Setting Up Financial Management › How to Create Supplemental Financial Data › Financially Enable Investments

Financially Enable Investments

To use the financial management system and configurations that you have set up, define the financial properties for investments. You can then process financial transactions against investments and determine their costs.

Financially enabling the investments ensures that actual costs from posted transactions show up on cost plans, reports, portfolios, and other places in the product.

Note: The following procedure uses "projects" as a sample investment.

Follow these steps:

1. Open Home, and from Portfolio Management, click Projects.
2. Open the project.
3. Open the Properties menu, and from Properties, click Financial.
4. In the General section, complete the following fields:

   Company Name

   Defines the company sponsoring the project or receiving the benefits of the project. A company profile must exist.

   Affiliated Project

   Defines the project that is financially tied to the project. You can select from all financially activate projects that are associated with the company. If you are integrating with a third-party external billing application, you can use this value to generate consolidated invoices under one project.

   Department

   Defines the department that is used during transaction processing of chargebacks to charge or credit departments for costs. The department can also be used to match the project with Cost/Rate matrices. The field is auto-populated if a department is selected on the project general properties.

   Location

   Defines the location that is used to match the project with debit and credit rules for transaction processing of chargebacks. The project location can be used as a match in the Cost/Rate matrix. If the project does not have a defined location, the product uses the entity default location or the system default location.

   Financial Status

   Specifies the status that determines how financial transactions entered against the project are handled.

   Values:

   • Open. All transactions that are entered against the project can be fully processed.
   • Hold. No new transactions can accumulate on the project.
   • Closed. No new transactions can accumulate on the project. When you mark the financial status as "Closed", it is no longer open for financial processing.

   Type

   Defines the billing method that is required for financial transaction processing.

   Values:

   • Standard. The option allows transactions to accumulate over a given cycle. You can charge resulting transactions at any time.
   • Internal. The option is used to track financial transactions that are not meant for chargebacks.

   We recommend selecting the Internal option unless you are going to export transactions into a third-party billing application.

   WIP Class

   Defines the WIP class that is used to match the project with cost/rate matrices. The WIP class can also be used for reporting purposes.

   Investment Class

   Defines the investment class that is used to match the project with cost/rate matrices. The investment class can also be used for reporting purposes.

   Cost Type

   Defines the scheduled capital or operating cost of the project. By default, the cost type is set to Operating. You can use this value for analyzing data in cost plans and portfolios.

   Billing Currency

   Defines the currency that is used to process chargebacks and financial transactions on the investment. After you process transactions or create detailed financial plans for the project, you cannot change this currency value. The field is read-only for single currency systems.

5. In the Labor Transaction Rates, Material Transaction Rates, Equipment Transaction Rates, and Expense Transaction Rates sections, enter the following cost or rate information as needed:

   Rate Source

   Defines the cost/rate matrix that is used to calculate the benefit amount of the transaction entry for the project.

   Cost Source

   Defines the cost/rate matrix that is used to calculate the cost amount of the transaction entry for the project.

   Exchange Rate Type

   Displayed only when multiple currencies are available. Defines the exchange rate type for transactions for the project. When the project is approved, you cannot modify the exchange rate type.

   Values:

   • Average. The blended derived rate over a period: weekly, monthly, or quarterly.
   • Fixed. The fixed rate that does not change over a defined period.
   • Spot. The variable rate that changes frequently, say daily.

6. Save the changes.

More information:

How to Create Supplemental Financial Data

Verify the Prerequisites

Add Vendors (Optional)

Create Company Profiles (optional)

Create Input Type Codes

Create Charge Codes

Set System Defaults

Specify WIP Settings

Financially Enable Resources and Roles

Financially Enable Resources and Roles

To use the financial management system and configurations that you have set up, define the financial properties for resources and roles that are assigned to investments. You can then process financial transactions against resources and roles and determine how these costs impact investments. The actual costs from posted transactions show up on cost plans, reports, and portfolios. Financially enabling resources and roles also provide access to application pages that provide you visibility to resource transaction entries.

Follow these steps:

1. Open Home, and from Resource Management, click Resources.
2. Open the resource or role.
3. Open the Properties menu, and click Financial from Properties.
4. Complete the fields in the Supplemental section. The following fields require explanation:

   Financially Active

   Indicates whether the financial attributes for a resource or role are enabled to record financial management activities against an investment.

   Target % Billable

   Refers to the percentage of the targeted billing rate that is billable. Enter the target percentage billable for this resource, if applicable. Financial Department

   Defines the financial department that is associated with an entity in the financial organization structure. The financial department represents the cost center of the resource or role.

   Financial Location

   Defines the financial location that is associated with an entity in the financial organization structure. The financial location represents the location of the resource or role.

   Transaction Class

   Defines the user-defined values that group transaction types for the resource or role and is used in financial transaction processing.

   Resource Class

   Defines the category for the financially enabled resource or role and is used with financial transaction processing. If the resource is a labor type, complete the department and location fields to be able to mark the resource as financially active.

   Target % Billing

   Refers to the percentage of the targeted billing rate that is billable for the resource or role.

5. Save your changes.