Create Detailed Financial Plans

Detailed financial planning allows you to estimate funding for your investments using cost plans. You can get approval for the funding using budget plans. As part of the approval process, you can associate your cost plans with benefit plans to estimate the benefit from your investments.
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Detailed financial planning allows you to estimate funding for your investments using cost plans. You can get approval for the funding using budget plans. As part of the approval process, you can associate your cost plans with benefit plans to estimate the benefit from your investments.
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Prerequisites for Creating Detailed Financial Plans
Before you create detailed financial plans, verify that the following items exist:
  • Set up a financial entity and define fiscal time periods for the entity.
  • Set up a financially enabled investment.
  • See 
    Access Rights Reference
     and verify that each user has the appropriate access rights to work with financial planning.
Select a Financial Plan View
The following views provide cost plan or budget plan details:
  • Investment Currency View: This default view shows only the data for the selected cost plan or budget. No child data appears. The view shows cost and revenue details in the investment home currency with grouping attributes presented in separate columns. If you have the appropriate access rights, you can edit the view.
  • Billing Currency View: This view is the same as investment Currency View except it shows the cost and revenue details in the billing currency that is based on a predefined exchange rate. The Billing Currency View applies to a multi-currency system where the billing currency is different from the investment home currency. 
    The exchange rate that is used in the billing calculations depends on the following factors:
    • The investment currency or the entity home currency and the billing currency set in the investment financial properties.
    • The exchange rate type that is driven by the transaction type (for example, labor transaction, material transaction, and so on) set in the investment financial properties. The average exchange rate is always used.
      The following billing calculations are triggered when either the cost or the revenue changes in the financial plan for a given row:
      • Billing Cost calculated as Cost * Exchange rate
      • Billing Revenue calculated as Revenue * Exchange rate
      • Total Cost is the sum of Billing Cost
      • Total Revenue is the sum of Billing Revenue
      A change in the exchange rates or billing currency does not trigger recalculation of billing amounts.
Follow these steps:
  1. Open an investment.
  2. Open the Financial Plans menu and click Cost Plans, Benefit Plans, or Budget Plans.
    The plan list page appears.
  3. Click the plan name to open the plan details.
  4. Select the view that you want from the Show drop-down.
Create Cost Plans
Cost plans are an alternative to financial summaries if you want to create a detailed plan that spans more than one fiscal time period. You can track planned costs, actual costs, and variances over the lifetime of an investment. In addition, you can break down data by different grouping attributes or criteria. You can define a cost plan manually or can populate it automatically and submit it as an investment budget for approval.
Use cost planning to facilitate your organizational financial planning process and to enforce standards. A cost plan consists of the following items:
  • Grouping attributes
  • Line item details
: In case you delete all your cost plans including the plan of record, you can use the financial summary page to define cost planning data for your investment. Any associated budget plans are not deleted as you may want to use them for future reference. See
Create Financial Summaries
for more information.
You can configure a cost plan to display the following revenue fields. These fields are not available by default. Posted transactions must exist for these fields to display values.
  • Actual Unit 
    Displays the aggregated actual unit for a given fiscal period.
  • Actual Cost
    Displays the aggregated actual cost for a given fiscal period that is calculated as Actual Units * Cost.
  • Actual Revenue
    Displays the actual billing rate for a given fiscal period that is calculated as Actual Units * Rate.
  • Cost Variance
    Displays the delta between Cost and Actual Cost.
  • Revenue Variance
    Displays the delta between Revenue and Actual Revenue.
  • Units Variance
    Displays the delta between Units and Actual Units.
Example: Manage a Cost Plan
Cost planning starts at the investment level and goes through multiple iterations of cost projections and reviews to produce the final approved budget. Investment budgets roll up to the department level and then roll up to higher levels as desired. To streamline this planning process, financial controllers can standardize the ways to capture and break down costs for the entire organization. These standards ensure that all the costs are easily recognized and roll up to the desired levels. Financial controllers can implement standardized budget approval processes to review and approve individual and departmental budgets.
The following is one example on how to manage cost plans based on standards that are defined by the financial controller. When a finance manager approves a cost plan, it becomes the budget plan for an investment.
  1. Financial controller sets global default standards at the entity level to suggest the recommended cost planning structure.
  2. Project manager does the following:
    • Creates cost plans for an investment as estimates for a budget.
    • Designates a specific cost plan as the POR.
    • Optionally, associate the POR with a benefit plan.
    • Submits the POR for budget approval.
    • Optionally, associate a benefit plan with the submitted budget.
  3. Finance manager or other designated authority approves or rejects the submitted cost plan as the budget plan.
Plan of Record
The plan of record (POR) is the cost plan that you intend to use as the budget plan for an investment. If there is an existing approved budget plan, you can use the POR to create a new budget plan. The first cost plan that you create for an investment becomes the POR by default. You can reassign the POR to any plan and submit it for budget approval. You can keep the remaining cost plans for future use or reference.
 
In case you delete all your cost plans including the plan of record, you can use the financial summary page to define cost planning data for your investment. Deleting the POR or other cost plans does not delete any associated budget plans.
When you add an investment to a portfolio, the cost plan POR is automatically associated with all portfolio scenarios that are related to that investment. This association with the POR verifies that the investment costs are included in the portfolio scenarios. Later, if you select a different POR for the investment, the new POR is used in the portfolio provided no approved budget exists for the investment. Once a budget is approved, switching the POR has no effect on the value that is displayed on the financial summary pages of the investment. The financial summary value is the same value that is shown in the portfolio.
Grouping Cost Plan Data
You can group cost plan data using different attributes or criteria to view a breakdown of the data by time period. The structure of the cost plan line item details is based on these grouping attributes and the selected time periods.
The financial controller can set default grouping attributes globally when defining an entity. The project manager can change the default attributes when defining the initial cost plan scope at the investment level. Only the grouping attributes that you define in the initial scope are available for selection when adding line item details. You must select at least one value for each available grouping attribute or select the option to automatically populate the line item details. Individual line item detail rows are created for each unique combination of selected values for all available grouping attributes.
When defining a cost plan, if you do not select a particular grouping attribute, it is hidden from the cost planning pages but is still available from the configuration pages. You do not need to configure the page to manually hide the attribute.
Cost Plan Line Item Details
This example shows you how line item detail rows are created in a cost plan based on the values that are selected from the available grouping attributes.
  1. Jim, the project manager for the ARP project at Forward, Inc. creates a cost plan and selects the following grouping attributes:
    • Location
    • Department
  2. In the cost plan details, Jim selects the following values for each of the grouping attributes:
    • Location: Boston, MA and San Francisco, CA
    • Department: Software Development and Corporate IT
    The system creates line item detail rows that are based on each unique combination of selected location and department value.
    Jim can now define the unit and cost values for each time period and view a breakdown of the cost plan for each unique combination of department and location.
Manually Define Cost Plans
You can create a cost plan manually or automatically populate a cost plan. The following steps describe how to manually define a cost plan.
Before you can create cost plans, verify that the following items exist:
  • Set up active fiscal time periods.
  • Set up a financially enabled investment.
Follow these steps:
  1. Open Home, and from Portfolio Management, click an investment (for example, Projects).
    The list page appears.
  2. Open the investment.
    The properties page appears.
  3. Open the Financial Plans menu and click Cost Plans.
    The cost plans list appears.
  4. Click New Manual Plan.
    The create page appears.
  5. Complete the following fields:
    • Plan Name
      Defines the name for the cost plan.
    • Plan ID
      Defines the unique ID for the cost plan.
    • Description
      Describes the cost plan.
    • Period Type
      Defines the type of time period for the plan. 
      Default:
       The period type as defined in the entity plan defaults. If no period type is specified in the plan defaults, the period type from the entity properties is populated.
      Values:
       13 Periods, Weekly, Semi Monthly, Monthly, Quarterly, and Annually
    • Plan Start Period
      Defines the fiscal start period of the cost plan. 
      Default:
       The start period is defined in the entity plan defaults. If no start period is specified in the plan defaults, the start period is based on the entity period type and start date of the project. If no active period is found for the project start and end date, no default start period displays.
    • Plan End Period
      Defines the fiscal end period of the cost plan. 
      Default:
       The end period is defined in the entity plan defaults. If no end period is specified in the plan defaults, the end period is based on the entity period type and the end date of the project. If no active period is found for the project end date, no default end period displays.
    • Benefit Plan
      Defines the benefit plan that is associated with the cost plan.
    • Currency
      Displays the entity home currency.
    • Plan of Record
      Indicates if this cost plan is the plan of record.
    • Grouping Attributes
      Defines the categories to use to define the cost plan line item detail structure.
      Default
      : The grouping attributes are defined in the entity plan defaults.
  6. Save the changes, and click Detail.
    The cost plan details page appears.
  7. Click Add.
    The page to select grouping attribute values appears.
  8. Select one or more values for each grouping attribute and save. Select at least one grouping attribute before saving a cost plan. Grouping attributes not selected in the cost plan properties are not displayed in the line item details.
    A line item detail row is created for each unique combination of selected grouping attribute values.
  9. Review or complete the following fields as desired. You cannot edit the total fields:
    • Total Cost
      Displays the total cost based on the costs specified for each time period.
    • Total Units
      Displays the total units based on the units specified for each time period.
    • Total Revenue
      Displays the total cost based on the unit and cost specified for each time period.
    • % Total
      Displays the percentage for that line item detail based on the total cost.
    • Unit, Cost and Revenue Details
      Defines the work effort units, cost, and revenue for each cost plan time period. The work effort units are based on the role or resource availability for the associated investment.
  10. Save the changes.
Automatically Populate Cost Plans
When creating a cost plan, you can automatically populate the plan using values from the task assignments or investment team (that is, resources or roles). Automatically populating a cost plan saves time.
You can also repopulate an existing cost plan.
Values are auto-populated in a cost plan, based on the following predefined financial attributes:
  • The start and end periods are based on the fiscal period type of the associated entity and the start and end dates of the associated investment.
    The auto-populate uses the investment start and finish dates to determine active fiscal time periods defined on the associated entity. All fiscal time periods are populated ignoring the freeze date defined in the entity plan defaults.
  • The grouping attributes are based on the default grouping attributes defined on the associated entity. If default grouping attributes are not defined on the entity, you can define these attributes in the cost plan.
  • The values for the grouping attributes are based on the investment team or task assignments.
  • The costs and revenues for the resources are based on the costs and rates defined in the financial cost/rate matrix that is associated with the investment. Verify that a cost/rate matrix exists that covers the entire duration of the investment that the cost plan is associated to. If cost/rate is not defined in the matrix for the investment period, an error message appears.
  • The matrix is associated with the investment under the appropriate section. For example, for labor, associate the matrix under the Labor Transaction Rates section.
  • The work units are based on the sum of the work units of all roles or resources. The roles or resources come from either the investment team or task assignment with the same grouping attribute values as in the line item detail row.
  • When populating from the investment team, every team member is a candidate row. However, if two team members have the same grouping attribute values, one line item detail row is created to represent both team members. For example, if grouping is by Transaction Class and Department, and two team members have the same transaction class and department, the product creates one cost plan line item detail row. This row represents the sum value from both records because each detail row must contain a unique combination of grouping attribute values.
  • The product overwrites cost, revenue, and unit amounts on manually-created rows only if the row has grouping attributes that exist on the investment.
When you auto-populate a cost plan, both labor and non-labor resources use the department and location OBS units associated with the source location value in the entity. For example, if the source location value for a resource is "Investment" in the entity, the departments and locations associated with the investment are used for the planned amounts. For actual transaction amounts, both labor and non-labor resources use the department and location OBS units associated with the WIP settings. For example, in a cost plan that is grouped by department or location, you can end up with two rows when the WIP settings use the employee source and the entity settings use the investment source.
Populate Cost Plans from Investment Team
When you auto-populate a cost plan from the investment team, the system uses the values in the following table from the investment team members to populate the cost plan fields. If a value is not defined for a team member, either the corresponding value on the investment is used or the field is left blank.
 
Value
Team Member
Primary Source
Secondary Source
Charge Code
Resource or Role
Investment
None. The field is blank if the value is undefined on the investment.
Cost Type
Resource or Role
Investment
Based on the Capitalization% specified at the team level for the resource or role, capital or operating values are passed to the associated cost/rate matrix. The corresponding cost breakdown by capital and operating values is displayed on the cost plan details, provided the following conditions are true:
  • Cost Type is an assigned column on the cost/rate matrix.
  • Cost Type is a grouping attribute on the cost plan detail. 
N/A (Cost type is a required field for an investment)
Input Type Code
Resource
Resource
None. The field is blank if the value is undefined on the resource, or if the team member is a role.
Input Type Code
Role
N/A
The field is blank if the team member is a role.
Department
Labor Resource
Entity source location
Investment
Department
Non-labor Resource
Entity source location
Investment
Department
Role
Staff OBS Unit
Investment
Location
Labor Resource
Entity source location
Investment
Location
Non-labor Resource
Entity source location
Investment
Location
Role
Staff OBS Unit
Investment
Transaction Class
Resource
Resource
None. The field is blank if the value is undefined on the resource.
Transaction Class
Role
Role*
None. The field is blank if the value is undefined on the role.
Resource
Resource
Team Member
None
Resource
Role
NA
The field is blank if the team member is a role.
Resource Class
Resource
Resource
None. The field is blank if the value is undefined on the resource.
Resource Class
Role
Role*
None. The field is blank if the value is undefined on the role.
Role
Resource
Team role
If there is no team role, the resource primary role is used. The field is blank if the resource has no primary role.
Role
Role
Team role
If there is no team role, the team member (role) is used.
*The role that is obtained for the Role attribute.
Example: Populating Line Item Details from Investment Team
This example shows you how a cost plan line item detail row is automatically populated with cost and revenue values from the investment team.
  • Jim, the project manager at Forward, Inc. creates a cost plan for the ARP project using the following information to define the scope of the plan:
    • Monthly fiscal time periods from January 1 to March 31
    • Grouping attributes: Resource, Role, Transaction Class
  • Jim selects the option to populate the cost plan line item details from the investment team.
  • Based on defined cost plan scope and the project team member values, the system internally identifies the row in the following table as a candidate line item detail row:
Resource
Role
Transaction Class
Location
Department
Sam Ricci
Developer-1
Billable
Los Angeles
Development
  • The system passes the financial attributes values from the candidate row to the cost/rate matrix in the following table that defines costs based on role and location values. The system passes all financial attributes that are supported by the cost/rate matrix (not just grouping attribute values).
Role
Location
Cost
Developer-1
San Francisco
85
Developer-1
Los Angeles
83
Developer-2
San Francisco
75
Developer-2
Los Angeles
72
  • The system identifies "83" as the applicable cost after matching the role, location, transaction class, and other financial attribute values to the rows in the matrix.
  • Based on the cost and the candidate row identified earlier, the system creates the line item detail row, in the following table, in the cost plan:
Resource
Role
Transaction Class
Jan 1 - Jan 31
Feb 1 - Feb 29
Mar 1 - Mar 31
Sam Ricci
Developer-1
Billable
83
83
83
Populate Cost Plans from Task Assignments
When you automatically populate a cost plan from the task assignment, the product uses the values in the following table from the task assignments to populate the cost plan fields. If a value is not defined for an assignment, either the corresponding value on the investment is used or the field is left blank.
Value
Task Assignment
Primary Source
Secondary Source
Charge Code
Resource or Role
Task
Investment. The field is blank if the value is undefined on the investment.
Cost Type
Resource or Role
Task
Investment
Input Type Code
Resource
Resource
None. The field is blank if the value is inactive or undefined on the resource, or if the resource is a role.
Input Type Code
Role
Not Applicable
None. The field is blank if the task assignee is a role.
Department
Resource
Entity source location
Investment
Department
Non-labor Resource
Entity source location
Investment
Department
Role
Staff OBS Unit
Investment
Location
Resource
Entity source location
Investment
Location
Non-labor Resource
Entity source location
Investment
Location
Role
Staff OBS Unit
Investment
Transaction Class
Resource
Resource
None. The field is blank if the value is undefined on the resource, or if the task assignment is a role.
Transaction Class
Role
Role*
 
Resource
Resource
Task Assignee
 
Resource
Role
Not Applicable
If the task assignee is a role, then the field is blank.
Resource Class
Resource
Resource
None. The field is blank if the value is undefined on the resource.
Resource Class
Role
Role*
None. The field is blank if the value is undefined on the role.
Role
Resource
Task role
Team role. If the team role is undefined, the resource primary role is used. The field is blank if the resource primary role is undefined.
Role
Not Applicable
Task role
Team role. If the team role is undefined, the team member (role) is used.
* The role that is obtained for the Role attribute.
Prepare to Automatically Populate Cost Plans
Complete these steps to set up cost plans to populate automatically:
  1. Define plan defaults in the entity for fiscal time period type and grouping attributes.
  2. Define costs and rates in the cost/rate matrix.
  3. Financially enable the investment, associate a cost/rate matrix, and assign active roles or resources to project tasks.
  4. Financially enable the resource or role. This action is recommended for more accurate cost projections.
Populate Cost Plans Automatically
Create a new cost plan by auto-populating the plan using values from the investment team or task assignments.
Follow these steps:
  1. Open Home, and from Portfolio Management, click an investment.
    The list page appears.
  2. Open the investment.
    The properties page appears.
  3. Open the Financial Plans menu and click Cost Plans.
    The cost plans list appears.
  4. Open the Actions menu, and from General, click one of the following:
    • New from Investment Team
    • New from Task Assignments
    The properties page appears showing the default values from the associated entity and investment. You can accept these default values or change them.
  5. Enter a name, ID, and description for the cost plan.
  6. Save the changes. 
    The cost plan details page appears. The line item detail rows are also populated from the investment team or task assignments.
  7. (Optional) Open the Actions menu, and from General, click one of the following to populate the cost plan details:
    • Populate from Investment Team
    • Populate from Task Assignments
  8. Save the changes.
Edit Cost Plans
You can edit the unit and cost details in a cost plan by clicking in the fields on the user interface and changing the values. You can only edit the cost plan for periods outside the freeze date defined in the entity plan defaults.
Follow these steps:
  1. With the cost plan open, go to the correct time period for your plan using the left and right arrows in the Unit, Cost and Revenue Details section.
  2. Edit the following fields:
    • Units
      Displays the number of units for the time period.
    • Cost
      Displays the cost for the time period.
    • Revenue
      Displays the revenue for the time period.
  3. Save the changes.
Create the Plan of Record
Make a cost plan the plan of record (POR) to prepare to submit the cost plan for budget approval.
Follow these steps:
  1. Open the investment.
  2. Open the Financial Plans menu and click Cost Plans. 
    The cost plans list appears.
  3. Click the Set Plan of Record icon next to the plan you want as the plan of record.
    A check mark appears in the Plan of Record column for the plan selected.
    You can now submit the cost plan to be approved as the budget.
Create Benefit Plans
Creating a benefit plan and associating it with a cost plan allows you to calculate ROI or NPV on an investment. Although cost plans can go through an approval process to become a formal budget, you do not need to approve benefit plans. While a benefit plan can be associated with an unlimited number of cost plans, a cost plan can have only one associated benefit plan.
To manage your benefit plans, create new plans to associate with cost plans or update existing plans.
You cannot delete a benefit plan that is associated with a cost plan.
Follow these steps:
  1. Open the investment.
  2. Open the Financial Plans menu and click Benefit Plans.
  3. Click New and complete the requested information. The following fields require explanation:
    • Period Type
      Defines the time period unit that appears on the benefit plan.
    • Plan Start Period
      Defines the first time period to include in the plan.
    • Plan End Period
      Defines the last time period to include in the plan.
  4. Save the changes.
Add Line Item Detail to Benefit Plans
Use these steps to add line item details to a new benefit plan. The details that you add appear under the Detail field on the benefit plans details list page. You can only define details for the time periods that are applicable to the benefit plan.
Follow these steps:
  1. With the benefit plan open, click Add.
  2. Enter the benefit plan details in the Detail field.
    Add as many benefit details as needed.
  3. Save the changes.
    The benefit plan details appear listing the details that you entered.
  4. For each benefit detail, complete and review the following fields in the Benefit Details section.
    • Benefit
      Defines the planned benefit amount for the time period.
    • Actual Benefit
      Defines the actual benefit amount for the time period.
    • Variance
      Displays the difference between the actual and the planned benefit for the time period.
  5. Save the changes.
  6. Review the following fields for each benefit detail line item:
    • % Benefit
      Displays the percentage of the benefit detail line item as it contributes to the total benefit plan.
    • Total Benefit
      Displays the total benefit for the benefit detail line item.
    • Actual Benefit
      Defines the actual benefit amount for the time period.
    • Variance
      Displays the difference between the actual and the planned benefit for the time period.
Associate Benefit Plans with Cost Plans
Use these steps to associate a benefit plan with a cost plan.
Follow these steps:
  1. With the cost plan open, click Properties.
  2. In the Benefit Plan field, select a benefit plan.
  3. Click Save.
Associate Benefit Plans with Submitted Budgets
The benefit plan that is association to a cost plan carries over to the submitted budget. This association can only be changed while the budget is in a submitted state. Once approved, the benefit plan association cannot be changed.
Follow these steps:
  1. With the budget plan open, click Properties.
  2. In the Benefit Plan field, select a benefit plan.
  3. Click Save.
Create Budget Plans
When a cost plan is approved, it becomes the budget plan for an investment. You can submit a portion of a cost plan for approval by varying the start and end dates for the submission. Only the portion between the new start and end dates is submitted for approval. When a cost plan is approved, it becomes a budget plan with a new version number. If there is a previous budget, it is saved separately and can be viewed but not edited.
When submitting a cost plan as a budget plan, remember these rules:
  • If a budget plan exists, the submitted cost plan must include the same grouping attributes to merge the submitted cost plan data with the existing budget plan data. If the grouping attributes are not the same, replace the existing budget plan or cancel the submission.
  • You can only submit or approve one budget plan at a time.
  • When a submitted budget is approved, the budget plan becomes the POR.
  • You can edit a submitted budget, but you cannot edit an approved budget.
  • If an approved budget exists, the submitted cost plan data can be either merged with or can replace the approved budget.
Submit Cost Plans as Budget Plans
Submit a cost plan as a budget plan to create a new approved budget, or to update the budget after updating the cost plan. A cost plan must be designated as the POR before you can submit it for approval. If an approved budget plan exists, and you create or update a cost plan as the new POR, you can submit the POR to merge with the approved budget plan or to replace the budget plan.
Follow these steps:
  1. Open the investment.
  2. Open the Financial Plans menu and click Cost Plans. 
    The cost plans list appears.
  3. Copy the value in the ID field. You need this value in one of the following steps.
  4. Open the Actions menu, and from General, click Submit Plan of Record for Approval.
  5. Complete the requested information. 
    The following fields require explanation:
    • Plan ID
      Defines unique ID for the budget plan. Paste the ID value in this field.
    • Plan Start Period
      Displays the start period of the budget plan. To submit a portion of the cost plan rather than the whole plan for budget, select a different start period.
    • Plan End Period
      Displays the end period of the budget plan. To submit a portion of the cost plan rather than the whole plan for budget, select a different end period.
    • Grouping Attributes
      Displays the grouping attributes of the cost plan.
      If you want to merge the cost plan with an existing approved budget, the grouping attributes of the cost plan need to match. If they are different, you can either replace the entire budget plan, or cancel the approval request.
    • Submit Options
      Specifies whether to merge the cost plan that you are submitting with the approved budget, or to replace it.
      This option is hidden if you submit the first cost plan for approval. The option is set to Replace and is read-only if the grouping attributes or time periods are different from the attributes in the approved budget.
  6. Click Submit for Approval.
    The cost plan designated as the POR is submitted as a budget plan.
Approve or Reject Submitted Budget Plans
Use these steps to approve or reject a submitted cost plan as a budget. Before approving or rejecting a budget plan, you can edit the fields in the Unit, Cost, and Revenue Details section as needed. You can also add line item details to the plan.
You cannot edit an approved budget. Submit a new budget for approval to replace the old budget.
Follow these steps:
  1. Open the investment.
  2. Open the Financial Plans menu, and click Budget Plans. 
    The budget plans list appears.
  3. Open the submitted budget plan. 
    The budget details appear.
  4. Edit the fields in the Unit, Cost, and Revenue Details section, and save the changes.
  5. Click Approve or Reject.
Create a Budget Revision
An approved cost plan becomes the budget plan for an investment. Because elements of an investment change, you can revise various parts of the budget, or can replace the budget entirely. You can make two types of revisions to an approved budget plan:
Merged Budget Plan Revision
  • Submit a cost plan with new line items and merge the changes with the existing budget plan.
  • Submit a portion of a cost plan by varying the start and end dates for the submission, or update the field values in specific time periods. You can submit only the changed time periods and can merge them with the budget.
Replacement Budget Plan Revision
  • Submit a cost plan with deleted line items and replace the budget to remove those line items from the budget plan.
  • Create a cost plan, using different grouping attributes or time period types, and replace the budget.
Both revision types provide approval history. However, the replace feature enables you to delete line items that are no longer needed, and to revise grouping attributes and fiscal time periods.
When you submit a cost plan that revises an existing budget, you specify whether to merge or replace using the Submit Options pull-down list. This field appears only when there is at least one approved budget. If the new cost plan has a different structure than the existing budget, Replace is the only option.
When your cost plan is approved, it becomes the revised budget plan with a new version number. You can view the previous version of the budget, which is saved separately. You cannot edit either previous budget plans or the current approved budget plans.
The following diagram shows how a financial administrator creates a budget revision.
Image describing how a financial administrator creates a budget revision
Image describing how a financial administrator creates a budget revision
 
Example: Revise the Budget Plan
The following example illustrates the options for updating the budget plan throughout this article. Forward Inc. has a new project that is planned for later this year. Alice manages the project and has already created a cost plan (ProjectA_estimatedCP-00) with the required roles and estimated costs.
She needs the following roles:
  • One software architect
  • Three Java software engineers
  • Two test engineers
Alice has not yet staffed the project. In her submitted cost plan, she added roles for each of the positions and populated the cost plan for the six months of the project.
When creating the cost plan, Alice used the following properties for her cost plan:
  • Grouping attributes: Role
  • Time period type: Quarterly.
  • Start and End Dates: July 2 - December 31
She submitted the estimates for approval as the current budget plan. Alice's product manager approved the estimated budget. The manager knows that the budget will change before the project begins.
Complete these steps:
Review the Prerequisites
To complete all tasks, consider this information:
Access Rights
Have the following access rights:
    • Financial - Cost Plan - Edit
    • Financial - Financial Plan - Submit for Approval
    • Project - Budget Plan - View
    • Project - Budget Plan - Edit
Completed Tasks
Complete the following tasks before you begin:
    • Create a cost plan for the investment.
    • Specify the cost plan as the Plan of Record (POR).
    • Submit the POR for approval and have it approved as the budget plan for the investment.
Other Information
After you submit a cost plan for approval, it becomes the submitted budget plan. You can edit the submitted budget plan; you cannot edit the budget plan after it is approved.
Add Line Items to the Budget
Add line items to the cost plan and merge the new lines into the budget. For example, you can add a role to a cost plan, and can submit the cost plan for approval as a merged change.
Example: Revise the Budget with a New Role
Alice determines that the new project needs a technical writer to document the online help. She adds the role of Senior Technical Writer to the cost plan, and submits the revised plan, ProjectA_estimatedCP-00, as a merged revision to the budget.
Follow these steps:
  1. Open Home, and from Portfolio Management, click the appropriate investment type; for example, Projects.
  2. Open the investment and click Financial Plans.
  3. Open the Financial Plans menu and click Cost Plans.
  4. Open the cost plan.
  5. Click Add to add the new line item.
    The Cost Plan Detail: Properties page appears and displays fields for each grouping attribute that appear in the cost plan. For example, if Role is a grouping attribute, then the Role field displays.
  6. Select the values for the new line item (for example, roles) that you want to add.
  7. Click Save and Return.
  8. Enter the time period detail for the line item.
  9. Save your changes and click Return.
  10. Click Actions and select Set as Plan of Record.
    If the cost plan is already the plan of record, skip this step.
  11. Click Yes to confirm.
  12. Click Actions and select Submit Plan of Record for Approval.
    If you receive the message
    Error:A submitted budget already exists
    another cost plan for the investment exists as a submitted budget plan.
    The submitted budget plan must be approved or rejected before you can submit another plan for approval.
  13. Enter the requested values.
  14. Select Merge in the Submit Option pull-down list.
  15. Click Submit for Approval.
  16. Open the Financial Plans menu and click Budget Plans to view the list of budget plans and their status.
    You have submitted a cost plan for approval that merges an added line item into the existing budget.
Change Time Period Values in the Budget
You can revise the time period values in a cost plan and can merge them into the existing budget plan. Merging values from one or more time periods helps you keep the budget accurate, without having to replace the entire budget. For example, you receive incremental funding for your budget to account for increases in resource costs. You can revise the cost of the resource for only the affected months.
If you have set a freeze date in the financial entity, you can only edit the cost plan for periods 
after 
the freeze date.
Example: Append Time Periods to the Budget Plan
Alice reviews the project plans with her manager and finds she needs to add three months for a new required feature. Alice revises her cost plan by adding three months to the project and populates fields with the cost information for each resource. She submits the revised cost plan, with the ID of ProjectA_estimatedCP-00, as a merged revision with only the additional months.
Follow these steps:
  1. Open Home, and from Portfolio Management, click the appropriate investment type; for example, Projects.
  2. Open the investment and click Financial Plans.
  3. Open the Financial Plans menu and click Cost Plans.
  4. Open the cost plan.
  5. Go to the correct time period for the plan in the Unit, Cost and Revenue Details section.
  6. Edit the Units, Cost, and Revenue fields for the time period, as shown in the following graphic:
    This figure illustrates how you click the time period that you want to select and enter the values for Units, Cost, and Revenue.
  7. Save your changes and click Return.
  8. Click Actions and select Set as Plan of Record.
    If the cost plan is already the plan of record, skip this step.
  9. Click Yes to confirm.
  10. Click Actions and select Submit Plan of Record for Approval.
    If you receive the message
    Error:A submitted budget already exists
    another cost plan for the investment exists as a submitted budget plan.
    The submitted budget plan must be approved or rejected before you can submit another plan for approval.
  11. Specify the Start Period and End Period values for only the months in which you are adding or updating the values.
  12. Select Merge in the Submit Option drop-down list.
  13. Click Submit for Approval.
  14. Open the Financial Plans menu and click Budget Plans to view the list of budget plans and their status.
    You have submitted a cost plan for approval that merges revisions to time periods in the existing budget.
Delete Line Items from the Budget
Delete unnecessary line items and submit the cost plan as a replacement for the budget. For example, if you want to remove a line item from the budget plan, delete the line item in the cost plan. Submit the revised cost plan as a replacement for the budget plan.
Select Replace to delete line items. Selecting Merge prevents the deletion and the line item remains in the submitted budget plan.
Example: Delete a Role and Replace the Budget
Several months before the project starts, Alice discovers that she must transfer the headcount of a test engineer to another project. She deletes the line item for the role for the junior test engineer from the cost plan, ProjectA_estimatedCP-00, and submits the plan for approval. Alice selects Replace to remove the line item from the budget.
Follow these steps:
  1. Open Home, and from Portfolio Management, click the appropriate investment type; for example, Projects.
  2. Open the investment and click Financial Plans.
  3. Open the Financial Plans menu and click Cost Plans.
  4. Open the cost plan.
  5. Select the line item that you want to delete and click Delete.
  6. Click Yes to confirm and click Return.
  7. Click Actions and select Set as Plan of Record.
    If the cost plan is already the plan of record, skip this step.
  8. Click Yes to confirm.
  9. Click Actions and select Submit Plan of Record for Approval.
    If you receive the message
    Error:A submitted budget already exists
    another cost plan for the investment exists as a submitted budget plan.
    The submitted budget plan must be approved or rejected before you can submit another plan for approval.
  10. Select Replace in the Submit Option pull-down list.
  11. Click Submit for Approval.
  12. Open the Financial Plans menu and click Budget Plans to view the list of budget plans and their status.
    You have submitted a cost plan for approval that replaces the existing budget.
Replace the Budget with a New Cost Plan
Choose new grouping attributes and time period types for the budget by creating and submitting a new cost plan that replaces the approved budget plan. For example, when planning for an upcoming project, you provide an estimated budget with the roles that you think you need. Before the start of the project, you create a cost plan with the actual resources and change the grouping attributes to include Department and Location. You can then submit the new cost plan to replace the approved budget plan.
Example: Submit a New Cost Plan and Replace the Budget
Alice fills all the positions for the team and knows the cost of each resource. She has resources in two locations and wants to group by department and location. Additionally, the product manager asks that she use monthly time periods instead of quarterly. Alice creates a cost plan and adds each resource with their cost details. She makes the following selections to the properties of the cost plan:
  • Grouping Attributes: Location and Department
  • Time period type: Monthly
Alice saves her changes as ProjectA_actualCP-00, and submits the new budget for approval.
Follow these steps:
  1. Open Home, and from Portfolio Management, click the appropriate investment type; for example, Projects.
  2. Open the investment and click Financial Plans.
  3. Open the Financial Plans menu and click Cost Plans.
  4. Create a cost plan and populate it.
  5. Click Save and click Return.
  6. Click Actions and select Set as Plan of Record.
    If the cost plan is already the plan of record, skip this step.
  7. Click Yes to confirm.
  8. Click Actions and select Submit Plan of Record for Approval.
    The Submit Option field lists Replace as the only available option. You must replace the budget when the grouping attributes or the fiscal time period type are different from those selected properties for the existing budget.
    If you receive the message
    Error:A submitted budget already exists
    another cost plan for the investment exists as a submitted budget plan.
    The submitted budget plan must be approved or rejected before you can submit another plan for approval.
  9. Click Submit for Approval.
  10. Open the Financial Plans menu and click Budget Plans to view the list of budget plans and their status.
    You have submitted a cost plan for approval that replaces the existing budget.
Verify the Revised Budget Plan
After you submit the cost plan for approval, it becomes available as the submitted budget plan. You can view the status of the budget plan, and edit the plan if you have the appropriate access rights.
Example: Edit and Verify the Submitted Budget Plan
Alice has submitted the revised cost plan for approval. The plan remains in the submitted budget plan state until her manager approves it. She verifies that her revisions have been merged into or have replaced the budget correctly. While Alice reviews the plan, she sees that the cost value for October is incorrect for one of the resources. She manually changes the value and saves her changes. Her manager approves the budget; and Alice has successfully revised the approved budget plan with her changes.
Follow these steps:
  1. Open Home, and from Portfolio Management, click the appropriate investment type; for example, Projects.
  2. Open the investment and click Financial Plans.
  3. Open the Financial Plans menu and click Budget Plans.
  4. Open the submitted budget plan to view the revisions and verify that the revisions are correct.
  5. Edit values in the budget plan with any necessary revisions.
  6. Save your changes and click Return.
    After you have verified that the submitted budget is correct and it has been approved, you have successfully revised the approved budget plan.
Copy Financial Plans
You can copy an existing financial plan from an investment to create a new plan. You can also copy a financial plan when creating an investment from a template investment that includes financial plans.
Remember these rules when you copy an existing financial plan to create a new plan:
  • In the target cost plan, the fiscal period type and grouping attribute values default to the source cost plan values. You cannot change these values.
  • Any process instances that are associated with the source financial plan are not copied to the new plan.
  • Any processes that are associated with the cost or benefit plan objects are available to the new plan for generating process instances.
  • You can copy cost plans and benefit plans but you cannot copy budget plans.
How Financial Plan Data is Copied
This example shows you how data is copied over from a source plan to the target plan based on the following inputs from the user:
  • Time periods to be copied from the source plan
  • Start and end periods of the target plan
  • Jim the project manager for the ARP project at Forward, Inc. selects an existing cost plan to copy and create a new plan. The existing cost plan spans the following time periods:
    • Start period: Jan 1, 2009-Jan 31, 2009
    • End period: Dec 1, 2009-Dec 31, 2009
  • On the copy cost plan page, Jim specifies the following as the copy periods in the Copy Data from Source Cost plan section:
    • Start period: Jun 1, 2009-June 30, 2009
    • End period: Dec 1, 2009-Dec 31, 2009
  • In the Target Cost Plan section of the same page, Jim specifies the following as the start and end periods of the target cost plan:
    • Plan start period: Jan 1, 2011-Jan 31, 2011
    • Plan end period: Dec 1, 2011-Dec 31, 2011
    The data from Jun 09 to Dec 09 periods from the source plan are copied to the Jan 2011 to Jun 2011 periods in the target plan.
Copy Cost Plans
Use these steps to copy an existing cost plan from an investment to create a new cost plan. You can copy the cost plan or only a portion of it and modify.
Follow these steps:
  1. Open the investment.
  2. Open the Financial Plans menu and click Cost Plans. 
    The list page appears.
  3. Select the check box next to the cost plan you want to copy
  4. Open the Actions menu, and from General, click Copy Cost Plan. 
    The copy plan page appears.
  5. Complete or review the following fields in the Copy Data from Source Cost Plan section:
    • Source Plan Name
      Displays the source plan name.
    • Start Period
      Defines the start copy period. Data is copied to the target plan based on this start period and the target plan start period.
      Default
      : The source plan start period.
    • End Period
      Defines the end copy period. Data is copied to the target pan based on this end period and the target plan end period.
      Default
      : The source plan end period.
    • Scale By %
      Defines the percentage by which to scale (increase or decrease) the dollar values in the copied plan. 
      Example:
       Enter 75 percent to increase the values from the source plan by 75 percent from their original.
      Default:
       0%. No change in values.
  6. Complete or review the following fields in the Target Cost Plan section:
    • Plan Name
      Defines the target plan name. 
      Default: 
      The name of the source plan is prefixed with "Copy of".
    • Plan ID
      Defines the target plan unique ID.
      Default
      : The ID of the source plan is prefixed with "Copy of".
    • Description
      Defines a description for the target plan.
      Default
      : The source cost plan description.
    • Period Type
      Displays the fiscal period type. 
      Default
      : The fiscal period type of the source plan. You cannot change the default period type.
    • Plan Start Period
      Defines the target plan start period. 
      Default
      : The start period of the source plan.
    • Plan End Period
      Defines the target plan end period. 
      Default
      : The end period of the source plan.
    • Benefit Plan
      Displays the benefit plan that is associated with the source plan (if any).
    • Currency
      Displays the system currency that is selected during financial setup.
    • Grouping Attributes
      Displays the grouping attributes of the plan. 
      Default
      : The grouping attributes of the source plan. You cannot change these grouping attributes.
  7. Save the changes.
    The cost plan is copied over and the new plan appears listed on the cost plans list page.
Copy Benefit Plans
Use these steps to copy an existing benefit plan to create a new benefit plan. You can copy the entire plan or a portion of the plan. After copying the plan, you can modify it.
Follow these steps:
  1. Open the investment.
  2. Open the Financial Plans menu and click Benefit Plans. 
    The benefit plans list appears.
  3. Select the benefit plan that you want to copy.
  4. Open the Actions menu, and from General, click Copy Benefit Plan. 
    The copy benefit plan page appears.
  5. Complete or review the following fields in the Copy Data from Source Benefit Plan section:
    • Source Plan Name
      Displays the source plan name.
    • Start Period
      Defines the start copy period. Data is copied to the target plan based on this start period and the target plan start period.
      Default
      : The source plan start period.
    • End Period
      Defines the end copy period. Data is copied to the target pan based on this end period and the target plan end period.
      Default
      : The source plan end period.
    • Scale By %
      Defines the percentage by which to scale (increase or decrease) the dollar values in the copied plan. 
      Example:
       Enter 75 percent to increase the values from the source plan by 75 percent from their original.
      Default:
       0%. No change in values.
  6. Complete the following fields in the Target Benefit Plan section of the page.
    • Plan Name
      Defines the target plan name. 
      Default: 
      The name of the source plan is prefixed with "Copy of".
    • Plan ID
      Defines the target plan unique ID.
      Default
      : The ID of the source plan is prefixed with "Copy of".
    • Period Type
      Displays the fiscal period type. 
      Default
      : The fiscal period type of the source plan. You cannot change the default period type.
    • Plan Start Period
      Defines the target plan start period. 
      Default
      : The start period of the source plan.
    • Plan End Period
      Defines the target plan end period. 
      Default
      : The end period of the source plan.
  7. Save the changes.
    The benefit plan properties appear displaying the newly copied benefit plan values.
  8. Review the amount in the Total Benefit field that reflects the scaling percentage that is applied when copying data from the source plan.
  9. Click Detail to review or change the benefit plan details. 
    The total benefit amount is broken down for the new planning periods. Zero values appear for the periods that are no longer a part of the new benefit plan.