Managing Services › Main Properties (Service) › Budget Properties (Service) › Define Simple Budgets (Investment)

Define Simple Budgets (Investment)

Define a simple budget for a service using the budget page of service properties. If you later define a detailed plan, data from the detailed plan overrides the simple budget, and the fields on the page become display-only.

For more information, see the Financial Management User Guide.

Follow these steps:

1. Open the service.
2. Open the Properties menu, and click Budget.

   The properties page appears.

3. Complete the following fields in the financial planning section:

   Currency

   Specifies the currency for calculating the budget and forecast values.

   Budget equals Planned Values

   Specifies if the budget values in the budget properties of an investment match the planned values. If a detailed budget plan exists for the investment, all the field values in the Budget section are display-only. The fields reflect the values in the detailed budget plan. When the check box is cleared, you can edit the budget fields.

   Default: Selected

   Calculate Financial Metrics

   Specifies if financial metrics for the investment are calculated automatically. If unselected, you can define the financial metrics manually.

   Default: Selected

4. Complete the following fields in the financial metrics options section:

   Use System Rate for Total Cost of Capital

   Select the field to calculate the total cost of capital at system rate.

   System Rate

   Displays the system rate for calculating the total cost of capital.

   Investment Rate

   Displays the investment rate for calculating the total cost of capital.

   Initial Investment

   Defines the initial investment on the service.

   Use System Reinvestment Rate

   Select the field to calculate the total cost of capital at the system reinvestment rate.

   System Rate

   Displays the system rate for calculating the total cost of capital.

   Investment Rate

   Displays the investment rate for calculating the total cost of capital.

5. Complete the following fields in the planned section:

   Planned Cost

   Defines the total planned cost for the investment. The value is distributed between the Planned Cost Start and the Planned Cost Finish dates.

   Planned Cost Start

   Defines the scheduled start date for the investment budget.

   Planned Cost Finish

   Defines the scheduled finish date for the investment budget.

   Planned Benefit

   Defines the anticipated financial benefit for the investment. The value is distributed between the planned benefit start and finish dates.

   Planned Benefit Start

   Defines the scheduled start date for the investment benefit.

   Planned Benefit Finish

   Defines the scheduled finish date for the investment benefit.

   Planned NPV

   Displays the planned net present value (NPV), which is calculated based on the following formula:

   Planned NPV = Planned Benefit - Planned Cost
   

   Note: To make this field available for data entry, clear the Calculate NPV Data field.

   Default: Locked

   Planned ROI

   The value in the field is calculated based on the following formula:

   Planned ROI = Planned NPV / Planned Cost
   

   Note: To make the field available for data entry, clear the Calculate NPV Data field.

   Default: Locked

   Planned Breakeven

   Displays the date and amount to indicate the period and value at which the program becomes profitable.

   Note: To make the field available for data entry, clear the Calculate NPV Data field.

   Default: Locked

   Planned IRR

   Displays the planned internal rate of return for the investment.

   Planned MIRR

   Displays the planned modified internal rate of return (MIRR) for the investment.

   Planned Payback Period

   Displays the date of the investment planned payback period.

6. Complete the following fields in the Budget section:

   Budget Cost

   Displays the total budgeted cost for the investment

   Budget Cost Start

   Displays the budgeted cost start date of an investment.

   Budget Cost Finish

   Displays the budgeted cost finish date of an investment.

   Budget Benefit

   Displays the budgeted benefit for an investment.

   Budget Benefit Start

   Displays the budgeted benefit start date of an investment.

   Budget Benefit Finish

   Displays the budgeted benefit finish date of an investment.

   Budget NPV

   Displays the budgeted NPV (Net Present Value) of this investment.

   Budget ROI

   Displays the budgeted ROI (Return on Investment) of this investment.

   Budget Breakeven

   Displays the date when the investment budgeted cost equals the budgeted benefit.

   Budget IRR

   Displays the budgeted internal rate of return for the investment.

   Budget MIRR

   Displays the budgeted modified internal rate of return for this investment.

   Budget Payback Period

   Displays the date of the investment budgeted payback period.

7. Save the changes.