Budgeting in projects

[Former Member]

Hi

Without funds management, how can we have a material based (cost element based) control of budgets in WBS elements?

Kindly give some thoughts on this.

Thanks and best regards

Srikrishna

[Former Member]

closed the thread

[Former Member]

Hi,

Scenario here is ,

Budget will be 1000 rs. Distribution is 800 rs to material and 200 rs to labor or other costs.

If we set commitment check i.e. check PRs and POs during availability check.....it will check against 1000 rs. But it should check Procurements i.e. PRs and POs against 800 rs not 1000 rs. Here , distribution is not constant , else we can handle by setting % tolerance for POs. I mean if 80% of budget is always distributed to material, I can set tolerance limit for POs as 80%. But it is not so.

Hope I have clarified the scenario.

Thanks

Saikishore Ganga.

[AKLone]

You can controle it through commitment management activation and then assign proper tolerate limit which won't let system to go beyond released budget even for material component too.