Financial Management Introduction

Financial Management Introduction

This section contains the following topics:

Financial Management Components

How to Get Started with Financial Management

Financial Management Jobs

Processes for Financial Management

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.

How to Get Started with Financial Management

Before you can work with financial management, set up the following at a minimum:

1. Currencies if multicurrency is implemented.
2. Entities required for any type of financial processing.
3. Fiscal time periods used with financial planning.
4. Financial classes used to process transactions.
5. Financial cost/rate matrix to populate costs for transactions and financial plans.
6. Access rights to financial management features for users.

Financial Management Jobs

The following jobs are typically used for financial management:

• Import Financial Actuals job
• Post Timesheets job
• Rate Matrix Extraction job
• Generate Invoices job
• Post Incident Financials job
• Post Transactions to Financial job
• Update Aggregated Data job
• Purge Temporary Aggregated Data job

For more information, see the Administration Guide.

Processes for Financial Management

You can create processes to automate certain financial management tasks.

For more information, see the Administration Guide.

The following are some examples of tasks you can automate:

• Approve or reject budget plans associated with your cost plans.
• Notify project managers and team members of assigned action items.

Best Practices:

• Define your start condition clearly for auto-starting transaction line-related processes. The start condition can accidentally launch several unwanted processes.
• Defining a process to set the partition of a cost plan is unnecessary as cost plans inherit the partition of the investment to which they belong.

More information:

Approve or Reject Submitted Budget Plans