Budget Consists of quantities and cash flow required to complete a project. In the Planning stage project manager and other stakeholders need to estimate scope and budgets. As the scope changes, budget also needs to be adjusted to compensate. Primavera is helpful in establishing these budgets and tracking the changes in the budgets.
In this Tutorial, let us learn how to establish budgets, establish monthly spending plans, implement changes to it and tracking monthly spending and variances right from EPS to Project and to WBS level.
In the planning stage, we start the budgeting from the top level, like dividing the budget available to the EPS nodes for the duration of the projects. And then respective managers divide this budget to the projects for which they are responsible in each EPS node. Let us consider with an example here. Considering that we have $6000 allotted for an EPS node and it is having two projects and we divide this $6000 equally to these two projects as $3000 each.
Once the budgeting is done at the EPS nodes, and then distributing them to the next level of projects, you need to establish a spending plan to keep track of cash flows for each EPS node and Project.
You can establish budget estimates at the planning stage, then refine them as projects progress
For Establishing Budgets, Go to the Projects window. Select the EPS Node, here for example let us consider EPS node “SAMPLE”, go to the details in the bottom of the window and choose “Budget Log” tab, enter the total budgeted amount you anticipate for this EPS in the Original Budget field as “$6000”.