The budget is the device by which the management approves the expected development of project costs over a given timeframe.
The Project System recognizes the following different budget types:
• Original Budget
The original budget is the budget originally allocated - that is, the budget before any updates were carried out.
• Budget Updates
Unforeseen events, additional requirements, price rises, and so on, may mean that you need to correct the original budget - that is, budget updates are necessary. These take the form of:
- supplements (Increase in the amount budgeted for a WBS element)
- returns (Decrease in the amount budgeted for a WBS element)
- transfers (Moving a portion of the budget of one WBS element to another)
• Current Budget
The current budget is calculated as follows:
Original budget
+ Supplements
- Returns
+/- Transfers
= Current budget
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.