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Manage Project Budgets

This guide covers creating project budgets, tracking actual costs, and monitoring variances in Kezi ERP.

Creating a Project Budget

Step 1: Access Budget Creation

  1. Go to Project Management → Budgets.
  2. Click Create.
  3. Select the Project you're budgeting for.
  4. Enter the Budget Name (e.g., "Initial Budget Q1").

Step 2: Define Budget Lines

Add a line for each cost category you expect to incur.

Category Description Budgeted Amount
Labor Estimated hours * rate. $15,000
Materials Licenses, servers, physical goods. $2,000
Travel Site visits, etc. $1,000
Contingency Buffer for unexpected costs (recommended 10%). $1,800

Step 3: Save

Click Create to finalize the budget plan.

Tracking Actuals vs Budget

Once the project is active and people are logging time or expenses, the budget updates automatically.

To view the status:

  1. Open the Project.
  2. Navigate to the Budget tab.
  3. Review the table:
Column Meaning
Budgeted What you planned to spend.
Actual What has been spent so far (Approved Timesheets + Vendor Bills).
Variance The difference. Positive is good (Under Budget), Negative is bad (Over Budget).
Utilization % Percentage of budget consumed.

Handling Budget Overruns

If you see a category turning red (Over Budget):

  1. Investigate: Click the line to see the specific timesheets or bills driving the cost.
  2. Reallocate: If "Labor" is over but "Travel" is under, you might accept the variance if the total is safe.
  3. Revise: If the scope changed, create a new Budget version (e.g., "Revised Budget v2") to reflect the new reality.