Adjusting a Budget

Adjusting a budget for residential, commercial, renovation, and lot projects

Throughout the life of the project, adjustments to the budget may be required based on cost overruns, equity injections, or other miscellaneous changes to the project budget. Built allows you to adjust budgets on all loan types to make reallocations on disbursed funds or apply change orders while the project progresses. Adjusting the budget remains the same across loan types such as residential, lot, renovation, and commercial agreements.

This article contains an overview of the following processes:

Adjusting a Budget

Editing a funding source

Deleting a Funding Source

Editing an account

Auto-allocating hard costs

Updating the primary loan note

Editing a budget item

Note:

• The budget can only be adjusted while the loan is in an active status. This action is not possible for Paid Off loans. Learn more about updating projects statuses here.

Adjusting a budget

To adjust a budget, perform the following steps:

1. On the Built home page, click the blue circle at the top left

   

2. Once expanded, within the main navigation, select Portfolio.

   

3. On the Portfolio page, in the Search field, enter the loan number or project name for which you want to adjust the budget.

   Note: Ensure that the default view for the Portfolio Loans tab is Active Loans. For more information, see the Viewing Portfolio Loans view article.

   

4. To view the loan details, you can click the corresponding loan number.

   Alternatively, hover over the corresponding project and click .

5. On the Budget tab, click Adjust Budget.

   

On the Adjust Project Budget page, update the required adjustments.

Once the budget has been adjusted, adjustments will be present on the Budget tab in the Adj. to Date column. Green indicates funds added to the line item, and red indicates funds moved from the line item.

Editing a funding source

From the adjust budget page, Built allows you to edit the following loan funding source details:

• Loan Number (required)

• Loan Amount (required)

• Interest Rate

• Account / GL Number

• Cost Center

• Additional Reference ID

• Close Date (required)

• Maturity Date (required)

From the adjust budget page, Built allows you to edit the following equity funding source details:

• Equity Source (required)

• Equity Type (required)

• Amount (required)

• Account / GL Number

• Cost Center

• Description

• Disbursement Rules

Note:

Disbursement Rules can be edited on an equity funding source if the funding source has not yet been disbursed. Once the equity funding source has been funded from, the disbursement rules are locked.

To edit a funding source, perform the following steps.

1. In the funding sources section, hover over the required funding source and click the pencil icon .

   

2. In the Edit Loan or Equity section, update the required details.

   1. When editing an Equity funding source, the disbursement rules cannot be changed if the equity source has been funded against.

   2. Edits to the General Ledger (GL) account or Cost Center will not carry through to the Account and will need to be updated separately.

      

      

3. Click Confirm.

   The funding source is updated successfully.

   Note:

   To hide or revel the funding sources section, click the arrow icon .

Deleting a Funding Source

To delete a funding source, click the trash can icon next to the funding source. If you do not see the option to delete a funding source, check for the following conflicts:

• A funding source can only be deleted if it hasn’t been funded, or reserved for funding in a draw. A funding source will indicate ‘Reserved for Draw’ if there is a pending draw utilizing the source.

• At least one loan source must remain in the budget. If a project contains multiple loan sources, you can delete funding sources as long as one loan source remains.

Once a funding source is deleted, the budget must also be adjusted to balance the total sources and uses in the budget.

Note:

If you delete a Funding Source, the corresponding Account is also removed from the Account Section.

Transferring Funds from One Source to Another

Accounts are directly tied to funding sources and represent where funds are allocated within a project. Users can transfer funds between two or more accounts, provided those accounts are loan funding sources or exist within them. If the account you need does not yet exist, see this article for instructions: Creating a Budget.

To transfer funds between accounts:

1. Navigate to the Adjust Budget tab for the relevant loan.

2. Scroll to the Accounts section at the bottom of the page.

3. Identify the account you want to transfer funds from and enter the amount as a negative value (e.g., -300) in the Transfer Amt. column.

4. Identify the account you want to transfer funds to and enter the amount as a positive value (e.g., 300) in the Transfer Amt. column.

   

5. Review the totals to ensure the net transfer equals zero (i.e., funds are balanced).

6. Click Save Changes.

Auto-allocating hard costs

You can automatically allocate additional funds across each hard-cost budget item while retaining the total fund amount. The funds will be allocated in accordance with their weight against the total budget. If you have preset allocations within the budget, you will not utilize the auto-allocating of funds.

To run the auto-allocation of funds, perform the following steps.

1. On the Project Budget page, click Tools.

   

2. Click Run Allocation.

   

   The funds are allocated successfully.

   Note:

   • To clear the recently adjusted fund, click Clear Current Adjustments.

   • To remove all the changes, click Undo All Changes.

Editing an account

You can edit the account information such as Account Name, Parent Funding Source, General Ledger (GL) Account, Cost Center, and Transfer Amount.

To edit an account, perform the following steps.

1. In the Account section, hover over the account that you want to edit and click .

   

2. In the Edit Account dialog box, update the required information.

   

3. Click Save.

   The account is updated successfully.

   Note:

   • To delete an account, click .

   • To verify the account details, hover over the account details, and click .

   • To hide the account section, click .

Updating the primary loan note

On projects with multiple loan notes, you can select which loan is designated as the primary loan note.

To update the primary loan note, perform the following steps.

1. On the Budget tab, click Adjust Budget.

2. On the Adjust Project Budget page, review the Funding sources section.

   1. The current primary loan note will be indicated by a star

      

3. Hover over the loan you’d like to designate as the new primary loan note and select the star icon

   

4. After the change is complete, click Save Changes.

Editing a budget item

You can edit the budget group and item name, current adjustment amount, default fund destination, retainage %, and retainage fund destination.

To edit a budget item, perform the following steps.

1. In the Budget Items section, edit the required information.

    

   Note:

   • To edit an item group name, click the group name.

   • To delete an item group, click .

   • To move a budget item and a budget group, select and drag it to the required location.

   • To hide the budget items section, click .

   • You cannot edit a line item type from the Adjust Budget screen. To edit an existing budget line item type, see this article.

2. Click Save Changes.

   

3. On the Confirm dialog box, in the Reason for Budget Adjustment field, enter the budget adjustment reason.

   

4. Click Confirm.