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



Resource forecast and timesheet capitalization 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. 

 

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 methodology

Text 

Phase Name of project phaseText
Order Order of project phase within methodologyNumber 1-*

 

MethodologyPhaseOrder
WaterfallPlanning1
WaterfallInitiation2
WaterfallExecution3
WaterfallClosure4
RapidIntake1
RapidEnvisioning2
RapidElaborating3
RapidExecuting4
RapidClosure5

 

 

Tab 2 – Tasks 

When booking time against a project in a timesheet, a task must be selected to specify what type of work was carried out. Whether or not the task incurs capitalization depends on the task capitalization setting set in this file.

 

This tab should list all timesheet tasks that can be selected for a given methodology in a given phase and set whether the task can be capitalizable or not. If capitalizable, the percentage capitalizable amount will be derived from the expense type, providing that the resource rate card and the expense type have been set to capitalizable too.

 

Note that you need to ensure that all tasks listed in this file have been set up in the application. This is done by navigating to the Project Type Management page from the Administration console (Project Sub Activities tab).

 

FieldNotesType
MethodologyName of project methodologyText
PhaseName of project phaseText
TaskOrder of the project phase within methodologyNumber 1-*
CanCapitalizedDetermines if the task is capitalized in the phaseYes / No

 

MethodologyPhaseTaskCanCapitalized
WaterfallPlanningDesignYes
WaterfallPlanningDevelopmentYes

 

 


Capitalization profile

The capitalization profile upload feed is used for the configuration of capitalization forecast profiles of resource expense categories. 

 

To allocate a resource to a project, the role that the resource will carry must be selected. Depending on the phase the project is in, the role can be capitalizable or not as set in this file. This upload feed should list all the roles within a project phase and set the percentage amount that can be capitalize for each role.

 

Note that these roles must have been created in the Metadata Management page in the administration console.

 

FieldNotesType
ProfileNameName of capitalization profileText
MethodologyName of project methodologyText
RoleName of resource role when assigned to project allocationText
PhaseName of project phaseText
CapitalizationPercentagePercentage to capitalizeNumber (0-100)

 

ProfileNameMethodologyRolePhaseCapitalizationPercentage
StandardWaterfallBusiness AnalystExecution0
StandardWaterfallBusiness OwnerExecution0
StandardWaterfallDeveloperExecution100

 

 

Expense Types

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

 

FieldNotesType
CapitalisationPercentSets the percentage of the expense value to be used for capitalization n.b. normally 100%Number 0 – 100
AmortizationTriggerOptions: Immediate / ImplementationOption
AmortizationPeriodNumber of Months to Amortize n.b if 0 it defaults to project amortization period for any expenses on that projectNumber 0 - *

 

 



Setting a project for 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
  • The project must have a Capitalization Profile as defined in the Capitalization Profile upload (see above section)
  • 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 resource forecast

 

Capitalization on resource forecast is calculated nightly.

 

Resource forecast will incur capitalization if the following conditions are met:

 

  • The project has been set up as described in the previous section
  • The resource role has been set up with a capitalization percentage greater than 0 for the phase the project is currently in (in the Capitalization profile feed)
  • The resource rate card is set to capitalizable
  • The resource expense type has a Capitalization Percentage greater than 0
    1. Please note that the capitalization percentage specified for the role in the Capitalization profile feed overrides the expense type capitalization percentage. But the expense type must still be set as capitalizable.
  • The resource allocation is for an open month, i.e. is the month has not been locked.

 

If all above conditions are met, the capitalization amount is calculated using the capitalization percentage set in the Capitalization Profile feed.

 



Capitalization on resource timesheet actuals

 

Capitalization on resource timesheets is calculated nightly.

 

Resource timesheets will incur capitalization if the following conditions are met:

 

  • The project has been set up as described in the previous section
  • The timesheet task has been set up as capitalizable for the phase the project is currently in (in the Methodologies, Phases & Tasks upload feed)
  • The resource rate card is set to capitalizable
  • The resource expense type has a Capitalization Percentage greater than 0
  • If Show Actuals with Capex Split* feature is turned off, the month in which the timesheet actuals are posted to must fall in the locked period.
  • If Show Actuals with Capex Split* feature is turned on, the month in which the timesheet 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).

 

If all above conditions are met, the capitalization amount is calculated using the capitalization percentage set in the expense type of the resource rate card.

 

*This feature is used to determine whether capitalization amount for current month actuals should be calculated and displayed in the Financials component of the workspace.