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Hi all,

Please let me know what are the various budgeting scenarios in PS?

Former Member
Former Member replied

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

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