This section contains the following topics:
How to Set Up and Use Burdening Matrices
Burdening Level Escalation Table
Burdening is a critical component of earned value management systems. Use burdening matrices to calculate and measure the indirect costs of contracts — costs that you cannot specifically attribute to an individual contract.
You can define burdened costs that are added to the direct cost. Burdening costs are aggregated and reported into one of the burdening types.
Use the following process to set up the burdening matrices:
Contact your CA Clarity PPM administrator or see the Administration Guide for more information.
For more information about managing resources, see the Resource Management User Guide.
You can associate multiple burdening classes to the same burdening type. The burdening type controls the reporting of burdening costs on the contract performance reports (CPR). You cannot create additional burdening types.
The following burdening types are provided:
Defines the type for General and Administration burdened costs.
Defines the type for Cost of Money (COM) burdened costs.
Defines the type for profit/fee burdened costs.
Defines the type for overhead burdened costs.
Use burdening classes to categorize burden costs for reporting purposes. Burdening classes are used in burdening matrix levels and are referenced in burdening matrices for transaction processing. Once you have created the burdening classes and the burdening matrix, associate the burdening classes to the burdening matrix levels.
Burdening classes are one of the types of the financial classes available in CA Clarity PPM. The following static burdening classes, or burdening types, are provided with the PPM Earned Value Manager:
Defines the class for General and Administration (G&A) burdened costs.
Defines the class for Cost of Money (COM) burdened costs.
Defines the class for profit/fee (FEE) burdened costs.
Defines the class for overhead (OVERHEAD) burdened costs.
Contact your CA Clarity PPM administrator or see the Administration Guide for more information.
Follow these steps:
The financial organizational structure page appears.
The burdening classes page appears.
The properties page appears.
Defines a unique burdening class ID.
Limits: 18 characters
Required: Yes
Defines the detailed description for the burdening class.
Limits: 32 characters
Required: Yes
Defines the type for the burdening class. The burdening type controls the reporting of burdening costs on contract performance reports (CPR).
Values: COM, Fee, G&A, or Overhead
Required: Yes
Indicates if this burdening class is activated.
Default: Selected
The burdening classes page appears, displaying the new burdening class.
You can modify inactive and user-defined burdening classes. Inactive burdening classes are classes not used in earned value calculations. You cannot modify the static burdening classes, such as G&A, COM, Fee, and Overhead.
Important! If the burdening class is associated with a burdening matrix level, do not modify the burdening class. Modifying assigned burdening classes causes validation errors.
Follow these steps:
The financial organizational structure page appears.
The burdening classes page appears.
The properties page appears.
Read-only. Defines a unique burdening class ID.
Limits: 18 characters
Defines the detailed description for the burdening class.
Limits: 32 characters
Read-only if the burdening class is referenced by an active burdening matrix. Defines the type for the burdening class. The burdening type controls how burdening costs are reported on contract performance reports (CPR).
Values: COM, Fee, G&A, or Overhead
Read-only if the burdening class is referenced by an active burdening matrix. Indicates if the burdening class is activated.
You can delete burdening classes using the burdening classes page. You cannot delete burdening classes that are:
Important! Attempting to delete assigned burdening classes causes errors.
Inactive burdening classes are the ones not used in earned value calculations.
Follow these steps:
The financial organizational structure page appears.
The burdening classes page appears.
The confirmation page appears.
Burdening matrices are made up of multiple rows of burdening levels. First create the burdening matrix and then define the burdening matrix levels.You can create any number of burdening matrices for each project transaction type.
When you create a burdening matrix it is inactive until it used in an earned value calculation. You cannot set matrices to active or inactive.
Follow these steps:
The list page appears.
The create page appears.
Defines the unique name for the burdening matrix.
Limits: 32 characters
Defines the unique identifier for the burdening matrix.
Defines the default currency used when defining this matrix flat rate burdening amount. The field appears only if multi-currency is enabled. This field displays only if the burdening matrix is associated with a project for burdening calculations.
Default: System Currency
Defines the description for the burdening matrix.
Limits: 32 characters
The burdening matrix is created and displays on the burdening matrix list page.
You can view a list of the burdening matrices on the burdening matrix list page.
Follow these steps:
The list page appears.
The general page appears.
Follow these steps:
The burdening matrix page appears.
Defines the unique name for the burdening matrix.
Limits: 32 characters
Defines the unique identifier for the burdening matrix.
Defines the default currency used when defining the matrix flat rate burdening amount. The field appears only if multi-currency is enabled. This field displays only if the burdening matrix is associated with a project for burdening calculations.
Default: System Currency
Defines the description for the burdening matrix.
Limits: 32 characters
You can delete inactive burdening matrices and the ones not associated with a project.
Inactive burdening matrices are the ones not used in earned value calculations.
Follow these steps:
The list page appears.
The confirmation page appears.
Burdening levels are the individual rates and rules you define for a burdening matrix used when applying rates to transactions. Burdening matrices are made up of one or more levels of burdening.
The contract direct costs are burdened based on the associated burdening class. The burdening level-associated burdening classes act as filters for identifying the matching transactions. When a transaction contains attributes matching the criteria defined in the burdening matrix, the burdened costs are applied with the specified rates at each burdening level from the top down.
You can create levels of burdening for a burdening matrix using the create burdening level page. Burdening levels are auto numbered starting at level zero (0). Level 0 is the highest level in the matrix, and is equal to the direct cost. Level one (1) is the starting level you can create. The additional burdening levels, when created, get incremented.
You can select the level at which the rate is applied. By default, burdening level burdening rate is applied to the matrix base rate. The base rate is the direct cost passed from the project by multiplying the resource units with the rate specified in the rate matrix. If you do not create and define additional burdening levels, the direct cost is applied to level zero (0). As you create additional levels, you can define at which level the rate is applied.
You can only add levels sequentially after the lowest level (most recently added level), and not between levels. You cannot sort the list of burdening levels.
To apply different burdening rates or rules to a role or group of roles, create burdening levels for each burdening class and rule combination. First specify the role or group, and then define the rates and rules to apply to the role or group.
Follow these steps:
The general page appears.
The levels page appears.
The create page appears.
Defines the level number for the burdening level.
Default: The next level in the series
Defines the burdening class associated with the level. Select a burdening class. Required when a burdening class is created. Display only after the level is created.
Required. Defines the resource role to which the burdening cost is applied. Select a role in the Role(s) field. You can apply this burdening rate and rule to one or more resource roles.
Required. Defines the rate is applied for the burdening level.
Values:
Burden Value = Burden value of referenced level * rate (%)
Burden Value = Accumulated burdened value of referenced level + flat amount
Default: Percentage
Defines the flat amount from which to calculate and apply to the burdening rate for this level. Complete this field if you select flat amount as the rate type.
Defines the percentage from which to calculate and apply to the burdening rate for this level. Complete this field if you select percentage as the rate type.
Required. Defines the lower level rate to which the burdening rate is applied. When you set the level to zero (0), the direct cost is applied. The applied at level number is required to be less than the burdening level number.
Required. Defines the burdening formula for the level. The burdening amount at each level is calculated based on the burdening formula. A running total amount is calculated that accumulates the burdening from the matrix burdening levels.
Values:
Default: Simple
The new burdening level is created and displays on the burdening matrix levels page.
Each new burdening matrix level displays as a row on the burdening matrix levels page. You can view a list of burdening levels on the page.
Follow these steps:
The list page appears.
The general page appears.
The levels page appears.
The escalations properties page appears.
You can only delete the maximum burdening level in a matrix. Suppose, the matrix is associated with a project and the level with a burdening matrix used in burdened cost calculations. The burdening level cannot be deleted.
Follow these steps:
The general page appears.
The levels page appears.
The confirmation page appears.
Use the burdening level escalation table on the burdening level properties page to create the escalation matrix using:
By default, an empty row displays in the table on the burdening level properties page. Complete the row and add additional rows.
Follow these steps:
The burdening matrix page appears.
The levels page appears.
The properties page appears, displaying a list of burdening rate escalation rows and an empty escalation row.
A new row is added to the table.
Follow these steps:
The escalations properties page appears.
The properties page appears.
Displays the level number.
Defines the burdening class associated with the level. Select a burdening class. Required when creating a burdening class. Display only after the level is created.
Required. Defines the role to which the burdening cost is applied. Click the Browse icon to select the role. You can apply this burdening rate and rule to one or more roles.
Required. Defines how the rate is applied for the burdening level.
Values:
Burden Value = Burden Value of referenced level * rate (%)
Burden Value = Burden Value of referenced level + flat amount
Default: Percentage
Defines the flat amount from which to calculate and apply to the burdening rate for this level. Complete this field if you select flat amount as the rate type.
Defines the percentage from which to calculate and apply to the burdening rate for the level. Complete this field if you select percentage as the rate type.
Required. Defines the lower level rate to which the burdening rate is applied. When the level is set to zero (0), the direct cost is applied.
Required. Defines the burdening formula for the level. The burdening amount at each level is calculated based on the burdening formula. A running total amount is calculated that accumulates the burdening from the matrix burdening levels.
Values:
Default: Simple
Burdening can change over time. Therefore, you can define the time varying burdening, or the escalation rate for a particular burdening class, at each burdening level. Use the rows in the escalation table on the burdening level properties page to time vary the burdening.
The burdening level rate type dictates the type used for the escalation table. If you do not define an escalation row for a date, the associated burdening level rate is applied to the date. Escalation matrices cannot have date gaps, or zero values.
Example
If your burdening rate escalated each month, add a new row for each month and define the rate for the month.
Follow these steps:
The general page appears.
The list page appears.
The properties page appears.
Defines the date of starting to apply the escalation rate.
Defines the last date until which the escalation rate is applied.
Displayed if the burdening level rate type is percentage. Defines the percentage to calculate and apply to the burdening rate for the level.
Displayed if the burdening level rate type is flat amount. Defines the flat amount to calculate and apply to the burdening rate for the level.
Associate a burdening matrix with a project to calculate its indirect cost. The project is required to associate directly with a control account work package, or associated through selected tasks. A work package actual and remaining costs are burdened based on the matrix associated with the project.
You can associate:
Important! Before you can associate a burdening matrix with a project resource type, first create the burdening matrices.
For more information, see the Project Management User Guide.
For more information, see the Basics User Guide.
Follow these steps:
The properties page appears.
The properties page appears.
The list page appears.
Defines the burdening matrix used to calculate the indirect cost amount of the transaction entry. Search for and add the burdening matrix to calculate project rates.
Displayed only when multiple currencies are available. Defines the exchange rate type that is used for transactions entered against the project. When the project is approved, you cannot modify the exchange rate type.
Values:
Spot. The variable rate that changes over the course of a day.
If a matrix is unused in burdened cost calculations, only then can you disassociate burdening matrices from a project resource type.
Follow these steps:
The properties page appears.
The properties page appears.
The list page appears.
The matrix is disassociated from the resource type.
Indirect costs are calculated by burdening rates to the project cost base (that is direct cost). The burdening matrix values are converted into the contract defined currency and the burdened costs are returned in that currency. The burdening is applied to the total cost (cost rate * unit) and not the per unit cost rate.
Matrix levels are used in burdened cost calculations. Burdened costs are stored based on the role and rate type you define for the burden matrix levels.
Use the following process to apply burdening in earned value calculations:
Contact your CA Clarity PPM administrator or see the Administration Guide for more information.
For more information, see the Project Management User Guide.
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