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Contract Period Details example
This topic explains the dynamic features of the Edit Period Details with the help of an example.
We are using the following values to define a sample Software Contract:
- Contract Name: Cost Management Software Contract
- Starting Month: January 2020
- Duration: 6
- Budget: $72,000,000
- Months in first period: 12
The Add Software Contract dialog box is as follows:
When you click Edit Period Details, the Contract Period Details dialog box is displayed.
For demonstration, Period 3 is expanded in the figure:
Each period has been allocated $12,000,000 and each month in each period has been allocated $1,000,000.
If the 3rd Period's costs are going to increase by 10% ($1,100,000 monthly), you can change the value for Period 3 to $13,200,000.
The following figure shows the results of the 10% increase for Period 3:
After you change Period 3 to $132,000,000 Cost Management automatically increases the value for each month to $1,100,000 and the New Budget is updated to $73,200,000.
The budget figures for your enterprise may be more complicated and the proportions less obvious. Cost Management calculates the proportion each month contributes to the period's budget and then uses this proportion to calculate each month's new budget value.
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