There are two available budget types:

1. Top-Down Budgets
2. Bottom-Up Budgets

To add a Top-Down Budget, input the following:

• Project Price
• Margin %

The system will automatically calculate the project's Net Project Cost. This is calculated as follows:

To add more detail to the budget, it is possible to divide the Net Project Cost into two components:

• Estimated Labor Cost: This is an estimate of how much labor will cost. This is compared to Actual Labor Cost which is determined using the Timesheet System.
  
  
• Estimated Non-Labor Costs: This is an estimate of how much other expenses will cost. This is compared to Actual Non-Labor Costs which is determined using the Expense System.

To calculate these two, input the Percent Labor. This is the percentage of the Net Project Cost that will be used for labor. The Percent Non-Labor will be automatically calculated (this works in the reverse as well).

To add a Bottom-Up Budget, select the option on the page. Bottom-up budgets use time estimates in the schedule (estimated hours or days for users on schedule steps) for calculating the project's Net Project Cost.

To complete the process of adding the budget, select a Rate Method. There are two rate methods available:

1. User Rates: Associated with each user regardless of the work performed. Users may have a Default User Rate which is defined in the User System.
   
   
2. Work Type Rates: Associated with each work type regardless of who performed the work. Work Types may have a Default Work Type Rate which is defined in the Admin System.

When finished, click the Save Changes button to add the budget.