Requirements › Define Requirement Cost Budget and Estimates

Define Requirement Cost Budget and Estimates

You can define your requirement cost properties using the Cost section on the requirement properties page.

The budgeted cost amount is the allocated cost to deliver the requirement. The budgeted cost does not aggregate up or down the hierarchy of requirements, but is used in top-down planning cycles.

The estimated cost amount is aggregated costs of the requirements hierarchy. Cost estimates are used in bottom-up scoping cycles and represent planned cost to deliver a requirement. The aggregated includes the descendant requirements cost estimates.

Follow these steps:

1. Open the requirement.

   The general page appears.

2. Define the following fields in the Cost section of the page, and save:

   Operating Expense (Budget)

   Defines the requirement budgeted portion of the total cost for operating expenses.

   Capital (Budget)

   Defines the requirement budgeted portion of the total cost for capital expenses.

   Total (Budget)

   Displays the requirement total budgeted cost, based on the following formula:

   Total Cost (Budget) = Operating Expense (Budget) + Capital (Budget)
   

   Currency Code

   Defines the currency to calculate the requirement budget and estimate values.

   Operating Expense (Estimate)

   Defines the requirement estimated portion of the total cost for operating expenses.

   Capital (Estimate)

   Defines the requirement estimated portion of the total cost for operating expenses.

   Total (Estimate)

   Displays the total requirement estimated cost uses the following formula:

   Total (Estimate) = Operating Expense (Estimate) + Capital (Estimate)
   

   Aggregate Operating Expense (Estimate)

   The aggregated requirement including child requirement estimate of the total cost for operating expenses is based on the following formula:

   Aggregate Operating Expense (Estimate) = Operating Expense (Estimate) + Child Requirement Operating Expense (Estimate)
   

   Aggregate Capital (Estimate)

   The aggregated requirement estimate of the total cost for capital expenses is based on the following formula:

   Aggregate Capital (Estimate) = Capital (Estimate) + Child Requirement Capital (Estimate)
   

   Aggregate Total (Estimate)

   The total requirement aggregated cost inclusive of child requirements is based on the following formula:

   Aggregate Total (Estimate) = Aggregate Operating Expense (Estimate) + Aggregate Capital (Estimate)