How to Set Up Financial Management › How to Create Supplemental Financial Data › Set System Defaults

Set System Defaults

You can set system-level defaults for financial classes, cost and rate matrices, and other financial management settings. The system defaults help simplify the financial setup in the following situations:

• Little variation exists in the type of work.
• A standard set of costs and rates apply to all investments.

You can override the system defaults at the entity level or investment-level. The investment-level defaults take precedence over entity or system defaults.

On the contrary, the product uses system defaults if the lower levels of financial hierarchy (such as investments and resources) are missing configurations. For example, the product uses the matrix that is defined in the project transaction entry defaults if a project is not configured with a matrix.

Follow these steps:

1. Open Administration, and from the Finance menu, click Setup.

   The financial organizational structure appears.

2. Click Defaults.

   The financial management defaults appear.

3. In the File Maintenance section, select the default values to use for the entity, location, department, and financial classes.
4. In the Project section, click Project Transaction Entry Defaults.

   The transaction entry page appears.

5. In the Labor section, complete the following fields:

   Rate Source

   Defines the default matrix that is used to determine the chargeable rate for labor.

   Cost Source

   Defines the default matrix that is used to determine the labor costs.

   Source Location

   Defines the default source location that is considered when using a matrix for applying rates and costs.

   The source is either the employee (that is, resource) or the investment location that is based on the associated location OBS. If the default source location is set at the entity level, the system uses the entity setting to determine the source location. The location that is defined on the WIP settings is also used to determine the source location.

   Exchange Rate Type

   Defines the default labor exchange rate type that is based on active currencies for all investments in the system.

   Values:

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

6. In the Material, Equipment, and Expense sections, complete the following fields:

   Rate Source

   Defines the default matrices that are used to determine the chargeable rate for the material, equipment, or expenses incurred.

   Source Location

   Indicates that the default source location OBS unit that is considered when using a matrix for applying rates and costs is the investment location.

   Exchange Rate Type

   Defines the default exchange rate type that is based on active currencies for all investments in the system.

7. Save the changes.

More information:

Entities

Currencies