Zero-Based Budgeting
A budgeting platform implementing Peter Pyhrr's Zero-Based Budgeting (ZBB) methodology: every cost-centre owner rebuilds their budget from zero each cycle by submitting **decision packages** (discrete activities or expenditures), each with multiple **funding levels** (minimum, current, enhanced) and a granular cost breakdown. Packages are ranked within their cost centre, reviewed through an explicit approval workflow, and the chosen funding level becomes the funded amount. The model captures the planning artefacts (cycles, packages, levels, costs) and the governance artefacts (rankings, approval actions, role assignments) but does not model actuals, variance analysis, or downstream GL postings — those live in upstream/downstream finance systems.
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| # | Table name | Singular label | Purpose |
|---|---|---|---|
| 1 | budget_cycles |
Budget Cycle | The planning period (e.g. FY26) over which budgets are rebuilt from zero |
| 2 | cost_centers |
Cost Center | Org unit responsible for justifying its own budget — the ZBB "decision unit" |
| 3 | decision_packages |
Decision Package | A discrete activity, service, or expenditure being justified — the atomic unit of ZBB |
| 4 | funding_levels |
Funding Level | A service-level option for a package (minimum / current / enhanced) with its own cost and benefit |
| 5 | cost_line_items |
Cost Line Item | Granular cost row inside a funding level (e.g. salaries, software, travel) |
| 6 | cost_categories |
Cost Category | Taxonomy of cost types (Salary, Contractor, Software, Travel, Capex, …) |
| 7 | gl_accounts |
GL Account | Chart-of-accounts entry linking cost lines to the general ledger |
| 8 | cost_drivers |
Cost Driver | Quantitative driver reusable across line items (FTE count, transaction volume, square footage) |
| 9 | package_rankings |
Package Ranking | Priority ordering of packages within a cost centre, scoped to a cycle |
| 10 | approval_actions |
Approval Action | Audit-trail entry for a review decision on a package |
| 11 | users |
User | A person who owns, reviews, or approves packages |
| 12 | cost_center_assignments |
Cost Center Assignment | Junction: which user holds which role on which cost centre |
Entity-relationships
flowchart LR
budget_cycles -->|scopes| decision_packages
budget_cycles -->|scopes| package_rankings
cost_centers -->|hierarchy| cost_centers
cost_centers -->|owns| decision_packages
cost_centers -->|has| cost_center_assignments
cost_centers -->|has| package_rankings
users -->|owns| cost_centers
users -->|owns| decision_packages
users -->|performs| approval_actions
users -->|assigned via| cost_center_assignments
decision_packages -->|has| funding_levels
decision_packages ---|selects| funding_levels
decision_packages -->|has| approval_actions
decision_packages -->|ranked in| package_rankings
funding_levels -->|breaks down| cost_line_items
funding_levels -->|actioned in| approval_actions
cost_categories -->|categorises| cost_line_items
cost_categories -->|hierarchy| cost_categories
gl_accounts -->|maps| cost_line_items
gl_accounts -->|hierarchy| gl_accounts
cost_drivers -->|drives| cost_line_items