UPDATE with CASE and IN – Oracle

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You said that budgetpost is alphanumeric. That means it is looking for comparisons against strings. You should try enclosing your parameters in single quotes (and you are missing the final THEN in the Case expression).

UPDATE tab1   
SET budgpost_gr1=   CASE  
                        WHEN (budgpost in ('1001','1012','50055'))  THEN 'BP_GR_A'   
                        WHEN (budgpost in ('5','10','98','0'))  THEN 'BP_GR_B'  
                        WHEN (budgpost in ('11','876','7976','67465')) THEN 'What?'
                        ELSE 'Missing' 
                        END

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