This article explains how to configure the application and the projects in order to generate capitalization on non resource forecast and actuals.



Metadata configuration


The following upload feeds are available on the financial administration page.

 

Methodologies, Phases & Tasks

This upload feed is used for:

  1. Tab 1 - the configuration of the phases for the different project methodologies
  2. Tab 2 - the capitalizable configuration of timesheet tasks within a project phase. 

 

Only the first tab is relevant to non-resource forecast and actuals capitalization.

 

Tab 1 – MethodologyPhaseOrder  

This tab should list each methodology with its list of project phases. The order of the phases is specified in the Order column.  

 

When creating a project, you can specify which methodology the project is using. You will then be able to give a start and end date for each of the phases corresponding to the selected methodology as defined in this file.

 

Field Notes Type 
Methodology Name of project methodologyText
PhaseName of project phase Text
OrderOrder of project phase within methodologyNumber 1-*

 

MethodologyPhaseOrder
WaterfallPlanning1
WaterfallInitiation2
WaterfallExecution3
WaterfallClosure4
RapidIntake1
RapidEnvisioning2
RapidElaborating3
RapidExecuting4
RapidClosure5

 

 

 

Expense Types

Capitalization will only occur if the expense type for the non-resource forecast or actual is set to capitalizable. The amortization trigger and the amortization period need to be set too.


Field 

Notes 

Type 

CapitalisationPercent 

Sets the percentage of the expense value to be used for capitalization n.b. normally 100% 

Number (0 – 100) 

AmortizationTrigger 

Options: Immediate / Implementation 

Option 

AmortizationPeriod 

Number of Months to Amortize 

n.b if 0 it defaults to project amortization period for any expenses on that project 

Number


 

 

 


Setting a project for non-resource forecast and timesheet capitalization

 

For a project to be capitalizable, the following properties must be set:

  • The project must be Cap Eligible
  • The project must have an amortization period greater than 0
  • A methodology must have been set for the project
  • Project phases must have a start and an end date
  • The project must have an Implementation date in the future

 

 

 


Capitalization on non-resource forecast

 

Capitalization on resource forecast is calculated nightly.

 

Non-resource forecast will incur capitalization if the following conditions are met:

  • The project has been set up as described in the previous section
  • The forecast expense type has a Capitalization Percentage greater than 0.
  • The month the forecast is posted to falls in the open month period, i.e. is the month has not been locked.


If all above conditions are met, the capitalization and amortisation amount are calculated as follows:

  • if the forecast record was manually entered, the amount is calculated using the capitalization percentage and amortisation trigger set in the expense type but the project amortisation period.
  • if the forecast record was uploaded using the Non Resource Actuals and Forecasts upload functionality, then the amount is calculated using the capitalization percentage and amortisation period values set in the upload file (the uploaded values override the expense type values).

 


Capitalization on non-resource actuals

 

Capitalization on non-resource actuals is calculated nightly. 

 

Non-resource actuals will incur capitalization if the following conditions are met:

  • The project has been set up as described in the previous section
  • The actuals’ expense type has a Capitalization Percentage greater than 0
  • If Show Actuals with Capex Split feature is turned off, the month in which the actuals are posted to must be in the locked period.
  • If Show Actuals with Capex Split feature is turned on, the month in which the actuals are posted to must fall in the locked period plus 1 month (i.e. if the locked period end date is August 2018, the timesheet actuals month must be before October 2018).
  • the actual record was uploaded using the Non Resource Actuals and Forecasts upload functionality.

 

If all above conditions are met, the capitalization and amortisation amount is calculated using the capitalization percentage and amortisation period values set in the Non Resource Actuals and Forecasts upload file.