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Budget and Financing Revisions Management

France Gentesse
  • Updated

Introduction

The changes in financing management are generally related to the following three pages:

  • Project Financing
  • Budgets
  • Cost Summary

The function of associating financing revisions with budget versions was introduced in past updates. Approved budgets reflect the financing status at the time of approval. For example, when defining the budget, one can choose a financing source (either the original amount or a revised amount). The total financing amount for the component is reflected in the cost summary.

A new configuration has been added to the administrator's configuration panel to allow a choice to be made as to whether a new financing or new financing revision should be linked to all existing budgets or only to budgets In Preparation. 

The intent is to provide a greater level of flexibility and traceability for managing the links between financing and budgets. The checked option provides greater traceability and history of links between budget versions and financing revisions, but restricted flexibility in adding, modifying and deleting revisions. Conversely, the unchecked option provides more flexibility and latitude for users, but reduced traceability.

Note: This selection applies to all projects in the structure.

Project Financing

Revisions can be made to project financing. Revisions change the amount of financing and are reflected in the Total revised amount field. The starting amount of the financing is now called the Initial amount.

In addition, from the Revisions section, it is possible to see the history of all revisions and their respective changes.

Creating a New Revision

Prerequisites:

      • An existing project financing
  • Write permissions on the project financing page

Steps:

  1. In the project financing, under the Revisions section, click on the Add Revision button.

  1. In the menu to create a revision, you can:

a. Define the revised amount (i.e. an amount that adds to the current total amount).

i. The total revised amount is set automatically after insertion.

b. Define the total revised amount (i.e. the actual financing amount)

i. The revised amount is defined automatically after the insertion.

c. Add a comment.

Note: If taxes are defined in your environment, it is possible to enter the amounts before or after taxes in the creation modal of the financing revision. The taxed amounts are updated by clicking on the creation modal after entering a Revised Amount or a Total Revised Amount.

Notes on the behaviour of revisions

  • Only the last financing revision can be modified/deleted. Previous revisions are read-only. If the last revision is deleted, then the previous version becomes editable.

  • The following rules apply to revisions based on increases & decreases:
    • In the case of a negative revision (decrease in financing), the sum of a component's financing must remain greater than the sum of the amounts already obligated (approved purchase orders, approved billable contract changes, and active operations expenditures related to the budget).
    • In the case of a positive revision (increase in financing), the increase must not exceed the Financing allowed associated with the Project financing.
Summary of Financing Management Logic and Revisions
Actions Financing Management Financing Revisions Management
Creation
  • A validation is done to ensure that the Financing allowed linked is greater than or equal to the Project financing.
  • The Total revised amount field is equal to the Initial amount at creation.

With financing functionality linked to budgets “In preparation only” activated:

  • The new project financing will be linked to budgets with an In Preparation status only.

Financing functionality linked to all budgets:

  • The new project financing will be linked to all budgets except those in Archived or Cancelled status.
  • A Project financing must exist.
  • Only users with write access to the Project financing page can create a revision.
  • The Total revised amount field displays the amount of financing including the revision.
  • If a positive revision is added, a validation is made to ensure that the Financing allowed amount linked is greater than or equal to the revised Project financing.
  • If a negative revision is added, a validation is made to ensure that the revised financing is sufficient to cover the expenses incurred in the component.

With financing functionality linked to budgets “In preparation only” activated:

  • The new revision will be linked to budgets with an In Preparation status only.

Financing functionality linked to all budgets:

  • The new revision will be linked to all budgets except those in Archived or Cancelled  status.
Modification
  • A validation is done to ensure that the tied Financing allowed amount is greater than or equal to the modified Project financing.
  • A validation is done to ensure that modified Project financing is sufficient to cover the expenses incurred in the component.
  • It is not possible to change an initial financing amount if a revision exists.  

With financing functionality linked to budgets “In preparation only” activated:

  • Financing can be modified if no revision exists and it is not linked to any budget whose status is different from In Preparation.

Financing functionality linked to all budgets:

  • Financing can be changed even if linked to a budget, if there is no revision.
  • Only users with write access to the Project financing page can edit a revision.
  • Only the last revision can be modified, the previous ones are not editable.
  • The previous revision will become editable if the current revision is deleted.
  • A validation is done to ensure that the tied Financing allowed amount is greater than or equal to the revised Project financing.
  • A validation is done to ensure that revised Project financing is sufficient to cover the expenses incurred in the component.

With financing functionality linked to budgets “In preparation only” activated:

  • The last revision can only be modified if it is linked to an In Preparation budget or is not linked to any budget.
  • The revision must not be selected in the In Preparation budget. If this revision is selected in a budget in preparation, the previous revision (or the original amount if there is none) must be selected in order to modify the revision.

Financing functionality linked to all budgets:

  • No possibility to modify the revision if the value is attached to an Archived or Cancelled budget.
Deletion
  • A validation is done to ensure that the amount of tied Financing allowed amount is greater than or equal to the remaining financing.
  • A validation is done to ensure that the remaining financing is sufficient to cover the expenses incurred in the component.
  • It is not possible to remove an initial amount of financing if a revision exists. 

With financing functionality linked to budgets “In preparation only” activated:

  • Financing may be deleted if no revision exists and it is not linked to any budget with a status other than In Preparation.

Financing functionality linked to all budgets:

  • No possibility to delete the financing if the value is attached to an Archived or Cancelled budget.
  • Only users with write access to the Project financing page can delete a revision.
  • Only the last revision can be deleted.
  • It will be possible to delete the previous revision if the last revision is deleted.
  • A validation is done to ensure that the tied Financing allowed amount is greater than or equal to the remaining financing.
  • A validation is done to ensure that the remaining financing is sufficient to cover the expenses incurred in the component.

With financing functionality linked to budgets “In preparation only” activated:

  • The last revision can only be deleted if it is linked to a budget In Preparation or is not linked to any budget.
  • The revision must not be selected in the budget In Preparation. If this revision is selected in a budget in preparation, the previous revision (or the initial amount if there is none) must be selected in order to delete the revision.

Financing functionality linked to all budgets:

  • No possibility to delete the revision if the value is attached to an Archived or Cancelled budget.
  • If the deleted revision was selected by one or more budget versions, the previous revision, or the initial amount if no other revision, will be selected instead.

Budget

It is now possible, from the budget, to:

  • Select the initial amount, or a revision, for each financing in the budget
  • Associate a financing revision to a budget item
  • Freeze the history of the budget/financing revision associations as soon as they are launched for approval

Selecting a financing revision for a budget

Prerequisites:

  • Project financing with at least 1 revision
  • A budget
  • Write access to the Budget page

Steps:

  1. In the budget, click on the arrow next to the Global financing amount.
  2. From the menu, you can select the desired financing revision.

By default, the amount selected in the previous budget version will be selected. This selection can be changed depending on the status of the budget and the configuration of the environment.

Notes:

  • Only 1 financing revision can be selected per financing source for a budget
  • When a new budget version is created, all financing and financing revisions related to the approved budget version are copied.
Type of user with rights to modify links between budgets and financing revisions
Budget Status In preparation Waiting approbation Approved Cancelled Archived
Financing linked to all budgets

Administrator

User with write permission for the budget

Administrator

User with write permission for the budget

Administrator

User with write permission for the budget

 None None
Financing linked to budgets In preparation only

Administrator

User with write permission for the budget

 Administrator Administrator None None
 
Impact and consideration of financing or financing revision added by status of budget versions
In preparation
  • No impact
Waiting approbation
  • No impact unless the sum of the financing of the component becomes insufficient to cover the amount of the approved budget or the expenses incurred on this same component. In this case, an error message will appear.
Approved
  • If the revision amount is negative, the sum of the remaining financing must be sufficient to cover the amounts in the approved budget versions or the committed expenditures of the component
  • Selected financing revisions are retained even if the subsequent version of the budget In preparation or Waiting approbation uses a different financing revision.
Archived
  • Selected financing revisions are retained even if the subsequent version of the budget In preparation or Waiting approbation uses a different financing revision.
Archived or Cancelled
  • It is possible to delete a financing revision from the financing details page. This deletion will revert to the previous financing revision in the Archived or Cancelled budget versions.
  • Only the financing selected for the budget/budget items when In preparation status will be displayed.
  • Any financing association is frozen in the Budget page:
    • The revision of financing cannot be changed.
    • You cannot associate financing with a budget item.

 

Impact on Cost Summary

When a financing revision is linked to a budget and that budget is approved, the financing amount displayed in the Cost Summary list includes the sum of all financing revision amounts that are linked to the approved budget. If a financing revision is linked to an In preparation budget, the revision amount will not be included in the financing amount shown in the Cost Summary.

 

 

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