Overview of Financial Planning

Use financial planning to plan budgets in your organization, manage your budget owners, and perform the budget process in a task-based system. The finance uses the planning workbench to streamline the budgeting and forecasting processes with the budget owners. It gives you complete visibility right from opening of the budget period until the IT finance approves it.

Upgrade information

This Financial Planning application is new starting with the Kingston release.

If you are using the legacy Financial Planning and would like to upgrade to the new Financial Planning application, follow the upgrade instructions. The upgrade instructions do not apply to Project Portfolio Planning (Portfolio Budget Model) as it is automatically upgraded as part of the Kingston upgrade.

For instructions on the legacy Financial Planning application in Jakarta release, see Financial Planning Jakarta.

Activate Financial Management Core

Activate Financial Management Core (com.snc.financial_management) plugin to install Financial Planning. If required, activate Financial Planning plugin (com.snc.financial_planning_default_definition) to install the default budget definition.

Overview of the new financial planning

Budget Plan: The IT finance and the budget owners or planners are the two personas involved in the process of financial planning.

Figure 1. Overview of Financial Planning process
Overview of Financial Planning process
  • The IT finance opens the budget period, which is when the planning window opens for the next fiscal period. They automate the budgeting process by initiating the budget task.
  • Budget owners can be cost center heads, business heads, or department heads. They create or update the plan they own with their spending decisions for the budgeting period and promote the budget plan to the IT finance for review.
  • The IT finance reviews the submitted budget plans. They either approve the budget plan or reassign it to the budget owner for rework on the budget communicating through budget task. Finally, they approve the budget plan by approving the budget task.

Forecast Plan: Forecast plans are almost the same as the budget plans. Budget planning is done only once before the budget period, and the plan is for the entire fiscal year. Whereas, forecast planning is done many times during the budget year until the end. Forecast plan has a start fiscal month as forecast month. You can forecast your expenses for the future months of the budget period based on the actuals available from the beginning of the fiscal year until the forecast month.

Figure 2. Sample forecast plan with actuals and forecasting
Sample forecast plan with actuals and forecasting

Financial Planning — remodeled in Kingston release

Multi-year planning
The financial planning application is enhanced to support multi-year budget planning. Plans are no longer restricted to a year. A plan can record plan breakdown details across years. If the plan item has a contract that extends beyond the current budget period, then the plan can accommodate it. Although the plan can be for more than one year, it is only when the plan is promoted that the budget period amount is promoted to finance.
Task-based budgeting process
The process of doing financial planning can be an automated budget task. The automated tasks streamline and co-ordinate the actions between the IT finance and the budget owners. It gives complete visibility for you to know the status of the promoted plan at any time during the planning process.
Grid-based control
The new financial planning workbench gives you a grid-based view, where the IT finance can review the submitted budget amounts. The enhanced grid UI gives you flexibility to display only those columns that are needed for your business purpose and group them as you prefer.

What to do next

Configure the planning template to determine the details that you want in your plan.