Financial Management Components

Financial Management Introduction › Financial Management Components

Financial Management includes the following:

Financial planning. Financial plans help project managers estimate and predict future cost requirements for investments or services. The financial planning tools let project managers' model in detail where cost or revenues for a specific period might occur and to create the most suitable budget.
Transaction processing and WIP adjustments. Transactions capture the total cost of labor, materials, equipment, and other expenses that are posted to work-in-progress (WIP) transactions for further financial processing, such as billing external customers for project costs, or charging internal departments for services and other investments they have consumed.
WIP Adjustments enable finance managers to change or adjust posted transactions when external billing or chargeback errors are found.
Chargebacks and invoices. Chargebacks represent the inter-account transfers of investment or service costs to departments. Chargebacks debit (or charge) departments for their shared cost of investments or services that were delivered during a specified period of time.
External billing and invoices. External billing involves billing customer, partner, and other external parties for the labor, material, equipment costs and expenses associated with a project. With external billing, you can choose from variety of billing methods, review and approve billings, and print and send customer invoices.

More information: