| | Using budgets in a projectYou can use the Planning of Project to draw up, analyze and amend a project
budget that can be based on elements or activities. If you finalized the
project budget, use Budgeting to derive a second budget, called a control
budget. You can apply late changes to a finalized budget by means of adjustments and/or extensions. Element-based budgets If you want to create a budget based on elements, Budgeting enables you
to: - Create elements to
represent the main parts of your project.
- Position the elements in
a hierarchical structure.
- Enter budget lines of cost objects against the
elements. For example, hours worked on a ship haul is a labor line.
Activity budgets If you want to create a budget based on activities, Budgeting enables you
to: - Create budget versions
to keep track of changes in your top down budget.
- Distribute amounts to
activities that are created in the Requirements Planning.
- Assign the
earned-value-method-related data, in order to manage which of the budget
amounts can be released.
- Generate the planned value or the budgeted cost work scheduled (BCWS) amounts.
Purchase budgets - You can create one or more purchase budgets to procure cost
objects with long delivery times, thereby bypassing the step-by-step process of
project budgeting and execution.
Control budget When you finalized the project budget, you can create a
control budget for use in: - Generating planned
orders in the Requirements Planning module.
- Recording progress with
the Project Progress module.
- Recording actual costs
in the Project Accounting module.
- Generating invoices for
customers in the Invoicing preparation module.
After choosing a budget,
the logical next step is to work on: To use costs | |