‘BUDGETING’ is used to augment the planning process at the cost-center level. While planning is considered the ‘bottom-up’ approach, budgeting is regarded as the ‘TOP-down’ method to control costs.

Budgeting usually comes ‘down’ from the ‘top (management)’ and is used to guide the planning process at the cost-center level. NOTE that budgeting is not integrated with postings; you will GET an error when the system comes across a posting that will result in the ACTUAL values exceeding the budget for that cost center.

‘Budgeting’ is used to augment the planning process at the cost-center level. While planning is considered the ‘bottom-up’ approach, budgeting is regarded as the ‘top-down’ method to control costs.

Budgeting usually comes ‘down’ from the ‘top (management)’ and is used to guide the planning process at the cost-center level. Note that budgeting is not integrated with postings; you will get an error when the system comes across a posting that will result in the actual values exceeding the budget for that cost center.