Detailed Financial Planning

Detailed Financial Planning

This section contains the following topics:

About Detailed Financial Planning

How to Set Up Detailed Financial Planning

Display Cost Plans and Budget Views

Cost Plans

Benefit Plans

Budget Plans

About Copying Financial Plans

Example: How Financial Plan Data is Copied

About Detailed Financial Planning

Detailed financial planning allows you to estimate funding for your investments using cost plans. You can get approval for such funding using budget plans. As part of the approval process, you can associate your cost plans with benefit plans to estimate the benefit from your investments.

More information:

Cost Plans

Budget Plans

Summary Financial Planning

How to Set Up Detailed Financial Planning

To build financial plans, the following must be set up:

• An entity must exist.
• Fiscal time periods must be defined and activated at the entity level.
• An investment must exist.

  For more information, see the Project Management User Guide.

• The investment must be financially enabled.

  For more information, see the Project Management User Guide.

• Users must have access rights to work with financial planning.

Display Cost Plans and Budget Views

The following views are available for a cost plan or budget plan details:

• Investment Currency View—This default view shows only the data for the selected cost plan or budget. No child data is included in the view. The view shows cost and revenue details in the investment home currency with grouping attributes presented in separate columns. If you have the appropriate access rights, you can edit the view.
• Billing Currency View—This view is the same as investment Currency View except it shows the cost and revenue details in the billing currency based on a predefined exchange rate. The Billing Currency View applies to a multi-currency system where the billing currency is different from the investment home currency.

  The exchange rate used in the billing calculations depends on the following factors:

  • The investment currency or the entity home currency and the billing currency set in the investment financial properties.
  • The exchange rate type driven by the transaction type (for example, labor transaction, material transaction, and so on) set in the investment financial properties. Average exchange rate is always used for this.

    The following billing calculations are triggered when either the cost or the revenue changes in the financial plan for a given row:

    • Billing Cost calculated as Cost * Exchange rate
    • Billing Revenue calculated as Revenue * Exchange rate
    • Total Cost is the sum of Billing Cost
    • Total Revenue is the sum of Billing Revenue

    A change in the exchange rates or billing currency does not trigger recalculation of billing amounts.

Follow these steps:

1. Open the investment.
2. Open the Financial Plans menu and click Cost Plans, Benefit Plans, or Budget Plans.

   The plan list page appears.

3. Click the plan name to open the plan details.
4. Select the view you want from the Show drop-down.