Budgeting in a Project

Objectives

After completing this lesson, you will be able to:

  • Create the budget for a project

Budgeting in a Project

While you must estimate your project costs as accurately as possible during cost planning, funds are assigned in the form of a budget in the approval phase. The budget differs from the project cost plan in that it is binding. The budget is the device by which the management approves the anticipated development of the project costs over a given period of time.

Budgeting Overview

You need to use the maintain original budget transaction to assign funds to a project and its components. In the budget profile, you can specify whether funds are assigned as lump values or are distributed by year.

You can prevent users from maintaining the overall project budget for a project by assigning appropriate user statuses. If you lock (freeze) the original budget in this manner, you can change it only by defining supplements, returns, and transfers.

You can use the budget release function to make funds available at various points within a fiscal year. You can use the budget carry forward function to transfer any funds not used in the previous year to the budget of the new fiscal year.

Create the Budget for a Project

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