How do I build a time-phased budget cost plan in Profit.co Projects?

Category: PPM

In Profit.co, you can build a comprehensive cost plan by distributing planned costs across multiple project phases and months, providing detailed financial planning and cash flow management throughout your project lifecycle.

What is a Cost Plan with Multi-Phase Breakdown?

A Cost Plan with Multi-Phase Breakdown is a detailed financial plan that distributes project costs across different time periods (months) and project phases. This approach allows you to map expenses to specific project stages, providing granular visibility into when costs will be incurred throughout the project lifecycle.

Why should I build a Cost Plan with Multi-Phase Breakdown?

Multi-phase cost planning provides comprehensive financial management benefits:

Benefit Description
Phase-Based Planning Align costs with specific project phases (Initiation, Planning, Execution, Closure)
Accurate Forecasting Predict when funds will be needed throughout the project
Cash Flow Management Ensure adequate budget availability when expenses occur
Resource Allocation Allocate costs to the phases based on resource plan
Budget Control Monitor spending phase-by-phase to prevent overruns
Stakeholder Communication Provide transparent cost timelines to stakeholders

What benefits does monthly cost distribution provide?

Monthly cost distribution delivers specific advantages for project financial management:

Benefit Impact
Realistic Timeline Shows when money will actually be needed, not just total amounts
Cash Flow Visibility Finance teams can see monthly funding requirements
Variance Detection Identify spending issues early by comparing monthly actuals vs. plan
Resource Planning Schedule resources based on when costs indicate activity peaks
Risk Mitigation Identify months with high spending that may need contingency planning
Phased Approval Obtain budget approvals aligned with spending phases
Progress Tracking Monitor project progress based on cost consumption over time
Forecasting Accuracy Improve future estimates by analyzing monthly cost patterns

How do I access the Cost-Benefit Analysis tab?

Follow these steps to begin building your cost plan:

Step 1

  • Go to Portfolios and Projects from the left navigation panel.
  • Select All Projects or the relevant portfolio.
  • Click on the project where you want to create a cost plan.
  • In the project detail page, locate and click the Cost-Benefit Analysis tab.
  • Note: The Cost-Benefit Analysis tab is not visible by default. It appears only when:
  • Cost-Benefit Analysis (CBA) is enabled in Settings → Portfolios and Projects → Project → Financial tab.
  • The project is configured as a budget-driven project

You will now see the Cost-Benefit Analysis interface where you can configure parameters and build your cost plan.

What types of costs can I add to my Cost Plan?

Profit.co supports multiple cost Types for comprehensive planning:

Cost Type Description Distribution Approach Phase Alignment
One-Time Cost Single-occurrence expenses Allocate to specific month(s) when the expense occurs Typically in early phases (Initiation, Planning)
Recurring Cost Regular, repeating expenses Distribute across multiple months with consistent or varying amounts Throughout the execution and operational phases

Note: You can create custom cost types beyond the default One-Time and Recurring options to match your organization's specific planning requirements.

How do I add a one-time cost with a monthly breakdown?

Single-occurrence expenses are incurred once during the project lifecycle, regardless of payment structure.

Step 1

  • In the Cost-Benefit Analysis tab, locate the One-Time Cost section.
  • Click the + Create button next to One-Time Cost.
  • In the side panel that appears, choose the category from the predefined category list.
  • Examples: Equipment, Licenses, Consulting Fees, Initial Setup.

  • Enter the total Planned Value (the full cost for this item).
  • The monthly breakdown section is for recording when this one-time cost occurs during the project period.
  • Enter the amount in the relevant month(s).
  • The total entered must equal the Planned Value.

How do I add a recurring cost with a monthly breakdown?

Recurring costs are distributed across multiple months based on when they repeat:

Step 1

In the Cost-Benefit Analysis tab, locate the Recurring Cost section.

Click the + Create button next to Recurring Cost.

In the side panel, choose the category from the predefined options.

Examples: subscriptions, salaries, maintenance, and utilities.

  • Enter the Planned Value (the amount per occurrence).
  • Provide a descriptive name for this recurring cost.
  • Add this cost across different months throughout the project's duration.
  • For constant recurring costs, enter the same amount each month.
  • For variable recurring costs, adjust amounts based on anticipated usage or resource needs.

Best practices for building Cost Plans with Multi-Phase Breakdown

  • Start by defining your project phases clearly before adding costs to ensure logical distribution.
  • Map each cost to the specific phase where it will be incurred for accurate phase-based budgeting.
  • Use realistic monthly amounts based on vendor payment terms, payroll schedules, and procurement timelines.
  • Front-load one-time costs in early phases (Initiation, Planning) where they typically occur.
  • Distribute recurring costs throughout execution phases, adjusting for team scaling and resource intensity.

Related Questions

To learn more about configuring financial parameters in cost-benefit analysis. Click here 

Frequently Asked Questions

Q1. What if my actual costs don't match the monthly distribution I planned?

This is normal; track actual costs alongside your plan to identify variances. Use these insights to adjust future months and improve cost estimates for similar projects.

Q2. Can I change the monthly distribution after I've created a cost?

Yes, you can typically edit cost items and adjust the monthly breakdown as your project evolves and you gain more accurate information.

Q3. Should I distribute one-time costs across multiple months even if I pay it all at once?

It depends on your goal. For cash flow planning, use the actual payment month. For phase-based cost accounting, distribute it across months where the benefit is received.

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