What is the main purpose of cost planning in GFEBS?

The main purpose of cost planning in GFEBS (General Fund Enterprise Business System) is to facilitate budget formulation and tracking. This function is critical because it ensures that financial resources are allocated effectively within the confines of strategic objectives. Cost planning involves estimating the costs associated with various tasks and projects, which aids in creating a budget that accurately reflects anticipated expenses.

By enabling detailed tracking of expenditures against the set budget, cost planning enhances transparency and allows for timely adjustments if spending deviates from expectations. This process provides managers and decision-makers with the necessary insights to monitor financial performance and make informed decisions about resource allocation.

In essence, effective cost planning is foundational for maintaining financial discipline, supporting project execution, and ensuring that available funds are utilized in alignment with organizational goals.