Using a bottom-up budget
The overall project is segmented by individual elements or activities. Each element or activity is separately budgeted, based on specific or detailed requirements. The individual results are summarized to obtain the total cost of the project.
As part of bottom-up budgeting a budget is created for each element or activity in the work breakdown structure and the individual budgets are summarized to provide a total project cost budget. The budget amounts are specified for each activity or element and aggregated to the top or a higher-level node of the activity or element structure. This amount is the aggregated budget amount. To handle surcharges related to the budget, you must specify the surcharges for each cost object on project level.
- A purchase budget can be linked to the bottom-up budget.
- If the budget status is set to Final in the Budgets sessions, you can use the Adjustments functionality to modify the budget. In Infor LN, adjustments are a modification to a finalized bottom-up budget, an increase or decrease in the budget. However, for extensions the contract data is also modified.
- The budget cost analysis is an analysis of the bottom-up budget. You can process several cost analyses for the same budget. Each budget analysis is saved with a project code and budget cost-analysis code to enable the comparison of the budgets. The analysis is a snapshot of the budget at a given point of time, which considers all surcharges and calculates the frequencies for an element budget .