Configuring the Financial Inputs should be done in consultation with your Finance department so that you know ahead of time your fiscal year end, budgeting cycle and hurdle rate.
- Month fiscal year starts is as it sounds, select your fiscal month.
- First day of the week aligns organizational calendars to the first day of the week. This value is typically Monday or Sunday.
- Budget periodicity clarifies how often your organization intends to conduct its budgeting cycle.
- Actual periodicity confesses how often your organization actually conducts its budgeting cycle. Hopefully they align in your organization.
- Hurdle rate is also known as the cost of capital, and is generally understood as the interest rate at which the organization is willing to make investment. The default, 12%, is the industry average.
The periodicity for reporting budget and actual spending is at the company level and will be replicated automatically to all projects. It's advisable, before creating the first project, to choose these values carefully since they facilitate a common baseline for analytics across all projects. Values can be changed in the future, and each new project will reflect the change, but changes will not be reflected in current or historical projects.