Set Up Financial Departments

Financial departments represent units in the organizational structure of your company. You can set up a department as one of the following items:
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Financial departments represent units in the organizational structure of your company. You can set up a department as one of the following items:
  • IT Provider. The department owns investments or services to which other departments can subscribe.
  • IT customer. The department subscribes to investments or services that an IT provider department provides.
Prerequisites
Set up the following items before you start working with departments:
  • Create an entity.
  • (Optional) Associate the department with locations.
  • (Optional) Associate resources with the department.
  • (Optional) Associate investments with the department.
Manage Departments and Sub Departments
Follow these steps:
2
Create Departments
You create a department by naming it, associating it with an entity, and optionally selecting a parent department, department manager, and business relationship manager. The department hierarchy is established by selecting a parent department. You can review the list of sub departments that are associated with your department from the department properties menu.
When you create a department, a corresponding OBS unit is also created based on the selected entity and the parent department.
You can edit a department after creating it. If you have not associated a department with a location, you can delete it. When you delete a department, its sub departments are also deleted. To review the list of sub departments that are associated with your department, open the department, open the Properties menu, and click Subdepartments.
Follow these steps:
  1. Open Home, and from Organization, click Departments.
  2. Click New.
  3. Complete the requested information. The following fields require explanation:
    • Entity
      Defines the entity that is used to associate an organizational structure and financial planning defaults with the department. Once the department is created, you cannot change this field.
    • Parent Department
      Specifies the parent department for this department. Required only if this department is a sub department to another department.
      Example:
      The Retail Banking IT department is a parent to the Application Development department.
    • IT Customer
      Displays if the department is a subscriber for investments or services that other departments provide or own.
    • IT Provider
      Displays if the department owns investments or services to which customer departments can subscribe.
    • Department Manager
      Specifies the department manager. The user that you select as the department manager is automatically granted the
      Department - Edit
      access right.
      Default
      : This field is populated with the resource ID of the user who created the department.
    • Business Relationship Manager
      Defines the user who is a liaison between this department and other departments. The user that you select as the business relationship manager is automatically granted the
      Department - View
      access right.
    • Delegate Invoice Approval
      Indicates if invoice approval must be delegated to the sub departments. If this option is not selected, no sub departments in that branch can view or approve invoices. All charges are rolled up to the top-level parent department.
  4. Save the changes.
You can delete a department when the following conditions are true:
  • The department is not referenced in the financial cost/rate matrix.
  • The department does not have associated financial transactions (posted or unposted).
  • The department is not set as a default system department.
  • A financially enabled resource is not using the department.
  • A financially enabled project is not using the department.
  • The department is not associated with a location.
Define the Department Budget
You can plan for and track budgeted costs and benefits for your department. You can also set the start and end date over which the budget is experienced. The money flows constantly and evenly over this defined period.
The following financial metrics are not available on the department properties as a default: Calculate Financial Metrics, Planned NPV, Planned ROI, Planned Breakeven, Planned IRR, Planned MIRR, Planned Payback Period (in months), Budget NPV, Budget ROI, Budget Breakeven, Budget IRR, Budget MIRR and Budget Payback Period (in months).
You can configure the Department Properties view for the Department object to display the financial metrics. For more information, see
CA PPM Studio Development
.
Follow these steps:
  1. Open Home, and from Organization, click Departments.
  2. Click the department.
  3. Click Properties, Budget.
    The budget properties page appears.
  4. Complete or review the following fields:
    • Currency
      Displays the selected system currency.
    • Budget Equals Planned Values
      Indicates whether you want the budget cost and benefit values to be equal to the planned cost and budget values. If you clear this check box, you can manually define the budget values.
    • Planned Cost
      Defines the planned costs for the department. This value is distributed between the Planned Cost Start and the Planned Cost Finish dates.
    • Planned Cost Start and Planned Cost Finish
      Defines the dates when the planned cost starts and finishes for the department.
    • Planned Benefit
      Defines the total planned benefit the department receives.
    • Planned Benefit Start and Planned Benefit Finish
      Defines the dates when planned benefit starts and finishes for the department.
    • Budget Cost
      Defines the budgeted cost for the department. This value is distributed between the Budget Cost Start and the Budget Cost Finish dates.
    • Budget Cost Start and Budget Cost Finish
      Defines the dates when the budget cost starts and finishes for the department.
    • Budget Benefit
      Defines the total budgeted benefit the department receives.
    • Budget Benefit Start and Budget Benefit Finish
      Defines the dates when budgeted benefit starts and finishes for the department.
  5. Save the changes.
Manage Department Locations
You can associate a department to multiple locations by opening the department and clicking Locations. The locations must be from the same entity as the department. You can view these locations, and add or remove them from a department.
If the following conditions are true for the department, you can remove a department and location association:
  • Resources are not using the location and department.
  • Projects are not using the location and department.
  • Posted or unposted transactions are not using the location and department.
Manage Department Resources
Resources become members of a department when you associate them with a department OBS in the resource properties page. A resource can belong to only one department. Demand for a department is comprised of the following work:
  • All of the work to which the resources in the department are allocated.
  • All of the work that roles are allocated to that is specified as coming from the department.
Capacity is the aggregation of the availability of all resources that are allocated to the investments in the department.
View Resource Allocation for Departments
You can view the aggregated demand as opposed to capacity for resources in the department and in associated sub departments.
Follow these steps:
  1. Open Home, and from Organization, click Departments.
  2. Click the department and click Resources.
    The department resources page appears.
  3. In the Department Resource Aggregation section, review the following fields:
    • Department
      Displays the department or any of its sub departments. Click the Resources icon to view the list of resources that are members of the department, or edit resource properties or allocations. Click the Roles icon for a department or sub department to view the roles in that department or sub department, or edit role properties or allocations.
    • Allocation
      Displays the aggregated full-time employee availability for each time period.
  4. In the Department Resources section, view the list of resources associated with the department. Click a resource link to view or edit the properties or allocations for an individual resource.
Plan Resource Capacity
You plan and organize the resource capacity for your department and sub departments as follows:
  • Create new or manage existing capacity planning scenarios.
  • Plan capacity for your resources based on workloads, allocation, and investments.
Follow these steps:
  1. With the department open, click Resources.
    The department resources page appears.
  2. Open the Scenario menu and use scenarios to plan resource capacity.
Manage Department Investments
Investments are tied to a department when they are associated with a department OBS in the investment properties. An investment can belong to only one department.
You can view a list of all investments that are associated with the selected department and optionally sub departments.
Follow these steps:
  1. With the department open, click Investments.
    The investments list appears.
  2. Click an investment link to view or edit the investment.