Portfolio Funds Overview

Portfolio Funds Overview Video

In some organizations, funding for projects comes from many sources, including endowments, donations, and grants. This funding needs to be carefully monitored to make sure the money from each source is spent on the right projects.

For example, say you work for a city government, which is responsible for all kinds of civic projects. If your city receives a federal grant to replace old insulation in schools, then you need to make sure the money from this grant only goes toward projects that involve replacing old insulation in schools.

That's where the portfolio-level Fund Sources page comes in. It helps you create and manage portfolio-level funds, which you can then use for projects in the budget planning process.

The Fund Sources page covers the three main steps of fund management: allocation, appropriation, and consumption.

Allocation is how money from a fund becomes available to a project. In Primavera Cloud, there are three ways this can happen: Money can be allocated to a project from a fund in a workspace, an entire fund can be added directly to a project, or a fund in a portfolio can be allocated to a project in that portfolio during the budget planning process.

In addition to being allocated to projects, money from funds can be allocated from one workspace to a child workspace or a portfolio in that workspace. When funds are allocated to a workspace or portfolio, they can be further allocated to projects in the workspace or portfolio.

When money from a fund is allocated, you can say that it's been reserved or set aside for a specific project, workspace, or portfolio.

Appropriation is how money that has been allocated to a project, workspace, or portfolio becomes committed to work related to the project, workspace, or portfolio.

Consumption shows how money from a fund has been used by a project, workspace, or portfolio.

To summarize, allocation is how much money has been given to a project. Appropriation is how much of that money you've agreed to use on the project. And consumption is how much money was actually used on the project.