This deliverable comprises most of the financials related to a project.
Click on Financial Inputs on the Company Pageto define hurdle rate (the other attributes are not editable as they are inherited from the company).
We've kept the example simple on purpose. We have some expenses and some benefits in the budget.
Any mismatch will be pointed out (orange: under-assignment, red: over-assignment).
Any mismatch with budget is highlighted. Please note that the estimated cumulative budget prorates the costs (and benefits) for a given period. This is done because usually budgeting occurs at a lower granularity than actual reporting. So for example, we budget with a quarterly periodicity, but we track actuals with a monthly periodicity (like in the example above).
Project Financials Options
By clicking onyou will get to the Project Financials Options page.
We have seen above how to record project benefits as projected and as actual realized, by period. Now we'll see how to distribute benefits among business units or companies (in the case of a multi-company project).
By clicking a modal will open:
The sum needs to add up to 100% (if not you will see a change in colors). The percentages represent the split of the project value among organizational entities, and it will be the value that will be used in the sunburst diagram of Company Projects or Company Business Units.
This icon will open a popover where you can discover about who can read, edit, and approve/deapprove the Project Financials.
Stage Alert of Budget Mismatch
You might see an alert like this one appearing on top:
It's something in the format "The total budget for this stage given in the Stage Plan (with start date YYYY-MM-DD and end date YYYY-MM-DD) was XX. It is different from the budget calculated given the matrix below (ZZ). Nonetheless it might be due to the fact that this stage start/end date do not perfectly match the periodicity chosen for budgeting."
Despite being self explanatory, it's worth mentioning that stages start/end dates don't necessarily match the periodicity given for actual or budget numbers. E.g. you might have chosen a quarterly budget (hence Jan 1st to March 31st would be the first quarter) but then you have a first stage lasting between Jan 1st to Feb 10th. See example below:
This mismatch between the cut-off dates for budget periodicity and start/end dates of stage can cause a mismatch in financials. Nothing to worry about as long as you keep an eye on what you budgeted when creating the stage plan, and what you are budgeting in this more detailed table. The issue is usually less evident in actual spending, as normally the granularity for periodicity is higher (more frequent).