The Project Financial Planning application unifies the decision-making process between corporate financial planning and project financial planning processes within a single application construct.
Ideally, decisions concerning projects and those made concerning the annual financial planning cycle in an enterprise should be part of the same process. Often, however, such decisions are made with regard to only a project or only to annual financial planning. Project sponsors and stakeholders may have different goals from the corporate financial targets and long-range plans that drive bottom-up annual plans and forecasts.
The application construct and functionality within the Project Financial Planning application ensure that the what-if impact analysis and feedback loop from financial considerations for projects is instantaneous. Because the approval processes for projects are closely tied to the approvals for financial plans and forecasts, the application’s process controls implicitly ensures agreement between project sponsors, key stakeholders, and financial decision makers. This process helps ensure alignment of project plans and financial plans to financial targets and corporate long-range financial plans.