The budget is the approved cost limit for a project.

It differs from project cost planning due to its binding nature. Whereas the project costs need to be estimated as accurately as possible during the planning phase, the funds are predetermined as a budget in the approval phase. The budget is the limit set by management for project costs over a certain period of time.

The project system has the following types of budget:

• Original budget
  The original budget is the budget that was allocated originally. From a time that you specify, this budget can only be corrected using budget updates.

• Budget updates
  Unforeseen events, extra jobs required, such as an increase in cost of external activity can meant that the original budget needs to be corrected, so budget updates are required. These are made in the following ways:

• Supplements
• Returns
• Budget transfers

• Current budget
  The current budget is derived from:

This section describes: