Creating a Budget Allocation

A budget allocation identifies the budgets to be consumed by milestones, timecard splits, expenses, and miscellaneous adjustments. You specify the project that the budget allocation relates to, and the budgets within that project to be consumed. You can create more than one budget allocation per project. For example, if you want different phases of a project to consume different budgets, you need to create a separate budget allocation for each phase.

You must complete some prerequisite setup tasks before creating a budget allocation. For more information, see Setting up PSA to Track Consumption of Individual Budgets.

To create a budget allocation:

  1. Do one of the following:
    • Click New on the Budget Allocations tab.
    • On a project record, click Actions | Project Financials | New Budget Allocation or click New in the Budget Allocations related list. (If the PSA Actions: Project Financials component is not available on the project record page, contact your administrator.)
    • On a milestone or timecard split, click + New Budget Allocation in the Budget Allocation lookup.
  2. Enter a name for the budget allocation. Make it unique within the project that the budget allocation relates to.
  3. If the project is not populated automatically, select the project that the budget allocation relates to. The budgets that you select in the following steps must also have this project.
  4. In the Customer Purchase Order field, select the customer purchase order budget that will be consumed by billable values.
  5. In the Internal Budget 1-3 fields, select up to three internal budgets that will be consumed by internal costs:
    1. Select the first internal budget that will be consumed. The percentage allocated to the first budget is calculated automatically on save. If the budget allocation uses only one internal budget, it is set to 100%. If the budget allocation uses two or three internal budgets, it is set to the percentage that remains after you have entered the other allocations. The total percentage allocation is always 100%.
    2. [Optional] Specify a second internal budget and the percentage to allocate to it.
    3. [Optional] Specify a third internal budget and the percentage to allocate to it.
  6. In the Billable Expenses Budget field, select the billable expenses or customer purchase order budget that will be consumed by expenses billed to the customer.
  7. In the Non-Billable Expenses Budget field, select the non-billable expenses or internal budget that will be consumed by expenses not billed to the customer.
  8. Select Default if you want the budget allocation to be the project’s default. A project can have only one default budget allocation. For information about when the default budget allocation is assigned, see Automatic Assignment of Budget Allocation.
  9. Click Save.

You can now assign the budget allocation to milestones, timecard splits, expenses, and miscellaneous adjustments in your project. For more information, see Assigning Budget Allocations.