Financial Management Introduction › Financial Management Components

Financial Management Components

Financial management includes the following:

• Financial planning. Use financial summaries to specify high-level budget information for investments using financial metrics such as NPV and ROI. You can also use detailed financial plans to accomplish the following goals:
  • Estimate and predict future cost and benefits for investments.
  • Model in detail where cost or benefits for a specific period can occur.
  • Break down cost and benefits by different grouping attributes or criteria
  • Create the budget most suitable for your business needs.
• Transaction processing. Use transactions to capture the total cost of labor, materials, equipment, and other expenses incurred against investments and reflect them on detailed financial plans.
• Chargebacks. Use chargebacks to represent the inter-account transfers of investment or service costs to departments.