Set Financial Management System Defaults

Document created by Sarmistha_Purkayastha Employee on Oct 17, 2016Last modified by Sarmistha_Purkayastha Employee on Oct 17, 2016
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You can set system-level defaults for financial classes, cost and rate matrices, and other financial management settings. The system defaults simplify the financial setup for an organization 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 the entity or system defaults. Conversely, the product uses the system defaults if the investments and resources are missing financial setup information.

Before completing the following procedure, verify that the following setup exists:

  • Entity
  • Locations and Department OBS units
  • Financial classes
  • Cost/Rate matrices for labor, material, equipment, and expense

Follow these steps:

  1. Open Administration, and from the Finance menu, click Setup.
  2. Click the Defaults link.
  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 the Project Transaction Entry Defaults link.
  5. In the the Labor section, complete the following fields:
  • Rate Source. Defines the default rate matrix that is used to determine the chargeable rate for labor.
  • Cost Source. Defines the default cost matrix that is used to determine the labor costs.
  • Source Location. Defines the default source location that is considered when using a cost/  or rate matrix. The source is either the employee (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.
  • Exchange Rate Type. Defines the default labor exchange rate type that is based on active currencies for all investments in the system. Select from the following 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.
  1. In the Material, Equipment, and Expense sections, complete the following fields:
  • Rate Source. Defines the default  rate matrix that is used to determine the chargeable rate for the material, equipment, or expenses incurred.
  • Source Location. Defines the employee (resource) or the investment location that is based on the associated location OBS.
  • Exchange Rate Type. Defines the default exchange rate type that is based on active currencies for all investments in the system.
  1. Click Save and Return to go back to Financial Management Defaults page.
  2. In the General section, complete the following fields to set system defaults for financial metrics for investments. You can override these defaults at the investment level.
  • Annual Total Cost of Capital %. Defines the annual finance rate that is used to calculate the total cost of capital of an investment.
  • Annual Reinvestment Rate %. Defines the annual interest rate that is used to reinvest positive cash flow of an investment.
  • Ignore Non-Labor Resources/Roles in Cost Plan Population. Specifies whether team allocation or assignment ETC from non-labor resources and roles is skipped during the auto-population of a cost plan (for example, Populate from Investment Team). The option is unselected by default which means that all data for an investment is included in the cost plan.
  1. In the Access Rights section, specify whether you want to grant the Resource - Edit Financial instance right to resource managers by default. The access right allows resource managers to view general and financial properties, and to edit only the financial properties for the assigned resources.
  2. Save the changes.

 

 

This information is originally published in the CA PPM documentation

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