| # 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 and 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 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. 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 for budgeting. In the top-down budget version, the activity structure is linked in the Generate Structure and Top Down Budget (tpptc5210m000) session, and you can allocate the distributed amount across 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. Example Derived Structure: A top-down budget Version 1, with an amount of 100,000 USD, is linked to the top of the activity structure. Distribution of the amount (Version 1): Activity 1: 65,000 USD Activity 2: 35,000 USD Create Version 2 with a budget amount of 120,000 USD. The data from Version 1 is transferred to the Version 2 and modified. Distribution of the amount (Version 2): Activity 1: 65,000 USD (linked to Version 1) Activity 2: 55,000 USD (copied to Version 2 and the amount is modified) In Version 2, the data of the top activity and Activity 2 are modified and the Activity 1 has data derived from Version 1. Time phase the 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 Using a bottom-up budget To use a time-phased budget To use distributed amounts |