Enable Investments, Resources, and Roles for Financial Processing

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To use the financial management system and configurations that you have set up, define the financial properties for investments. Also, define the financial properties for the resources and roles that are assigned to the investments.
You can then process financial transactions against investments and determine their costs. You can also process financial transactions against the resource and role assignments and determine how these costs impact investments.
Enable Investments for Financials
Financially enabling the investments ensures that actual costs from posted transactions show up on cost plans, reports, portfolios, and other product areas. Setting the financial status of an investment to "Open" without completing the required financial setup causes error messages to appear when processing actual transactions.
The following procedure use "projects" as a sample investment.
Follow these steps:
  1. Open Home, and from Portfolio Management, click Projects.
  2. Open the project.
  3. Open the Properties menu, and from Properties, click Settings.
  4. In the Financial section, complete the requested information. The following fields require explanation:
    • Company Name
      Defines the company sponsoring the project or receiving the benefits of the project. To select a value for this field, verify that you have created a company profile. Search
      Create Supplemental Financial Data
      .
    • Affiliated Project
      Defines the project that is financially tied to the project. You can select from all financially activate projects that are associated with the company. If you are integrating with a third-party external billing application, use this value to generate consolidated invoices under one project.
    • Department
      Defines the department that is used during transaction processing of chargebacks to charge or credit departments for costs. The department can also be used to match the project with Cost/Rate matrices. The field is auto-populated if a department is selected on the project general properties.
    • Location
      Defines the location that is used to match the project with debit and credit rules for transaction processing of chargebacks. The project location can be used as a match in the Cost/Rate matrix. If the project location is not defined, the product uses the entity location or the default system location.
    • Financial Status
      Specifies the status that determines how financial transactions entered against the project are handled.
      Values:
      • Open. All transactions that are entered against the project can be fully processed. Select this status to enable the project for financial processing.
      • Hold. No new transactions can accumulate on the project.
      • Closed. No new transactions can accumulate on the project. When you mark the financial status as "Closed", it is no longer open for financial processing.
    • Type
      Defines the billing method that is required for financial transaction processing.
      Values:
      • Standard. The option allows transactions to accumulate over a given cycle. You can charge resulting transactions at any time.
      • Internal. The option is used to track financial transactions that are not meant for chargebacks.
      We recommend selecting the Internal option unless you are going to export transactions into a third-party billing application.
    • WIP Class
      Defines the WIP class that is used to match the project with cost/rate matrices. The WIP class can also be used for reporting purposes.
    • Investment Class
      Defines the investment class that is used to match the project with cost/rate matrices. The investment class can also be used for reporting purposes.
    • Cost Type
      Defines the scheduled capital or operating cost of the project. By default, the cost type is set to Operating. You can use this value for analyzing data in cost plans and portfolios.
    • Billing Currency
      Defines the currency that is used to process chargebacks and financial transactions on the investment. After you process transactions or create detailed financial plans for the project, you cannot change this currency value. The field is read-only for single currency systems.
  5. In the Labor, Material, Equipment, and Expense Transaction Matrix sections, enter the following cost or rate information as needed:
    • Rate Source
      Defines the cost/rate matrix that is used to calculate the benefit amount of the transaction entry for the project.
    • Cost Source
      Defines the cost/rate matrix that is used to calculate the cost amount of the transaction entry for the project.
    • Exchange Rate Type
      Displayed only when multiple currencies are available. Defines the exchange rate type for transactions for the project. When the project is approved, you cannot modify the exchange rate type.
      Values:
      • Average. The blended derived rate over a period: weekly, monthly, or quarterly.
      • Fixed. The fixed rate that does not change over a defined period.
      • Spot. The variable rate that changes frequently, say daily.
  6. Save the changes.
Enable Resources and Roles for Financials
Financially enabling the resources and roles ensures that the actual costs from posted transactions show up on cost plans, reports, and portfolios. You can also access application pages that provide you visibility to resource transaction entries.
The following procedure describes financial properties that appear for resources. If you are defining financial properties for roles, not all these properties appear.
Follow these steps:
  1. Open Home, and from Resource Management, click Resources.
  2. Open the resource or role.
  3. Open the Properties menu, and click Financial from Properties.
  4. Complete the fields in the Supplemental section. The following fields require explanation:
    • Financially Active
      Indicates whether the financial attributes for a resource or role are enabled to record financial management activities against an investment.
    • Target % Billable
      Refers to the percentage of the targeted billing rate that is billable. Enter the target percentage billable for this resource, if applicable.
    • Financial Department
      Defines the financial department that is associated with an entity in the financial organization structure. The financial department represents the cost center of the resource.
    • Financial Location
      Defines the financial location that is associated with an entity in the financial organization structure. The financial location represents the location of the resource.
    • Transaction Class
      Defines the user-defined values that group transaction types for the resource or role and is used in financial transaction processing.
    • Resource Class
      Defines the category for the financially enabled resource or role and is used with financial transaction processing. If the resource is a labor type, complete the department and location fields to be able to mark the resource as financially active.
    • Target Billing Rate
      Refers to the targeted billing rate that is billable for the resource.
  5. Save your changes.