| # Budgeting Use the Budgeting module to prepare, control, and maintain the project budget throughout the lifetime of the project, as a baseline. Two methods are available to set up the project budget: element-based and activity-based. You can maintain the activity structure, which is required for an activity budget, can be maintained in the PSS module or an external scheduling package, such as Microsoft Project. Budget You can use the Planning module in Project to create, analyze, and maintain a project budget that can be based on elements or activities. Bottom-up budget 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. Budget adjustments 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. Activity 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. Budget cost analysis 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. Budget cost analysis versions 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. Generate budget cost analysis Generate a budget-cost analysis. These fields are used to generate the budget cost analysis for the selected analysis code: Exchange rate type Effective date Budget line status values Control budget The control budget is a derived budget that is based on the project budget and surcharges. Generate control data 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. Purchase budgets 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. Generate purchase budgets You can generate purchase budgets for one or a range of selected projects, elements or activities, cost components, and extensions. Update prices and rates in budget 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 budget dates in budget Update the budget date in the bottom up budget (element or activity). When you modify a budget date, the currency rates may change. Check cost object mapping You must use these parameters when using cost object mapping: Whether a reference activity is linked to the project activity for a selected range of projects. The mapping data, if defined, for the specified reference activity, in which case the session allows you to check if the resources linked to the specific reference activities are mapped to a project cost object. Top-down budget 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. Top-down budget data Display budgeted amounts by activity for the selected top down budget-version and project. Because Infor LN works with a derived-from version structure. Time-phased budget A time-phased budget (TPB) is a time-scaled budget based on activities, created from a top-down budget. Earned value method related data 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. Generate time-phased budget You can generate the budgeted amounts by cost-type for a selected time-phased budget analysis code and version. Element structure 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. Activity structure 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. Progress recording 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. How to use cost recording 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. Element-based budget lines 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. |