Balancing The Account By Hand


Determine budget is one of the 47 PMI processes for project management. It is in the planning process group, and the cost management knowledge area.

In this process the components from the process to estimate costs are combined in order to create a cost baseline or approved time-phased budget, excluding management reserves.

After the budget is determined, it is managed according by the control costs process. And it feeds into the develop project management plan with potential updates to the project documents.

Related: budget, earned value, planned value, actual cost

According to the PMBOK, this activity has the following characteristics:

Inputs Tools and Templates Outputs
cost management plan, scope baseline, activity cost estimates, basis of estimates, project schedule, resource calendars, risk register, agreements, organizational process assets cost aggregation, reserve analysis, expert judgment, historical relationships, funding limit reconciliation cost baseline, project funding requirements, project documents updates

Determine budget is described in section 7.3 of the 5th edition of the PMBOK.