Getting Started with Financial Management

PPM features a set of functionality collectively referred to as Financial ManagementFinancial Management enables you to do the following:

  • Set up and use cost rules to provide detailed estimates of labor costs

    • Cost rates can be based on a number of different cost factors.

    • Cost factors can be organized by order of precedence.

    See Configuring Cost Rulesfor more detailed information.

  • Use and display multiple currencies in one installation of PPM

    • Currency display can be user-based or entity-based.

    • Currency values are tracked against each other using financial exchange rates.

    SeeManaging Financial Exchange Rates and Currencies for more detailed information.

    Note: In this document, the term "lifecycle entity" is used to mean a proposal, a project, or an asset, and "lifecycle entities" are any combination of proposals, projects, and assets.

    Each of these types of lifecycle entities can be created from scratch, but typically a proposal automatically becomes a project upon approval of the proposal and the project automatically becomes an asset upon completion of the project.

  • Use financial summaries to track forecast and actual costs and benefits and approved budgets for lifecycle entities and programs over a range of years, and to track approved budgets for organization units over a range of years. You can also take snapshots of the financial summaries and specify one as the Plan of Record at any time.

    • Forecasted labor costs in the financial summary can be rolled up (automatically calculated) from the staffing profile.

    • Actual labor costs in the financial summary can be rolled up from time logged on time sheets if Time Management is used, and also from project work plans if Project Management is used.

    • Actual non-labor costs in the financial summary for a project can be rolled up from the project work plan if Project Management is used.

    • A program roll-up financial summary is the summation of the financial summaries of the projects in the program if Program Management is used.

    See Financial Summaries and Financial Data Tables for more detailed information.

  • Configure, create, and use financial data tables to track forecast and actual costs and benefits for any type of request, including but not limited to lifecycle entities. Financial data tables are used to track forecast and actual costs and benefits for such purposes as tracking indirect costs and/or benefits.

    See Financial Summaries and Financial Data Tables for more detailed information.

  • Track and analyze project cost data if Project Management is used.

    • Planned and/or actual costs on the work plan can be calculated automatically using scheduled and/or actual effort specified for work plan tasks and using labor cost rates.

    • Earned value (EV) analysis can be performed on project cost data.

    See Tracking and Analyzing Project Costs for more detailed information.

  • Monitor SOP 98-1 compliance.

    • Capitalization can be tracked at the task level using activities.

    • Capitalization can be built into processes using project templates.

    • Capital exposure can be monitored at the program and portfolio levels.

    See SOP 98-1 Compliancefor more detailed information.