Budgeting

You can use the Planning module in Project to create, analyze, and maintain a project budget that can be based on elements or activities.

A bottom-up budget creates a budget for each element or activity in the work breakdown structure, and summarizes these budgets to provide a total project cost budget.

An adjustment is a modification to a frozen bottom-up budget. Specify the adjustment codes, budget type and currency to use for a specific project. Modifications will only increase or decrease the budget.

View totals by project, cost type, and total number of hours, based on budget cost analysis. Use the tabs to view and maintain details for each cost type. You can run several cost analyses for the same budget. Each budget is stored with a combined project code and budget cost-analysis code, so you can compare the budgets.

The Budget Cost Analysis (BCA) facility helps display and print the information you need. You do not analyze the actual budget directly. Instead, you generate a new type of data called Analysis Data, and run inquiries and reports on that derived data. You can think of the analysis data as an overview of the actual budget.

A snapshot of the bottom-up budget. You can run several cost analyses for the same budget. Each budget is stored with a combined project code and budget cost-analysis code, so you can compare the budgets.

The control budget is a derived budget that is based on the project budget and surcharges.

Generate a control budget based on an actual budget of one or more projects. You can do a complete run or a net change run.

A typical actual budget contains items (cost objects) that require a lengthy period of time to purchase. Also, the quantities to be purchased can be uncertain. you may not yet know the quantity to order. If you wait until this information is available, the project could be delayed, which could increase costs. Using purchase budgets, you can procure such cost objects before the project is started.

You can generate purchase budgets for one or a range of selected projects, elements or activities, cost components, and extensions.

You can globally update purchase prices/rates and cost prices/rates in the actual budget. The current prices/rates are replaced by the latest ones. If prices are depend on the quantities, the total quantity by cost object is determined from the budget structure.

Update the budget date in the bottom up budget (element or activity). When you modify a budget date, the currency rates may change.

A top-down budget is used to distribute amounts across an activity structure. The constraint of a top-down budget is that the amount check for lower level elements for the distributed amount is used, and therefore you cannot enter lower level amounts that are higher than the distributed amount.

Display budgeted amounts by activity for the selected top down budget-version and project. Because Infor LN works with a derived-from version structure.

A time-phased budget (TPB) is a time-scaled budget based on activities, created from a top-down budget.

A time-phased method for measuring project performance. The amount of work planned as against the work actually accomplished is used to determine if project costs and schedules are within the budget. The earned value methods of those activity that are used in the time-phased budget for the current version are displayed.

You can generate the budgeted amounts by cost-type for a selected time-phased budget analysis code and version.

You can define a parent-child relationship between any two elements in your project. The parent element is at a higher level than the child. Parent-child relationships can be one-to-one or one-to-many.

The activity structure is a hierarchical structure used to break a project down into time-scaled activities. An activity structure is defined by reference to its top activity. The hierarchy of an activity structure consists of all the activities that appear below the top activity.

During project execution, you record the degree of completion of all or parts of the project. You can use this information for customer invoicing or for cost control purposes.

During project execution, you want to record actual costs optionally, against the project budget lines. Cost recording can be done in Project, or in Financials and then transferred to Project. Other cost could result from, for example, purchase orders or warehouse orders that are linked to a project.

If you create elements for your project, and link them in a multilevel hierarchical structure, you can create the element budget. Enter budget lines for each element by using cost objects to the elements.