To properly carry out the process belonging to “Financial portfolio planning,” a number of preparations need to be made in the FCC. You do this in the portfolio (model) by:
- Making financial categories available;
- Activate ‘ Financial planning’ tab;
- Financial configuration set: set “behavior” for the different types of money
Attention! Determine whether a centralized portfolio model will be used.
Determine whether the intention is for each portfolio to create its own settings or whether these are enforced from a central portfolio model. Discuss this with the functional manager of your environment.
If a central portfolio model is used, then the items listed should be adapted there. Otherwise, it can be adjusted directly in the “own” portfolio.
Making financial categories available
Costs are managed on so-called financial categories. Therefore, in order to plan costs in the portfolio, these financial categories must first be added to the portfolio.
In each Portfolio, a side panel is available for the ‘Manager’ and the ‘Supporter’ (right side of the screen). Press ‘Financial categories’.
A screen appears where the financial categories you want to use in the portfolio can be added. Confirm the choices made by clicking ‘Apply changes’ at the bottom of this screen.
Attention! Should any financial categories be missing, please contact the functional administrator. The functional administrator can add financial categories at a central level in the FCC. The financial categories can then be chosen in the portfolios and portfolio model.
Good to know:
- Adjust the order of the Financial categories by clicking on the six dots. Hold down the left mouse button on the six dots and drag the financial category to another position.
- Remove a financial category from the list by clicking the cross behind the financial category.
- Add labels by clicking the ‘Add’ button behind the financial category. These labels can be filtered on in the Financial Planning screen.
Tabblad ‘Financial Planning’ activeren
Where: in the Portfolio or in the Portfolio model.
Who: person with the rights ‘Manager’ or ‘Supporter’.
How: in the Portfolio(model) there is a configuration icon (cogwheel) at the bottom left of the screen. If you click on the configuration icon (1), you will see a list of all Portfolio tabs. Choose “Financial Planning” (2). Confirm the selection by pressing ‘Save’ (3).
Financial configuration – setting “behavior” for the different types of money
In the portfolio (model), the financial configuration can be set. Each type of money can be specified whether it:
- customizable or just visible.
- on the portfolio side or that it can be customized on the project side.
- type of money used or not used (hidden).
Where: in the Portfolio or in the Portfolio model.
Who: person with the rights ‘Manager’ or ‘Supporter’.
How: in the Portfolio(model) in the ‘Financial planning’ tab (1) there is a configuration icon (cogwheel) at the top right of the screen. When you click on the configuration icon (2), a screen appears where the financial configuration can be made.
The following types of money can be indicated whether they are modifiable, visible or hidden in the portfolio and/or project:
- Reserved: used to display the money available for the portfolio. Therefore, this type of money can only be set on the portfolio and not on the project.
Best practice setting: ‘Modifiable’ in the portfolio. - Estimated and Planned (portfolio): you could use the ‘Estimated’ type for the very first financial estimate on a new portfolio item. Once it becomes a bit more concrete, you can use the “Planned (portfolio)” type, for example.
Best practice setting: we see at several establishments that ‘Estimated’ is not used and is therefore set to ‘Hidden’ at both the portfolio and project. If you do want to deploy the ‘Estimated’ type then it makes sense to make it ‘Editable’ on the portfolio side and ‘Visible’ on the project side.
‘Scheduled (portfolio)’ is a type that should really only be ‘Editable’ in the portfolio and ‘Visible’ on the projects side. - Budget: projects are given a budget with which to carry out their project. Normally a budget is allocated to a project from the portfolio.
Best practice setting: ‘Modifiable’ in the portfolio and ‘Visible’ in the project. - Scheduled: is an addition by financial category of all finances booked in a project. These can be hours at an hourly rate or commitments or stated costs per plan item.
Best practice setting: because you don’t fill in the ‘Scheduled’ type in the financial grid but it is a derivative of entries made at various places in the project, set this TYPE as ‘Visible’ on the projects side and ‘Visible’ in the portfolio. - Forecast: the forecast is generally the formal derivative of that which is planned. Organizations use this type to formally reflect financial expectation. The “Scheduled” type is then considered the project manager’s non-formal work situation.
Best practice setting: generally the forecast is given by the project manager Therefore set this type as ‘Editable’ in the project and ‘Visible’ in the portfolio. - Request: to support a formal change process (RFC process), the Request type can be used. The project manager can fill this in the project after which the portfolio can be used to see if this request can be honored.
Best practice setting: ‘Editable’ on the projects side and ‘Visible’ in the portfolio. - Spent: spending is generally read in from the financial system In the FCC. Therefore, if that is the case, there is no manual action done in the portfolio or project.
Therefore, the best practice setting is: ‘Visible’ in the project and ‘Visible’ in the portfolio.
In case the expenditure is not read in but entered manually, either on the portfolio side or on the projects side the type should be set to ‘Editable’.
