Budget Process

The normal budget looks as follows:

1. Sales planning
2. Production planning
3. Purchasing planning
4. Coordination
5. In case of no co-ordination: back to step 1
6. In case of coordination: translate into finance (investment budget, liquidity budget)
7. What if financial budgets are not realizable? Back to step 1 but use the 'cheese cutter'
8. In the end: budget for each department, the basis for management control