| # Project Budget The purpose of this module is 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. Many other setups are required before you can create a project budget. The activity structure, which is required for activity budget, can be maintained in the PSS module or the external scheduling package, Microsoft Project. To use budgets in a project You can use the Project Planning of Project to draw up, analyze and amend a project budget that can be based on elements or activities. To use a bottom-up budget 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. . Budget adjustments Enter the adjustment codes, budget type and currency that you want to use for a specific project. An adjustment is a modification to a frozen bottom-up budget. 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. To use 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 An analysis 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. ERP Enterprise takes the default for the selected analysis code from: The exchange rate type The effective date The budget line status values To use a control budget The control budget is a derived budget based on the project budget and surcharges. Generate control sata 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. To use purchase budgets A typical actual budget contains cost objects with long purchase periods. Also, the quantities to be purchased can be uncertain. To wait until such information is available can delay the project and prove costly. Using the Purchase Budget sessions, you can procure such cost objects before project execution starts. Generate purchase budgets Generate purchase budgets for one or a range of selected range of projects, elements or activities, cost components and extensions. Update prices and rates in budget 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 dependent on 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). The budget date can be modified collectively instead of opening each budget line individually. Modifying the budget date can result in a change in the currency rates. Check cost object mapping Check the following 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 the project cost object. To use a 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 ERP Enterprise works with a derived-from version structure, the data can come from an older (most recent) version. To use a 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. It compares the amount of work that was planned with work that was actually accomplished to determine if cost and schedule performance are as planned. Display the earned value methods of those activity that are used in the time-phased budget for the current version. Generate time phased budget Generate the budgeted amounts by cost-type for a selected time phased budget analysis code and version. To use an 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. On the basis of parent-child relationships, you can create a multi-level, tree-like hierarchy of elements. To use an activity structure The activity structure is a hierarchical structure commonly 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. To use progress recording During project execution, you record the degree of completion of all or parts of the project. This progress information can form the basis for customer invoicing, or it can be just 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 the Financials and then transferred to Project. To use element-based budget lines If you create elements for your project, and link them in a multi-level hierarchical structure, you can create the element budget. Enter budget line s for each element by using cost objects to the elements. |