| To use a top down budget |  |
| The total project cost, subdivided for individual activities, based on historical costs and other project variables. The purpose of a top-down budget is to get an overview of budget possibilities to see whether the project is feasible from a budget point of view. To work with this budget, you must either create a time-phased budget, or start a detailed bottom-up budget. A top-down budget is used to distribute amounts over 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. Time phase the top-down budget. If the budget for each activity and the cost for each individual activity are uncertain, but the approximate distributed amount is known, you must begin a project with a top-down budget. For the top-down budget version, enter the contract amount, the profit fee, and the management fee, and the contract amount left is then the distributed amount. You can use this amount to budget. In the top-down budget version, the activity structure is linked in the Generate Structure and Top Down Budget (tpptc5210m000) session, and you can distribute the distributed amount over the activities in the Top Down Budget Data (tpptc5510m000) session. The version has a derived structure. You can enter new data in a new version if the preliminary version is Final. Time phase bottom-up budget You can time phase the bottom-up activity budget with a top-down budget copy of the bottom-up budget. As a result, the bottom-up budget becomes time phased. Related topics To use a time-phased budget To use distributed amounts |