| # Using budgets in a project You 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 Related topics To use element-based budget lines To use a top-down budget Using a bottom-up budget To use a time-phased budget To use baselines in Project To use purchase budgets To use a control budget How to use budget hours To generate planned value To use cost- and purchase prices for non-labor cost objects To use sales prices for non-labor cost objects Using budget cost analysis Using extensions |