Two-Tier Change ManagementLesson 1

Implementing Two-Tier Change Management

Back to P200: Project Accounting Extended Scenarios

Lesson 1: Implementing Two-Tier Change Management

Part 1: Two-Tier Change Management

This lesson explains how you can set up two-tier change management for projects. In the first tier, you create change requests; the second tier involves you grouping multiple change requests into a single change order.

Two-Tier Change Management: General Information

Acumatica ERP provides a two-tier change management capability for projects, which is used to create change requests in addition to change orders. Change requests are detailed breakdowns of potential changes to the project budget and commitments, such as additions, deletions, or edits to the existing cost or revenue budget. In the first tier, you create change requests. The second tier involves you grouping multiple change requests into a single change order to be approved. With the two-tier change management, you can also set up price markups that can be applied to an individual line of a change request and to the total amount of the document to charge the customer for the changes.

Learning Objectives

In this lesson, you will learn how to do the following:

  • Configure a change order class that supports the two-tier change management
  • Configure default markups
  • Create a change request to update the project budget
  • Create a change order based on the change request
  • Process a change request with a cost change order
  • Process a change request with a revenue change order
  • Close a change request

Applicable Scenarios

You turn on the change order workflow for a project to be able to track changes to the budgeted and committed values of the project. You create change requests if the workflow of your project supposes a lot of small changes to the budget but you do not want to create a lot of change orders, for example, because of the approval required for each change order. With change requests, you can collect a lot of small changes into a single or several change orders. You can also need to create change requests for a project if you want to charge the customer for the changes made to the project budget.

Configuration of Change Order Classes

A change order class defines which project data—the revenue budget, the cost budget, or commitments—can be adjusted with a change order of this class. The two-tier change management is controlled at the level of a change order class. If the Two-Tier Change Management check box is selected for a particular class on the Change Order Classes (PM203000) form, change orders of the selected class support two-tier change management and can include change requests. If a change order class has the Revenue Budget check box cleared and the Cost Budget and Commitments check boxes selected on the Change Order Classes form, change orders of this class are classified as cost change orders for change requests. If a change order class has the Revenue Budget, Cost Budget, and Commitments check boxes selected on the Change Order Classes form, change orders of this class are treated as revenue change orders.

Creation of Change Requests

To make it possible for users to track changes for a particular project by using change requests along with change orders, you select the Change Order Workflow check box on the Summary tab of the Projects (PM301000) form for the project. Then you can create a change request for the project on the Projects form by clicking Create Change Request on the form toolbar. The system creates a change request with the On Hold status and the project selected and opens it on the Change Requests (PM308500) form.

         In addition to creating a change request from the Projects form for the selected project, you can create
         a new change request directly on the Change Requests form and select the needed project.

In a change request with the On Hold status, on the Estimation tab of the Change Requests form, you add rows with potential changes that will affect the revenue budget and the cost budget of the selected project when the related change orders are released. For each estimation line, you specify the following settings:

  • The Project Task, Account Group, and Inventory ID that represent the cost budget line to be updated or created if this combination of settings does not exist in the project budget
  • The Revenue Task and Revenue Account Group that represent the revenue budget line to be updated or created if this combination of settings does not exist in the project budget
  • The Quantity, Unit Cost, Unit Price, and UOM that estimate the change to the budget
  • Optionally, the Create Commitment and Vendor if you want to create a commitment line based on this estimation line The amount in the Ext. Cost column estimates the change of the cost and is calculated as follows: Ext. Cost = Quantity * Unit Cost The amount in the Line Amount column estimates the change of the revenue and is calculated as follows: Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100, where Ext. Price = Quantity * Unit Price Unit Price = Unit Cost + Unit Cost * Price Markup (%) / 100 Once you have saved a change request with the Open status, the Quantity and Ext. Cost values of each estimation line increase the Potential CO Quantity and Potential CO Amount of the corresponding cost budget line of the project on the Projects form. The Quantity and Line Amount values of each estimation line increase the Potential CO Quantity and Potential CO Amount of the corresponding revenue budget line of the project.

Adding of a Change Request to a Change Order

On the Change Requests (PM308500) form, you can create a change order for the selected change request by clicking the Create Change Order button on the form toolbar. On the Change Orders (PM308000) form, you can also add one or several change requests to the selected change order by clicking Add Change Requests on the table toolbar of the Change Requests tab. Based on each estimation line of the change request added to a change order and on the selected change order class, the system creates the following lines for the change order on the Change Orders form:

  • A cost budget line on the Cost Budget tab with Quantity and Amount values equal to the quantity and extended cost of the estimation line
  • A revenue budget line on the Revenue Budget tab with Quantity and Amount values equal to the quantity and line amount of the estimation line
  • A commitment line on the Commitments tab with Quantity and Amount values equal to the quantity and extended cost of the estimation line if the estimation line has Create Commitment check box selected on the Change Requests form
  • A markup revenue budget line on the Revenue Budget tab with the Amount equal to the markup amount of this markup line. The system creates a separate line for the markup amount if the change request has a markup line with the project task and account group on the Markups tab of the Change Requests form but has no estimation line with the same revenue task and revenue account group on the Estimation tab. Otherwise, the markup amount is added to the existing revenue budget line created based on the estimation line. Most commonly, a change request relates to a change order that contains both cost estimation lines and revenue estimation lines. Once you have added the change request to the change order, the change request is assigned the Closed status. However, in some cases, you may need to process and release the cost change order as early as necessary to create commitments and change the project cost budget accordingly, while the revenue change order may require customer approval and needs to be processed separately. If the project cost budget and commitments affected by a change request need to be updated through a separate change order before the revenue part has been approved, for this change request, you process a cost change order and a revenue change order. A cost change order is a change order that contains only the cost and commitment parts of the change request based on the settings of the selected change order class. This change order created for a change request is shown in the Cost Change Order Nbr. box in the Summary area of the Change Requests form. A revenue change order is a change order that contains the revenue part of the change request as well as all types of estimation lines—that is, revenue budget lines, cost budget lines, and commitment lines. This change order created for a change request is shown in the Change Order Nbr. box in the Summary area of the Change Requests form. When both the cost part and the revenue part of a change request have been linked to change orders, the system assigns the Closed status to the change request. If the customer has not approved the revenue part of the change request, you do not need to create a revenue change order and can manually close the change request for which the cost change order has been created. To do this, you click Close on the form toolbar of the Change Requests form to assign the change request the Closed status.
           You can also cancel a change request by clicking Cancel on the form toolbar of the Change Requests
       form to indicate that the changes will not be processed further. This will assign the change request
       the Canceled status and decrease the potential CO values in the project budget.

    For information on further processing of change orders, see Single-Tier Change Management: General Information.

Workflow of Processing a Change Request

The following diagram illustrates the workflow of processing a change request. Two-Tier Change Management: Configuration of Markups

You can configure markups to charge the customer with each created change request. The following types of markup can be applied to a change request on the Change Requests (PM308500) form:

  • Line-level markups: These markups apply to an individual estimation line on the Estimation tab and affects the Line Amount value. This type includes the Price Markup (%) and Line Markup (%).
  • Document-level markups: These markups apply to the total line amount of the change request on the Markups tab. You can override all markups and delete document-level markups at the change request level. Line-Level Markups A price markup is an item-specific markup. When you select an inventory item in an estimation line on the Estimation tab of the Change Requests (PM308500) form, the markup percent specified for the item is retrieved as the Price Markup (%) value. You can specify the price markup for the item on the Price/Cost tab of the Stock Items (IN202500) form or on the Price/Cost tab of the Non-Stock Items (IN202000) form. If no price markup is specified for the item, the system uses the default price markup specified in the Default Price Markup (%) box (Markup section) on the General tab of the Projects Preferences (PM101000) form. If no default price markup is specified in the project accounting preferences, the price markup of the estimation line is zero. A line markup is defined at the account group level. For an account group of the Expense type, you specify the default line markup percentage in the Default Line Markup (%) box on the Change Request Settings tab of the Account Groups (PM201000) form. When you select an account group in an estimation line on the Estimation tab of the Change Requests form, the system specifies the default markup specified for the account group as the Line Markup (%) value in this line. If no default markup is specified in the account group, the line markup of the estimation line is zero. The line amount of an estimation line considers the line-level markups and is calculated as follows: Unit Price = Unit Price + Unit Price * Price Markup (%) / 100 Ext. Price = Quantity * Unit Price Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100

Document-Level Markups On the Markups tab of the Change Requests (PM308500) form, for a change request, you can define any number of document-level markups of the following types as well as define no markups:

  • %: A markup whose amount is calculated as follows: Markup Amount = Line Total * % Markup Value / 100 You can define as many markups of this type as necessary.
  • Cumulative (%): A markup whose amount is calculated as follows: Markup Amount = (all the previously applied % markups) * Cumulative (%) Value / 100 A markup of this type requires at least one markup of the % type.
  • Flat Fee: A markup whose amount is specified manually to be added to the total markup. You can define as many markups of this type as necessary. For each applicable markup shown on the Markups tab, the Amount Subject to Markup is calculated based on the Line Amount values in the estimation lines of the change request. A document-level markup applies to the total line amount of a change request if all the project budget key attributes in this line—project task, account group, and optionally, inventory item and cost code—are defined for the markup on the Markups tab of the Change Requests form.
    A change request inherits the default document-level markup specified for the project on the Defaults tab (Document Markups table) of the Projects (PM301000) form. The project inherits the default document markups from the General tab (Markup section) of the Projects Preferences (PM101000) form. You can override any of the default markups. Two-Tier Change Management: Implementation Activity
    The following implementation activity will walk you through the process of configuring two-tier change management for projects.

Story

Suppose that you, as the system administrator, need to configure two-tier change management so that the change requests to projects can be processed in the system. Also, you need to configure the following price markups to be applied to the new projects:

  • A default price markup of 25% to be applied to each individual change made with a change request
  • A markup of 8% of the total costs to be applied to an entire change request
  • A markup of 4% of overhead to be applied to an entire change request
  • A markup of 5% of all the previously charged markups to be applied to an entire change request
  • A flat fee of $100 per change request You also need to configure an additional 10% markup to be automatically applied to the change request lines that relate to labor. Acting as the system administrator, you will perform these tasks.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

  • On the Enable/Disable Features (CS100000) form, the Construction and Change Orders features have been enabled.
  • On the Account Groups (PM201000) form, the LABOR, SUBCON, and REVENUE account group have been configured.

Process Overview

You will configure the default price markups on the Projects Preferences (PM101000) form and the Account Groups (PM201000) form. You will also create change order classes that support two-tier change management on the Change Order Classes (PM203000) form and specify the change order class to be used by default on the Projects Preferences form.

System Preparation

To sign in to the system and prepare to perform the instructions of the activity, do the following:

  1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should sign in as a system administrator by using the gibbs username and the 123 password.
  2. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
  3. In the Projects group of features, select the Change Requests check box.
  4. On the form toolbar, click Enable.

Step 1: Specifying the Default Markups To specify the default markups that the system will assign to change requests, on the Projects Preferences (PM101000) form, do the following:

  1. On the General tab (General Settings section), select the Internal Cost Commitment Tracking check box, and save your changes to the project accounting preferences. This exposes the committed values of the budget.
  2. On the General tab, in the Change Request Markups section, enter 25 in the Default Price Markup (%) box.
  3. In the Document Markups table, add rows with the following settings.
        Type                        Description                                            Value
    %                           Profit markup on cost                                  8

    %                           Overhead cost markup                                   4

    Cumulative (%)              Default cumulative %                                   5

    Flat Fee                    Additional charges                                     100

   The system will apply these document-level markups to the total amount of change requests by default.
   Also, these markups will be specified by default in the newly created projects.
  4. Save your changes.

Step 2: Creating a Change Order Class for Cost Change Orders To create a change order class for the change orders that affect only the project cost budget, do the following:

  1. On the Change Order Classes (PM203000) form, add a new record.
  2. In the Summary area, specify the following settings:
  • Class ID: INTERNAL
  • Description: Cost change orders
  • Two-Tier Change Management: Selected Because you have selected the Two-Tier Change Management check box, the Cost Budget and Commitments check boxes are selected by default and cannot be cleared.
  • Revenue Budget: Cleared
  1. Save the change order class.

Step 3: Creating a Change Order Class for Revenue Change Orders To create a change order class for the change orders that affect the project revenue budget, while you are still viewing the Change Order Classes (PM203000) form, do the following:

  1. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
  • Class ID: EXTERNAL
  • Description: Cost and revenue change orders
  • Two-Tier Change Management: Selected
  • Cost Budget: Selected
  • Revenue Budget: Selected
  • Commitments: Selected
  1. Save the change order class.
  2. On the General tab of the Projects Preferences (PM101000) form, in the Default Change Order Class box, select EXTERNAL, and then save your changes.
  3. On the Account Groups (PM201000) form, open the LABOR account group.
  4. In the Summary area, specify REVENUE in the Default Revenue Account Group box.
  5. In the Default Line Markup (%) box on the Change Request Settings tab, enter 10.
  6. Save your changes.
  7. Open the SUBCON account group.
  8. In the Summary area, specify REVENUE in the Default Revenue Account Group box. 10.Save your changes.
    You have configured two-tier change management for projects and specified default project markups.

Two-Tier Change Management: Process Activity

In this activity, you will learn how you can turn on the change order workflow for a project and manage changes to the project’s budgeted values by creating change requests and including these change requests to change orders.

Story

Suppose that the West BBQ Restaurant customer has ordered a juicer, along with the following services from the SweetLife Fruits & Jams company: two hours of site review, four hours of installation, and eight hours of employee training on operating the juicers. The SweetLife company has contracted the Squeezo Inc. vendor to provide the juicer and perform the installation, while SweetLife will perform the services of site review and training. Acting as SweetLife's project accountant, you will create a project. SweetLife's consultant will provide the service of site review, and you will then realize that adjustments to the project should be agreed upon with the customer: The site review, which has taken an additional hour beyond what was planned, has shown that the installation of the juicer will take two hours beyond the planned time frame. The customer will then ask you for an additional staff person to be trained, and the training will take two additional hours. For all these adjustments, you have decided to include an additional 10% markup amount in addition to charging for the services. You will make the needed corrections to the project budget by using change requests.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
  • Project Accounting, which provides support for the project accounting functionality
  • Change Orders, which gives you the ability to manage changes to the project’s budgeted and committed values
  • On the Non-Stock Items (IN202000) form, the SITEREVIEW, INSTALL, and TRAINING non-stock items have been defined.
  • On the Stock Items (IN202500) form, the JUICER15 stock item has been defined.
  • On the Vendors (AP303000) form, the SQUEEZO vendor has been created.

Process Overview

In this activity, you will create the project on the Projects (PM301000) form and configure the document-level markups for it. To make changes to the project budget, you will create change requests on the Change Requests (PM308500) form. When an agreement with the customer about the changes is reached, you will add open change requests to two change orders on the Change Orders (PM308000) form; you will then release the change orders.

System Preparation

To sign in to the system and prepare to perform the instructions of the activity, do the following:
  1. Sign in to the system as the project accountant by using the brawner username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the business date in your system is set to 1/30/2025. If a different date is displayed, click the Business Date menu button and select 1/30/2025 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Creating a Project To create a project and define the project-specific document markups, do the following:

  1. On the Projects (PM301000) form, add a new record.
  2. In the Summary area, specify the following settings:
  • Project ID: WESTBBQ3
  • Customer: WESTBBQ
  • Description: A juicer with the installation and training for employees
  1. On the Summary tab (Project Properties section), make sure that the Change Order Workflow check box is selected, which means you can make changes to the project budget with change orders, including the creation of change requests.
  2. In the Cost Budget Level box, select Task and Item.
  3. On the Tasks tab, click Add Row on the table toolbar and specify the following settings in the row:
  • Task ID: INSTALL
  • Type: Cost and Revenue Task
  • Description: A juicer with the installation and training
  • Status: Active
  • Default: Selected
  1. On the Revenue Budget tab, click Add Row on the table toolbar. In the added line, select the REVENUE account group, and enter 3,400 in the Original Budgeted Amount column. (The system has automatically inserted the INSTALL project task in the row because it is the default project task.)
  2. On the Cost Budget tab, add four budget lines (by clicking Add Row on the table toolbar) with the settings shown in the following table.
         Project Task                Inventory ID                Original Budgeted           Unit Rate
                                                             Quantity

     INSTALL                     SITEREVIEW                  2.00                        40.00

     INSTALL                     TRAINING                    8.00                        40.00

     INSTALL                     JUICER15                    1.00                        2,000.00

     INSTALL                     INSTALL                     4.00                        80.00
  3. On the Defaults tab, in the Document Markups table, configure the default document markups that the system has populated from the project accounting preferences as follows: for each markup in the table, select INSTALL in the Project Task column and REVENUE in the Account Group column.
  4. Save the project. 10.On the form toolbar, click Activate. The system assigns the project the Active status.

Step 2: Creating a Change Request To make changes to the project budget with a change request, do the following:

  1. While remaining on the Projects (PM301000) form with the WESTBBQ3 project opened, on the More menu, click Create Change Request. The system creates a change request for the project and opens it on the Change Requests (PM308500) form.
  2. In the Description box in the Summary area, type Additional time for site review and installation. On the Markups tab, notice that the system has copied the document markups from the project to the change request with all the settings you have specified at the project level.
  3. On the Estimation tab, to represent an additional hour of site review, click Add Row on the table toolbar, and specify the following settings in the row:
  • Project Task: INSTALL (specified by default)
  • Account Group: LABOR
  • Cost Code: 00-000
  • Inventory ID: SITEREVIEW
  • Description: Additional time for site review
  • Quantity: 1.00
  • Unit Cost: 40 (inserted automatically)
  • Price Markup (%): 25.00 (inserted automatically) The system has copied this value from the Default Price Markup (%) box on the General tab of the Projects Preferences (PM101000) form.
  • Unit Price: 50 (inserted automatically) The system calculates this value based on the Unit Cost value and the Price Markup (%) by the following formula: Unit Price = Unit Cost + Unit Cost * Price Markup (%) / 100
  • Line Markup (%): 10.00 (inserted automatically) The system has copied this value from the settings of the LABOR account group—that is, from the Default Line Markup (%) box on the Change Request Settings tab of the Account Groups (PM201000) form.
  • Line Amount: 55 (inserted automatically) The system calculates this value based on the Ext. Price value and the Line Markup (%) by the following formula: Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100
  1. Add one more line to represent the two additional hours needed for the installation by clicking Add Row on the table toolbar and specifying the following settings in the row:
  • Project Task: INSTALL (specified by default)
  • Account Group: SUBCON
  • Cost Code: 00-000
  • Inventory ID: INSTALL
  • Description: Additional time for installation
  • Quantity: 2.00
  • Price Markup (%): 25.00 (inserted automatically)
  • Line Markup (%): 10.00 You enter this markup manually because it is not defined in the settings of the SUBCON account group.
  • Vendor: SQUEEZO
  • Create Commitment: Selected You are selecting this check box because you have contracted Squeezo Inc. to perform the installation, so you need to create a purchase order for this change. The calculated line amount of the added row should be $220.
  1. On the Markups tab, review the markup amounts that the system has calculated based on the document totals. The system calculated the Profit markup on cost and Overhead cost markups ($22 and $11, respectively) based on the line total of the change request, which is shown in the Amount Subject to Markup column and is $275. The Default cumulative (%) markup is calculated based on the markups of the % type calculated above the markup line ($22 + $11) and is equal to $1.65. The Additional charges markup amount is a flat fee in the amount of $100, which does not depend on any document amounts.
  2. Make sure that Price Total in the Summary area is 409.65 and save the change request.
  3. On the form toolbar, click Remove Hold to assign the change request the Open status.

Step 3: Creating the Second Change Request To create one more change request for additional two hours of training, do the following:

  1. While you are still viewing the Change Requests (PM308500) form, click Add New Record on the form toolbar, and specify the following settings in the Summary area of the form:
  • Project: WESTBBQ3
  • Description: Additional time for training
  1. On the Estimation tab, to represent two additional hours of training, click Add Row on the table toolbar, and specify the following settings in the row:
  • Project Task: INSTALL (specified by default)
  • Account Group: LABOR
  • Cost Code: 00-000
  • Inventory ID: TRAINING
  • Description: Additional time for training
  • Quantity: 2.00
  • Price Markup (%): 25.00 (inserted automatically)
  • Line Markup (%): 10.00 (inserted automatically) The line amount of the added row should be equal to $110.
  1. Make sure that Price Total in the Summary area is 223.86 and save the change request.
  2. On the form toolbar, click Remove Hold to assign the change request the Open status.
  3. On the Projects (PM301000) form, open the WESTBBQ3 project, and review the updated amounts in the project budget as follows:
  • On the Change Requests tab, make sure that both of the related change requests have the Open status (see the screenshot below).
  • On the Cost Budget tab, review the values in the Potential CO Quantity and Potential CO Amount columns, which the system has filled in based on the estimation lines of the open change requests for the rows with the SITEREVIEW, TRAINING, and INSTALL inventory items.
  • On the Revenue Budget tab, review the values in the Potential CO Amount column, which is $633.51. This amount equals the total price of both change requests ($409.65 + $223.86) and includes markup totals calculated at the document level. Figure: Change requests related to the project

Step 4: Processing the Cost Part of the Change Request To create a cost change order based on the first change request you created, do the following:

  1. On the Change Orders (PM308000) form, add a new record. By default, in a newly created change order, the system inserts the EXTERNAL class, which is specified as the default change order class on the Projects Preferences (PM101000) form.
  2. In the Class box, select INTERNAL. Notice that the Revenue Budget tab has been hidden because the specified class is defined to make it impossible to add or modify revenue budget lines for change orders of this class.
  3. Specify the following settings in the Summary area:
  • Project: WESTBBQ3
  • Description: An adjustment to the WESTBBQ3 project
  1. On the table toolbar of the Change Requests tab, click Add Change Requests to add a change request to the change order.
  2. In the Add Change Requests dialog box, which opens, select the change request with the Additional time for site review and installation description by selecting the check box in the unlabeled column, and click Add & Close.
  3. Review the details of the change order, and make sure that the change order has been modified as follows:
  • On the Cost Budget tab, the system has added two lines based on the estimation lines of the change request.
  • On the Commitments tab, the system has added a line with the New Document status for the installation service based on the estimation line of the change request with the Create Commitment check box selected.
  • In the Summary area, the Cost Budget Change Total is 200 and the Commitment Change Total is 160.
  • In the Summary area, the Revenue Budget Change Total is 0 because the change order makes no changes to the revenue budget of the project.
  • In the only line on the Change Requests tab, the change request still has the Open status because the revenue part of the change request has not been processed yet.
  1. Save the change order.
  2. On the form toolbar, click Remove Hold to assign the change order the Open status. Step 5: Processing the Revenue Part of the Change Requests Suppose that the agreement with the customer has been reached. To create a revenue change order based on both change requests, do the following:
  3. While you are still viewing the Change Orders (PM308000) form, click Add New Record on the form toolbar, and specify the following settings in the Summary area:
  • Class: EXTERNAL (inserted by default)
  • Project: WESTBBQ3
  • Description: The second adjustment to the WESTBBQ3 project
  1. On the table toolbar of the Change Requests tab, click Add Change Requests to add change requests to the change order.
  2. In the Add Change Requests dialog box, which opens, select both change requests you have created by selecting the check boxes in the unlabeled column; click Add & Close. In the added lines, notice that both change requests have been assigned the Closed status because the change requests have been fully processed with this change order. On the Cost Budget tab, notice that the system has added a line with 2 hours of training based on the estimation line of the second change request.
  3. In the Summary area, make sure that the system has assigned a Revenue Change Nbr. to the change order because the change order makes changes to the revenue budget of the project.
  4. Save the change order.
  5. On the Revenue Budget tab, make sure that the only line has a Change Request Total Amount of 633.51.
  6. On the table toolbar, click View Change Request Details.
  7. In the Change Request Details dialog box, which opens, review the change request lines and the markups that correspond to the selected change order line, as shown in the following screenshot. There are three estimation lines and eight markup lines that affect the same revenue budget line.
       Figure: Lines of the change request and corresponding markups
  8. Close the dialog box. 10.On the form toolbar, click Remove Hold to assign the change order the Open status.

Step 6: Reviewing the Project Budget To review the project and the related change requests you have processed, do the following:

  1. On the Projects (PM301000) form, open the WESTBBQ3 project. On the Cost Budget and Revenue Budget tabs, notice that the potential change order quantities and amounts remain the same aer you have created open change orders based on the change requests because you have not released the change orders yet.
  2. On the Change Requests tab, make sure that both change requests have been assigned the Closed status. In the line with the Additional time for site review and installation description, click the link in the Reference Nbr. column to open the first change request. On the Change Requests (PM308500) form, which opens, review the details of the change request. In the Summary area, make sure that change request has both the Change Order Nbr. box and the Cost Change Order Nbr. box filled in because the revenue part of the change request has been processed with a separate change order, whose reference number is shown in the Change Order Nbr. box.
  3. Click Back in the browser tab to return to the Projects form with the WESTBBQ3 project opened.
  4. On the Change Requests tab, click the link in the Reference Nbr. column in the row with the Additional time for training description to open the second change request. On the Change Requests form, which opens, review the change request. In the Summary area, notice that change request has only the Change Order Nbr. box filled in (the Cost Change Order Nbr. box is hidden) because both the revenue part and the cost part of the change request have been processed with a single change order.
  5. Click Back in the browser tab to return to the WESTBBQ3 project on the Projects form.

Step 7: Releasing the Change Orders To release the change orders, do the following:

  1. While still reviewing the project on the Projects (PM301000) form, on the Change Orders tab, open and release each created order by doing the following: a. Click the link in the Reference Nbr. column to open the change order. b. On the form toolbar of the Change Orders (PM308000) form that opens, click Release. c. Close the form.
  2. On the Projects form (to which you return), press Esc to refresh the form. On the Change Orders tab, notice that both change orders have been assigned the Closed status. On the Cost Budget and Revenue Budget tabs, notice that potential change order quantities and amounts now 0. These quantities and amounts have been moved to the budgeted CO quantities and amounts, which also have resulted in an increase of the revised budgeted quantities and amounts.
  3. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), clear the Internal Cost Commitment Tracking check box, and save your changes to the project accounting preferences. Part 2: Budgets | 24