What is 'bottom-up planning' in SAP EPM-NOV-PLA - Planning Content?

bottom-up planning - Overview

• Component: EPM-NOV-PLA

• Component Name: Planning Content

• Description: The process of rolling up values from the lowest level. The planning values are entered first at the lowest level and submitted for approval.

bottom-up planning - Details

• 
  Key Concepts: 
  Bottom-up planning is a type of planning process used in SAP EPM-NOV-PLA Planning Content. It is a method of budgeting and forecasting that starts with individual cost centers or departments and works up to the overall company budget. This approach allows for more detailed and accurate budgeting, as it takes into account the specific needs of each department. 
  
  How to use it: 
  To use bottom-up planning in SAP EPM-NOV-PLA Planning Content, first create a budget for each cost center or department. This should include all expected costs and revenues for the period. Once all budgets have been created, they can be aggregated to create an overall company budget. This can then be used to make decisions about investments, staffing, and other strategic initiatives. 
  
  Tips & Tricks: 
  When creating budgets for each cost center or department, it is important to consider both short-term and long-term goals. This will ensure that the overall company budget is realistic and achievable. Additionally, it is important to review the budgets regularly to ensure that they are still accurate and up-to-date. 
  
  Related Information: 
  Bottom-up planning is often used in conjunction with top-down planning, which starts with the overall company budget and works down to individual cost centers or departments. Both approaches have their advantages and disadvantages, so it is important to consider which approach will best meet the needs