Budget

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