Custom Investments: Manage Financial Plans

ccppmop1581
HID_newux_custominvestmentfinancials
Rita is a Financial Manager. Her key responsibilities include budgeting, managing the planned cost plans, and managing the actual cost plans for the Custom Investments that she is responsible for. As a financial manager, she can use the Financials section to access the financial plans for a custom investment and also complete the following goals:
  • View all the financial cost plans and actual costs on the Plan List page.
  • Create, edit, and analyze cost plans.
  • When ready, she can mark the plan of record and send it for approval. (When a cost plan is approved, it becomes the budget plan for a custom investment)
  • Adjust the cost plan or create a new cost plan that either merges with or replaces the existing budget.
  • The Cost Plan List and Cost Plan Detail views support custom attributes in both the grid and flyout. Configure once, and the attributes are available in the custom investment type.
  • Since the Custom Investment type uses the common grid component, the Grid Status Bar displays Average, Count, Min, Max, and Sum for the selected cells in the grid. For example, you can select multiple rows from the Cost column in a cost plan detail and see the total and average planned cost for those attributes for a Custom Investment type.
This section contains the following topics that help a financial manager perform various tasks using the Custom Investment Type Financials in
Clarity
2
Prerequisites
Before you implement the feature, ensure that your administrator implements the following configuration details:
  • Verify that a custom investment is created and published using Blueprint by your administrator.
  • Ensure that your custom investment is associated with the blueprint in the custom investment grid view. To do so, add the blueprint column from the column picker and select the newly created custom blueprint from a standard blueprint. For more information see, .
  • Ensure that your custom investment is financially-enabled and that an entity with active fiscal time periods is associated with the custom investment in
    Classic PPM
    . To do so associate your custom investment with a department by selecting Department from the Column Picker and then specifying the value in the Department.
  • Ensure the resource is Open for Time Entry.
  • Apart from the basic Custom Investment access rights, ensure that you have one or more of the following access rights to access the Custom Investment Cost Plan:
    • <custom_investment_type>
      - Cost Plan - Edit All
    • <custom_investment_type>
      - Cost Plan - View All
    • <custom_investment_type>
      - Cost Plan - Edit
    • <custom_investment_type>
      - Cost Plan - View
  • Apart from the basic Custom Investment access rights, ensure that you have one or more of the following access rights to access the Custom Investment Budget Plan:
    • <custom_investment_type> - Budget Plan - Edit All
    • <custom_investment_type> - Budget Plan - View All
    • <custom_investment_type> - Budget Plan - Edit
    • <custom_investment_type> - Budget Plan - View
    • <custom_investment_type> - Financial Plan - Submit All for Approval
    • <custom_investment_type> - Budget Plan - Approve All
    • <custom_investment_type> - Budget Plan - Reject All
For more information, see
Clarity
: Custom Investment Access Rights
in
Clarity
Access Rights Reference
the English version.
Work With Cost Plan and Cost Plan Details
You can work with the cost plan and cost plan details as follows:
Create a Cost Plan
After you have created a custom investment. You can create cost plans for a custom investment. However, you can set only
one
cost plan as your plan of record (POR). By default, the first cost plan is set as the plan of record for a custom investment. The following attributes are supported in this release:
  • Name
  • Created Date
  • Period Type
  • Start Period
  • End Period
  • Total Cost
  • Benefit Plan
  • Grouping Attributes
  • Currency Code
  • Description
  • Plan of Record
  • All Custom Attributes
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in a grid layout for that custom investment.
  2. Click the (
    +
    ) plus icon. A new line appears in the plan list grid.
  3. Complete the required fields including
    Plan Name
    ,
    Start Period
    ,
    End Period
    , and
    Grouping Attributes, ID
    ,
    Period Type
    and various other fields that are available from the column picker.
    Note:
    The values in the
    ID
    the field only appears if auto-numbering is turned on for the Cost Plan object in
    Classic PPM
    . You can select one or more predefined grouping attributes.
The values in the
ID
field only appears if auto-numbering is turned on for the Cost Plan object in
Classic PPM
. You can select one or more predefined grouping attributes.
Edit a Cost Plan
If the estimates have changed for a custom investment, you can edit and update the associated cost plan from the Details panel. You can also update the line item details for a cost plan by editing the rows in the grid. Double-click the cells in the plan to edit the planned cost values. You can copy planned costs from the same grid or an excel sheet and paste it elsewhere in your grid.
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in the grid layout.
  2. Select a cost plan, click
    DETAILS
    . The panel opens.
  3. Click the details icon.
  4. Edit the following as required:
    • Cost Plan Name
    • Start and End Periods
    • Custom Attributes
    • ID (if the auto numbering is not enabled)
    • Period Type
The edits are immediately visible in the cost plan.
Create a Cost Plan Detail
You can create cost plan details for a specific cost plan to view the cost allocation break-up.
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in the grid layout.
  2. Click a cost plan name. The cost plan details page opens.
  3. Click the (
    +
    ) plus icon. A new line appears in the cost plan details grid. The Grouping Attributes that you have set in a cost plan appear as columns in the cost plan details page. The grouping attribute helps you find the aggregate cost for a specific cost plan.
  4. Specify the values for the attributes and the cost involved.
Edit Cost Plan Detail
If the estimates have changed for a custom investment, you can edit and update the associated cost plan details from the Details panel. Alternatively, update the line item details for a cost plan detail by editing the rows in the grid. Double-click the cells in the plan detail to edit the planned cost values. You can copy planned costs from the same grid or an excel sheet and paste it elsewhere in your grid.
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in the grid layout.
  2. Open a cost plan. The cost plan details page opens.
  3. Click anywhere in a row, click
    DETAILS
    , and then click the details icon.
  4. Edit the cost for each attribute as required. The total cost is updated in the cost plan details page and is visible in the cost plan.
You can copy and paste the cost values in the grid.
  • If you select the option
    Populate from Allocations and Populate from Assignments
    in the Cost Plan List, the cost involved is auto-populated based on preconfigured values.
  • When you save a view in the Cost Plan grid, the same view is applied to all cost plan details for the custom investment.
Set Plan of Record
If you have defined multiple cost plans for a custom investment, by default, the first cost plan is set as the plan of record (POR). You can set any other cost plan as the plan of record for a custom investment type.
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in the grid layout.
  2. Right-click a cost plan and select
    Make Plan Of Record
    . The selected cost plan is now the plan of record for the custom investment.
Delete a Cost Plan
You can delete the plan of record if it is the only cost plan available for a custom investment. Otherwise, make another cost plan the POR before deleting the current POR.
Grouping Attributes
Group the cost plan data by the available attributes to analyze how the funds are being allocated for each type of labour for a specific attribute.
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in the grid layout.
  2. Specify the Grouping Attributes from the cost plan. Alternatively, you can specify the grouping attributes from the Details panel. The attributes are also visible from the filter. The Grouping Attributes you specified in a cost plan are listed as attributes (columns) in the cost plan details page. The attributes let you group and aggregate the cost for a specific attribute.
Examples:
  • If you select Resource and Role attributes from the Grouping Attributes column in a cost plan. The cost plan detail page displays the cost involved for the resources you specified and the role the resources pertain to. This helps determine the amount estimated to be spent on a specific role, and amount spent on individuals for that custom investment.
  • If you select Department and Location attributes. This helps you determine the amount estimated to be spent for a specific department in a specific location.
Collaboration Using Conversation From Cost Plan and Cost Plan Details Page
You can coordinate with your team for a custom investment using the Conversations panel. Team members and managers can reply and mention other team members in the conversation. The conversation attribute is available in grid view to indicate with a check that there is conversation associated with a specific cost plan or cost plan detail. You can only communicate using the Details panel from the details flyout.
Follow these steps:
  1. Open a custom investment and click
    FINANCIALS
    . The cost plan list appears in the grid layout.
  2. Select a Cost Plan. The Details tab appears.
  3. Click the Details tab and start your conversation. You can use
    @
    to look for a specific team member. The recipient receives a notification.
Add/ Delete Rows
You can add rows in the Cost Plan List and Cost Plan Details.
Follow these steps:
  1. Click the (
    +
    ) plus icon
    Add Row
    or right-click on  a row and select
    Insert Row Below
    .
  2. Type in or use the lookup menu to specify the grouping attributes for the new line item.
To delete a row in the grid, right-click any cell in that row and click
Delete Row.
Generic Grid Capability
Rita - a Financial Manager, is responsible to invest and finance projects. She has created new cost plans, updated existing ones and selected from among multiple attributes. Let’s see how she can quickly analyze various custom investments on the Financials page by using some features of
Clarity
generic grid. Some of the actions she can perform are:
  • Use the menu option to take quick actions on the cost plans and budget plans.
  • Use the Group By option to segregate related rows view with aggregated subtotals wherever applicable.
  • Use the column panel to show or hide attributes on the layout.
  • Export the various cost plans, cost plan details, budget plans, and budget plan details along with the data in the grid to a CSV file.
  • Edit data associated with cost plans and budget plans directly in the grid or by using the details layout.
  • Customize the grid and save the views.
  • Filter the data in the grid based on the business requirements.
For more information on how you can leverage the generic grid capability of
Clarity
, see Common Components.
View Actuals Posted
Rita would like to view the actual costs posted during the fiscal period for the custom investment, which helps to compare the Planned to Actuals for the custom investment.
Follow these steps:
  1. Team members must submit a Timesheet, or create a manual transaction entry, or add a transaction through the XOG.
  2. The administrator must then execute the following jobs in
    Classic PPM
    .
Method for Posting Actuals
Jobs
Timesheet Entry
Transaction Entry
XOG
Follow these steps to view actuals:
  1. In the main menu, click
    Investments
    .
  2. Open a custom investment, and click
    FINANCIALS
    . The cost plan list appears.
  3. Click the cost plan name. The
    Actuals
    are now displayed in the cost plan details page.
  4. The following time-scaled values (TSV) fields for cost plan details are available for selection from the PER-PERIOD METRICS field:
    • Cost
      : Displays the planned cost.
    • 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.
    • Actual Units
      : Displays the aggregated actual unit for a given fiscal period.
    • Cost Variance
      : Displays the delta between Cost and Actual Cost.
    • Revenue
      : Displays the planned revenue.
    • Revenue Variance
      : Displays the delta between Revenue and Actual Revenue.
    • Units
      : Displays the planned units.
    • Units Variance
      : Displays the delta between Units and Actual Units.
Actuals_for_Investment.png
You can adjust your view of the Custom Investment grid to show fiscal or calendar per-period metrics (also known as time-scaled values, or TSVs). The selected TSV fields you selected are listed as attributes (columns) in the cost plan details page. Now, the financial data is in-sync with the latest posted actuals.
Work with Budget Plans
The Custom Investment Financials module supports budget plans. For example, a custom investment can be submitted with a high-level budget or a more detailed cost-benefit analysis. As work is executed, actual costs are captured and forecasts are revisited to track performance against the budget.
When a cost plan is approved, it becomes the budget plan for the custom 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 Current Budget.
  • You can edit a submitted budget, but you cannot edit an approved or rejected budget.
You can manage your budget plans as follows:
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. Click
    Investments
    .
  2. Open a custom investment and click
    Financials
    .
  3. Select the cost plan from the list.
  4. Click the
    ⋮ Actions
    menu and select
    Submit For Approval
    .
  5. Complete the following fields:
    • PLAN NAME
      Enter the name of the budget plan
    • PLAN ID
      Defines unique ID for the budget plan. The values in the
      ID
      field only appears if auto-numbering is turned on for the Cost Plan object in
      Classic PPM
      . You can select one or more predefined grouping attributes.
    • PLAN DESCRIPTION
      Provide a brief explanation of the budget plan.
    • PERIOD TYPE
      (Non-editable)
      Displays the period type associated with the cost 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 the budget, select a different start period.
    • FINISH PERIOD
      Displays the end period of the budget plan. To submit a portion of the cost plan rather than the whole plan for the budget, select a different end period.
    • BENEFIT PLAN
      Associate a benefit plan with the budget plan. If you have associated a benefit plan with the cost plan, the same benefit plan will get attached to the budget plan.
    • SUBMIT OPTION
      • Replace
        : Selected by default when you are creating a new budget plan.
      • Merge
        : Available when you revise a budget plan. Allows you to merge the changes with the existing budget plan.
  6. Submit the cost plan for approval.
Approve or Reject Submitted Budget Plan
Actuals_for_Investment.png
Follow these steps
:
  1. Click
    Investments
    .
  2. Open a custom investment and click
    Financials
    .
  3. Click
    Budgets
    to review the list of budgets.
  4. Click the budget plan that must be reviewed.
  5. To approve or reject a budget, click the
    ⋮ Actions
    menu and then select
    Approve Budget
    or
    Reject Budget
    .
  6. To edit a budget, click it.
    The budget opens.
  7. Add an additional row or remove a row from the budget.
  8. Edit the amounts in the
    Budgeted Cost
    column.
  9. After you have finalized your changes, click the
    ⋮ Actions
    menu and select
    Approve Budget
    to approve the budget.
  10. To reject a budget, select the
    Reject Budget
    option.
Budget Plan Changes
  • Combination Already Exists
    : If a
    Combination Already Exists
    an error message appears it means you added a new row to a budget plan with the same grouping attributes as previous entry. In this situation, you can delete the unnecessary row.
  • Cannot Edit an Approved Plan
    : After you submit a cost plan for approval, it becomes the submitted budget plan. You can edit the submitted budget plan; however, you cannot modify the budget plan after it is approved.
Create a Budget Revision
An approved cost plan becomes the budget plan for a custom investment. Since custom investments continuously 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 plangeneri:
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, select
Merge
or
Replace
from the
SUBMIT OPTIONS
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 currently approved budget plan.
Work with Benefit Plans
The Financials module in Custom Investment supports benefit plans. Creating a benefit plan and associating it with a cost plan allows you to estimate the benefit from custom investments or Net Present Value (NPV) on a custom investment.
  • The cost plans follow the approval process to become a formal budget, however, there is no need to approve benefit plans.
  • A benefit plan can be associated with multiple cost plans, however, a cost plan can have only one associated benefit plan.
  • To manage benefit plans, create a benefit plan to associate with cost plans or update existing plans.
Note: You cannot delete a benefit plan that is associated with any cost or budget plan.
  • Remember that the saved views are shared across the financial modules of different investment types. For example, if you save a view in the Benefits Plan grid for a custom investment, the same view is available in the Benefits Plan grid for ideas and projects.
You can work with the benefit plans as follows:
  • Create a Benefit Plan
  • Edit Benefit Plans Details
  • Associate Benefit Plans with Cost Plans
  • Associate Benefit Plans with Submitted Budgets
Create a Benefit Plan
Follow these steps:
  1. Open a custom investment and click FINANCIALS module.
  2. Click Benefit Plans, and click the (+) plus icon.
  3. Complete the following fields:
    1. Name: Enter a name for the benefit plan.
    2. Period Type: Defines the time period unit that appears on the benefit plan, such as Monthly, Quarterly, or Annual.
    3. Start Period: Defines the first time period to include in the plan.
    4. Finish Period: Defines the last time period to include in the plan.
    5. ID: Enter an ID for the benefit plan.
  4. Save the changes.
Edit Benefit Plans Details
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 the (+) plus icon.
  2. For each benefit detail, complete the following fields in the Benefit Details section:
    1. Benefit Class: Select an option in the Benefits Class field.
    2. Benefit Subclass: Select an option in the Benefit Subclass field.
    3. Description: Enter a brief explanation of the plan.
  3. Review the following fields for each benefit detail line item:
    1. Benefit: Defines the planned benefit amount for the time period.
    2. Actual Benefit: Defines the actual benefit amount for the time period.
    3. 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. From the Cost Plan list, select a cost plan.
  2. In the Benefit Plan field, select a benefit plan.
Associate Benefit Plans with Submitted Budgets
The benefits plan that is associated with 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. From the budget plan list, select the budget plan.
  2. In the Benefit Plan field, select a benefit plan.
Organize Columns on the Grid
You can organize the financial grids by using the grid controls.
Follow these steps:
  1. On the grid, you can hover on any column header and view more options. You can pin columns to the left or right. You can also auto-size or reset column width.
  2. You can group by columns to view the aggregate cost for a specific attribute.
  3. You can show and hide columns on the cost plan. Hover on any of the column headers and click the column menu option. Select the columns that you want to see in the view.