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#

Create project#

When creating a new project using the wizard and a project template, rolling planning fields (e.g. Active distribution) can already be checked in the wizard and adjusted for the new project if necessary. Of course, these fields can also be checked and adjusted directly on the project card on the "Planning" info tab.

Due to aggregations in the course of evaluations, it is recommended to maintain the fields "Distribution formula template" and "Period unit" in the project instead of controlling them exclusively via the WBS lines or the work package master. Ideally, these two fields should therefore already be defined in the project template.

If the WBS is also generated from the project template, the distribution setup fields contained in this template are adopted. However, these fields can be adjusted manually in each WBS line.

The "Distribution of remaining budget" field is not preset by the project template. This field determines how the remaining budget is handled when a WBS line is completed but there is still a remaining budget.

Most of the distribution setup fields are also available in the budget lines and are pre-assigned with the values from the WBS line.

The following fields are available on the WBS line and the budget line for distribution control:

In the PSP on the "Distribution" info tab, the switch with the same name is activated for an active distribution.

Distribution View#

In the ribbon of the project card, you have two distribution views analogous to the two WBS views ("Work breakdown structure" and "WBS with budget view"). The views enable a detailed view of the work breakdown structure by adding a "distribution matrix".

Distribution Matrix#

The distribution matrix is the essential element of the distribution views.

In the "WBS distribution view", the distribution matrix refers to the active WBS line. In the "WBS distribution with budget", it looks at either the active WBS or budget line, whereby budget lines are shown and hidden dynamically.

The distribution matrix shows values such as the planned quantity, broken down by planning periods, which are specified in weeks, months, etc. depending on the period unit. Which rows are visible in the matrix depends on the settings in the "Work package allocation distribution matrix".

The information contained in the individual rows of this matrix is essentially self-explanatory or will be discussed in more detail later. Therefore, only the following will be explained in more detail here:

Function Distribution Matrix#

In the distribution matrix, the following three functions should be used one after the other and in this order:

1. update actual values
2. transfer actual/distribution proposal to planning
3. update order backlog

The "Update distribution" function combines these tasks and executes them automatically in the correct order with a single call.

Update actual values#

The actual values shown in the matrix are updated based on the project items. Unused residual budget is automatically distributed to the next periods, which means that completed activity periods no longer contain any quantities in the distribution proposal.

See also Sequence of an update after completion of a performance period.

Transfer Distribution suggestion in Planning#

Once the distribution proposal has been incorporated into the planning, the planned billing quantities can be updated on the basis of the new planning.

See also "Sequence of an update after completion of a performance period".

Update Invoicing#

Once the distribution proposal has been incorporated into the planning, the planned billing quantities can be updated on the basis of the new planning.

See also "Sequence of an update after completion of a performance period".

Update Distribution#

Combines the three functions described above in a single call. This function automatically executes all three functions one after the other.

Reset Planning#

A manual distribution can be automatically redistributed using the "Reset planning" function on the basis of the distribution settings; the manual changes are lost in the process.

Distribution#

Planning quantity#

If a new budget line is created on the "WBS distribution with budget view" distribution page and the start and end date are specified, the budget quantity entered is automatically distributed in the distribution budget matrix based on the selected distribution setup. For example, from 01.11. to 30.06. there is a monthly linear distribution by quantity.

The top line in the distribution matrix (budget line description) shows the current planned quantity, which corresponds to the distribution proposal line after automatic distribution. If necessary, the planning can be changed manually in the first row, while the values in the distribution proposal row remain unchanged.

Planning amount#

Distribution by amount also automatically takes the setup fields into account and distributes the planning automatically as soon as all the data has been entered. In contrast to quantity distribution, however, the distribution here is based on the amount. A typical example of this is costs that are assigned to a G/L account with a quantity of 1 and a cost price in the budget line. In this case, it is not the quantity 1 that is distributed over the periods, but the amount. If the setting provides for the total quantity to be retained, the quantity is divided up, taking into account the rounding precision, so that the sum of the distribution items is again quantity 1. It is not the quantity that is relevant here, but the amount.

Automatic Update#

If planning-relevant fields such as "Cost price" or "Start date" are changed, the distribution can be updated automatically after consultation.

Distribution Entries#

The distribution items are parallel to the project budget items. Budgeting can be generated from these distribution items, making them the first planning stage from which the project budget items later emerge. The distribution items can be viewed, for example, using a lookup in the "Quantity distributed" field.

Distribution entries transfer value#

This function takes over a distribution in project budgeting by synchronizing the distribution items with the project budget items. Existing budget items are replaced in the process. With this transfer, the application closes the loop to the range of functions explained in the "Project planning" section.

Distribution transfer value#

There are two versions of this function, one for the current PSP line and one for all PSP lines. All planning levels are updated.

The distribution items of the budget lines update the budget items and thus the planning in the budget lines. The planned values are transferred from the budget lines to the corresponding WBS line.

Workflow#

Distribution in project budget lines#

(Initial planning according to bottom-up method)

Distribution level is the budget line

1. create budget lines with planning-relevant fields, especially the planned quantities
2. a distribution proposal is created.
3. transfer of the distribution proposal with the function "Transfer distribution proposal to planning"
4. possible manual change of the planning (= distribution)
5. transfer of the distribution quantity as new planned quantities in the budget lines with the function "Update values from distribution items"
6. transfer of the planning from the budget lines to the WBS lines.

Some of these functions can be executed automatically one after the other.

Distribution in WBS Lines#

(Initial planning according to top-down method)

Distribution level is the WBS line

1. rough planning takes place on the WBS line
2. a distribution proposal is created
3. detailed planning (if desired)

Sequence of update after completion of performance period#

An example will illustrate this update. In a budget line, 600 hours are distributed linearly over 6 months. The start month is January, the end month is June. In the initial planning, a distribution was created and transferred to the budgeting that contains the following values:

In January, 80 hours are booked (i.e. 20 less than planned). We are now in February. January will be completed and the planning will be updated.

With the "Update actual values" function, the 80 hours of actual values are transferred to the distribution matrix and a new distribution proposal is created at the same time, which takes into account the completed month of January with 0 and distributes the 20 hours not worked over the remaining months.

The distribution proposal can now be transferred to planning using the "Transfer distribution proposal to planning" function. However, the new planning has not yet arrived in the project budget items. The planning can still be changed manually.

The "Update order backlog" function is used to adjust the planned billing quantities to the new planning.

The budget line function "Update values from distribution items" can now be used to update the project budget items from the new distribution items.