Contract Period Details example
The following example demonstrates the dynamic features enabled by editing the budgeted values in the Contract Period dialog.
In the following example, the following values define the Software Contract:
- Start month: Jan 2018
- Duration: 12
- Budget: $72,000,000
- Months in first period: 12
After adding the software contract parameters, the dialog displays as shown in the following figure:
When you click Edit Period Details, the Contract Period Details dialog displays. For demonstration purposes, Period 3 has been expanded in the figure.
As you can see, each period is allocated $12,000,000 and each individual month in each period would be allocated $1,000,000.
If the 3rd Period's costs are going to increase by 10% ($1,200,000), 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.
As you can see, Period 3 has been changed to $132,000,000 and Cost Analyzer has automatically increased the value for each month to $1,100,000. The New Budget total ($73,200,000) also displays.
The budget figures for your enterprise may be much more complicated and the proportions less obvious. It is important to note that Cost Analyzer calculates the proportion each individual month contributes to the total for a period and updates the values for each individual month based on this proportion.
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