diff --git a/app/models/retainer_deliverable.rb b/app/models/retainer_deliverable.rb
index 543b892..19cd368 100644
--- a/app/models/retainer_deliverable.rb
+++ b/app/models/retainer_deliverable.rb
@@ -14,6 +14,7 @@ class RetainerDeliverable < HourlyDeliverable
   # Accessors
 
   # Callbacks
+  after_save :create_budgets_for_periods
 
   def short_type
     'R'
@@ -23,6 +24,39 @@ class RetainerDeliverable < HourlyDeliverable
     'TODO'
   end
 
+  def beginning_date
+    start_date && start_date.beginning_of_month
+  end
+
+  def ending_date
+    end_date && end_date.end_of_month
+  end
+
+  def months
+    month_acc = []
+
+    current_date = beginning_date
+    while current_date < ending_date do
+      month_acc << current_date
+      current_date = current_date.advance(:months => 1)
+    end
+    
+    month_acc
+  end
+  
+  def create_budgets_for_periods
+    # For each month in the time span
+    months.each do |month|
+      # Iterate over all un-dated budgets, created dated versions
+      undated_labor_budgets = labor_budgets.all(:conditions => ["#{LaborBudget.table_name}.year IS NULL AND #{LaborBudget.table_name}.month IS NULL"])
+      undated_labor_budgets.each do |template_budget|
+        labor_budgets.create(template_budget.attributes.merge(:year => month.year, :month => month.month))
+      end
+    end
+    # Destroy origional un-dated budgets
+    labor_budgets.all(:conditions => ["#{LaborBudget.table_name}.year IS NULL AND #{LaborBudget.table_name}.month IS NULL"]).collect(&:destroy)
+  end
+
   def self.frequencies_to_select
     ValidFrequencies.collect {|f| [l("text_#{f}"), f]}
   end
diff --git a/db/migrate/012_add_year_and_month_to_labor_budgets.rb b/db/migrate/012_add_year_and_month_to_labor_budgets.rb
new file mode 100644
index 0000000..88f2847
--- /dev/null
+++ b/db/migrate/012_add_year_and_month_to_labor_budgets.rb
@@ -0,0 +1,14 @@
+class AddYearAndMonthToLaborBudgets < ActiveRecord::Migration
+  def self.up
+    add_column :labor_budgets, :year, :integer
+    add_index :labor_budgets, :year
+
+    add_column :labor_budgets, :month, :integer
+    add_index :labor_budgets, :month
+  end
+
+  def self.down
+    remove_column :labor_budgets, :year
+    remove_column :labor_budgets, :month
+  end
+end
diff --git a/db/migrate/013_add_year_and_month_to_overhead_budgets.rb b/db/migrate/013_add_year_and_month_to_overhead_budgets.rb
new file mode 100644
index 0000000..8776e46
--- /dev/null
+++ b/db/migrate/013_add_year_and_month_to_overhead_budgets.rb
@@ -0,0 +1,14 @@
+class AddYearAndMonthToOverheadBudgets < ActiveRecord::Migration
+  def self.up
+    add_column :overhead_budgets, :year, :integer
+    add_index :overhead_budgets, :year
+
+    add_column :overhead_budgets, :month, :integer
+    add_index :overhead_budgets, :month
+  end
+
+  def self.down
+    remove_column :overhead_budgets, :year
+    remove_column :overhead_budgets, :month
+  end
+end
diff --git a/test/integration/deliverables_new_test.rb b/test/integration/deliverables_new_test.rb
index 41063ce..51ced9b 100644
--- a/test/integration/deliverables_new_test.rb
+++ b/test/integration/deliverables_new_test.rb
@@ -127,7 +127,16 @@ class DeliverablesNewTest < ActionController::IntegrationTest
     fill_in "Start", :with => '2010-01-01'
     fill_in "End Date", :with => '2010-12-31'
     fill_in "Notes", :with => 'Some notes on the deliverable'
-    fill_in "Total", :with => '1,000.00'
+
+    within("#deliverable-labor") do
+      fill_in "hrs", :with => '20'
+      fill_in "$", :with => '$2,000'
+    end
+
+    within("#deliverable-overhead") do
+      fill_in "hrs", :with => '10'
+      fill_in "$", :with => '$1,000'
+    end
 
     click_button "Save"
 
@@ -142,6 +151,39 @@ class DeliverablesNewTest < ActionController::IntegrationTest
     assert_equal '2010-12-31', @deliverable.end_date.to_s
     assert_equal @manager, @deliverable.manager
     assert_equal "monthly", @deliverable.frequency
+
+    # Budget items, one per month
+    labor_budgets = @deliverable.labor_budgets
+    assert_equal 12, labor_budgets.length
+    
+    labor_budgets.each do |budget|
+      assert_equal 2000, budget.budget
+      assert_equal 20, budget.hours
+    end
+
+    # Budget dates
+    labor_budgets.each do |budget|
+      assert_equal 2010, budget.year
+    end
+    (1..12).each do |month_number|
+      assert_equal 1, labor_budgets.select {|b| b.month == month_number}.length
+    end
+
+    overhead_budgets = @deliverable.overhead_budgets
+    assert_equal 12, overhead_budgets.length
+    
+    overhead_budgets.each do |budget|
+      assert_equal 1000, budget.budget
+      assert_equal 10, budget.hours
+    end
+
+    # Budget dates
+    overhead_budgets.each do |budget|
+      assert_equal 2010, budget.year
+    end
+    (1..12).each do |month_number|
+      assert_equal 1, overhead_budgets.select {|b| b.month == month_number}.length
+    end
   end
 
   should "create new budget items for the deliverables" do
diff --git a/test/unit/retainer_deliverable_test.rb b/test/unit/retainer_deliverable_test.rb
index e079dcb..b8c6e25 100644
--- a/test/unit/retainer_deliverable_test.rb
+++ b/test/unit/retainer_deliverable_test.rb
@@ -10,36 +10,31 @@ class RetainerDeliverableTest < ActiveSupport::TestCase
     should_not_allow_values_for(:frequency, 'anything', 'else', 'weekly')
   end
 
-  # TODO: Question: Fit to calendar or based on N days?
-  # Monthly => June-June or June 5th-July 5th
-  # Quarterly => Jan-March 31 or Feb-May 31
-  context "#current_period" do
-    context "monthly frequency" do
-      should "be a range of the current month"
+  context "#create_budgets_for_periods" do
+    setup do
+      @deliverable = RetainerDeliverable.generate!(:start_date => '2010-01-10',
+                                                   :end_date => '2010-10-10')
+      LaborBudget.generate!(:deliverable => @deliverable)
     end
 
-    context "quarterly frequency" do
-      should "be a range of the current quarter"
-    end
-  end
+    should "create a dated labor budget for each month" do
+      assert_equal 1, @deliverable.labor_budgets.count
 
-  context "#start_of_current_period" do
-    context "monthly frequency" do
-      should "QUESTION: be the first day of the month or 30 days ago"
+      @deliverable.reload.create_budgets_for_periods
+
+      assert_equal 10, @deliverable.labor_budgets.count
+      labor_budgets = @deliverable.labor_budgets
+      labor_budgets.each do |budget|
+        assert_equal 2010, budget.year
+      end
+
+      (1..10).each do |month_number|
+        assert_equal 1, labor_budgets.select {|b| b.month == month_number}.length
+      end
+      
     end
 
-    context "quarterly frequency" do
-      should "QUESTION: be the first day of the quarter or 365/4 days ago"
-    end
+    should "create a dated overhead budget for each month"
   end
   
-  context "#end_of_current_period" do
-    context "monthly frequency" do
-      should "QUESTION: be the first day of the month or 30 days ago"
-    end
-
-    context "quarterly frequency" do
-      should "QUESTION: be the first day of the quarter or 365/4 days ago"
-    end
-  end
 end