Budgeting in project system

[Former Member]

Dear All

Can anyone explain me about the allocating a budget from planned cost to a project ,I am understanding if i am allocated the 100% planned cost to a project,I am not understanding what is distributed,distributable,remainder.

Regards&Thanks

P.Srinivasan

[Former Member]

solved

[Former Member]

Hi srinivasan,

The concept of Distribution comes when you either directly Budget your project Or when you have converted the planned total to the Budget. Both the operations can be done in CJ30.

When you copy the planned amount to the Budgeted amount in CJ30, the Column “Planned total” is updated.

When you prepare a Budget, it’s generally “Total up” from the lower level WBS element. Distribution of the Budget is generally Top down.

Firstly when you allocate the budget in the “Budget” Column, then the same will immediately appear in the “Current Budget” and “Distributable”. This means that the “Distributable” amount is ready to be distributed to lower level WBS elements. You can enter the required amount directly under the Column “Budget” of the corresponding lower level WBS element. Once you do this, the Column “Distributed” of the higher WBS element is updated, by the amount which is “Distributed”.

The column “Assigned” is updated once you have assigned any cost to the project. (Commitment plus Actual)

If you are working with Release Function of the Budget ( CJ32), then the Column “ Release” will be updated ( which can be seen in CJ30). In this case, you will be able to use only the released budget and not the Current budget.

Hope this explanation helps.

Warm regards,

Srinivas Potluri

[former_member221039]

Dear Srinivas,

I have query in Project system with regard to budgeting to more than one WBS elements.

I have the following structure of project wbs elements, pl let me know how i can assign the budget at cj30 & release cj32.

total number of wbs elements in project;

WBS element ; 2000/capital/100001-0 (parent wbs element)

2000/capital/100001-1

2000/capital/100001-2

2000/capital/100001-3

I have 3 networks separately and assigned to 1,2,3

planned costs in Network 1 (WBS1) : 100k

Network 2 (WBS2) : 100k

Network 3 (WBS3) : 100K

Now, pl let me know, how budget assignment to be done at CJ30,

my guess is like this at cj30 screen

2000/capital/100001 -0 300

2000/capital/100001 -1 100

2000/capital/100001 -2 100

2000/capital/100001 -3 100

kindly confirm what is procedure

regards

Srihari

[Former Member]

Hi Shrihari,

What I guess from your question is that you have a project structure where-in you have one "level 1" WBS element and three "Level 2" WBS element. And that Level two WBS elements have a network assigned to each one of them.

In this case, Or in any similar case, you can plan the budget in the lowest level WBS elements and use the "Total Up function" in CJ30 so that the Budget is Totaled UP the hierarchy.

You can as well Budget the project directly in each of the WBS element, without using the "Total up" function. ( As you have suggested in your question).System will allow you to directly input the values. After inserting the values, you can use "Check " Function in the same transation to cross check the Budget consistency within the project.

Warm regards,

Srinivas Potluri