How to Set Up Financial Management › How to Create Supplemental Financial Data › Verify the Prerequisites

Verify the Prerequisites

Before you create the required financial data, complete these steps:

Understand financial concepts

Verify that you understand the following financial management concepts:

• Cost planning versus actuals, fiscal calendar cycles, fiscal time periods and how they are defined in your organization.
• The desired outcomes for any type of configuration. After you start using the configured data to create instance data, you cannot change the configuration. For example, you cannot delete fiscal time periods, department or location organizational breakdown structure (OBS) units, or financial classifications that the application uses.
• How you want to set up your organizational structure using entity, and the location and department OBS units. Organization is important because when you use the application or you generate reports, information groups by the outcome desired.
• How your configurations, classifications, and definitions affect the data flow to your third-party integrations and chargebacks processing.
• How your data setup affects the cost/rate calculations on the project side of the application versus the financial side (for example, transactions posted to work-in-process (WIP)).

Verify existing setup

Verify that you have set up the following financial structure:

• Location and department OBS and OBS units
• Entity
• Financial Classes
• Cost and Rate Matrices
• Currencies
• Investments (for example, projects, applications, assets)
• Resource and roles