As a rule, the targets set by management are not yet met in the budget created based on bottom-up planning. The difference between the management targets and the interim result of the budget is described as a planning deficit. Through improved synchronization of the individual areas and corresponding management targets, a second budgeting step attempts to fill these planning deficits (top down).
This can result in adjustments to the action planning of departments as well as the correction of unachieved targets by management. The final budget is broken down into components and the individual areas are submitted as a binding guide for the budget year.
| Figure: Bottom up and down | display  |
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