www.regoconsulting.com Phone: 1-888-813-0444
Identifying and Leveraging the Right Tools
Clarity Financial Management
www.regoconsulting.com Phone: 1-888-813-0444
2
● Clarity 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
www.regoconsulting.com Phone: 1-888-813-0444
3
Financial Output
Project Dashboard-PMO Accelerator-PMO Project Status Layout
www.regoconsulting.com Phone: 1-888-813-0444
4
Financial OutputProject Cost Plan/Budget
www.regoconsulting.com Phone: 1-888-813-0444
5
Financial Output
www.regoconsulting.com Phone: 1-888-813-0444
6
Financial Output
Posted Transaction Review Portlet
www.regoconsulting.com Phone: 1-888-813-0444
7
Financial Output
www.regoconsulting.com Phone: 1-888-813-0444
8
Financial Output
www.regoconsulting.com Phone: 1-888-813-0444
9
Financial Output
www.regoconsulting.com Phone: 1-888-813-0444
10
RegoXchange Financial Outputs
www.regoconsulting.com Phone: 1-888-813-0444
11
RegoXchange Financial Outputs
www.regoconsulting.com Phone: 1-888-813-0444
12
www.regoconsulting.com Phone: 1-888-813-0444
13
Financial Implementation Best Practices
● Keep Things as Simple as Possible
● Spend Time on the Full Architecture
● Clarity is Cash Based – No concept of P&L / Depreciation
● Clarity is NOT the Company Financial System of Record; Clarity will never match general ledger 100%
● Clarity 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
www.regoconsulting.com Phone: 1-888-813-0444
14
● 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
Clarity Financial Components
www.regoconsulting.com Phone: 1-888-813-0444
15
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
www.regoconsulting.com Phone: 1-888-813-0444
16
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.
www.regoconsulting.com Phone: 1-888-813-0444
17
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
www.regoconsulting.com Phone: 1-888-813-0444
18
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
www.regoconsulting.com Phone: 1-888-813-0444
19
Resources & Roles
www.regoconsulting.com Phone: 1-888-813-0444
20
Resource Timesheets
Resources have the ability to modify financial classifications on their timesheet
www.regoconsulting.com Phone: 1-888-813-0444
21
Investments
www.regoconsulting.com Phone: 1-888-813-0444
22
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
www.regoconsulting.com Phone: 1-888-813-0444
23
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).
www.regoconsulting.com Phone: 1-888-813-0444
24
Scenario #3
The Department of Financial Oversight needs to implement Clarity 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
www.regoconsulting.com Phone: 1-888-813-0444
25
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
www.regoconsulting.com Phone: 1-888-813-0444
26
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 – Clarity 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
www.regoconsulting.com Phone: 1-888-813-0444
27
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
www.regoconsulting.com Phone: 1-888-813-0444
28
Actual Costs - Timesheets
● Base Setup○ Determine Posting Cadence○ Adjustment Postings?
● Approval Policy○ Auto-approval?
● Timesheet Adjustment Policy○ Number of Open Time Periods Best Practice
Whatever 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
www.regoconsulting.com Phone: 1-888-813-0444
29
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.
www.regoconsulting.com Phone: 1-888-813-0444
30
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.
www.regoconsulting.com Phone: 1-888-813-0444
31
Annual Budgeting-Strategic Projects
Submit Idea Approve?
Rejected Idea
Convert to Project
Assign Appropriate Template
Build Cost Plan from
Assignments
Revise Resource Estimates
Approve?
YES
NO
NO
Create IdeaCost Plan
Benefit Plan
Add Project to Portfolio / Program
Prioritize & Sequence Project List
Review Capacity /
Revise Resources
Approve? Launch Project
YES
YES
Project Hold or Rejected
NO
BaselineBudget
Approval
www.regoconsulting.com Phone: 1-888-813-0444
32
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
Ideas
Evaluate New Project Ideas
www.regoconsulting.com Phone: 1-888-813-0444
33
Ideas
www.regoconsulting.com Phone: 1-888-813-0444
34
Annual Budgeting-Non-Strategic Projects
Allocate Resources
Revise Project
Build Cost Plan from
AssignmentsApprove?YES
NO
Create Support Project
Add Project to Portfolio / Program
Prioritize & Sequence Project List
Review Capacity /
Revise Resources
Approve? Launch Project
YES
YES
Project Hold or Rejected
NO
BaselineBudget
Approval
www.regoconsulting.com Phone: 1-888-813-0444
35
Expected Resource DistributionPrior to Annual Budgeting Process
Strategic 70%
Support 15%
Admin 10%
OOO 5%
www.regoconsulting.com Phone: 1-888-813-0444
36
Actual Resource Distribution After Annual Budgeting Process
Strategic 40%
Support 37%
Admin 15%
OOO 8%
www.regoconsulting.com Phone: 1-888-813-0444
37
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
www.regoconsulting.com Phone: 1-888-813-0444
38
Questions
Contact US888.813.0444
Email [email protected]
Web Sitewww.regoconsulting.com
Thanks for participating!
If you have any follow up questions or comments about this presentation.
Thank you.