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Project System - Negative Budgeting

Former Member
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Hi All,

I know it's kind a weird but my client want to implement Negative Budget at the start of the Project. Their purpose is to project recovery of Costs for Constructions initially accounted as expense but may later be sold for profit.

Is their a way to input a Negative Value at the start of the Project using any Budget Transaction in PS (CJ30/CJ36/CJ37).

Appreciate your inputs.

Cheers,

Joed Villarosa

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Dear,

The clent is investing first then he is get rvenue by selling product.

For the investment you should create Investment project and take the approved budget by CJ30 and the release it by CJ32.And finaly make Asset for this by settelment.

Then you should make the Coustomer Project for that you should get revenue .So CP you have to suggest.

The IP and Cp is two diffrent things.Suggest your client to do so.

Regards.

Former Member
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It is not possible to post negative budget. Functionally the logic is not understandable and it is not possible to have budget with negative value. Since you said initially there will be expense in the project which will be sold at a later date, you should use normal budget itself so that you can control expenses. Selling will have to be done to convert these expenses into revenue. Budget control will still work as it is addressing the aspect of expenses. In effect, there could be a profit or loss in the project based on the revenue and expenses.

I hope this answers the question and clarifies the doubt.

Former Member
0 Kudos

Budgeting would not be possible but can use cost/revenue planning.

Regards

Sreenivas