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Planview Customer Success Center

Use Organizational Rates

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Project Managers can define Budget and Actuals through calculation using Organizational Billing and Cost Rates. 

Organizational Rates are used in Professional Services Automation (PSA) financial management to standardize cost and billing rates across projects and resources. These rates streamline budgeting, forecasting, and financial tracking by providing consistent baseline values. They’re particularly useful for organizations aiming to streamline operations and maintain financial accuracy at scale.

           

Prerequisites

If you can't configure your organization system settings or set User permissions, contact your administrator to ensure that the following prerequisites are met.

Enabled Global and System settings

  • Enable the system settings 9.1: Budget Management. Defines whether to activate the budget module which enables budgeted cost and actual cost management.
  • Enable the system settings 9.3: Projects are Billable by default. Defines whether projects are billable by default, where revenue fields and variances are calculated.
  • From the Global settings, define the Cost and Billing Rates for the organization. It is feeding into our Work Plan budgeted cost and expected revenue based on the Work that you are defining.

User Permissions and Profile

  • Enable the Financial permissions for Users so that they can access financial fields and the financial planning view
  • Ensure the User Profile Property Card includes a Financial section with the following standard fields: 
    • Budgeted Cost, Actual Cost, CPI
    • Expected Revenue, Actual Revenue, RPI
    • Planned Profit, Profit, Earned Value, % Profitability

Project settings

  • Add the Calculate Financials field to the grid and toggle ON at the project level. This will enable the application to run aggregated financials in the background. 
  • Add the Billable field to the grid and toggle OFF for all work items that shouldn't be included in revenue calculation. Alternatively, you can ask your administrator to uncheck the 9.3 system settings so that you can turn ON only relevant items. 

           

 

To calculate Project Budget and Actuals with Organizational Rates:

  1. Log in as a Project Manager.
  2. From the Project module, open your project and view its details.
  3. In the Grid view of your Work Plan, add the Work, Budgeted cost and Expected revenues fields. 
  4. For each Work Item that is billable, add manually a value for the Work column. 

    The budgeted cost (Planned Work * Hourly Cost Rate) and expected revenue (Planned Work * Hourly Billing Rate) are automatically calculated. Note that Budgeted cost and Expected revenues fields rolls up from lowest level to the parent work item.
     
  5. In the Grid view of your Work Plan, add the Actual Effort, % completion, Actual cost, and Actual revenues fields. 
  6. For each Work Item that is billable, add manually a value for the Actual Effort column. Alternatively, you can set the % completion for the Task and the Actual Effort will be derived automatically from your input.  

    The Actual cost (Actual Effort * Hourly Cost Rate) and actual revenue (Actual Effort * Hourly billing Rate) are automatically calculated. Note that Actual cost and Actual revenues fields rolls up from lowest level to the parent work item.

That's it!

AdaptiveWork will calculate automatically CPI, RPI, Planned Profit, Profit, Earned Value, and % Profitability.