Managing financials for demands
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Summary of Managing Financials for Demands
This guide details how to effectively manage financials for demands within the Next Experience for Demand Management. Key functionalities include managing cost plans, expense lines, labor costs, and financial baselines, all aimed at ensuring accurate budgeting and expense tracking.
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Key Features
- Cost Plans: Create and manage cost plans for your demands to oversee budget allocations.
- Expense Lines: Add or edit expense lines to record both planned and unplanned expenses associated with demands.
- Labor Costs: Generate labor costs for specific fiscal periods to maintain accurate financial records.
- Financial Baselines: Establish baselines to capture snapshots of financial changes over time, either on-demand or scheduled.
- Multicurrency Support: Manage financials in both Functional and Demand currencies, allowing global organizations to track expenses accurately across different currencies. This feature is essential for monitoring planned and actual expenses and managing budget allocations.
- Budget Allocation: Portfolio managers can approve budgets for demands, assisting demand managers in executing work within financial constraints.
- Benefit Plans: Create monetary and non-monetary benefit plans to quantify potential benefits from executing demands.
Key Outcomes
By leveraging these features, customers can ensure precise financial management for their demands, facilitating better planning and execution of work. The multicurrency capability allows for comprehensive financial reporting across different currencies, enhancing global financial oversight and operational efficiency. The ability to create baselines and manage budgets ensures that expenses align with organizational goals, driving successful demand management outcomes.
Manage budget, cost plans as forecasts, actual expenses as expense lines, generate labor costs, and create financial baselines at a required cadence in Next Experience for Demand Management.
The following features help you to manage your financials.
- Manage cost plans for your demands. For more information, see Add, edit, or delete demand cost plans.
- Add or edit expense lines for your demands to record any planned or unplanned expenses. For more information, see Add or edit expense lines.
- Generate labor costs for the fiscal period. For more information, see Generate labor costs.
- Create baselines to capture the financial snapshot of your demands. For more information, see Create financial baselines.
Multicurrency
The multicurrency feature enables you to manage the financials of your demands in two different currencies, Functional currency and Demand currency. Functional currency is typically defined by the admin based as the primary currency, which is used for planning, budgeting, and tracking the financials of your planning items.
You can perform the following financial activities in Demand currency.
- Select the Demand currency.
- Track the planned and actual expenses.
- Allocate and manage the budget.
- View simple financials data.
Using this feature, you can work on financial reporting at a global level and see the real-time currency conversions of your financial records.
Organizations operate at a global or multinational level, the work is planned and financed at one location and executed at a different location. Each might use a different currency from what was used in the planning phase. Multicurrency makes it easy to manage and track your planning items using any currency.
You can monitor and track the financials in one currency, and capture the costs in a different currency. For more information, see Multicurrency in Next Experience for Demand Management.
Baselines
Create a baseline to capture a snapshot of the financial changes for your demands. You can create on-demand baselines or at a cadence using a scheduler job. For more information, see Create financial baselines.
Budget allocation
Portfolio managers can manage and approve the budget for demands. The approved budget helps demand managers to plan and meet the expenses to execute work. For more information, see Allocate budget to a demand.
Benefit plans
Monetary benefit plans capture potential benefits accrued while executing a demand. Non-monetary benefit plans capture the potential non-financial benefits accrued while executing a demand. You can create and manage monetary and non-monetary benefit plans and to capture the potential benefits of your planning items. For more information, see Create and manage benefit plans.