This section explains how Resource and Investment features are configured via system parameters. The Administrator Guide explains the parameter maintenance features in further detail.
Cost Code Structure
Power Framework shows “Investment” tabs when maintaining Portfolios, Programmes and Projects. These provide spreadsheet-like experiences for maintaining financial data relating to these entities. Budget, Forecast and Actual amounts are entered within a parameterised, hierarchical structure as per this example:
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Budget Categories at the top of the hierarchy provide the container for budgets. They split into Cost Categories, which represent groups of Cost Sub-Categories. It is at the lowest, Cost Sub-Category level that Forecast and Actual amounts are maintained for Programmes and Projects. Budget Categories can be flagged as Capital Expenditure (“Capex”) or Operational Expenditure (“Opex”). This then applies to all subordinate categories and is used for reporting purposes to split cost into Capex/Opex. |
Linking Resources to Cost Sub-Categories
The Resource Demand feature allows Programme and Project Managers to compile a list of resources they require (called “Team Members”). The resulting Forecast and Actual resource costs are posted into the Investment grid.
This is possible, as the Team Member includes a Cost Sub-Category in the Resource Demand row, which will identify the row in the Investment grid that will receive the cost.
For example, below is a Resource Demand row that has been entered in a Project, showing the Cost Sub-Category:
The resulting cost forecast is showing in the Investment grid for the Cost Sub-Category, as shown below.
Configuring Cost Sub-Categories for Team Members
Team Members are configured via the Team Members table. Here we define the default Cost Sub-Category (that will be filled in by the system automatically when a new row is added to Resource Demand), as well as alternative Cost Sub-Categories (that the user can pick from to change).
Example:
The above configuration will determine the choice of Cost Sub-Categories when adding this Team Member to Resource Demand (once added it cannot be changed):
This feature is useful if a Team Member needs to be accounted differently across various projects (or even within a single Project where costs for a Team Member need to be split out, as you can add the Team Member multiple times and vary the Cost Sub-Category on each row).
For example, by default, a Team Member’s cost may be accounted for as Capital Expenditure, but on certain projects, this needs to switch to Operational Expenditure. As the expenditure type is defined via the Cost Sub-Category, changing to a different Cost Sub-Category can achieve this.
If Investment data from the project is used to create postings in your Financial Accounting system, then this feature will allow you to switch which General Ledgers account the resource cost will be posted to (as the account will be associated with the chosen Cost Sub-Category).
Funding Sources
A further area to be configured via parameters is the list of Funding Sources.
Budget figures are calculated as totals of individual budget amounts entered at Funding source level.
Funding sources can be applied to budgets at Portfolio and Programme level.
Reporting is available to analyse total contributions from Funding Sources across the Portfolio over time.
Parameter Set-Up Sequence
Follow this sequence of setting up your parameters (see Administrator Guide for details):
- Budget Categories
- Cost Categories
- Cost Sub-Categories
- Funding Sources
- Project Roles
- Team Members
- Project Roles (revisit to associate default Team Member with each role)
- Resource Capacity (defining monthly capacity and day rates for Team Members)
You are now ready to use the Resource and Investment features.