Budget by Cost Rates or Billing Rates

On the Budget form, you can create budgets using cost rates, billing rates, or both.

Billing Rates

If you enter budgets at billing rates, all labor and expense amounts are the amounts that you expect to bill to the client. The billing-based budget shows the planned labor and expenses at their billing value. The contract value is often equal to the sum of all billing budgets.

Cost Rates

If you enter budgets at cost rates, you use amounts that reflect the expected costs of a project. This includes labor, direct and reimbursable expenses, and overhead. The difference between the contract value and budgeted cost is the budgeted profit. Cost-based budgets also include a profit percentage, which is calculated by dividing profit on services by the sum of compensation and consultant fees for the project.

Budget Summaries

After you enter a project budget, Vantagepoint automatically calculates budget summary information, which appears on the Cost Summary dialog box or Billing Summary dialog box.