This lesson describes:
• Target, Proposed and Approved budgets 
• Granular planning, using Capital and Expense sub-cost
• Setting a different target budget
• Distributed and Undistributed columns

[MUSIC PLAYING]
Budget planning requires that you know the target budget, how much money is allocated for the portfolio, applied to the entire planning horizon. In this video, we'll take a closer look at setting the target budget and then dividing it for each planning period.

    
1. Target, Proposed and Approved budgets.
There are three key budget planning values. Target budget, the total budget set for the portfolio. Proposed budget, the budget for each project in the portfolio. And Approved budget, the total budget of projects selected and approved for the plan.

2. Granular planning, using Capital and Expense sub-cost.
These budget values can also be planned at a more granular level, using Capital and Expense sub-cost. Enable the cost fields on the budget planning detail window for the portfolio. The target budget is defined using the total cost field in the scenario. If using Capital and Expense, the total cost entered will roll up to the target budget.

3. Setting a different target budget.
A different target budget can be set for each scenario. Distribute the value over the planning horizon. You are defining how much of the budget is allocated for each planning period.

4. Distributed and Undistributed columns.
Use the distributed and undistributed columns to see how much of the target budget is allocated and how much is left. When the Undistributed field displays zero, the allocation is complete. Compare the target budget to the proposed budget of selected projects. The difference between the two is displayed for each time period in the summary section.
[MUSIC PLAYING]