Budget Tolerance is a Nova Insights feature for fixed price projects. Nova Insights calculates an estimation of the budget percentage used by the end of the project. Setting your budget tolerance values helps project managers keep track of of the resources/hours needed to complete project scope.
Understanding Budget Tolerance
Budget Tolerance represents a threshold that will send a warning when crossed. Admins define threshold values that send warnings to Project Managers when a project's total billable time and expenses at completion exceeds the threshold values set.
For example, if you set a Budget Tolerance of 75 % (for the yellow flag or red flag), Nova Insights will send a warning when it estimates that by project end you will have used 75 % of the fixed price budget.
Setting your Budget Tolerance
- Click Admin in the top bar.
- Select Finance from the dropdown.
- Click Budget Tolerance.
- Input values for each threshold warning.
- Use the graph to view how a project with a Fixed Price Budget of $100,000 and your set tolerance would look.
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