If you don’t want a project’s budgeted costs to change every time you open it, approve the budget to freeze it. Once approved, its details can be viewed without opening the project budget tool.
Resources that have an escalation factor of 1 means that Budgeting & Planning is using 100% of a resource’s determined rate.
If you find a resource that hasn’t had a rate increase in 2 years, enter the company default escalation rate squared, where appropriate; 1.032, for example.
If you clone a proposal budget from a project budget, but with future start and end dates, you’ll get different numbers for resource costs each time you open the proposal budget because hourly rates change over time.
Assigned escalation factors persist; only hourly rates change.
When you are awarded the contract and want to make a proposal budget real, Budgeting & Planning will pick the most recent rates for the resources based on the date you create the new backlog project budget. However, it will inherit the escalation factors from the proposal being copied. Therefore, you will need to adjust the escalations to reflect the rate increases.
When you create an EAC from a budget, the EAC will use staff hourly rates with effective dates less than or equal to the last closed period when the EAC is created—not the date the project started.
For an EAC, when the escalation month is set to 0 in Budgeting & Planning, then the escalation factor is increased when the employee’s hire/adjusted hire date falls into that period.
When the escalation month equals 1 through 12, then the escalation factor is increased when the first of the selected month falls in that period.
If the escalation date is the same as the creation date of the EAC, then the value is 1. It is assumed that the employee has had a pay raise in that same period, and that is the hourly rate that will be used for calculating labor.