Working with Finance Settings

Contents

You can view finance settings information for the project in the Settings tab on the Project Finances page. The top part of the screen displays various finance settings for the project. The lower part of the screen displays the finance categories based on the finance template selected when the project was created.

Include in Financial Calculations: Select this option to include project finances in financial rollups. By selecting No you can exclude project finances from rollups if they are still working on finalizing their numbers.

Track Finances Monthly: Select this to track projects on a monthly basis. If it is set to No, then finances can be tracked annually.

Use Global Lock Month: Select this option to use the global finance lock. If it is set to No, then project level finance lock month is used to calculate Realized/Actual finances

Global Finance Lock Month/Project Finance Lock Month: This displays the relevant lock month used for the project.

• If the Use Global Lock Month selection is set to yes, then this field will contain the global lock month. This field is not editable at the project level. Global lock month can be changed by finance administrators.
• If the Use Global Lock Month selection is set to No, then this field will contain the project level lock month. Finance representatives will have to update project level lock month as they validate their projects so that realized/actual finances are reflected correctly in financial rollups.

Finances Locked Globally: If this field displays the value Yes, then global finance lock has been set by the finance administrator and financial data at project level cannot be updated.

Project Finances are Unlocked: If the finances are locked globally and a particular project’s finances need to be edited, the Administrator can unlock finances for that one project by using this field.

Finance Start Date: If the finance window capability is enabled then finances can be tracked from the finance start date. By default the finance start date is set to the project close date.

Finance Element Types: Finance element types allow you to define various financial elements and assign a rate per unit for that element. E.g. You could define an Element type called Man-Hours and assign it a rate of $20 per unit. Entering element types allows you to use financial and non-financial inputs to calculate financial savings. You can also compute and override overtime and setup cost on a project level. The defaults are defined by the administrator, but can be modified from the settings page by users with appropriate permissions.

The system allows you to apply multiplication factors for finance categories. E.g. Only 10% of all Working Capital may be counted as part of Savings. When entering data, users enter working capital numbers normally, but the system will rollup 10% of the total working capital on the Financial Summary page as well as in reports. Weighting factors (e.g., WACC, Working Capital Multiplication Factor, etc.) can be applied to numbers before cumulative totals are calculated.

NPV, IRR and/or ROI: Define which of the categories and subcategories are to be used in calculating each of these values.