Configuring Financial Summary Settings

This section provide details on how to configure financial summary settings for proposals, projects, assets, and programs. The settings include cost capitalization, automatic calculations (roll-ups) of forecast and actual costs, and the locking of forecast and actual costs of the past months. The settings are different for different entity types.

Configure proposal financial summary settings

To specify the financial summary settings for a proposal:

  1. Open the proposal financial summary.

  2. In the financial summary, click More > Financial Summary Settings.

  3. Specify the financial summary settings as needed, based on the following descriptions, and then click Save.

    Option Description
    The proposal is for a project that tracks capital costs

    Specifies whether the proposal is for a project that will track capitalized costs.

    If this option is not selected, an Expense Type (Operating or Capital) cannot be specified when adding a cost line to the proposal's financial summary—all expenses are operating expenses.

    Calculate the forcasted labor costs from the staffing profile

    Specifies whether forecasted labor costs (for the proposed project) on the financial summary are to be calculated (rolled up) from the staffing profile.

    This option is enabled only when the proposal request has a staffing profile created.

    If this option is selected, separate, non-editable forecast lines are automatically created in the financial summary to reflect the staffing profile estimates.

    Forecasted labor costs for the proposed project are operating or capital costs, based on the staffing profile positions (including promised allocations) and on the The proposal is for a project that tracks capital costs option described in the previous option.

    Calculate the actual labor costs from time logged against the proposal request

    Specifies whether actual labor costs on the financial summary are to be calculated (rolled up) from time logged on time sheets against the proposal request.

    If this option is selected, the financial summary operates as follows:

    • Separate, non-editable cost lines are automatically created in the financial summary to reflect the actual labor costs on the time sheets.

    • Actual labor costs are all rolled up to the financial summary as operating costs, not capitalized costs, regardless of how labor costs are categorized on the time sheets.

    • Actual labor costs are categorized in the financial summary according to the resource's Cost Category. If Cost Category is not specified, the cost line shows the actual labor costs as Unspecified.

    Lock forecast and actual cost of the past months

    Note: The options in this section are available only when the feature "Lock Forecast and Actual Costs of Past Months" is turned on by your PPM administrator.

    Lock forecast cost values of the previous month, starting from day x of the current month

    If you select this option, then starting from a certain day of the current month, users cannot edit or add the forecast costs (not including the cost properties) of the previous month.

    The "day" field

    PPM populates the stating day with a default value. Your PPM administrator can use the parameter DEFAULT_FA_CLOSING_DAY to change the default value. However, you can always specify a different value in the day field to override the default setting.

    If you set it to 1, it means editing forecast costs of the past months is not allowed.

    If you set it to a value greater than the days of a current month, it means editing forecast costs of the previous months is always allowed in the current month.

    Example: Suppose the current month is October, and you set the starting day to 8, then users can edit the forecast costs of September from October 1 to October 7. However, starting from October 8, they cannot edit the forecast costs (not including the cost properties) of September.

    Lock actual cost values of the previous month, starting from day x of the current month

    If you select this option, then starting from a certain day of the current month, users cannot edit the actual costs (not including the cost properties) of the previous month.

    The "day" field

    PPM populates the stating day with a default value. Your PPM administrator can use the parameter DEFAULT_FA_CLOSING_DAY to change the default value. However, you can always specify a different value in the day field to override the default setting.

    If you set it to 1, it means editing actual costs of the past months is not allowed.

    If you set it to a value greater than the days of a current month, it means editing actual costs of the previous months is always allowed in the current month.

    Lock cost properties of cost lines with non-zero actual costs

    If you select this option, users cannot edit the cost properties (Type, Category, and Expense Type) of the cost lines that already have non-zero actual costs in a month (past, current, or future).

    Note: If cost lines have user data, the user data allows editing even when you select this option.

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Configure project financial summary settings

Project financial summary settings are read-only in the Financial Summary Settings window. You can only configure the financial summary settings of a project in the Project Settings page > Cost and Effort policy > Financial Management section.

For details, see Financial Management Settings.

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Configure asset financial summary settings

To specify the financial summary settings for an asset:

  1. Open the asset financial summary.

  2. Inn the financial summary, click More > Financial Summary Settings.

  3. Specify the financial summary settings as needed, based on the following descriptions, and then click Save.

    Option Description
    The asset tracks capital non-lobor costs

    Specifies whether the asset tracks capitalized non-labor costs.

    If this option is not selected, an Expense Type (Operating or Capital) cannot be specified when adding a non-labor cost line to the asset's financial summary—all expenses are operating expenses.

    Calculate the forecasted costs from the staffing profile (all labor costs are set to operating)

    Specifies whether forecasted labor costs on the financial summary are to be calculated (rolled up) from the staffing profile attached to the asset.

    (When a project becomes an asset, the staffing profile of the project is not copied to or shared with the asset; if the asset requires a staffing profile, create a new staffing profile for the asset.)

    If this option is selected, separate, non-editable forecast lines are automatically created in the financial summary to reflect the staffing profile estimates, including promised allocations. All forecasted labor costs are operating, not capitalized costs.

    Calculate the actual labor costs from time logged against the asset (all labor costs are set to operating)

    Specifies whether actual labor costs on the financial summary are to be calculated (rolled up) from time logged on time sheets against the asset.

    If this option is selected, the financial summary operates as follows:

    • Separate, non-editable cost lines are automatically created in the financial summary to reflect the actual labor costs on the time sheets.

    • Actual labor costs are all rolled up to the financial summary as operating costs, not capitalized costs, regardless of how labor costs are categorized on the time sheets.

    • Actual labor costs are categorized in the financial summary according to the resource's Cost Category. If Cost Category is not specified, the cost line shows the actual labor costs as Unspecified.

    Lock forecast and actual cost of the past months

    Note: The options in this section are available only when the feature "Lock Forecast and Actual Costs of Past Months" is turned on by your PPM administrator.

    For details, see Lock forecast and actual cost of the past months.

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Configuring program financial summary settings

Program financial summary have settings to specify discount rate and to enable or disable cost capitalization.

To configure the financial summary settings for a program:

  1. Open the program financial summary.

  2. In the financial summary, click More > Financial Summary Settings.

  3. Specify the financial summary settings as needed, based on the following descriptions, and then click Save.

    Option Description
    Discount Rate

    Specify the discount rate for the NPV calculation.

    For details, see Net Present Value (NPV) a.

    The Financial Summary tracks capital costs

    Enables or disables capitalization for cost manually added to the program financial summary.

    This option does not control the capitalization of roll-up cost (cost that is rolled up from the program contents' financial summaries to the program financial summary). The capitalization of roll-up cost is controlled by the program contents' financial summary settings.

    Lock forecast and actual cost of the past months

    Note: The options in this section are available only when the feature "Lock Forecast and Actual Costs of Past Months" is turned on by your PPM administrator. They are read-only in the Financial Summary Settings window. You can only configure these options from the Program Settings page > Financial Management policy.

    For details about these options, see Lock forecast and actual cost of the past months.

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