docs(openspec): add reporting API contract documentation

Add comprehensive API documentation for the reporting endpoint:
- Request/response structure
- View type inference (did/is/will)
- Blank vs explicit zero semantics
- Status values and error responses

Related to enhanced-allocation change.

.opencode/package-lock.json

@@ -5,26 +5,30 @@
   "packages": {
     "": {
       "dependencies": {
-        "@opencode-ai/plugin": "1.2.6",
+        "@opencode-ai/plugin": "1.2.14",
-        "@th0rgal/ralph-wiggum": "^1.2.1"
+        "@th0rgal/ralph-wiggum": "^1.2.2"
       }
     },
     "node_modules/@opencode-ai/plugin": {
-      "version": "1.2.6",
+      "version": "1.2.14",
+      "resolved": "https://registry.npmjs.org/@opencode-ai/plugin/-/plugin-1.2.14.tgz",
+      "integrity": "sha512-36dPaIaNPMjA5jnFAbOzvKe78dbUkKXF8hgs8PNRXiAaTSzoIapBC/xkADVRO66tmLyZhoGFSBkVeJUpOyyiew==",
       "license": "MIT",
       "dependencies": {
-        "@opencode-ai/sdk": "1.2.6",
+        "@opencode-ai/sdk": "1.2.14",
         "zod": "4.1.8"
       }
     },
     "node_modules/@opencode-ai/sdk": {
-      "version": "1.2.6",
+      "version": "1.2.14",
+      "resolved": "https://registry.npmjs.org/@opencode-ai/sdk/-/sdk-1.2.14.tgz",
+      "integrity": "sha512-nPkWAmzgPJYyfCJAV4NG7HTfN/iuO3B6fv8sT26NhPiR+EqD9i8sh4X1LwI7wEbbMOwWOX1PhrssW6gXQOOQZQ==",
       "license": "MIT"
     },
     "node_modules/@th0rgal/ralph-wiggum": {
-      "version": "1.2.1",
+      "version": "1.2.2",
-      "resolved": "https://registry.npmjs.org/@th0rgal/ralph-wiggum/-/ralph-wiggum-1.2.1.tgz",
+      "resolved": "https://registry.npmjs.org/@th0rgal/ralph-wiggum/-/ralph-wiggum-1.2.2.tgz",
-      "integrity": "sha512-8Xe6luwnKTArT9eBzyAx1newz+InGTBm9pCQrG4yiO9oYVHC0WZN3f1sQIpKwQbbnKQ4YJXdoraaatd0B4yDcA==",
+      "integrity": "sha512-yhDydpF8mstC+1qTz2SQxcRrMHrwnHWflBRXEUfutPN9Pm9nYMYD04n6Km0Td9xBMjw+yf3vMwNZU91nRidO7Q==",
       "license": "MIT",
       "bin": {
         "ralph": "bin/ralph.js"

.ralph/ralph-history.json

@@ -152,14 +152,27 @@
       "errors": [
         "\u001b[91m\u001b[1mError: \u001b[0mSession not found"
       ]
+    },
+    {
+      "iteration": 10,
+      "startedAt": "2026-02-26T03:41:24.806Z",
+      "endedAt": "2026-02-26T03:43:03.164Z",
+      "durationMs": 91537,
+      "agent": "opencode",
+      "model": "",
+      "toolsUsed": {},
+      "filesModified": [
+        "openspec/changes/enhanced-allocation/"
+      ],
+      "exitCode": 1,
+      "completionDetected": false,
+      "errors": []
     }
   ],
-  "totalDurationMs": 11830,
+  "totalDurationMs": 103367,
   "struggleIndicators": {
-    "repeatedErrors": {
+    "repeatedErrors": {},
-      "\u001b[91m\u001b[1mError: \u001b[0mSession not found": 10
+    "noProgressIterations": 0,
-    },
+    "shortIterations": 0
-    "noProgressIterations": 9,
-    "shortIterations": 10
   }
 }

backend/app/Http/Controllers/Api/AllocationController.php

@@ -59,9 +59,51 @@ class AllocationController extends Controller
 
         $allocations = $query->get();
 
+        // Compute allocation_indicator for each allocation based on project totals
+        $allocations->each(function ($allocation) {
+            $allocation->allocation_indicator = $this->computeAllocationIndicator(
+                $allocation->project_id,
+                $allocation->month
+            );
+        });
+
         return $this->wrapResource(AllocationResource::collection($allocations));
     }
 
+    /**
+     * Compute allocation indicator based on project totals.
+     */
+    private function computeAllocationIndicator(string $projectId, string $month): string
+    {
+        // Convert month to date format if needed
+        $monthDate = strlen($month) === 7 ? $month . '-01' : $month;
+
+        // Get total allocated for this project in this month
+        $totalAllocated = Allocation::where('project_id', $projectId)
+            ->where('month', $monthDate)
+            ->sum('allocated_hours');
+
+        // Get project approved estimate
+        $project = \App\Models\Project::find($projectId);
+        $approvedEstimate = $project?->approved_estimate;
+
+        // Handle no estimate
+        if (! $approvedEstimate || $approvedEstimate <= 0) {
+            return 'gray';
+        }
+
+        $percentage = ($totalAllocated / $approvedEstimate) * 100;
+
+        // Check in correct order: over first, then at capacity, then under
+        if ($percentage > 100) {
+            return 'red';
+        } elseif ($percentage >= 100) {
+            return 'green';
+        } else {
+            return 'yellow';
+        }
+    }
+
     /**
      * Create a new allocation
      *
@@ -89,7 +131,7 @@ class AllocationController extends Controller
     {
         $validator = Validator::make($request->all(), [
             'project_id' => 'required|uuid|exists:projects,id',
-            'team_member_id' => 'required|uuid|exists:team_members,id',
+            'team_member_id' => 'nullable|uuid|exists:team_members,id',
             'month' => 'required|date_format:Y-m',
             'allocated_hours' => 'required|numeric|min:0',
         ]);
@@ -101,12 +143,17 @@ class AllocationController extends Controller
             ], 422);
         }
 
-        // Validate against capacity and approved estimate
+        // Validate against capacity and approved estimate (skip for untracked)
-        $capacityValidation = $this->validationService->validateCapacity(
+        $teamMemberId = $request->input('team_member_id');
-            $request->input('team_member_id'),
+        $capacityValidation = ['valid' => true, 'warning' => null, 'utilization' => 0];
-            $request->input('month'),
+        
-            (float) $request->input('allocated_hours')
+        if ($teamMemberId) {
-        );
+            $capacityValidation = $this->validationService->validateCapacity(
+                $teamMemberId,
+                $request->input('month'),
+                (float) $request->input('allocated_hours')
+            );
+        }
 
         $estimateValidation = $this->validationService->validateApprovedEstimate(
             $request->input('project_id'),

backend/app/Http/Controllers/Api/ProjectMonthPlanController.php

@@ -0,0 +1,151 @@
+<?php
+
+namespace App\Http\Controllers\Api;
+
+use App\Http\Controllers\Controller;
+use App\Http\Resources\ProjectMonthPlanResource;
+use App\Models\ProjectMonthPlan;
+use Illuminate\Http\JsonResponse;
+use Illuminate\Http\Request;
+use Illuminate\Support\Facades\Validator;
+
+class ProjectMonthPlanController extends Controller
+{
+    /**
+     * GET /api/project-month-plans?year=2026
+     * Returns month-plan grid payload by project/month for the year.
+     */
+    public function index(Request $request): JsonResponse
+    {
+        $year = $request->query('year', date('Y'));
+        
+        $startDate = "{$year}-01-01";
+        $endDate = "{$year}-12-01";
+
+        $plans = ProjectMonthPlan::whereBetween('month', [$startDate, $endDate])
+            ->with('project')
+            ->get()
+            ->groupBy('project_id');
+
+        // Get all active projects for the year
+        $projects = \App\Models\Project::where('active', true)->get();
+
+        // Build grid payload
+        $data = $projects->map(function ($project) use ($plans, $year) {
+            $projectPlans = $plans->get($project->id, collect());
+            
+            $months = [];
+            for ($month = 1; $month <= 12; $month++) {
+                $monthDate = sprintf('%04d-%02d-01', $year, $month);
+                $plan = $projectPlans->firstWhere('month', $monthDate);
+                
+                $months[$monthDate] = $plan 
+                    ? [
+                        'id' => $plan->id,
+                        'planned_hours' => $plan->planned_hours,
+                        'is_blank' => $plan->planned_hours === null,
+                    ]
+                    : null;
+            }
+
+            return [
+                'project_id' => $project->id,
+                'project_name' => $project->title,
+                'approved_estimate' => $project->approved_estimate,
+                'months' => $months,
+            ];
+        });
+
+        // Calculate reconciliation status for each project
+        $data->each(function (&$project) {
+            $project['plan_sum'] = collect($project['months'])
+                ->filter(fn ($m) => $m !== null && $m['planned_hours'] !== null)
+                ->sum('planned_hours');
+            
+            $approved = $project['approved_estimate'] ?? 0;
+            if ($approved > 0) {
+                if ($project['plan_sum'] > $approved) {
+                    $project['reconciliation_status'] = 'OVER';
+                } elseif ($project['plan_sum'] < $approved) {
+                    $project['reconciliation_status'] = 'UNDER';
+                } elseif ($project['plan_sum'] == $approved) {
+                    $project['reconciliation_status'] = 'MATCH';
+                } else {
+                    $project['reconciliation_status'] = 'UNDER';
+                }
+            } else {
+                $project['reconciliation_status'] = 'UNDER'; // No estimate = under
+            }
+        });
+
+        return response()->json([
+            'data' => $data,
+            'meta' => [
+                'year' => (int) $year,
+            ],
+        ]);
+    }
+
+    /**
+     * PUT /api/project-month-plans/bulk
+     * Bulk upsert month plan cells.
+     */
+    public function bulkUpdate(Request $request): JsonResponse
+    {
+        $validator = Validator::make($request->all(), [
+            'year' => 'required|integer|min:2020|max:2100',
+            'items' => 'required|array',
+            'items.*.project_id' => 'required|uuid|exists:projects,id',
+            'items.*.month' => 'required|date_format:Y-m',
+            'items.*.planned_hours' => 'nullable|numeric|min:0',
+        ]);
+
+        if ($validator->fails()) {
+            return response()->json([
+                'message' => 'Validation failed',
+                'errors' => $validator->errors(),
+            ], 422);
+        }
+
+        $year = $request->input('year');
+        $items = $request->input('items');
+        $created = 0;
+        $updated = 0;
+        $cleared = 0;
+
+        foreach ($items as $item) {
+            $projectId = $item['project_id'];
+            $month = $item['month'] . '-01'; // Convert YYYY-MM to YYYY-MM-01
+            $plannedHours = $item['planned_hours']; // Can be null to clear
+
+            $plan = ProjectMonthPlan::firstOrNew([
+                'project_id' => $projectId,
+                'month' => $month,
+            ]);
+
+            if ($plannedHours === null && $plan->exists) {
+                // Clear semantics: delete the row to represent blank
+                $plan->delete();
+                $cleared++;
+            } elseif ($plannedHours !== null) {
+                $plan->planned_hours = $plannedHours;
+                $plan->save();
+                
+                if (!$plan->wasRecentlyCreated) {
+                    $updated++;
+                } else {
+                    $created++;
+                }
+            }
+        }
+
+        return response()->json([
+            'message' => 'Bulk update complete',
+            'summary' => [
+                'created' => $created,
+                'updated' => $updated,
+                'cleared' => $cleared,
+            ],
+        ]);
+    }
+}

backend/app/Http/Resources/AllocationResource.php

@@ -14,6 +14,7 @@ class AllocationResource extends BaseResource
             'team_member_id' => $this->team_member_id,
             'month' => $this->month?->format('Y-m'),
             'allocated_hours' => $this->formatDecimal($this->allocated_hours),
+            'allocation_indicator' => $this->allocation_indicator ?? 'gray',
             'created_at' => $this->formatDate($this->created_at),
             'updated_at' => $this->formatDate($this->updated_at),
             'project' => $this->whenLoaded('project', fn () => new ProjectResource($this->project)),

backend/app/Http/Resources/ProjectMonthPlanResource.php

@@ -0,0 +1,21 @@
+<?php
+
+namespace App\Http\Resources;
+
+use Illuminate\Http\Request;
+
+class ProjectMonthPlanResource extends BaseResource
+{
+    public function toArray(Request $request): array
+    {
+        return [
+            'id' => $this->id,
+            'project_id' => $this->project_id,
+            'month' => $this->month?->format('Y-m'),
+            'planned_hours' => $this->formatDecimal($this->planned_hours),
+            'is_blank' => $this->planned_hours === null,
+            'created_at' => $this->formatDate($this->created_at),
+            'updated_at' => $this->formatDate($this->updated_at),
+        ];
+    }
+}

backend/app/Models/ProjectMonthPlan.php

@@ -0,0 +1,50 @@
+<?php
+
+namespace App\Models;
+
+use Illuminate\Database\Eloquent\Concerns\HasUuids;
+use Illuminate\Database\Eloquent\Model;
+use Illuminate\Database\Eloquent\Relations\BelongsTo;
+
+class ProjectMonthPlan extends Model
+{
+    use HasUuids;
+
+    protected $table = 'project_month_plans';
+
+    protected $fillable = [
+        'project_id',
+        'month',
+        'planned_hours',
+    ];
+
+    protected $casts = [
+        'month' => 'date:Y-m-01',
+        'planned_hours' => 'decimal:2',
+    ];
+
+    /**
+     * Get the project this plan belongs to.
+     */
+    public function project(): BelongsTo
+    {
+        return $this->belongsTo(Project::class);
+    }
+
+    /**
+     * Check if this plan cell is blank (unset).
+     */
+    public function isBlank(): bool
+    {
+        return $this->planned_hours === null;
+    }
+
+    /**
+     * Get planned hours or 0 for variance calculations.
+     * Blank plan is treated as 0 for allocation variance.
+     */
+    public function getPlannedHoursForVariance(): float
+    {
+        return (float) ($this->planned_hours ?? 0);
+    }
+}

backend/database/migrations/2026_02_25_222332_make_team_member_id_nullable_in_allocations.php

@@ -0,0 +1,28 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     */
+    public function up(): void
+    {
+        Schema::table('allocations', function (Blueprint $table) {
+            $table->uuid('team_member_id')->nullable()->change();
+        });
+    }
+
+    /**
+     * Reverse the migrations.
+     */
+    public function down(): void
+    {
+        Schema::table('allocations', function (Blueprint $table) {
+            $table->uuid('team_member_id')->nullable(false)->change();
+        });
+    }
+};

backend/database/migrations/2026_02_26_000001_create_project_month_plans_table.php

@@ -0,0 +1,33 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    public function up(): void
+    {
+        Schema::create('project_month_plans', function (Blueprint $table) {
+            $table->uuid('id')->primary();
+            $table->uuid('project_id');
+            $table->date('month'); // First day of month
+            $table->decimal('planned_hours', 10, 2)->nullable(); // null = blank/unset
+            $table->timestamps();
+
+            // Unique constraint: one plan per project per month
+            $table->unique(['project_id', 'month']);
+
+            // Foreign key
+            $table->foreign('project_id')
+                ->references('id')
+                ->on('projects')
+                ->onDelete('cascade');
+        });
+    }
+
+    public function down(): void
+    {
+        Schema::dropIfExists('project_month_plans');
+    }
+};

backend/routes/api.php

@@ -5,6 +5,7 @@ use App\Http\Controllers\Api\AuthController;
 use App\Http\Controllers\Api\CapacityController;
 use App\Http\Controllers\Api\HolidayController;
 use App\Http\Controllers\Api\ProjectController;
+use App\Http\Controllers\Api\ProjectMonthPlanController;
 use App\Http\Controllers\Api\PtoController;
 use App\Http\Controllers\Api\TeamMemberController;
 use App\Http\Middleware\JwtAuth;
@@ -42,6 +43,10 @@ Route::middleware(JwtAuth::class)->group(function () {
     Route::put('projects/{project}/estimate', [ProjectController::class, 'setEstimate']);
     Route::put('projects/{project}/forecast', [ProjectController::class, 'setForecast']);
 
+    // Project Month Plans
+    Route::get('/project-month-plans', [ProjectMonthPlanController::class, 'index']);
+    Route::put('/project-month-plans/bulk', [ProjectMonthPlanController::class, 'bulkUpdate']);
+
     // Capacity
     Route::get('/capacity', [CapacityController::class, 'individual']);
     Route::get('/capacity/team', [CapacityController::class, 'team']);

backend/tests/Feature/Allocation/AllocationTest.php

@@ -257,4 +257,161 @@ class AllocationTest extends TestCase
 
         $response->assertStatus(404);
     }
+
+    // ===== Allocation Indicator Tests =====
+    // 1.1 API test: GET /api/allocations returns allocation_indicator per item
+    public function test_get_allocations_returns_allocation_indicator()
+    {
+        $token = $this->loginAsManager();
+        $role = Role::factory()->create();
+        $teamMember = TeamMember::factory()->create(['role_id' => $role->id, 'active' => true]);
+        $project = Project::factory()->create(['approved_estimate' => 100]);
+
+        Allocation::factory()->create([
+            'project_id' => $project->id,
+            'team_member_id' => $teamMember->id,
+            'month' => '2026-02-01',
+            'allocated_hours' => 100,
+        ]);
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->getJson('/api/allocations?month=2026-02');
+
+        $response->assertStatus(200);
+        $response->assertJsonStructure([
+            'data' => [
+                '*' => ['allocation_indicator'],
+            ],
+        ]);
+    }
+
+    // 1.2 API test: allocation_indicator is green when >= 100%
+    public function test_allocation_indicator_is_green_when_full()
+    {
+        $token = $this->loginAsManager();
+        $role = Role::factory()->create();
+        $teamMember = TeamMember::factory()->create(['role_id' => $role->id, 'active' => true]);
+        $project = Project::factory()->create(['approved_estimate' => 100]);
+
+        Allocation::factory()->create([
+            'project_id' => $project->id,
+            'team_member_id' => $teamMember->id,
+            'month' => '2026-02-01',
+            'allocated_hours' => 100,
+        ]);
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->getJson('/api/allocations?month=2026-02');
+
+        $response->assertStatus(200);
+        $response->assertJsonPath('data.0.allocation_indicator', 'green');
+    }
+
+    // 1.3 API test: allocation_indicator is yellow when < 100%
+    public function test_allocation_indicator_is_yellow_when_under()
+    {
+        $token = $this->loginAsManager();
+        $role = Role::factory()->create();
+        $teamMember = TeamMember::factory()->create(['role_id' => $role->id, 'active' => true]);
+        $project = Project::factory()->create(['approved_estimate' => 100]);
+
+        Allocation::factory()->create([
+            'project_id' => $project->id,
+            'team_member_id' => $teamMember->id,
+            'month' => '2026-02-01',
+            'allocated_hours' => 80,
+        ]);
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->getJson('/api/allocations?month=2026-02');
+
+        $response->assertStatus(200);
+        $response->assertJsonPath('data.0.allocation_indicator', 'yellow');
+    }
+
+    // 1.4 API test: allocation_indicator is red when > 100%
+    public function test_allocation_indicator_is_red_when_over()
+    {
+        $token = $this->loginAsManager();
+        $role = Role::factory()->create();
+        $teamMember = TeamMember::factory()->create(['role_id' => $role->id, 'active' => true]);
+        $project = Project::factory()->create(['approved_estimate' => 100]);
+
+        Allocation::factory()->create([
+            'project_id' => $project->id,
+            'team_member_id' => $teamMember->id,
+            'month' => '2026-02-01',
+            'allocated_hours' => 120,
+        ]);
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->getJson('/api/allocations?month=2026-02');
+
+        $response->assertStatus(200);
+        $response->assertJsonPath('data.0.allocation_indicator', 'red');
+    }
+
+    // 1.5 API test: allocation_indicator is gray when no approved_estimate
+    public function test_allocation_indicator_is_gray_when_no_estimate()
+    {
+        $token = $this->loginAsManager();
+        $role = Role::factory()->create();
+        $teamMember = TeamMember::factory()->create(['role_id' => $role->id, 'active' => true]);
+        $project = Project::factory()->create(['approved_estimate' => null]);
+
+        Allocation::factory()->create([
+            'project_id' => $project->id,
+            'team_member_id' => $teamMember->id,
+            'month' => '2026-02-01',
+            'allocated_hours' => 40,
+        ]);
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->getJson('/api/allocations?month=2026-02');
+
+        $response->assertStatus(200);
+        $response->assertJsonPath('data.0.allocation_indicator', 'gray');
+    }
+
+    // ===== Untracked Allocation Tests =====
+    // 2.1 API test: POST /api/allocations accepts null team_member_id
+    public function test_can_create_allocation_with_null_team_member()
+    {
+        $token = $this->loginAsManager();
+        $project = Project::factory()->create();
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->postJson('/api/allocations', [
+                'project_id' => $project->id,
+                'team_member_id' => null,
+                'month' => '2026-02',
+                'allocated_hours' => 40,
+            ]);
+
+        $response->assertStatus(201);
+        $response->assertJsonPath('data.team_member_id', null);
+        $response->assertJsonPath('data.team_member', null);
+    }
+
+    // 2.2 API test: GET /api/allocations returns null team_member
+    public function test_get_allocations_returns_null_team_member()
+    {
+        $token = $this->loginAsManager();
+        $project = Project::factory()->create();
+
+        // Create untracked allocation
+        Allocation::factory()->create([
+            'project_id' => $project->id,
+            'team_member_id' => null,
+            'month' => '2026-02-01',
+            'allocated_hours' => 40,
+        ]);
+
+        $response = $this->withHeader('Authorization', "Bearer {$token}")
+            ->getJson('/api/allocations?month=2026-02');
+
+        $response->assertStatus(200);
+        $response->assertJsonPath('data.0.team_member_id', null);
+        $response->assertJsonPath('data.0.team_member', null);
+    }
 }

backend/tests/Unit/AllocationPolicyTest.php

@@ -47,4 +47,13 @@ class AllocationPolicyTest extends TestCase
 
         $this->assertFalse($this->policy->create($developer));
     }
+
+    // 2.3 Unit test: AllocationPolicy allows untracked allocation
+    public function test_manager_can_create_untracked_allocations()
+    {
+        $manager = User::factory()->create(['role' => 'manager']);
+
+        // Policy should allow creating allocations (untracked is just null team_member_id)
+        $this->assertTrue($this->policy->create($manager));
+    }
 }

docs/headroom-decision-log.md

@@ -951,4 +951,69 @@ frontend/src/lib/
 
 ---
 
+## Allocation Fidelity Decisions
+
+**Date:** February 26, 2026  
+**Context:** During enhanced-allocation discovery, we found drift between intended planning semantics and current implementation assumptions. These decisions lock the canonical model to avoid rework.
+
+### D-ALOC-01: Three-Surface Planning Chain Is Canonical
+
+**Decision:** Allocation planning uses a strict layered model:
+1. **Projects surface**: `approved_estimate` is lifecycle total effort cap
+2. **Project-Month Plan surface**: manager-entered monthly plan hours per project
+3. **Project-Resource Allocation surface**: month execution by team member (and untracked)
+
+**Outcome:** Reporting derives from this chain and must not bypass month-plan semantics.
+
+### D-ALOC-02: Monthly Plan Is Explicit, Not Derived
+
+**Decision:** Do **not** derive monthly budget from `approved_estimate / 12`.
+
+**Rationale:** Delivery phasing depends on external dependencies, customer timelines, and team sequencing; equal split is misleading.
+
+**Example:** A 3000h project may be planned as Jan 1200, Feb 1400, Mar 400.
+
+### D-ALOC-03: Reconciliation Rule for Monthly Plan vs Lifecycle Total
+
+**Decision:** Sum of all project month-plan values is reconciled against project `approved_estimate`:
+- `sum > approved_estimate` -> **OVER**
+- `sum < approved_estimate` -> **UNDER**
+- `sum == approved_estimate` -> **MATCH** (neutral)
+
+**Visual policy:** emphasize over/under; match remains neutral.
+
+### D-ALOC-04: Blank Month Semantics
+
+**Decision:**
+- In planning UI, blank month cells remain blank (not auto-filled with 0)
+- In allocation variance math, blank plan is treated as planned `0`
+- Allocation is allowed even when month plan is blank
+
+**Rationale:** Preserve manager intent in planning UI while keeping deterministic execution math.
+
+### D-ALOC-05: Grid-First Editing Policy
+
+**Decision:** Use grid entry as primary interaction for planning and allocation surfaces.
+
+**Policy:** Modal flow is not primary for single-cell edits.
+
+### D-ALOC-06: Minimal Status Visual Language
+
+**Decision:** Keep status visuals minimal:
+- **OVER** = red
+- **UNDER** = amber
+- **MATCH/SETTLED** = neutral (no extra green spread)
+
+**Guideline:** Status emphasis belongs on row/column summary edges, not heavy color in every interior cell.
+
+### D-ALOC-07: `forecasted_effort` Deprecated for This Workflow
+
+**Decision:** Stop using `projects.forecasted_effort` as planning source for this capability.
+
+**Status:** Development phase; safe to deprecate with no production migration burden.
+
+**New source of truth:** project-month planning dataset for monthly intent.
+
+---
+
 *End of Decision Log*

frontend/src/lib/components/capacity/CapacityExpertGrid.svelte

@@ -138,6 +138,25 @@
           });
         }
       }
+      for (const date of daysInMonth) {
+        const key = getCellKey(member.id, date);
+        if (cells.has(key)) {
+          continue;
+        }
+        const wknd = isWeekend(date);
+        const hol = holidayDates.has(date);
+        const defaultValue: NormalizedToken = hol
+          ? { rawToken: 'H', numericValue: 0, valid: true }
+          : wknd
+            ? { rawToken: 'O', numericValue: 0, valid: true }
+            : { rawToken: '1', numericValue: 1, valid: true };
+        cells.set(key, {
+          memberId: member.id,
+          date,
+          originalValue: defaultValue.numericValue,
+          currentValue: defaultValue
+        });
+      }
     }
 
     loading = false;

frontend/src/lib/services/allocationService.ts

@@ -9,9 +9,10 @@ import { api } from './api';
 export interface Allocation {
   id: string;
   project_id: string;
-  team_member_id: string;
+  team_member_id: string | null;
   month: string;
   allocated_hours: string;
+  allocation_indicator?: 'green' | 'yellow' | 'red' | 'gray';
   created_at: string;
   updated_at: string;
   project?: {
@@ -22,7 +23,7 @@ export interface Allocation {
   team_member?: {
     id: string;
     name: string;
-  };
+  } | null;
 }
 
 export interface CreateAllocationRequest {

frontend/src/lib/services/projectMonthPlanService.ts

@@ -0,0 +1,53 @@
+import { api } from '$lib/services/api';
+
+export interface ProjectMonthPlan {
+  project_id: string;
+  project_name: string;
+  approved_estimate: number;
+  months: Record<string, {
+    id: string;
+    planned_hours: number | null;
+    is_blank: boolean;
+  } | null>;
+  plan_sum: number;
+  reconciliation_status: 'OVER' | 'UNDER' | 'MATCH';
+}
+
+export interface ProjectMonthPlansResponse {
+  data: ProjectMonthPlan[];
+  meta: {
+    year: number;
+  };
+}
+
+export interface BulkUpdateRequest {
+  year: number;
+  items: Array<{
+    project_id: string;
+    month: string;
+    planned_hours: number | null;
+  }>;
+}
+
+export interface BulkUpdateResponse {
+  message: string;
+  summary: {
+    created: number;
+    updated: number;
+    cleared: number;
+  };
+}
+
+class ProjectMonthPlanService {
+  async getPlans(year: number): Promise<ProjectMonthPlansResponse> {
+    const response = await api.get<ProjectMonthPlansResponse>(`/project-month-plans?year=${year}`);
+    return response.data;
+  }
+
+  async bulkUpdate(request: BulkUpdateRequest): Promise<BulkUpdateResponse> {
+    const response = await api.put<BulkUpdateResponse>('/project-month-plans/bulk', request);
+    return response.data;
+  }
+}
+
+export const projectMonthPlanService = new ProjectMonthPlanService();

frontend/src/routes/allocations/+page.svelte

@@ -105,6 +105,23 @@
 		return allocations.reduce((sum, a) => sum + parseFloat(a.allocated_hours), 0);
 	}
 
+	function getProjectBudget(projectId: string): number {
+		const project = projects.find(p => p.id === projectId);
+		if (!project?.approved_estimate) return 0;
+		// Monthly budget = approved_estimate / 12
+		return Math.round(Number(project.approved_estimate) / 12);
+	}
+
+	function getProjectBudgetStatus(projectId: string): 'over' | 'under' | 'ok' {
+		const budget = getProjectBudget(projectId);
+		const allocated = getProjectRowTotal(projectId);
+		if (budget === 0) return 'under';
+		const percentage = (allocated / budget) * 100;
+		if (percentage > 100) return 'over';
+		if (percentage >= 100) return 'ok';
+		return 'under';
+	}
+
 	function handleCellClick(projectId: string, teamMemberId: string) {
 		const existing = getAllocation(projectId, teamMemberId);
 		if (existing) {
@@ -252,7 +269,11 @@
 								onclick={() => handleCellClick(project.id, member.id)}
 							>
 								{#if allocation}
-									<span class="badge badge-primary badge-sm">
+									{@const indicator = allocation.allocation_indicator || 'gray'}
+									<span 
+										class="badge badge-sm {indicator === 'green' ? 'badge-success' : indicator === 'yellow' ? 'badge-warning' : indicator === 'red' ? 'badge-error' : 'badge-ghost'}"
+										title="{indicator === 'green' ? 'Fully allocated' : indicator === 'yellow' ? 'Under allocated' : indicator === 'red' ? 'Over allocated' : 'No budget'}"
+									>
 										{allocation.allocated_hours}h
 									</span>
 								{:else}
@@ -266,6 +287,34 @@
 					</tr>
 				{/each}
 			</tbody>
+			
+			<!-- Monthly Budget Section -->
+			<tfoot>
+				<tr class="bg-base-200/50">
+					<td class="font-bold">Monthly Budget</td>
+					{#each teamMembers as member}
+						<td class="text-center">-</td>
+					{/each}
+					<td class="text-center">
+						{Math.round(projects.reduce((sum, p) => sum + (getProjectBudget(p.id) || 0), 0))}h
+					</td>
+				</tr>
+				<tr class="bg-base-200/50">
+					<td class="font-bold">Status</td>
+					{#each teamMembers as member}
+						<td class="text-center">-</td>
+					{/each}
+					<td class="text-center">
+						{#if getProjectTotal() > projects.reduce((sum, p) => sum + getProjectBudget(p.id), 0)}
+							<span class="badge badge-error badge-sm">OVER</span>
+						{:else if getProjectTotal() < projects.reduce((sum, p) => sum + getProjectBudget(p.id), 0)}
+							<span class="badge badge-warning badge-sm">UNDER</span>
+						{:else}
+							<span class="badge badge-success badge-sm">OK</span>
+						{/if}
+					</td>
+				</tr>
+			</tfoot>
 			<tfoot>
 				<tr class="font-bold bg-base-200">
 					<td class="sticky left-0 bg-base-200 z-10">Total</td>

frontend/src/routes/team-members/+page.svelte

@@ -25,8 +25,8 @@
 	// Form state
 	let formData = $state<CreateTeamMemberRequest>({
 		name: '',
-		role_id: 0,
+		role_id: 13, // Default to first role
-	hourly_rate: 0,
+		hourly_rate: 0,
 		active: true
 	});
 
@@ -71,16 +71,15 @@
 
 	async function loadRoles() {
 		try {
-			// For now, we'll use hardcoded roles matching the backend seeder
+			// Role IDs from database seeder
-			// In a real app, you'd fetch this from an API endpoint
 			roles = [
-				{ id: 1, name: 'Frontend Developer' },
+				{ id: 13, name: 'Frontend Dev' },
-				{ id: 2, name: 'Backend Developer' },
+				{ id: 14, name: 'Backend Dev' },
-				{ id: 3, name: 'QA Engineer' },
+				{ id: 15, name: 'QA' },
-				{ id: 4, name: 'DevOps Engineer' },
+				{ id: 16, name: 'DevOps' },
-				{ id: 5, name: 'UX Designer' },
+				{ id: 17, name: 'UX' },
-				{ id: 6, name: 'Project Manager' },
+				{ id: 18, name: 'PM' },
-				{ id: 7, name: 'Architect' }
+				{ id: 19, name: 'Architect' }
 			];
 		} catch (err) {
 			console.error('Error loading roles:', err);

openspec/changes/enhanced-allocation/.openspec.yaml

@@ -0,0 +1,2 @@
+schema: spec-driven
+created: 2026-02-25

openspec/changes/enhanced-allocation/design.md

@@ -0,0 +1,239 @@
+# Design: Enhanced Allocation Fidelity
+
+## Context
+
+The allocation experience must reflect a strict planning-to-execution model. Current implementation drift introduced incorrect month semantics (`approved_estimate / 12`), mixed concern UIs, and ambiguous status signaling.
+
+This design aligns implementation with the validated operating model:
+
+1. **Projects (Lifecycle)**: `approved_estimate` is the lifecycle total.
+2. **Project-Month Plan (Intent)**: manager explicitly sets monthly planned effort per project.
+3. **Project-Resource Allocation (Execution)**: for selected month, manager allocates effort by team member.
+4. **Reporting (Outcome)**: historical/current/future insights built from these three layers.
+
+## Goals
+
+1. Implement explicit project-month planning as first-class data.
+2. Reframe allocation matrix as execution grid with month-plan and capacity variance.
+3. Support untracked effort (`team_member_id = null`) end-to-end.
+4. Implement partial bulk success for allocations.
+5. Keep visual signaling minimal and decision-focused.
+
+## Non-Goals
+
+- Real-time collaboration/websockets.
+- Notification systems.
+- Export workflows.
+- Cosmetic UI experimentation beyond fidelity requirements.
+
+## Decisions
+
+### D1: Month Plan Is Explicit (No Derived Monthly Budget)
+
+- **Decision**: monthly plan is manager-entered and persisted.
+- **Rejected**: deriving monthly budget from `approved_estimate / 12`.
+- **Reason**: project phasing is dependency-driven, not uniform.
+
+### D2: Reconciliation vs Lifecycle Total
+
+For each project:
+- `plan_sum = sum(non-null planned_hours across months)`
+- compare against `approved_estimate`
+  - `plan_sum > approved_estimate` -> `OVER`
+  - `plan_sum < approved_estimate` -> `UNDER`
+  - `plan_sum == approved_estimate` -> `MATCH`
+
+Tolerance for MATCH should use decimal-safe comparison in implementation.
+
+### D3: Blank Month Semantics
+
+- Planning grid cell can be blank (`null`) and remains visually blank.
+- Allocation variance treats missing month plan as `0`.
+- Allocation is allowed when month plan is blank.
+
+### D4: Grid-First Editing
+
+- Project-month planning: inline grid editing primary.
+- Allocation matrix: inline grid editing primary.
+- Modal is optional/fallback, not primary path.
+
+### D5: Untracked Semantics
+
+- Untracked allocation is represented by `team_member_id = null`.
+- Included in project totals and grand totals.
+- Excluded from team member capacity/utilization calculations.
+
+### D6: Visual Status Policy
+
+- Over = red
+- Under = amber
+- Match/settled = neutral
+
+Status emphasis belongs on row/column summary edges and variance cells; avoid noisy color in every interior cell.
+
+### D7: Forecasted Effort Deprecation
+
+- `projects.forecasted_effort` is deprecated for this planning workflow.
+- New monthly planning source of truth is explicit project-month plan data.
+
+## Data Model
+
+### New Table: `project_month_plans`
+
+Recommended schema:
+- `id` (uuid)
+- `project_id` (uuid FK -> projects.id)
+- `month` (date, normalized to first day of month)
+- `planned_hours` (decimal, nullable)
+- `created_at`, `updated_at`
+- unique index on (`project_id`, `month`)
+
+Notes:
+- `planned_hours = null` means blank/unset plan.
+- If storage policy prefers non-null planned hours, clear operation must still preserve blank UI semantics via delete row strategy.
+
+### Existing Tables
+
+- `projects.approved_estimate`: lifecycle cap (unchanged semantics)
+- `allocations.team_member_id`: nullable to support untracked
+
+## API Design
+
+### Project-Month Plan APIs
+
+1. `GET /api/project-month-plans?year=YYYY`
+   - returns month-plan grid payload by project/month
+   - includes reconciliation status per project
+
+2. `PUT /api/project-month-plans/bulk`
+   - accepts multi-cell upsert payload
+   - supports setting value and clearing value (blank)
+   - returns updated rows + reconciliation results
+
+Example payload:
+```json
+{
+  "year": 2026,
+  "items": [
+    { "project_id": "...", "month": "2026-01", "planned_hours": 1200 },
+    { "project_id": "...", "month": "2026-02", "planned_hours": 1400 },
+    { "project_id": "...", "month": "2026-03", "planned_hours": 400 },
+    { "project_id": "...", "month": "2026-04", "planned_hours": null }
+  ]
+}
+```
+
+### Allocation APIs
+
+- Keep `GET /api/allocations?month=YYYY-MM` and CRUD endpoints.
+- Enrich response with month-context variance metadata needed for row/column summary rendering.
+- `POST /api/allocations/bulk` must support partial success.
+
+Partial bulk response contract:
+```json
+{
+  "data": [{ "index": 0, "id": "...", "status": "created" }],
+  "failed": [{ "index": 1, "errors": { "allocated_hours": ["..."] } }],
+  "summary": { "created": 1, "failed": 1 }
+}
+```
+
+## Computation Rules
+
+### Lifecycle Reconciliation (Project-Month Plan Surface)
+
+For each project:
+- `plan_sum = SUM(planned_hours where month in planning horizon and value != null)`
+- `status = OVER | UNDER | MATCH` compared to `approved_estimate`
+
+### Allocation Row Variance (Execution Surface)
+
+For selected month and project:
+- `allocated_total = SUM(allocation.allocated_hours for project/month including untracked)`
+- `planned_month = planned_hours(project, month) or 0 if missing`
+- `row_variance = allocated_total - planned_month`
+- status from row_variance sign
+
+### Allocation Column Variance (Execution Surface)
+
+For selected month and team member:
+- `member_allocated = SUM(allocation.allocated_hours for member/month)`
+- `member_capacity = computed month capacity`
+- `col_variance = member_allocated - member_capacity`
+- exclude `team_member_id = null` rows from this computation
+
+## UX Specification (Implementation-Oriented)
+
+### Surface A: Project-Month Plan Grid
+
+- Rows: projects
+- Columns: months
+- Right edge: row total + reconciliation status
+- Bottom edge: optional month totals for planning visibility
+- Cell editing: inline, keyboard-first
+- Blank cells remain blank visually
+- Color: only summary statuses (red/amber/neutral)
+
+### Surface B: Project-Resource Allocation Grid (Selected Month)
+
+- Rows: projects
+- Columns: team members + untracked
+- Right edge: project row total + row variance status vs planned month
+- Bottom edge: member totals + capacity variance status
+- Primary editing: inline cell edit (modal not primary)
+- Color: red/amber highlights only for over/under summary states
+
+### Accessibility
+
+- Do not rely on color alone; include text labels (OVER/UNDER).
+- Maintain focus and keyboard navigation in both grids.
+- Preserve contrast and readable status labels.
+
+## Risk Register
+
+1. **Semantic regression risk**: reintroduction of derived monthly budget logic.
+   - Mitigation: explicit tests and prohibition in specs.
+
+2. **Blank vs zero confusion**.
+   - Mitigation: explicit API contract and UI behavior tests.
+
+3. **Untracked leakage into capacity metrics**.
+   - Mitigation: query filters and dedicated tests.
+
+4. **Bulk partial side effects**.
+   - Mitigation: per-item validation and clear response contract.
+
+## Testing Strategy
+
+### Unit
+- Lifecycle reconciliation calculator
+- Row/column variance calculators
+- Blank-plan-as-zero execution logic
+
+### Feature/API
+- Project-month plan bulk upsert and clear behavior
+- Reconciliation status correctness
+- Allocation month variance data correctness
+- Untracked include/exclude behavior
+- Partial bulk success semantics
+
+### Frontend Grid Tests
+- Inline edit commit/cancel/clear
+- Keyboard navigation
+- Summary status placement and labels
+- Blank visual state preservation
+
+### E2E
+- Create lifecycle estimate project
+- Enter monthly plan across months and verify reconciliation
+- Execute month allocations and verify row/column variances
+- Validate untracked behavior
+- Validate partial bulk success handling
+
+## Migration & Rollout Notes
+
+1. Introduce project-month plan model and APIs.
+2. Remove derived budget rendering in allocation UI.
+3. Wire allocation UI to explicit month plan for variance.
+4. Deprecate `forecasted_effort` usage in this workflow path.
+5. Keep backward compatibility for existing allocation records.

openspec/changes/enhanced-allocation/docs/reporting-api.md

@@ -0,0 +1,130 @@
+# Reporting API Contract
+
+## Overview
+
+The Reporting API provides aggregated resource planning and execution data for management analysis. It supports three view types (did/is/will) inferred from date ranges.
+
+## Endpoint
+
+```
+GET /api/reports/allocations
+```
+
+## Authentication
+
+Requires Bearer token authentication.
+
+## Query Parameters
+
+| Parameter | Type | Required | Description |
+|-----------|------|----------|-------------|
+| `start_date` | string (YYYY-MM-DD) | Yes | Start of reporting period |
+| `end_date` | string (YYYY-MM-DD) | Yes | End of reporting period |
+| `project_ids[]` | array of UUIDs | No | Filter by specific projects |
+| `member_ids[]` | array of UUIDs | No | Filter by specific team members |
+
+## View Types
+
+The `view_type` is inferred from the date range:
+
+| View Type | Date Range | Description |
+|-----------|------------|-------------|
+| `did` | All dates in past months | Historical execution analysis |
+| `is` | Includes current month | Active planning vs execution |
+| `will` | All dates in future months | Forecast and capacity planning |
+
+## Response Structure
+
+```json
+{
+  "period": {
+    "start": "2026-01-01",
+    "end": "2026-03-31"
+  },
+  "view_type": "will",
+  "projects": [
+    {
+      "id": "uuid",
+      "code": "PROJ-001",
+      "title": "Project Name",
+      "approved_estimate": 3000.0,
+      "lifecycle_status": "MATCH",
+      "plan_sum": 2600.0,
+      "period_planned": 2600.0,
+      "period_allocated": 2800.0,
+      "period_variance": 200.0,
+      "period_status": "OVER",
+      "months": [
+        {
+          "month": "2026-01",
+          "planned_hours": 1200.0,
+          "is_blank": false,
+          "allocated_hours": 1300.0,
+          "variance": 100.0,
+          "status": "OVER"
+        }
+      ]
+    }
+  ],
+  "members": [
+    {
+      "id": "uuid",
+      "name": "Team Member",
+      "period_allocated": 400.0,
+      "projects": [
+        {
+          "project_id": "uuid",
+          "project_code": "PROJ-001",
+          "project_title": "Project Name",
+          "total_hours": 400.0
+        }
+      ]
+    }
+  ],
+  "aggregates": {
+    "total_planned": 2600.0,
+    "total_allocated": 2800.0,
+    "total_variance": 200.0,
+    "status": "OVER"
+  }
+}
+```
+
+## Status Values
+
+| Status | Meaning | Visual |
+|--------|---------|--------|
+| `OVER` | Allocated > Planned/Capacity | 🔴 Red |
+| `UNDER` | Allocated < Planned/Capacity | 🟡 Amber |
+| `MATCH` | Allocated = Planned/Capacity | 🟢 Green/Neutral |
+
+## Blank vs Zero Distinction
+
+- **Blank plan** (`is_blank: true`): No plan entry exists for the month
+  - `planned_hours`: `null`
+  - Used for variance: treated as `0`
+  
+- **Explicit zero** (`is_blank: false`, `planned_hours: 0`): Plan was explicitly set to zero
+  - `planned_hours`: `0`
+  - Distinct from blank for reporting accuracy
+
+## Dependencies
+
+This endpoint combines data from:
+
+- `ProjectMonthPlan` - Monthly planning data
+- `Allocation` - Resource allocations
+- `Project` - Project metadata (approved_estimate)
+- `TeamMember` - Team member capacity
+
+Calculations use:
+- `ReconciliationCalculator` - Lifecycle plan vs estimate
+- `VarianceCalculator` - Period and monthly variances
+
+## Error Responses
+
+| Status | Condition |
+|--------|-----------|
+| 422 | Missing or invalid date parameters |
+| 422 | `end_date` before `start_date` |
+| 401 | Unauthorized (missing/invalid token) |

openspec/changes/enhanced-allocation/proposal.md

@@ -0,0 +1,89 @@
+# Proposal: Enhanced Allocation Fidelity
+
+## Why
+
+The current Resource Allocation implementation diverges from intended planning behavior and creates misleading month-level signals.
+
+Current drift:
+1. Monthly budget was treated as a derived display (`approved_estimate / 12`) rather than explicit manager planning.
+2. Allocation execution and planning intent are conflated in one surface.
+3. Visual signaling is noisier than needed for decision-making.
+4. Untracked allocation and partial bulk semantics are only partially implemented.
+
+Business need:
+- Managers must phase a project lifecycle estimate across months based on dependencies and customer timelines.
+- Month execution must be validated against explicit month plans, not an average split.
+- Management needs deterministic reporting from a strict plan -> execute chain.
+
+## What Changes
+
+This change formalizes and aligns a strict 3-surface model (with reporting as the 4th outcome surface):
+
+1. **Projects (Lifecycle Total)**
+   - `approved_estimate` remains the project-level lifecycle cap.
+
+2. **Project-Month Plan (Manager Intent)**
+   - Manager enters monthly planned hours per project in a grid.
+   - Monthly plans reconcile against lifecycle total (OVER/UNDER/MATCH).
+   - Blank planning months remain blank in UI.
+
+3. **Project-Resource Allocation (Month Execution)**
+   - Allocation grid becomes primary editing workflow (no modal-first dependency).
+   - Row variance compares month allocation vs project month plan.
+   - Column variance compares member allocation vs member month capacity.
+   - Untracked (`team_member_id = null`) is supported as a first-class execution path.
+
+4. **Reporting Outcome**
+   - Reporting consumes lifecycle total + month plan + resource allocation to show did/is/will views.
+
+## Capability Changes
+
+### New / Expanded Capabilities
+- `monthly-budget` (reframed as project-month planning)
+- `allocation-indicators` (minimal, edge-focused variance signaling)
+- `untracked-allocation` (null team member end-to-end semantics)
+
+### Modified Capability
+- `resource-allocation` (partial bulk success, month-plan-aware variance)
+
+## Key Rules Locked by This Change
+
+1. No `approved_estimate / 12` derivation for planning behavior.
+2. Month plan reconciliation is explicit:
+   - sum(plan) > approved -> OVER
+   - sum(plan) < approved -> UNDER
+   - sum(plan) == approved -> MATCH
+3. Blank planning month is visually blank, but treated as planned `0` for allocation variance.
+4. Allocation for blank-plan months is allowed.
+5. `projects.forecasted_effort` is deprecated for this workflow.
+6. Visual language is minimal:
+   - OVER = red
+   - UNDER = amber
+   - MATCH = neutral
+
+## Impact
+
+### Data Model
+- Introduce explicit project-month planning source of truth.
+- Stop using `projects.forecasted_effort` in this workflow path.
+
+### API Contract
+- Add/adjust project-month plan endpoints and payloads.
+- Ensure allocation endpoints provide enough context for row/column variance.
+- Keep partial bulk response contract explicit (created/failed/summary).
+
+### Frontend
+- Add project-month plan grid surface.
+- Refactor allocation matrix to grid-first editing and edge variance indicators.
+- Keep status placement low-noise and decision-oriented.
+
+### Testing
+- Add deterministic coverage for reconciliation math, blank-vs-zero semantics, untracked handling, and partial bulk behavior.
+- Require mapped tests for every requirement scenario before task closure.
+
+## Non-Goals
+
+- Real-time collaboration/websockets in this change.
+- Notification systems.
+- Export workflows.
+- UI polish iterations beyond required planning fidelity.

openspec/changes/enhanced-allocation/specs/allocation-indicators/spec.md

@@ -0,0 +1,74 @@
+# Allocation Indicators Specification
+
+## Overview
+
+This capability defines low-noise variance indicators for planning and execution surfaces.
+Indicators are decision aids, not decorative status coloring.
+
+## ADDED Requirements
+
+### Requirement: Use minimal status palette
+
+The system SHALL use a minimal indicator palette:
+- `OVER` -> red
+- `UNDER` -> amber
+- `MATCH/SETTLED` -> neutral
+
+#### Scenario: Match is neutral
+- **GIVEN** row variance equals 0
+- **WHEN** rendering status
+- **THEN** status uses neutral styling
+- **AND** no additional success color emphasis is required
+
+### Requirement: Place indicators at summary edges
+
+The system SHALL prioritize indicator display on row/column summary edges.
+
+#### Scenario: Row-level over-allocation indicator
+- **GIVEN** project row total exceeds selected month plan
+- **WHEN** allocation grid renders
+- **THEN** project row summary status shows `OVER` in red
+
+#### Scenario: Column-level over-capacity indicator
+- **GIVEN** member column total exceeds member month capacity
+- **WHEN** allocation grid renders
+- **THEN** member column summary status shows `OVER` in red
+
+#### Scenario: Under-allocation indicator
+- **GIVEN** row or column total is below comparison target
+- **WHEN** grid renders
+- **THEN** summary status shows `UNDER` in amber
+
+### Requirement: Keep indicators explainable
+
+The system SHALL provide text status labels with numeric deltas for accessibility and clarity.
+
+#### Scenario: Color is not sole signal
+- **WHEN** status is rendered
+- **THEN** UI includes text label (`OVER`/`UNDER`) and delta value
+
+### Requirement: Distinguish project and resource variance semantics
+
+Project variance and resource variance SHALL remain separate.
+
+#### Scenario: Project over, resource under
+- **GIVEN** a project row is `OVER`
+- **AND** a member column is `UNDER`
+- **WHEN** indicators render
+- **THEN** each axis displays its own status independently
+
+## MODIFIED Requirements
+
+### Requirement: Allocation indicator source
+
+**Original behavior:** project indicator compared monthly allocation directly to lifecycle estimate assumptions.
+
+**Updated behavior:** indicator semantics in execution surface compare:
+- project row totals vs **selected month planned hours**
+- member column totals vs **selected month capacity**
+
+### Requirement: Color usage policy
+
+**Original behavior:** broad RED/YELLOW/GREEN/GRAY usage in many cells.
+
+**Updated behavior:** minimal red/amber/neutral policy with status emphasis on summary edges.

openspec/changes/enhanced-allocation/specs/monthly-budget/spec.md

@@ -0,0 +1,88 @@
+# Project-Month Plan Specification
+
+## Overview
+
+This capability defines explicit manager-entered monthly planning per project.
+It replaces derived monthly budget assumptions and becomes the planning source of truth for allocation variance.
+
+## ADDED Requirements
+
+### Requirement: Manager enters explicit monthly plan per project
+
+The system SHALL allow managers to set planned hours for each project-month cell.
+
+#### Scenario: Set monthly plan across multiple months
+- **GIVEN** project `PROJ-001` has `approved_estimate = 3000`
+- **WHEN** manager sets Jan=1200, Feb=1400, Mar=400
+- **THEN** the system stores those exact values
+- **AND** no derived monthly average is applied
+
+#### Scenario: Edit monthly plan cell inline
+- **GIVEN** a month-plan grid cell contains 1200
+- **WHEN** manager edits the cell to 1100 and commits
+- **THEN** the system persists 1100
+- **AND** reconciliation status recalculates immediately
+
+### Requirement: Reconcile month-plan sum against lifecycle approved estimate
+
+The system SHALL compute reconciliation status per project based on:
+`sum(non-null monthly planned hours)` vs `approved_estimate`.
+
+#### Scenario: OVER reconciliation
+- **GIVEN** `approved_estimate = 3000`
+- **AND** month-plan sum is 3200
+- **THEN** status is `OVER`
+
+#### Scenario: UNDER reconciliation
+- **GIVEN** `approved_estimate = 3000`
+- **AND** month-plan sum is 2800
+- **THEN** status is `UNDER`
+
+#### Scenario: MATCH reconciliation
+- **GIVEN** `approved_estimate = 3000`
+- **AND** month-plan sum is 3000
+- **THEN** status is `MATCH`
+
+### Requirement: Preserve blank month semantics
+
+The planning grid SHALL keep unset months visually blank and semantically distinct from explicit zero.
+
+#### Scenario: Blank remains blank
+- **GIVEN** no plan exists for April
+- **WHEN** manager views planning grid
+- **THEN** April cell is blank (no `0` shown)
+
+#### Scenario: Clear cell sets blank semantics
+- **GIVEN** a month cell has planned value
+- **WHEN** manager clears the cell and commits
+- **THEN** the month is stored as blank/unset semantics
+- **AND** planning UI displays blank
+
+### Requirement: Allocation variance uses blank plan as zero
+
+For allocation variance computation only, missing month plan SHALL be treated as planned `0`.
+
+#### Scenario: Allocate against blank plan month
+- **GIVEN** no plan is set for selected month
+- **AND** project allocations total 40h
+- **WHEN** variance is computed
+- **THEN** planned value used is 0
+- **AND** row variance is +40
+- **AND** allocation operation remains allowed
+
+### Requirement: Grid-first planning interaction
+
+Project-month planning SHALL be managed in a grid-first interface.
+
+#### Scenario: Keyboard-first editing
+- **WHEN** manager navigates month-plan grid with keyboard
+- **THEN** inline cell editing and commit are supported
+- **AND** modal interaction is not required for normal edits
+
+## MODIFIED Requirements
+
+### Requirement: Monthly budget derivation
+
+**Original behavior (rejected):** monthly budget derived from `approved_estimate / 12`.
+
+**Updated behavior:** monthly plan values are explicit manager-entered project-month values; no derivation formula is used for planning behavior.

openspec/changes/enhanced-allocation/specs/resource-allocation/spec.md

@@ -0,0 +1,47 @@
+# Resource Allocation - Delta Specification
+
+This delta documents required updates to existing resource allocation behavior for fidelity with explicit month planning.
+
+## MODIFIED Requirements
+
+### Requirement: Month execution comparison target
+
+**Original behavior:** month execution was compared against derived or lifecycle assumptions.
+
+**Updated behavior:** selected month project allocation is compared against explicit project-month planned hours.
+
+#### Scenario: Compare row total to month plan
+- **GIVEN** selected month plan for project is 1200h
+- **AND** project allocations total 1300h
+- **THEN** project row variance is +100h
+- **AND** row status is `OVER`
+
+#### Scenario: Blank month plan comparison
+- **GIVEN** selected month has no plan value set
+- **AND** project allocations total 50h
+- **THEN** comparison target is 0h
+- **AND** row status is `OVER`
+- **AND** allocation remains allowed
+
+### Requirement: Bulk allocation behavior
+
+**Original behavior:** all-or-nothing transaction semantics.
+
+**Updated behavior:** valid items SHALL be saved even if some items fail.
+
+#### Scenario: Partial bulk success
+- **WHEN** 10 allocation items are submitted and 2 fail validation
+- **THEN** 8 valid items are persisted
+- **AND** failed items return per-index validation errors
+- **AND** response includes summary created/failed counts
+
+### Requirement: Untracked execution semantics
+
+**Original behavior:** untracked support was ambiguous/incomplete.
+
+**Updated behavior:** `team_member_id = null` is valid and treated as untracked effort.
+
+#### Scenario: Untracked counted in project, excluded from capacity
+- **WHEN** untracked allocation exists for selected month
+- **THEN** project totals include it
+- **AND** member capacity/utilization computations exclude it

openspec/changes/enhanced-allocation/specs/untracked-allocation/spec.md

@@ -0,0 +1,55 @@
+# Untracked Allocation Specification
+
+## Overview
+
+This capability supports external/unassigned effort by allowing allocations without a team member association.
+
+## ADDED Requirements
+
+### Requirement: Support null team member in allocation APIs
+
+The system SHALL allow allocation records with `team_member_id = null`.
+
+#### Scenario: Create untracked allocation
+- **GIVEN** user has allocation create permission
+- **WHEN** POST /api/allocations with `team_member_id = null`
+- **THEN** allocation is created successfully
+
+#### Scenario: Bulk create with mixed tracked/untracked
+- **GIVEN** a bulk payload contains tracked and untracked entries
+- **WHEN** POST /api/allocations/bulk is executed
+- **THEN** untracked entries with valid data are processed successfully
+
+### Requirement: Include untracked in project totals
+
+Untracked hours SHALL contribute to project-level and grand totals.
+
+#### Scenario: Project total includes untracked
+- **GIVEN** project has tracked 80h and untracked 20h in selected month
+- **WHEN** project row total is computed
+- **THEN** row total is 100h
+
+### Requirement: Exclude untracked from member capacity metrics
+
+Untracked allocations SHALL NOT contribute to any team member utilization/capacity variance.
+
+#### Scenario: Member utilization ignores untracked
+- **GIVEN** selected month has untracked allocations
+- **WHEN** member column totals and capacity variance are computed
+- **THEN** untracked rows are excluded from member computations
+
+### Requirement: Present untracked in execution grid
+
+The allocation grid SHALL expose untracked as a first-class execution bucket.
+
+#### Scenario: Untracked column visible
+- **WHEN** manager opens allocation execution grid
+- **THEN** untracked column/bucket is visible and editable
+
+## MODIFIED Requirements
+
+### Requirement: Capacity validation
+
+**Original behavior:** all allocations were assumed team-member-bound for capacity checks.
+
+**Updated behavior:** capacity validation is skipped for untracked allocations (`team_member_id = null`).

openspec/changes/enhanced-allocation/tasks.md

@@ -0,0 +1,168 @@
+# Tasks: Enhanced Allocation Fidelity
+
+## Summary
+
+| Workstream | Status | Progress |
+|------------|--------|----------|
+| Artifact Fidelity Alignment | ✅ Complete | 100% |
+| Project-Month Plan Capability | ⚪ Not Started | 0% |
+| Allocation Grid Fidelity | ⚪ Not Started | 0% |
+| Untracked + Partial Bulk Hardening | ⚪ Not Started | 0% |
+| Reporting-Ready Contracts | ⚪ Not Started | 0% |
+| Verification & Regression | ⚪ Not Started | 0% |
+
+---
+
+## 0. Artifact Fidelity Alignment
+
+Ensure docs and OpenSpec artifacts are fully aligned before implementation.
+
+### Phase 1: Artifact Updates
+
+- [x] 0.1 Update decision log with model and rules
+- [x] canonical 3-surface 0.2 Update proposal to remove derived monthly budget assumption
+- [x] 0.3 Update design with explicit project-month planx] 0 architecture
+- [x] 0.4 Update monthly-budget spec to explicit planning semantics
+- [x] 0.5 Update allocation-indicators spec to red/amber/neutral policy
+- [x] 0.6 Update untracked and resource-allocation delta specs to final semantics
+
+### Exit Criteria
+
+- [x] 0.7 No artifact references `approved_estimate / 12` as planning behavior
+- [x] 0.8 All artifacts consistently define blank month semantics (blank UI, zero for variance)
+
+---
+
+## 1. Project-Month Plan Capability
+
+Create explicit manager-entered month planning per project.
+
+### Phase 1: Tests (RED)
+
+- [ ] 1.1 Unit test: reconciliation status OVER when plan_sum > approved_estimate
+- [ ] 1.2 Unit test: reconciliation status UNDER when plan_sum < approved_estimate
+- [ ] 1.3 Unit test: reconciliation status MATCH when plan_sum == approved_estimate
+- [ ] 1.4 Feature test: bulk upsert month plan cells persists values correctly
+- [ ] 1.5 Feature test: clearing month plan cell preserves blank semantics
+- [ ] 1.6 Feature test: blank month plan remains blank in response payload
+- [ ] 1.7 Component test: planning grid inline edit commits and recalculates row status
+- [ ] 1.8 E2E test: manager enters Jan/Feb/Mar plan (1200/1400/400) for 3000 project and sees MATCH
+
+### Phase 2: Implement (GREEN)
+
+- [x] 1.9 Add project-month plan persistence model/migration (project_id, month, planned_hours)
+- [x] 1.10 Implement plan query endpoint for grid consumption
+- [x] 1.11 Implement plan bulk upsert endpoint with clear-cell handling
+- [ ] 1.12 Implement reconciliation calculator service and API exposure
+- [ ] 1.13 Implement planning grid UI with keyboard-first inline editing
+- [ ] 1.14 Ensure planning UI keeps blank cells blank (no implicit zero rendering)
+
+### Phase 3: Refactor
+
+- [ ] 1.15 Centralize reconciliation logic for API and reporting reuse
+
+### Phase 4: Document
+
+- [ ] 1.16 Document project-month plan API contracts and reconciliation semantics
+
+---
+
+## 2. Allocation Grid Fidelity (Month Execution)
+
+Reframe allocation matrix as month execution against explicit plan and capacity.
+
+### Phase 1: Tests (RED)
+
+- [ ] 2.1 Unit test: row variance uses selected month planned value
+- [ ] 2.2 Unit test: blank month plan treated as zero for row variance
+- [ ] 2.3 Unit test: column variance uses member month capacity
+- [ ] 2.4 Feature test: allocation response includes row/column variance context
+- [ ] 2.5 Component test: allocation grid supports inline cell edit without modal
+- [ ] 2.6 Component test: status placement on row/column summary edges only
+- [ ] 2.7 E2E test: over-plan row displays red OVER status
+- [ ] 2.8 E2E test: under-plan row displays amber UNDER status
+
+### Phase 2: Implement (GREEN)
+
+- [ ] 2.9 Remove derived monthly budget logic from allocation surface
+- [ ] 2.10 Implement row variance against explicit month plan
+- [ ] 2.11 Implement column variance against member capacity
+- [ ] 2.12 Convert allocation UI to grid-first editing workflow
+- [ ] 2.13 Keep modal only as optional fallback (not primary flow)
+- [ ] 2.14 Apply minimal visual policy: red/amber/neutral with text labels
+
+### Phase 3: Refactor
+
+- [ ] 2.15 Extract shared variance calculation utilities
+
+### Phase 4: Document
+
+- [ ] 2.16 Document variance formulas and status placement rules
+
+---
+
+## 3. Untracked + Partial Bulk Hardening
+
+Finalize untracked behavior and partial bulk response semantics.
+
+### Phase 1: Tests (RED)
+
+- [ ] 3.1 Feature test: single create accepts null team_member_id
+- [ ] 3.2 Feature test: bulk create accepts mixed tracked/untracked payload
+- [ ] 3.3 Feature test: untracked included in project/grand totals
+- [ ] 3.4 Feature test: untracked excluded from member capacity calculations
+- [ ] 3.5 Feature test: partial bulk persists valid rows and returns per-index failures
+- [ ] 3.6 E2E test: untracked column allows inline allocation entry
+
+### Phase 2: Implement (GREEN)
+
+- [ ] 3.7 Ensure all allocation create/update/bulk validators support null team_member_id
+- [ ] 3.8 Ensure capacity/utilization paths exclude null team_member_id
+- [ ] 3.9 Ensure totals paths include null team_member_id in project/grand totals
+- [ ] 3.10 Return deterministic partial bulk response contract (data/failed/summary)
+
+### Phase 3: Refactor
+
+- [ ] 3.11 Consolidate untracked filtering/scoping in one query abstraction
+
+### Phase 4: Document
+
+- [ ] 3.12 Document untracked semantics and partial bulk contract
+
+---
+
+## 4. Reporting-Ready Contracts
+
+Prepare deterministic outputs for management reporting (did/is/will).
+
+### Phase 1: Tests (RED)
+
+- [ ] 4.1 Feature test: reporting payload includes lifecycle total, month plan, month execution, and variances
+- [ ] 4.2 Feature test: historical/current/future month slices are consistent
+
+### Phase 2: Implement (GREEN)
+
+- [ ] 4.3 Expose report-oriented aggregate endpoint(s) for member and project views
+- [ ] 4.4 Ensure response explicitly distinguishes blank plan vs explicit zero
+
+### Phase 3: Document
+
+- [ ] 4.5 Document reporting contract dependencies on plan and execution surfaces
+
+---
+
+## 5. Verification & Regression Gates
+
+### Phase 1: Verification
+
+- [ ] 5.1 Run full backend unit + feature test suite
+- [ ] 5.2 Run frontend component test suite for planning/allocation grids
+- [ ] 5.3 Run E2E flows for planning -> allocation -> variance visibility
+- [ ] 5.4 Verify login/team-member/project baseline flows unaffected
+
+### Phase 2: Quality Gates
+
+- [ ] 5.5 Confirm no implementation path uses derived `approved_estimate / 12`
+- [ ] 5.6 Confirm `projects.forecasted_effort` is not used in this workflow
+- [ ] 5.7 Confirm all statuses follow red/amber/neutral policy
+- [ ] 5.8 Confirm every completed task has mapped passing automated tests