Identifying and Leveraging the Right Tools Clarity Financial Management

Clarity Financial Outputs OOB Portlets /RegoXChange Portlets Financial Components Financial Setup Resources Investments Tasks (yes tasks) YOU Design the Financial Architecture Cost Plans/Budgets An Approach to Annual Forecast/Budgeting Open Forum Agenda

Financial Output Project Dashboard-PMO Accelerator-PMO Project Status Layout

Financial Output Project Cost Plan/Budget

Financial Output

Financial Output Posted Transaction Review Portlet

Financial Output

Financial Output

Financial Output

RegoXchange Financial Outputs

RegoXchange Financial Outputs

Financial Implementation Best Practices Keep Things as Simple as Possible Spend Time on the Full Architecture Clarity is Cash Based – No concept of P&L / Depreciation Clarity is NOT the Company Financial System of Record; Clarity will never match general ledger 100% Clarity is a MANAGEMENT tool – enough information to make decisions Start with required outputs, how do you need to classify financial data; involve finance team "A clever person solves a problem. A wise person avoids it" - Albert Einstein

Entities / Classes Categorization of Costs Attributes to Determine Rates Financials Plans Forecasting Actuals Task & Resource Level Costing Earned Value Project / Departmental Chargebacks Subscription Debit Rules Clarity Financial Components

Entities Financial OBS Department (Object and OBS) Location (Object and OBS) – Linked to a Department Defaults Default Financial Plans Fiscal Periods Used within datamart jobs Used on Financial Plans-Cost Plans and Budgets Currencies Home Currency Billing Currency Exchange Rates Best Practice One Entity if Possible Only use Department and Location if needed for rates, otherwise – just one of each

Classifications Resource Classes Internal / External Specialized Resources Company Classes Default to Corp Lines of Business Work In Process (WIP) Classes Default Investment Classes Default Transaction Classes Labor Equipment Material Expense Best Practice Default where possible Align Transaction Class to Financial Reporting Needs.

Other Financial Attributes Input Type Code on Resource Record (required for processing) Billable Non-Billable Cost Type on Project Object Capital Operating Charge Code on Investments (required for processing) Capital Expense Roles on Resource Record Available to Rate Matrix Best Practice Determine Charge Code usage vs. Cost Type Roles – Understand difference between Primary and Assignment Roles

Rate Matrix Define Columns to Derive Rates Exact Rates Aggregate Rates Non-Labor $1 Defaults End Dating Best Practice End Dating-Minimum of current year +1 Exact Rates for Contractors/Aggregate Rates for Internal Resources

Resources & Roles

Resource Timesheets Resources have the ability to modify financial classifications on their timesheet

Investments

Tasks Tasks Must Have Charge Code to Process Financially: Charge Code Project Level Summary Level Task Cost Type: Used for Portfolio Alignment in 13.3 Project Level Summary Level Task

Design the Financial Architecture Scenario #1 The Bucket List Company wants to capture internal labor costs and SOW expense costs on projects. They are only tracking time on strategic projects. Every once in a while an hourly contractor will book time to strategic projects and they want to capture that cost too. Scenario #2 The EyeBill All Company must account for all project costs for internal labor, external labor and Capital Purchases. They require tracking exact costs to the project (to the penny).

Scenario #3 The Department of Financial Oversight needs to implement Clarity financials to capture internal labor costs by sub-department. They also need to capture the project costs that are sponsored by each sub- department. Resources can only work on projects in their own sub- department. Aggregate Rates for resources are determined on a department by department basis every year. Scenario #4 My Specialty store needs to track the cost of internal labor, external labor and Services Transaction for SOW contracts. One group of external labor resources, filling the Architect role has a rate that is double the other external Architects. The total cost of this Special Architect class needs to be reported separately on each project. Design the Financial Architecture

Financial Plans Cost Plans: Three ways to create a Cost Plan Manual New From Investment Team New from Task Assignments Choose the Classes to display in your Cost Plan. The Cost Plan populates the Planned Costs field at the project level Actual costs will pull into the cost plan for variance comparison by time period. Best Practice Set Cost Plan Update Policy, how cost plans are to be created. Default Cost Plans to show key financial metrics

Financial Plans Budget Plans: A cost plan becomes a budget plan when the cost plan of record is submitted for approval and approved Same structure and view as a cost plan – a saved/static version. Benefit Plans: Once you create a benefit plan – Clarity will make the planned cost fields read only. The Benefit Plan populates Planned Benefit at the project level. If the Benefit Plan is attached to the Budget, it populates Budgeted Benefit at the project level. Realized Benefits-manual entry Best Practice Align Budget and Baseline processes

Financial Jobs Summary Post Timesheets Post Transactions to Financial Review Invalids (fix) Post Transactions to Financial Post to WIP Import Financial Actuals Other Slicing Investment Allocation Update Hierarchy Data Best Practice Be a part of RegoXchange to get our Post to WIP Job. Communicate Posting Schedule

Actual Costs - Timesheets Base Setup Determine Posting Cadence Adjustment Postings? Approval Policy Auto-approval? Timesheet Adjustment Policy Number of Open Time Periods Best Practice Whatever your posting and processing cadence is, make sure it is well communicated. Postings modify project dates and financials, therefore important to have a transparent and predictable schedule

Actual Costs – Manual Transactions In the create entry section on the application side, you must first create a voucher Vouchers can be Expense types or Other Within the voucher, you can create multiple transactions Transactions must have a date, investment, task, charge code, resource id, transaction class, input type code, and the various costs and amounts Run Post Transactions to Financial Run the Post to WIP Run import financial actuals job Afterwards, check the admin side for invalid transactions If there are some, fix the needed fields and repost Run the investment allocation job (adjust the investment list fields) Best Practice Have Rego build a better interface for entering these costs, or have us build application integration from your financial system of record.

Cost Planning & Budgeting Defining the objects to use to forecast financials and resources Strategic Project Alignment Non-Strategic Work Definition Best Practice Annual Forecast and Budgeting should be incorporated into the annual schedule of Corporate/departmental activities.

Annual Budgeting-Strategic Projects

Annual Budgeting – Strategic Projects

Ideas

Annual Budgeting-Non-Strategic Projects

Expected Resource Distribution Prior to Annual Budgeting Process Strategic 70% Support 15% Admin 10% OOO 5%

Actual Resource Distribution After Annual Budgeting Process Strategic 40% Support 37% Admin 15% OOO 8%

Open Forum-Collaborate & Motivate Financial Setup Experiences Innovative Class Definitions/Assignments Whatever you do…DONT Financial Policy /Standards Posting Cadence Cost Plans/Budget Approval Baselines Earned Value Integration of Financial or HR Systems Annual Budgeting Cycle Strategic Planning Non-Strategic Planning

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