Project budget burn rate dashboard
Problem
Project budgets are often updated regularly but only analyzed closely once a project is 80 percent complete or more, which is too late to change the outcome. A project manager can also report a project as on track while the financials say otherwise, and the two are not compared until a problem is large. Commitment reporting adds to the trouble. When a purchase order is received against and the receipt is recorded separately, the amount can show up as both an expense and a commitment, so future commitments are overstated. Once people find one mistake in a report, they tend to stop trusting the rest, and the real overrun gets lost in the discussion.
Solution
A portfolio dashboard lists every project with its contract value, budget, and cost trend, flagged by risk. A project manager may report a project as 30 percent complete with every line item in agreement, but the dashboard compares that progress to what has actually been spent and shows a line on pace to finish over budget. Caught at that stage, the margin can often still be recovered, so the team can act while there is time. Actual costs come from the ERP each night through REST APIs. Open purchase order commitments are shown separately from posted costs, so an order that has already been received is not counted twice.
At a glance
Vertical
Professional Services
Construction
Used By
Finance
Operations
Building Blocks
Dashboards
Custom Applications
Integrations
Logic Blocks
Building Blocks
This solution was built using these Nextworld features
Dashboards
Lists every project with its contract value, budget, and cost trend, flagged by risk, and drills into each project to show line-level budget, percent complete, actual cost, and projected cost at completion next to the projected margin.
Custom Applications
Stores each project's contract value, budget, expected margin, and percent complete by line item, alongside the actual costs and open purchase order commitments from the ERP, so reported progress can be compared to spending in one place.
Integrations
Pulls actual costs and purchase orders from the ERP each night.
Logic Blocks
Calculates projected cost at completion, trend, and risk status.
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