Tuesday, January 6, 2015

After reducing budgeted amount for project, estimated costs for project are still skewed.

The cost may need to be subtracted from the activity expense line (reduce budgeted cost and remaining cost of the expense item) by the project team. Afterwards the project will need to be summarized and then re-baselined to update activity data and account for the new reduced expense cost.

This is a case where they allocate a sum of money for the fiscal year for all things operational support and version upgrades  to  IT systems, and if they decide to do an upgrade or more throughout the year, then they create a new project for the estimated amount and they subtract money from the original bucket (SS operations project).

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