Rolling Wave – Budget Distribution#

General#

An iterative method, rolling wave planning helps you minimize the uncertainty associated with scheduling complex projects by providing you with quick and regular updates on their status and progress and multiple ways to respond to changing demands.

One option for integrating the rolling wave technique into project365 is to use the Distribution feature, which will offer you suggestions on how to get the most out of your project budgets. Each of these suggestions can then be tailored to meet your company’s exact needs.

Setup#

Projects Setup#

To set up the budget distribution feature:

1. Choose the Search icon, enter Projects Setup, and then choose the related link.
2. Fill in the fields as described in the following tables.

Rolling Wave – Budget Distribution#

Rolling Wave – Defaults#

The other fields on the Rolling Wave – Forecast and Rolling Wave – Budget Distribution FastTabs show whether you’ve set up the specified options for budgeting (such as templates, formulas, or work package mappings).

For changing them, click a field value to get to the corresponding setup page.

Budget distribution formulas#

To specify how values will be distributed across budget items:

1. Choose the Search icon, enter Budget Distribution Formulas, and then choose the related link.
2. Alternatively, open Projects Setup and use the lookup in the Distribution Formulas Setup field.
3. On the ribbon, choose New.
4. Fill in the fields as described in the following table.

If you make changes to a formula, you need to run the Update Projects action from the ribbon to replace it on each project affected by the change. However, only projects the Distribution Active toggle is turned on for will be updated with this function.

For a preview of the graph that will be created, you must also fill in the Demo Data (Preview) FastTab. After you select a line, you can then see this graph in the FactBox on the right-hand side of the page.

Mixed formulas#

A mixed formula combines multiple calculation methods into one function.

For this purpose, the period in which to distribute budget values is divided into several, equally long phases, with their shares of the total quantity specified in percentages. Afterward, you can enter a different formula for each phase.

To set up a mixed formula:

1. Choose the Search icon, enter Mixed Formulas, and then choose the related link.
2. On the ribbon, choose New.
3. Fill in the fields as described in the following tables.

General#

Lines#

Work Package Distribution Mappings#

You can open this page by choosing the lookup in the Work Package Mapping Setup field in Projects Setup or by using the general search function.

On it, you can select for each work package the types of lines you want to see in budget distribution matrices.

For example, you can use this feature to hide matrix lines on which the invoice quantity is zero, that is, where a work package was set up for services that are rendered in-house (and therefore cannot be billed).

If you change a mapping, you need to run the Update Projects action from the ribbon to replace it on each project affected by the change. However, only projects the Distribution Active toggle is turned on for will be updated with this function.

Budget distribution templates#

You can use these templates to specify how you want the system to distribute budget values for certain work packages by default. To set up a template:

1. Choose the Search icon, enter Budget Distribution Templates, and then choose the related link.
2. Alternatively, open the Projects Setup page and use the lookup in the Distribution Templates Setup field.
3. On the ribbon, choose New.
4. Fill in the fields as described in the following table.

Update Projects#

This action—which can be run from the Work Package Distribution Mappings or the Budget Distribution Formulas ribbon—will copy changes that you make to the package mapping or distribution formula setup to all affected projects.

You can transfer the values of only one setup with this function or update the data for both at the same time. However, only projects where the Distribution Active toggle is selected will be updated.

WBS Version Options#

On this page—which can be opened from the Projects Setup ribbon—you can specify the values that will be entered on the Copy WBS report by default.

Project templates#

Some of the key fields used by the Distribution feature can already be filled in when you create a project template.

For an explanation of these fields, found on either the Lines or Rolling Wave – Budget Distribution FastTab, see the following table.

Lines#

Rolling Wave – Budget Distribution#

Work packages#

You can also fill in the distribution setup fields in the work package master, as described in the following table.

Setup field priorities#

As described above, certain distribution settings can be specified in the work package master, on a WBS line, or on a project.

As for their prioritization, the system will first check the settings made on the WBS line, then those made for the project that the line belongs to, and, finally, the setup specified in the work package master.

By selecting the WBS Line Setup Only field, you can deactivate the project and work package master levels, leaving only the setup for WBS lines. This means that no distribution will take place without these fields.

User Setup#

Default values at project creation#

When you run the (Create) New Project wizard, you can already fill in some of the fields that will be used for budget distribution. You can later change them again on the project card, where they’re found on the Planning FastTab.

Because certain analyses might result in budget values being aggregated, we recommend you update the Distribution Formula Code and Period Type fields on the card instead of maintaining them on a work breakdown structure or in the work package master. Ideally, both fields have been filled in on a project template, which you can select on the first wizard page.

If you also create a work breakdown structure with the wizard, the fields used for budget distribution are likewise copied from the selected WBS template to the new structure (but these, too, can be changed manually).

One field that isn’t filled from a template is the Budget Remainder field. It tells you what should be done with the portion of the budget that remains when the WBS line it was used for is completed.

Most of the setup fields are available on budget lines as well, with their values sourced from the associated WBS line.

To check how the system will distribute the budget, you can use the WBS line or budget line fields described in the following table.

Distribution views#

On the project card ribbon, you can choose between two distribution cockpit views that resemble those available for standard work breakdown structures (where the ribbon actions are WBS and WBS Incl. Budget View). Both include a matrix as described in the following.

Distribution matrix#

This matrix is the core component of all distribution views.

In the WBS Distribution View, it references the currently selected WBS line.

By contrast, if you choose WBS Distribution Incl. Budget, you see the values of a WBS line or a budget line in the matrix, depending on the distribution level that is specified for the structure.

If the level is set to WBS Line, the lines of the work breakdown structure are shown in the upper area and the matrix right underneath, whereas choosing Budget Line puts the budget lines underneath the WBS lines, with the matrix found below both.

You can use either view to see values such as the quantity budgeted on a line, broken down by the time specified in the Period Type field (for example, week or month). Which lines will be shown depends on the work package mappings that you’ve specified.

Most matrix fields are self-explanatory or will be described elsewhere, so the following table includes only the few that aren’t.

Ribbon functions#

Three ribbon actions must be run in the matrix, in the following order:

1. Update Actuals
2. Copy Suggestion to Plan
3. Update Invoicing

Alternatively, you can use the Update Distribution function to have the system run them one by one and in the correct order automatically.

Update Actuals#

Updates the actuals shown in the matrix based on the project ledger entries that have been created.

With this action, unspent budget is automatically distributed to later periods so that any new suggestion for distribution no longer contains quantities for completed periods.

See also Update Sequence after Task Completion.

Copy Suggestion to Plan#

Following the update of the actuals, copies the suggestion created from them to budgeting.

See also Update Sequence after Task Completion.

Update Invoicing#

Updates the invoice quantities on the new plan after the suggestion is copied to it.

See also Update Sequence after Task Completion.

Update Distribution#

Merges the three actions explained previously, running them one after another as part of a single function call.

Reset Plan#

Redistributes the budget values that were entered by users, based on the field setups for automated distribution (while ignoring any manual settings).

Distribution#

You can distribute values in two ways, by quantity or amount. Both methods will be described in the following.

By quantity#

If you, for example, create a budget line on the WBS Distribution Incl. Budget page and enter a starting and ending date, the quantity budgeted on the line will be distributed automatically across the matrix according to your setup if the Quantity option is selected in the Distribution Base Type field.

An example of this would be a monthly linear distribution of quantities from 11/01 to 06/30.

The first line in the matrix (the budget line description) then shows the quantity that will be budgeted, which should match the quantity that you can see on the suggestion line after all budget values have been distributed by the system.

Afterward, you can change the values on the first line, if needed. Those on the suggestion line, however, will remain as they are.

By amount#

The amount option also automatically takes account of the distribution setup fields and distributes values throughout the matrix after all data is filled in. In contrast to the quantity option, however, it allocates amounts, such as costs that are assigned to a G/L account with a quantity of 1 and for which the unit cost is entered on the budget line.

If setup requires the total quantity to be kept (see the Keep Total Qty. field), it is split up in a way that, based on the rounding precision, the sum of all distribution entries is again 1. It’s not the quantity that is relevant here but the amount.

Field updates#

If you change budget-relevant fields, such as Unit Cost or Starting Date, on a line, you’re asked whether you want to update the distribution. Choose Yes if you want redistribution to take place automatically following the changes.

Distribution entries#

Distribution entries are structured like project budget entries. Creating the latter from the former represents the first step in setting up a budget plan.

To see the entries created by the distribution feature, use the lookup in the Qty. Assigned field.

You can run one of the following actions, each with a slightly different focus, to transfer distribution entries to the project budget:

Update from Distribution Entries#

Synchronizes distribution and project budget entries. Existing budget entries will be replaced.

With this transfer, the integration of the distribution into standard project365 planning processes is complete. You can then continue as described in WBS and Scheduling.

Update Distribution#

Updates the distribution on the selected line or all WBS lines.

This function goes beyond the previous action, copying the distribution entries created for the budget lines to the project’s budget entries (with the help of the Update from Distribution Entries action) and then transferring the updated values to the associated WBS lines.

Workflow#

Budget line distribution#

(Bottom-up approach)

When you set the distribution level to Budget Line:

1. Set up budget lines with the fields relevant to distribution filled in, especially the quantities. This creates a distribution suggestion.
2. If needed, edit the plan manually.
3. If that changes the quantity on a budget line—that is, the value in the Quantity field differs from what has been distributed to the line—run the Update from Distribution Entries action to transfer over the new quantity.

Budget adjustments

Line activities that have already been budgeted are adjusted after the close of a month (or another standard period type) based on the actuals recorded in the previous period.

1. Open the WBS Distribution Incl. Budget view.
2. Run the Update Actuals function.
3. Choose Copy Suggestion to Plan on the ribbon to transfer the suggested distribution to planning.
4. Run the Update from Distribution Entries function to transfer the new total quantity to the relevant budget lines.
5. Copy the budget values from the line activities to the WBS lines.

You can use a certain function to have the system run these actions in the correct order one after another. For more information, see here.

WBS line distribution#

(Top-down approach)

When you set the distribution level to WBS Line:

1. Create a rough plan on the WBS line. This creates a suggestion for distribution.
2. Plan in more detail (if needed).

Update sequence after task completion#

The following provides you with an example of how the distribution update process works in practice.

On a budget line, 600 hours must be distributed in a linear fashion over six months.

The starting month is January, the last month included in the distribution is June. The initial budget plan set up and copied to the project is made up of the following values:

In January, no more than 80 hours are posted by resources (which means 20 fewer than anticipated). It’s February now, so January needs to be wrapped up and the plan updated for the remainder of the project.

By running the Update Actuals function, the 80 hours recorded in January are copied to the distribution matrix and the system creates a new suggestion for distribution that takes account of the completed month by including it at zero hours and distributing the 20 hours across the remaining months.

You want to accept this suggestion, so you run the Copy Suggestion to Plan action from the ribbon. However, as the new plan values haven’t been turned into budget entries yet, each can still be changed manually, if needed.

You also run the Update Invoicing function from there, as you want to adjust the invoice quantities on the new budget plan as well.

Afterward, you use the Update from Distribution Entries action on the Budget Lines FastTab to have the system update the project budget entries from the new distribution entries.