What is the difference between Top Down Budget and Bottom Up Budget?

While creating a budget in the Projects module, the user must select one of the following budget methods:

Top Down (Allocation Method): The total budget is allocated at the sub-project level and then distributed to lower levels like work categories, sub work categories and so on.

Bottom Up (BOQ Sum Method): The budget is derived by summing up the estimated costs from the BOQ, building up the total from detailed line items.

Each method supports different planning approaches depending on project complexity and estimation practices.