Budget management on projects is a way to keep track of the predetermined budget you and your customer have agreed upon. By allocating resources and estimating time on tasks, you'll know if you are going over budget. This way you can communicate transparently with your customer so both parties remain happy. This article focuses on some use cases based on a different billing method of your milestones in the project.


If you want to learn more about what budget spent means on a project, we advise you to read this article.


Example 1: Billing method of milestones is based on ‘fixed price’

  1. Create a project with the invoicing preferences based on ‘price per user’

  2. Fill out a budget for the project e.g. €5000.

  3. Create 2 milestones with ‘fixed price’ as billing method

    • Milestone 1 = €3000 budget

    • Milestone 2 = €2000 budget


  1. The budget spent will be €0,00 / €5000 for the complete project. The profit will already be €5000 because you are working with a fixed price/billable amount of €5000.

  2. Add a task to the first milestone with a duration of 3 hours. 

    • Track time for 2 hours on the task.

  3. Add an external cost of €3000 (sale price of the product) to the second milestone.

  4. The forecast bar and the tab ‘milestone budgets’ will show the following:

  • Forecast for Milestone 1 displays €600 because task duration (3h) * external hourly rate user (€200)

  • Spent budget for Milestone 1 is €400 because you tracked 2 hours of time: task duration (2h) * external hourly rate user (€200)

  • Spent budget for Milestone 2 displays €3 000 while the provided budget is €2 000, this milestone is over budget (in red).

  • In total however you’ve only spent €3 400 / €5 000 budget, so the budget usage is on track.

    • The profit will be €4860 because of the costs (€140) you’ve made (internal cost of the user (€70) that tracked 2 hours of time).

Example 2: Billing method of milestones is based on ‘time and material’

  1. Create a project with the invoicing preferences based on ‘price per user’

  2. Fill out a budget for the project e.g. €5 000.

  3. Create 3 milestones with ‘time & material’ as billing method:

    • First milestone with €1 000 budget

    • Second milestone with €1 500 budget

    • Third milestone with €2 500 budget

  4. Add tasks to the milestones:

    • Add a task to the first milestone with a duration of 5 hours.

    • Add a task to the second milestone with a duration of 10 hours.

    • Add task to the third milestone with a duration of 15 hours.

  5. Track time on the tasks:

    • First milestone: track 4 hours time of the provided 5 hours.

    • Second milestone: track 7 hours of the provided 10 hours.

    • Third milestone: track 20 hours of the provided 15 hours.

  6. You’ll find the following budget spent overview: 


  • Milestone 1 is on track (green) because it won’t go over budget: 

    • €800 is already spent because 4 hours were tracked (external cost of €200 * 4 hours)

    • 1 hour of timetracking (€200) is still remaining

    • Forecast €1 000: €800 spent + €200 forecasted

  • Milestone 2 is in danger (yellow) because it will go over budget if the remaining hours of the task are tracked:

    • €1400 is already spent because 7 hours were tracked (external cost of €200 * 7 hours) 

    • 3 hours of timetracking remaining (€600).

    • Forecast €2 000: €1400 spent + €600 forecasted

  • Milestone 3 is already over budget (red):

    • €4 000 is already spent because 20 hours were tracked (external cost of €200 * 20 hours)

    • 5 hours more timetracking was done (€1000): 20 hours instead of the task duration of 15 hours 

    • Forecast €4 000: €1500 more than provided (€2500) was spent. 

      • Light red colour = €2 500 was provided but with task duration of 15 hours the milestone was already in danger to go over budget to begin with: €200 (external cost) * 15 (hours) = €3000

      • Darker red colour = the extra €1 000 euro spent because of the 5 hours timetracking