| To use a bottom up budget |  |
| The overall project is subdivided into individual elements or activities, and each element or activity is separately budgeted, based on specific, detailed requirements. The individual results are summarized to obtain the project total. A bottom-up budget makes a budget for each element or activity in the work breakdown structure, and summarizes these budgets to provide a total project cost budget. The budget amounts are entered for each activity or element and aggregated to the top or a higher level node of the activity or element structure. This top amount is the aggregated budget amount. To handle surcharges on top of the budget, enter the surcharges for each cost object on project level. Note A purchase budget can be linked to the bottom-up budget. If the budget status is Final, you can make adjustments for updates. In ERP LN, adjustments are a modification to a frozen bottom-up budget. The modification will only increase or decrease the budget, though for extensions the contract also changes. For more information, refer to To use extensions. The budget cost analysis is an analysis of the bottom-up budget. You can run several cost analyses for the same budget. Each budget analysis is stored with a project code and budget cost-analysis code to compare the budgets. The analysis is a snapshot at a certain moment in time, which takes all surcharges into account and calculates the frequencies for an element budget. Related topics To use purchase budgets To use an element structure To use an activity structure To use a top down budget |