Clarity Financial Management Identifying and Leveraging the Right

Clarity Financial Management Identifying and Leveraging the Right Tools www. regoconsulting. com Phone: 1 -888 -813 -0444

Agenda ● Clarity Financial Outputs ○ OOB Portlets /Rego. XChange Portlets ● Financial Components ○ ○ ● ● Financial Setup Resources Investments Tasks (yes tasks) YOU Design the Financial Architecture Cost Plans/Budgets An Approach to Annual Forecast/Budgeting Open Forum 2 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output Project Dashboard-PMO Accelerator-PMO Project Status Layout 3 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output Project Cost Plan/Budget 4 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output 5 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output Posted Transaction Review Portlet 6 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output 7 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output 8 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Output 9 www. regoconsulting. com Phone: 1 -888 -813 -0444

Rego. Xchange Financial Outputs 10 www. regoconsulting. com Phone: 1 -888 -813 -0444

Rego. Xchange Financial Outputs 11 www. regoconsulting. com Phone: 1 -888 -813 -0444

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Financial Implementation Best Practices ● Keep Things as Simple as Possible ● Spend Time on the Full Architecture "A clever person solves a problem. A wise person avoids it" - Albert Einstein ● Clarity is Cash Based – No concept of P&L / Depreciation ● Clarity is NOT the Company Financial System of Record; Clarity will never match general ledger 100% ● Clarity is a MANAGEMENT tool – enough information to make decisions ● Start with required outputs, how do you need to classify financial data; involve finance team 13 www. regoconsulting. com Phone: 1 -888 -813 -0444

Clarity Financial Components ● Entities / Classes ○ Categorization of Costs ○ Attributes to Determine Rates ● Financials Plans ○ Forecasting ○ Actuals ● Task & Resource Level Costing ○ Earned Value ● Project / Departmental Chargebacks ○ Subscription ○ Debit Rules 14 www. regoconsulting. com Phone: 1 -888 -813 -0444

Entities ● Financial OBS ○ Department (Object and OBS) ○ Location (Object and OBS) – Linked to a Department ● Defaults ○ Default Financial Plans ● Fiscal Periods ○ Used within datamart jobs ○ Used on Financial Plans-Cost Plans and Budgets ● Currencies Best Practice ○ Home Currency • One Entity if Possible ○ Billing Currency • Only use Department and Location if needed for rates, ○ Exchange Rates otherwise – just one of each 15 www. regoconsulting. com Phone: 1 -888 -813 -0444

Classifications ● Resource Classes ○ Internal / External ○ Specialized Resources ● Company Classes ○ Default to Corp ○ Lines of Business ● Work In Process (WIP) Classes ○ Default ● Investment Classes ○ Default ● Transaction Classes ○ Labor ○ Equipment ○ Material ○ Expense Best Practice • Default where possible • Align Transaction Class to Financial Reporting Needs. 16 www. regoconsulting. com Phone: 1 -888 -813 -0444

Other Financial Attributes ● Input Type Code on Resource Record (required for processing) ○ Billable ○ Non-Billable ● Cost Type on Project Object ○ Capital ○ Operating ● Charge Code on Investments (required for processing) ○ Capital Best Practice ○ Expense • Determine Charge Code usage vs. Cost Type ● Roles on Resource Record • Roles – Understand difference ○ Available to Rate Matrix between Primary and Assignment Roles 17 www. regoconsulting. com Phone: 1 -888 -813 -0444

Rate Matrix ● Define Columns to Derive Rates ○ Exact Rates ○ Aggregate Rates ● Non-Labor ○ $1 Defaults ● End Dating Best Practice • End Dating-Minimum of current year +1 • Exact Rates for Contractors/Aggregate Rates for Internal Resources 18 www. regoconsulting. com Phone: 1 -888 -813 -0444

Resources & Roles 19 www. regoconsulting. com Phone: 1 -888 -813 -0444

Resource Timesheets Resources have the ability to modify financial classifications on their timesheet 20 www. regoconsulting. com Phone: 1 -888 -813 -0444

Investments 21 www. regoconsulting. com Phone: 1 -888 -813 -0444

Tasks • Tasks Must Have Charge Code to Process Financially: • Charge Code • Project Level • Summary Level • Task • Cost Type: Used for Portfolio Alignment in 13. 3 • Project Level • Summary Level • Task 22 www. regoconsulting. com Phone: 1 -888 -813 -0444

Design the Financial Architecture Scenario #1 The Bucket List Company wants to capture internal labor costs and SOW expense costs on projects. They are only tracking time on strategic projects. Every once in a while an hourly contractor will book time to strategic projects and they want to capture that cost too. Scenario #2 The Eye. Bill All Company must account for all project costs for internal labor, external labor and Capital Purchases. They require tracking exact costs to the project (to the penny). 23 www. regoconsulting. com Phone: 1 -888 -813 -0444

Design the Financial Architecture Scenario #3 The Department of Financial Oversight needs to implement Clarity financials to capture internal labor costs by sub-department. They also need to capture the project costs that are sponsored by each subdepartment. Resources can only work on projects in their own subdepartment. Aggregate Rates for resources are determined on a department by department basis every year. Scenario #4 My Specialty store needs to track the cost of internal labor, external labor and Services Transaction for SOW contracts. One group of external labor resources, filling the Architect role has a rate that is double the other external Architects. The total cost of this Special Architect class needs to be reported separately on each project. 24 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Plans ● Cost Plans: ○ Three ways to create a Cost Plan • Manual • New From Investment Team • New from Task Assignments ○ Choose the Classes to display in your Cost Plan. ○ The Cost Plan populates the Planned Costs field at the project level ○ Actual costs will pull into the cost plan for variance comparison by time period. Best Practice • Set Cost Plan Update Policy, how cost plans are to be created. • Default Cost Plans to show key financial metrics 25 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Plans ● Budget Plans: ○ A cost plan becomes a budget plan when the cost plan of record is submitted for approval and approved ○ Same structure and view as a cost plan – a saved/static version. ● Benefit Plans: ○ Once you create a benefit plan – Clarity will make the planned cost fields read only. ○ The Benefit Plan populates Planned Benefit at the project level. ○ If the Benefit Plan is attached to the Budget, it populates Budgeted Benefit at the project level. ○ Realized Benefits-manual entry Best Practice • Align Budget and Baseline processes 26 www. regoconsulting. com Phone: 1 -888 -813 -0444

Financial Jobs Summary ● Post Timesheets ● Post Transactions to Financial ○ Review Invalids (fix) ○ Post Transactions to Financial ● Post to WIP ● Import Financial Actuals Best Practice • Be a part of Rego. Xchange to get our Post to WIP Job. ● Other ○ Slicing ○ Investment Allocation ○ Update Hierarchy Data • Communicate Posting Schedule 27 www. regoconsulting. com Phone: 1 -888 -813 -0444

Actual Costs - Timesheets ● Base Setup ○ Determine Posting Cadence ○ Adjustment Postings? ● Approval Policy ○ Auto-approval? ● Timesheet Adjustment Policy ○ Number of Open Time Periods Best Practice Whatever your posting and processing cadence is, make sure it is well communicated. Postings modify project dates and financials, therefore important to have a transparent and predictable schedule 28 www. regoconsulting. com Phone: 1 -888 -813 -0444

Actual Costs – Manual Transactions ● In the create entry section on the application side, you must first create a voucher ○ Vouchers can be “Expense” types or “Other” ● Within the voucher, you can create multiple transactions ● Transactions must have a date, investment, task, charge code, resource id, transaction class, input type code, and the various costs and amounts ● Run Post Transactions to Financial ● Run the Post to WIP ● Run import financial actuals job ○ Afterwards, check the admin side for invalid transactions ○ If there are some, fix the needed fields and repost ● Run the investment allocation job (adjust the investment list fields) Best Practice Have Rego build a better interface for entering these costs, or have us build application integration from your financial system of record. 29 www. regoconsulting. com Phone: 1 -888 -813 -0444

Cost Planning & Budgeting ● Defining the objects to use to forecast financials and resources ● Strategic Project Alignment ● Non-Strategic Work Definition Best Practice Annual Forecast and Budgeting should be incorporated into the annual schedule of Corporate/departmental activities. 30 www. regoconsulting. com Phone: 1 -888 -813 -0444

Annual Budgeting-Strategic Projects 31 www. regoconsulting. com Phone: 1 -888 -813 -0444

Annual Budgeting – Strategic Projects 32 www. regoconsulting. com Phone: 1 -888 -813 -0444

Ideas 33 www. regoconsulting. com Phone: 1 -888 -813 -0444

Annual Budgeting-Non-Strategic Projects 34 www. regoconsulting. com Phone: 1 -888 -813 -0444

Expected Resource Distribution Prior to Annual Budgeting Process Strategic 70% Support 15% OOO 5% Admin 10% 35 www. regoconsulting. com Phone: 1 -888 -813 -0444

Actual Resource Distribution After Annual Budgeting Process Strategic 40% OOO 8% Support 37% Admin 15% 36 www. regoconsulting. com Phone: 1 -888 -813 -0444

Open Forum-Collaborate & Motivate • Financial Setup Experiences • Innovative Class Definitions/Assignments • Whatever you do…DON’T • Financial Policy /Standards • Posting Cadence • Cost Plans/Budget Approval • Baselines • Earned Value • Integration of Financial or HR Systems • Annual Budgeting Cycle • Strategic Planning • Non-Strategic Planning 37 www. regoconsulting. com Phone: 1 -888 -813 -0444

Questions Contact US Thanks for participating! 888. 813. 0444 If you have any follow up questions or comments about this presentation. Dave. wachsmann@regoconsulting. com Thank you. Email Contact info@regoconsulting. com Web Site www. regoconsulting. com 38 www. regoconsulting. com Phone: 1 -888 -813 -0444