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Clarity Financial Management. Identifying and Leveraging the Right Tools. Agenda. Clarity Financial Outputs OOB Portlets /RegoXChange Portlets Financial Components Financial Setup Resources Investments Tasks (yes tasks) YOU Design the Financial Architecture Cost Plans/Budgets
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Clarity Financial Management Identifying and Leveraging the Right Tools
Agenda • Clarity Financial Outputs • OOB Portlets /RegoXChange Portlets • Financial Components • Financial Setup • Resources • Investments • Tasks (yes tasks) • YOU Design the Financial Architecture • Cost Plans/Budgets • An Approach to Annual Forecast/Budgeting • Open Forum
Financial Output Project Dashboard-PMO Accelerator-PMO Project Status Layout
Financial Output Project Cost Plan/Budget
Financial Output Posted Transaction Review Portlet
Financial Implementation Best Practices • Keep Things as Simple as Possible • Spend Time on the Full Architecture • Clarity is Cash Based – No concept of P&L / Depreciation • Clarity is NOT the Company Financial System of Record; Clarity will never match general ledger 100% • Clarity is a MANAGEMENT tool – enough information to make decisions • Start with required outputs, how do you need to classify financial data; involve finance team "A clever person solves a problem. A wise person avoids it"- Albert Einstein
Clarity Financial Components • Entities / Classes • Categorization of Costs • Attributes to Determine Rates • Financials Plans • Forecasting • Actuals • Task & Resource Level Costing • Earned Value • Project / Departmental Chargebacks • Subscription • Debit Rules
15 • Best Practice • One Entity if Possible • Only use Department and Location if needed for rates, otherwise – just one of each Entities • Financial OBS • Department (Object and OBS) • Location (Object and OBS) – Linked to a Department • Defaults • Default Financial Plans • Fiscal Periods • Used within datamart jobs • Used on Financial Plans-Cost Plans and Budgets • Currencies • Home Currency • Billing Currency • Exchange Rates
16 • Best Practice • Default where possible • Align Transaction Class to Financial Reporting Needs. Classifications • Resource Classes • Internal / External • Specialized Resources • Company Classes • Default to Corp • Lines of Business • Work In Process (WIP) Classes • Default • Investment Classes • Default • Transaction Classes • Labor • Equipment • Material • Expense
17 • Best Practice • Determine Charge Code usage vs. Cost Type • Roles – Understand difference between Primary and Assignment Roles Other Financial Attributes • Input Type Code on Resource Record (required for processing) • Billable • Non-Billable • Cost Type on Project Object • Capital • Operating • Charge Code on Investments (required for processing) • Capital • Expense • Roles on Resource Record • Available to Rate Matrix
18 • Best Practice • End Dating-Minimum of current year +1 • Exact Rates for Contractors/Aggregate Rates for Internal Resources Rate Matrix • Define Columns to Derive Rates • Exact Rates • Aggregate Rates • Non-Labor • $1 Defaults • End Dating
20 Resource Timesheets Resources have the ability to modify financial classifications on their timesheet
21 Investments
22 Tasks • Tasks Must Have Charge Code to Process Financially: • Charge Code • Project Level • Summary Level • Task • Cost Type: Used for Portfolio Alignment in 13.3 • Project Level • Summary Level • Task
Design the Financial Architecture • Scenario #1 • The Bucket List Company wants to capture internal labor costs and SOW expense costs on projects. They are only tracking time on strategic projects. Every once in a while an hourly contractor will book time to strategic projects and they want to capture that cost too. • Scenario #2 • The EyeBill All Company must account for all project costs for internal labor, external labor and Capital Purchases. They require tracking exact costs to the project (to the penny).
Design the Financial Architecture Scenario #3 The Department of Financial Oversight needs to implement Clarity financials to capture internal labor costs by sub-department. They also need to capture the project costs that are sponsored by each sub-department. Resources can only work on projects in their own sub-department. Aggregate Rates for resources are determined on a department by department basis every year. Scenario #4 My Specialty store needs to track the cost of internal labor, external labor and Services Transaction for SOW contracts. One group of external labor resources, filling the Architect role has a rate that is double the other external Architects. The total cost of this Special Architect class needs to be reported separately on each project.
25 • Best Practice • Set Cost Plan Update Policy, how cost plans are to be created. • Default Cost Plans to show key financial metrics Financial Plans • Cost Plans: • Three ways to create a Cost Plan • Manual • New From Investment Team • New from Task Assignments • Choose the Classes to display in your Cost Plan. • The Cost Plan populates the Planned Costs field at the project level • Actual costs will pull into the cost plan for variance comparison by time period.
Best Practice • Align Budget and Baseline processes Financial Plans • Budget Plans: • A cost plan becomes a budget plan when the cost plan of record is submitted for approval and approved • Same structure and view as a cost plan – a saved/static version. • Benefit Plans: • Once you create a benefit plan – Clarity will make the planned cost fields read only. • The Benefit Plan populates Planned Benefit at the project level. • If the Benefit Plan is attached to the Budget, it populates Budgeted Benefit at the project level. • Realized Benefits-manual entry
27 • Best Practice • Be a part of RegoXchange to get our Post to WIP Job. • Communicate Posting Schedule Financial Jobs Summary • Post Timesheets • Post Transactions to Financial • Review Invalids (fix) • Post Transactions to Financial • Post to WIP • Import Financial Actuals • Other • Slicing • Investment Allocation • Update Hierarchy Data
28 Best Practice Whatever your posting and processing cadence is, make sure it is well communicated.Postings modify project dates and financials, therefore important to have a transparent and predictable schedule Actual Costs - Timesheets • Base Setup • Determine Posting Cadence • Adjustment Postings? • Approval Policy • Auto-approval? • Timesheet Adjustment Policy • Number of Open Time Periods
29 Best Practice Have Rego build a better interface for entering these costs, or have us build application integration from your financial system of record. Actual Costs – Manual Transactions • In the create entry section on the application side, you must first create a voucher • Vouchers can be “Expense” types or “Other” • Within the voucher, you can create multiple transactions • Transactions must have a date, investment, task, charge code, resource id, transaction class, input type code, and the various costs and amounts • Run Post Transactions to Financial • Run the Post to WIP • Run import financial actuals job • Afterwards, check the admin side for invalid transactions • If there are some, fix the needed fields and repost • Run the investment allocation job (adjust the investment list fields)
30 Best Practice Annual Forecast and Budgeting should be incorporated into the annual schedule of Corporate/departmental activities. Cost Planning & Budgeting • Defining the objects to use to forecast financials and resources • Strategic Project Alignment • Non-Strategic Work Definition
31 Annual Budgeting-Strategic Projects
32 Annual Budgeting – Strategic Projects
33 Ideas
34 Annual Budgeting-Non-Strategic Projects
Expected Resource DistributionPrior to Annual Budgeting Process
Open Forum-Collaborate & Motivate • Financial Setup Experiences • Innovative Class Definitions/Assignments • Whatever you do…DON’T • Financial Policy /Standards • Posting Cadence • Cost Plans/Budget Approval • Baselines • Earned Value • Integration of Financial or HR Systems • Annual Budgeting Cycle • Strategic Planning • Non-Strategic Planning
Questions Contact US 888.813.0444 Email Contact info@regoconsulting.com Web Site www.regoconsulting.com Thanks for participating! If you have any follow up questions or comments about this presentation. Dave.wachsmann@regoconsulting.com Thank you.