Learn with Rego | Financials

Document created by navzjoshi00 Champion on Sep 9, 2016Last modified by navzjoshi00 Champion on Feb 3, 2017
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Dear Community Members,

 

In this week's Learn PPM with Rego, we'll explore five CA PPM questions and answers.

 

1. Can I display planned and actual costs in my schedule without using the full financial module?

2. Can I keep the project baseline and the cost/budget plan in sync?  How?

3. How do I see Cost vs Revenue in a Cost Plan, when I want to show actual cost vs billing cost?

4. How do I get CA PPM to perform ROI calculations?

5. How can I modify future periods in an approved budget plan while, at the same time, protecting past periods from change?

 

Please feel free to comment on any alternative answers you've found.

 

We love your input (always).

 

 

1. Can I display planned and actual costs in my schedule without using the full financial module?
Answer

 

Yes, as long as your resources are represented in a rate matrix, and you are running the “Update Earned Value and Cost Totals” job regularly. Also note that the views have been configured to include cost attributes.

 

The Rate Matrix can have rates based on resource name or resource role. These are normally burdened rates. See the example below.

 

Team Tab shows Allocation Costs

 

Task Tab / UI Gantt

 

Assignment View

 

Baseline

 

2. Can I keep the project baseline and the cost/budget plan in sync?  How?
Answer

 

Yes. The key is this: a new baseline is normally required when schedule, scope, and/or budget significantly changes. So, when you create a new baseline, you should simultaneously create a new cost plan. This should ensure they remain in sync.

 

Baseline

 

Cost Plan

 

 

3. How do I see Cost vs Revenue in a Cost Plan, when I want to show actual cost vs billing cost?

Answer

 

In the Rate Matrix, the Actual Cost column represents internal cost to the company. The Rate column represents the billing rate to the client.

 

On the Cost Plan Detail Tab, select “Show: Billing Currency View” to see Cost and Revenue numbers together.

 

4. How do I get CA PPM to perform ROI calculations?
Answer

 

Given a cost plan, a benefit plan, and a cost of capital %, CA PPM will calculate ROI, NPV, break even, and IRR. Typically cost plans are measured by monthly or quarterly periods. Benefits may be measured by quarterly or annual periods. Be aware that the costs/benefits entered are spread evenly over each period, which can impact calculations.

 

For example, if you measure benefits by year and think the benefits will start accruing in July 2017, but your fiscal year is Jan thru Dec, planned benefits for 2017 will still start spreading from January (not July). If you use quarterly benefit estimates, then your calculations will be more accurate.

 

While the other way may be more convenient, use periods driven by the need for accuracy.

 

Sample Cost Plan


Sample Benefit Plan


Calculations

 

 

 

5. How can I modify future periods in an approved budget plan while, at the same time, protecting past periods from change?

Answer

Use the Budget Plan Merge function.  Below is an approved budget for Aug – Dec 2016.


Now let’s assume that the project is in flight, we are in late September, and we need to revise the October - December budget but retain August and September planning costs. To do this, we will create a cost plan for the October - December periods with revised cost estimates for External Labor costs.  (Compare October - December costs in the image below, with the image above.)


NOTE: We removed the Hardware row because that cost has already been expended in September.


After setting the Submit Option to “Merge,” we can set this new cost plan as the new Plan of Record, and submit it for approval.


The new budget has been modified only for October - December.

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