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Create forecast models for project budgets

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This article describes how to create a forecast model for remaining budgets. A project that is subject to budget control uses two types of budgets: original and remaining. When you create a project budget, you must specify the original and remaining budget forecast models that were created in the Forecast models page. Project budgets based on the specified models are created when you commit the project budget.

Note

A forecast model that is used for budget control can’t have a submodel or be used as a submodel.

  1. Select Project management and accounting > Setup > Forecasts > Forecast models.

  2. Select New to create a new forecast model, and then enter a model ID number and name for the new model.

  3. Set the Stopped option to Yes to prevent any changes to the forecast lines for the forecast model.

  4. If the forecast lines that the model is associated with should generate cash flow forecasts in the general ledger, set Include in Cash flow forecasts to Yes.

  5. To use the project date as the invoice date, set Forecast Invoice date to Yes.

  6. In the Budget type field, select one of the following model types:

    • Original budget: Use the original budget amounts that are committed when the initial budget is created and approved.
    • Remaining budget: Use the remaining budget amounts during the life of the project. The balances in this forecast model are reduced by actual transactions and increased or decreased by budget revisions.
    • Carry-forward: Use the carry-forward budget amounts for the project. Carry-forward is an optional process that can be run to transfer unused budget amounts from one fiscal year to another.

  7. Set the following options as required:

    • Enable Forecast invoice date to use the project date as the invoice date.
    • Enable Forecast with WIP to forecast based on work in progress (WIP), and then select the type of WIP.
    • You can keep the default Budget type as None or enter a new type. The budget type can't be changed after you change a record.

    Note

    If you change the default budget type, all other options will become unavailable for updates, and you can't reuse this forecast model.