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Funding Limit reconciliation

Posted: Sat Jan 24, 2015 2:43 am
by coolpmp69
Can anybody explain in simple words as to what is Funding Limit reconciliation as PMBOK is confusing? Are we comparing the project cost (cost baseline) with the a planned /budgeted amount and adjusting them?

Re: Funding Limit reconciliation

Posted: Sat Jan 24, 2015 5:21 am
by kniraj
My understanding ...
It is like looking at the funding constraints of the project. Our cash flow may not be consistent throughout out the duration of the project and hence the spend needs to planned accordingly. For ex - in the first month the cash flow is only $x and project cannot spend more than that but in the next we can spend $x+3. Once these limits are know we need to adjust the schedule, resourcing etc in line with this.

Will request experts on the group as well to provide their views.

Re: Funding Limit reconciliation

Posted: Sat Jan 24, 2015 7:02 am
by saket
I agree with Niraj.

Its like managing how the fund inflow should be projected or taken which ensures the funds outflow, so its like we get manage our Salary flow in the start of the month with the expenses we do through out the month , its funding limit reconciliation

Re: Funding Limit reconciliation

Posted: Sat Jan 24, 2015 7:02 am
by signor_rk
Here is a unique explanation by Saket in PMZilla Forum. Please have a look:

http://pmzilla.com/question-saket-sir

Thanks

Re: Funding Limit reconciliation

Posted: Sun Jan 25, 2015 1:40 am
by coolpmp69
Thanks everyone..makes sense now