Rego University: Financial Management, CA PPM (CA Clarity PPM)

transcript

www.regoconsulting.com Phone: 1-888-813-0444

Identifying and Leveraging the Right Tools

Financial Management, CA PPM (CA Clarity PPM)

● CA PPM Financial Outputs○ OOB Portlets /RegoXChange Portlets

● Financial Components○ Financial Setup

○ Resources

○ Investments

○ Tasks (yes tasks)

● YOU Design the Financial Architecture

● Cost Plans/Budgets

● An Approach to Annual Forecast/Budgeting

● Open Forum

Agenda

Financial Output

Project Dashboard-PMO Accelerator-PMO Project Status Layout

Financial OutputProject Cost Plan/Budget

Financial Output

Posted Transaction Review Portlet

Financial Output

RegoXchange Financial Outputs

Financial Implementation Best Practices● Keep Things as Simple as Possible

● Spend Time on the Full Architecture

● CA PPM is Cash Based – No concept of P&L / Depreciation

● CA PPM is NOT the Company Financial System of Record; CA PPM will never match general ledger 100%

● CA PPM is a MANAGEMENT tool – enough information to make decisions

● Start with required outputs, how do you need to classify financial data; involve finance team

"A clever person solves a problem. A wise person avoids it"- Albert Einstein

● Entities / Classes

○ Categorization of Costs

○ Attributes to Determine Rates

● Financials Plans

○ Forecasting

○ Actuals

● Task & Resource Level Costing

○ Earned Value

● Project / Departmental Chargebacks

○ Subscription

○ Debit Rules

CA PPM Financial Components

Entities

● Financial OBS

○ Department (Object and OBS)

○ Location (Object and OBS) – Linked to a Department

● Defaults

○ Default Financial Plans

● Fiscal Periods

○ Used within datamart jobs

○ Used on Financial Plans-Cost Plans and Budgets

● Currencies

○ Home Currency

○ Billing Currency

○ Exchange Rates

Best Practice• One Entity if Possible

• Only use Department and Location if needed for rates, otherwise – just one of each

Classifications

● Resource Classes○ Internal / External○ Specialized Resources

● Company Classes○ Default to Corp○ Lines of Business

● Work In Process (WIP) Classes○ Default

● Investment Classes○ Default

● Transaction Classes○ Labor○ Equipment○ Material○ Expense

Best Practice• Default where possible

• Align Transaction Class to Financial Reporting Needs.

Other Financial Attributes● Input Type Code on Resource Record (required for processing)

○ Billable

○ Non-Billable

● Cost Type on Project Object

○ Capital

○ Operating

● Charge Code on Investments (required for processing)

○ Capital

○ Expense

● Roles on Resource Record

○ Available to Rate Matrix

Best Practice• Determine Charge Code usage

vs. Cost Type

• Roles – Understand difference between Primary and Assignment Roles

Rate Matrix

● Define Columns to Derive Rates

○ Exact Rates

○ Aggregate Rates

● Non-Labor

○ $1 Defaults

● End Dating

Best Practice• End Dating-Minimum of current

year +1

• Exact Rates for Contractors/Aggregate Rates for Internal Resources

Resources & Roles

Resource Timesheets

Resources have the ability to modify financial classifications on their timesheet

Investments

Tasks• Tasks Must Have Charge Code to Process Financially:

• Charge Code• Project Level

• Summary Level

• Task

• Cost Type: Used for Portfolio Alignment in 13.3• Project Level

• Summary Level

• Task

Design the Financial Architecture

Scenario #1

The Bucket List Company wants to capture internal labor costs and SOW

expense costs on projects. They are only tracking time on strategic

projects. Every once in a while an hourly contractor will book time to

strategic projects and they want to capture that cost too.

Scenario #2

The EyeBill All Company must account for all project costs for internal

labor, external labor and Capital Purchases. They require tracking exact

costs to the project (to the penny).

Scenario #3

The Department of Financial Oversight needs to implement CA PPM

financials to capture internal labor costs by sub-department. They also

need to capture the project costs that are sponsored by each sub-

department. Resources can only work on projects in their own sub-

department. Aggregate Rates for resources are determined on a

department by department basis every year.

Scenario #4

My Specialty store needs to track the cost of internal labor, external

labor and Services Transaction for SOW contracts. One group of external

labor resources, filling the Architect role has a rate that is double the

other external Architects. The total cost of this Special Architect class

needs to be reported separately on each project.

Design the Financial Architecture

Financial Plans● Cost Plans:

○ Three ways to create a Cost Plan

• Manual

• New From Investment Team

• New from Task Assignments

○ Choose the Classes to display in your Cost Plan.

○ The Cost Plan populates the Planned Costs field at the project level

○ Actual costs will pull into the cost plan for variance comparison by time period.

Best Practice• Set Cost Plan Update

Policy, how cost plans are to be created.

• Default Cost Plans to show key financial metrics

Financial Plans

● Budget Plans:

○ A cost plan becomes a budget plan when the cost plan of record is submitted for approval and approved

○ Same structure and view as a cost plan – a saved/static version.

● Benefit Plans:

○ Once you create a benefit plan – CA PPM will make the planned cost fields read only.

○ The Benefit Plan populates Planned Benefit at the project level.

○ If the Benefit Plan is attached to the Budget, it populates Budgeted Benefit at the project level.

○ Realized Benefits-manual entry

Best Practice• Align Budget and Baseline

processes

Financial Jobs Summary● Post Timesheets● Post Transactions to Financial

○ Review Invalids (fix)○ Post Transactions to Financial

● Post to WIP● Import Financial Actuals

● Other○ Slicing○ Investment Allocation○ Update Hierarchy Data

Best Practice• Be a part of

RegoXchange to get our Post to WIP Job.

• Communicate Posting Schedule

Actual Costs - Timesheets

● Base Setup

○ Determine Posting Cadence

○ Adjustment Postings?

● Approval Policy

○ Auto-approval?

● Timesheet Adjustment Policy

○ Number of Open Time Periods Best PracticeWhatever your posting and processing cadence is, make sure it is well communicated. Postings modify project dates and financials, therefore important to have a transparent and predictable schedule

Actual Costs – Manual Transactions● In the create entry section on the application side, you must first create a voucher

○ Vouchers can be “Expense” types or “Other”

● Within the voucher, you can create multiple transactions

● Transactions must have a date, investment, task, charge code, resource id, transaction class, input type code, and the various costs and amounts

● Run Post Transactions to Financial

● Run the Post to WIP

● Run import financial actuals job

○ Afterwards, check the admin side for invalid transactions

○ If there are some, fix the needed fields and repost

● Run the investment allocation job (adjust the investment list fields)

Best PracticeHave Rego build a better interface for entering these costs, or have us build application integration from your financial system of record.

Cost Planning & Budgeting

● Defining the objects to use to forecast financials and resources● Strategic Project Alignment● Non-Strategic Work Definition

Best PracticeAnnual Forecast and Budgeting should be incorporated into the annual schedule of Corporate/departmental activities.

Annual Budgeting-Strategic Projects

Submit Idea Approve?

Rejected Idea

Convert to Project

Assign Appropriate Template

Build Cost Plan from

Assignments

Revise Resource Estimates

Approve?

Create IdeaCost Plan

Benefit Plan

Add Project to Portfolio / Program

Priorit ize & Sequence Project List

Review Capacity /

Revise Resources

Approve?Launch Project

Project Hold or Rejected

BaselineBudget

Approval

Annual Budgeting – Strategic Projects

7/1/2014 12/31/201410/1/2014

10/1/2014Evaluate Projects

Approve Projects

12/31/2014Annual Portfolio

Complete

7/1/2014Open Submission for

Evaluate New Project Ideas

Annual Budgeting-Non-Strategic Projects

Allocate Resources

Revise Project

Build Cost Plan from

AssignmentsApprove?YES

Create Support Project

Add Project to Portfolio / Program

Priorit ize & Sequence Project List

Review Capacity /

Revise Resources

Approve?Launch Project

Project Hold or Rejected

BaselineBudget

Approval

Expected Resource DistributionPrior to Annual Budgeting Process

Strategic 70%

Support 15%

Admin 10%

OOO 5%

Actual Resource Distribution After Annual Budgeting Process

Strategic 40%

Support 37%

Admin 15%

OOO 8%

Open Forum-Collaborate & Motivate

• Financial Setup Experiences• Innovative Class Definitions/Assignments• Whatever you do…DON’T

• Financial Policy /Standards• Posting Cadence• Cost Plans/Budget Approval• Baselines• Earned Value

• Integration of Financial or HR Systems• Annual Budgeting Cycle

• Strategic Planning• Non-Strategic Planning

Questions

Contact US888.813.0444

Email Contactinfo@regoconsulting.com

Web Sitewww.regoconsulting.com

Thanks for participating!

If you have any follow up questions or comments about this presentation.

Dave.wachsmann@regoconsulting.com

Thank you.

Rego University: Financial Management, CA PPM (CA Clarity PPM)

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