (TPB) is a time-scaled budget based on activities, created from a top-down budget. To create a time phased budget:

  1. Create a top-down version for your project using the Top Down Budget Versions (tpptc5500m000)session. With more than one version, you can keep track of the modifications in the top-down budget.

    The version amounts for the budget that must be defined are:

    • The version contract amount.
    • The profit fee.
    • The management reserve

    The version contract amount is calculated using this formula:

    Version contract amount = profit fee + management reserve + distributed amount
  2. If the status of the budget version is set to Actual, you can specify the budget start time for calculation. Specify the budget start time for calculation if the status of the budget version is set to Actual.
    Note: 

    You can set the version status from Free to Actual only if:

    • Other versions exists with a status other than Actual.
    • The status of the project is set to Free or Active in the Project (tppdm6600m400) session.
  3. Specify the budget date, to fix the date for the currency transaction rates in case of a multi-currency time phased budgets.
  4. Distribute amounts over the activities, link them to the version and specify the earned value related data. The Earned Value Related Data can be defined using the Earned Value Method Related Data (tpptc5511m000)session. You can also copy a bottom up budget into a top down budget, the budget amount is then available as distributed amount for the top down budget version.
  5. Link the activities to a top-down budget version using the Generate Structure and Top-Down Budget (tpptc5210m000) session. This optional session can only be used if there is no budget assigned to the version yet. After executing the process, each activity needs a budget amount. The budget can be retrieved from the bottom-up activity budget if the Copy Activity Budget Lines check box is selected. Otherwise, the budget amounts are zero and must be specified manually.
  6. Generate the time-phased budget using the Generate Time-Phased Budget (tpptc5200m000) session. You can generate the TPB analysis code or create the code manually using the Time Phased Budget Analysis Codes (tpptc5520m000) session. The analysis code is a combination of a version, an exchange-rate type, and a baseline.
  7. The time-phased budget is displayed as the planned value in the Time Phased Budget (Planned Value by Period) (tpptc5521m000) session.
  8. Monitor the time-phased budget using these information:
    • Progress
    • Actuals
    • Forecast
  9. Compare the unit costs with the progress and the budget using the Generate Performance Measurement (tpppc5200m000) session:
    • Compare the planned value with the earned value, the variance is the schedule variance.
    • Compare the earned value and the actual cost, the variance is the cost variance.
    • Compare the budget-at-completion with the estimate-at-completion. The EAC consists of the actual cost plus the estimate-to-complete.