Skip to main content

 

Planview Customer Success Center

Financial Planning and Cost Management

Financial Planning and Cost Management

The Financial Planning and Cost Management capability supports the planning and management of all financial information connected to programs and projects, and the monitoring of program and project financial performance. Each capability within the Planview Capability Framework has a distinct set of features and functionality, business processes, best practices, and analytics and reports that deliver value to customers in the form of specific business outcomes.

Processes and Reports

conceptual image_financial planning and cost management.jpg 

Financial planning supports the planning and management of all financial information connected to projects, programs and products. Different sets of financial data can be managed when taken at key approval and governance points, providing a standard for measuring performance. This supports the creation of high-level estimates, approved/baseline budgets, actual costs to date, forecasts to complete costs, and variance reporting.

Financial planning details financial planning within the delivery step for related solutions; Organizational Funding, Strategic Funding, and Product Funding detail financial planning within the planning step for related solutions.

           

Initial Financial Planning Process Steps

Initial Financial Planning focuses on getting the initial forecast/budget details in the plan to develop a business case and receive approval to proceed. 

           

E1 Initial Financial Planning Process Flow.pngForecast resource effort costs Forecast non-resource costs Forecast benefits and/or revenue Develop business case Baseline project budget Capture actual costs Manage forecasted resource effort/costs Manage forecasted non-resource costs Manage forecasted benefits and/or revenue Monitor financial performance

Initial financial planning process flow

           

Process Step Description
Forecast resource effort/costs

Estimate the high-level resource costs.

​Managers can plan resource costs by entering role-level demand directly into the financial plan in either FTEs or days. This demand is associated with certain resource details such as organizational role and location. The application then determines the costs of the resources based on their attribute categorization and estimated effort.

For the purpose of balancing capacity with demand during investment and capacity planning, an administrator can load the capacity of a cost-center based financial plan for either a portfolio of cost centers or all cost centers. Administrators can load this capacity immediately or can schedule the load.

Forecast non-resource costs

Estimate the high-level non-resource costs. Managers can use the Financial Planning Detail Screen to enter this data manually or use expenditures.

Forecast benefits and/or revenue Estimate the financial benefit of delivering the work.
Develop business case

Ensure the business case attributes are correct and current, which can help drive a business case analytic output.

The business case can include forecast financial data, planned schedule and milestone dates, and the core attributes derived from the organizational data model.

For projects, project managers can use the WRK13 – Project (and Portfolio) Business Case report to see a summary of key business case information on a single project or across a portfolio.

Baseline budget

Build a budget by creating an initial estimate of costs. Managers can take a baseline of the financial plan to capture a snapshot of the original budget. They can then compare this baseline with future baselines to monitor progress. Financial Baselines are created by copying the current forecast version in to a baseline version. This can be done manually or as part of a lifecycle step.

For more information:

Understand Financial Models and Versions

           

           

Ongoing Financial Planning Process Steps

Ongoing Financial Planning focuses on monitoring the financial forecast/budget against actuals to track when variances occur, and adjustments might be required. 

           

E1 ongoing Financial Planning Process Flow.pngForecast resource effort costs Forecast non-resource costs Forecast benefits and/or revenue Develop business case Baseline project budget Capture actual costs Manage forecasted resource effort/costs Manage forecasted non-resource costs Manage forecasted benefits and/or revenue Monitor financial performance

Ongoing financial planning process flow

           

Process Step Description
Capture actual costs

Update the financial plan with the actual costs incurred in a historical time period to capture an accurate representation of the expenditures. This information can be used as a comparison against the budget or previous baselines to track variances against the estimated spend.

Costs can be loaded from the plan, rolled up, or captured directly on the financial plan. Costs may include:

  • Labor: Labor costs are calculated based on defined labor rates. If time reporting is in use, processed timesheets or Agile costing data are integrated into the plan and will also be reflected on the financial plan. This data may later be rolled up into the financial plans based on configuration and processes.
  • Expenditures: Non-labor costs can be captured as planned, unplanned, and actual expenditures on the plan.
Manage forecasted resource effort/costs Ensure the financial plan accurately reflects the estimated resource costs and effort required. This up-to-date cost and effort information helps managers understand the impact of the pending resource costs on the portfolio.

Make sure that resource demand and assignments information is current to ensure that the financial plan accurately represents the forecasted costs.
Manage forecasted non-resource costs Ensure the financial plan accurately reflects the estimated non-resource costs. This helps provide an accurate forecast of the predicted expenditure.

Manage forecasted benefits and/or revenue

Ensure the financial plan accurately reflects the estimated benefits to provide an accurate forecast of the predicted revenue.

Update the benefit costs which were previously populated in the original estimation or previous rounds of reforecasting directly into the financial plan to reflect the latest and most accurate forecast. These amounts should continue to be associated with the appropriate benefit sub-account information depending on your configuration to help categorize the revenue and allow portfolio-level summarization of the types of benefits.
Monitor financial performance

Track the current performance of the financials against the original budget and use this information to make informed decisions and manage exceptions.

Managers can use financial versions to compare different financial versions over time. For example, to monitor the financial performance against the original budget and earlier snapshots, the current actual and forecast data in the financial plan can be compared against previous baseline versions.

           

           

Outputs, Reports, and Analytics

This solution capability is supported by the following outputs, reports, and analytics:

Type Associated Outputs, Reports, and Analytics Description 
Screen Financial Planning Detail Helps you understand the actual costs to date and the future forecasted costs of a particular project, strategy, or outcome. Lets you view the total initial budget (captured in a version) that was approved for the project, strategic entity, or outcome. 
Screen Capacity Portfolio Manager Gives you an overview of a financial plan as it relates to the capacity within a Planning portfolio. Also provides easy access to the details of a financial plan and the relevant items.
Analytic PLN01 Investment Planning Demand vs. Portfolio Targets

This analytic provides a Summarization of the data in an Investment Planning portfolio/scenario combination. It provides a time phased view of the portfolio demand and supply, drillable by demand planning line attribute and drillable to the level of each individual investment.

Supports project, strategy and product based portfolios.
 
Report PLN32

Planning Portfolio Financial Burndown Report

Planning report that allows the comparison of one/many versions of financial plan data, including effort (FTEs/Days/Hours) or financial data (Cost/Benefit/Revenue). Includes a burn down chart for the whole portfolio and for each project.

The report includes:

  • Portfolio based summary time phased chart showing the financial profile (based on one/many financial plan versions) across the whole portfolio (example shown in first image)
  • Project level time phased chart showing the financial profile (based on one/many financial plan versions) for each project (example shown in second image)
  • Detailed data tables

           

           

Initial Financial Planning Process Steps

Financial Planning is available on projects and programs. Portfolios only have fields that can track specific financials that are outside of detail financial planning processes. The following section details the initial processes for project and program financial planning.

Financial Planning supports the planning and management of all financial information connected to programs and projects. Different sets of financial data can be managed when taken at key approval and governance points, providing a standard for measuring program and project performance. This supports the creation of high-level estimates, approved/baseline budgets, actual costs to date, forecasts to complete costs, and variance reporting. 

           

CZ Initial Financial Planning Process Flow.pngForecast resource effort costs Forecast non-resource costs Forecast benefits and/or revenue Develop business case Baseline project budget Capture actual costs Manage forecasted resource effort/costs Manage forecasted non-resource costs Manage forecasted benefits and/or revenue Monitor financial performance

Initial financial planning process flow

           

Process Step Description
Enter initial estimated cost and revenue

In the Finance section of the project enter the initial Budgets Cost and Expected Revenue. If time sheets are not being used, the Actual Cost and Actual Revenue can be manually entered or calculated from manual entries on the schedule.

           

Click to expand or shrink

Enter estimated cost and revenue on the project

           

For more information on this topic: 

Enter planned hours for resources on tasks on the schedule  Project managers plan resource costs by creating their detailed schedule (work breakdown structure) and assigning the needed resources to tasks and assigning planned hours. The financial plan Labor Budget and Forecast are the calculated using those tasks, resources, assigned hours and the respected resource rate. 
Enter budget for non-labor resource costs 

Enter the budget for the non-labor resource costs required to deliver the work into the financial planning. 

           

Click to expand or shrink

Enter non-labor resource costs

           

For more information on this topic: 

Enter budget for forecasted revenue Enter the budget for the financial benefit of delivering the work into the financial planning. 
Budget approved / forecast entered  The final project budget is reviewed and approved. Once approved, the Budget totals are entered into the Forecast. This allows tracking of Budget versus Forecast to track the progress of the project or program. 

           

           

Ongoing Financial Planning Process Steps

Financial Planning is available on projects and programs. Portfolios only have fields that can track specific financials that are outside of detail financial planning processes. The following section details the initial processes for project and program financial planning.

Financial Planning supports the planning and management of all financial information connected to programs and projects. Different sets of financial data can be managed when taken at key approval and governance points, providing a standard for measuring program and project performance. This supports the creation of high-level estimates, approved/baseline budgets, actual costs to date, forecasts to complete costs, and variance reporting. 

           

Ongoing financial planning process flow

           

Process Step Description
Capture actual costs

Refresh the financial plan with the actual costs incurred to capture an accurate representation of the project's expenditure. This information can be used as a comparison against the project budget to track variances against the estimated spend. 

Costs can be loaded from time sheets or loaded from manual entries on the schedule (work breakdown structure).  Labor costs from time sheets are calculated based on defined labor rates and time entries. 

For more information on this topic: 

Manage forecasted resource effort/costs

Ensure the financial plan accurately reflects the estimated resource costs and effort required to deliver the project or program. This up-to-date cost and effort information helps managers understand the impact of the pending resource costs. 

Make sure that resource demand and assignments information on the schedule are current to ensure that the financial plan accurately represents the forecasted costs. 

For more information on this topic: 

Manage forecasted non-resource costs

Ensure the project financial plan accurately reflects the estimated non-resource costs required to deliver the project or program. This helps managers provide an accurate forecast of the predicted expenditure.

For more information on this topic: 

Manage forecasted benefits and/or revenue

Ensure the project financial plan accurately reflects the estimated benefits to provide an accurate forecast of the predicted revenue.
Monitor financial performance

Track the current performance of the financials against the original budget and use this information to make informed decisions and manage exceptions.

           

           

Outputs, Reports, and Analytics

There are a number of standard financial reports in the report library. These can be run with specific filters to see the appropriate financials. See Financial Planning Report Examples  and Timephase Financial Data in Reports and Dashboards for more information.

Additional reports and dashboards can be created by the administrator and shared with the organization and appropriate team members. 

           

Related Capabilities

Supported Solutions