Planning budgets from the bottom up

Bottom-up budget funding is useful if you are not sure how much funding to allocate from the plan to the child objects but can forecast line items for programs and projects. After you predict all project expenses, you can roll them up to parent programs and plans.

About this task

(See the top-down budget example Planning budgets from the top down.) If you can predict the line item expenses of the New Customer Acquisition project in your Trade show 1 program, you can finalize those line items to roll them up into the expenses for Trade show 1. You can add line item expenses to Trade show 1, if necessary. You can finalize the expenses and roll them up from Trade show 1 to the parent plan, New Product Launch. Start from the bottom-most level and add expenses to projects, programs, and plans until the parent plan accounts for all necessary allocations.

You manage budgeting from projects up to programs and plans in the following way.

Procedure

  1. Create projects and forecast their line item expenses.
  2. Link the projects a parent program and plan.
  3. Finalize the line items on each child object in the plan to roll up the expenses. You can now see how much funding the programs and projects need for successful completion.