Funding

Introduction

Note: This feature is in beta.

Funding Management supports the way that money is made available to deliver work in Portfolios, Programs, Projects, and other Work Items.

Funding in Clarizen allows you to:

  • Allocate funds in a top-down fashion, starting at any level of the Portfolio/Work Item hierarchy
  • Roll up allocations from Task Level (if needed) upwards to monitor the affordability of planned work and calculate available funding
  • Support a variety of funding scenarios. For example:
    • Projects receiving funding from the different Portfolios they belong to
    • Program funding breaks down into Project, Milestone and Task allocation directly
  • Track and compare fund allocations against rolled-up budgeted and actual costs based on your Financial Planning
  • Configure automation, such as workflows and custom actions to manage and automate funding functions

Managing Funds with Funding Fields

Use the following table to learn how to use funding fields to manage your funding:

I want to

Use this Field

View (or directly enter) funding available for allocation from a Portfolio or Work Item

Funding
 (“Funding Budget” in Portfolio)

Allocate funding for consumption directly by the Portfolio or Work Item

Allocation
 (“Allocated Funding” in Portfolio)

Identify the amount of funding needed for a Portfolio or Work Item

Budgeted Amount*

Allocate funding from one item to another (this is done on the link between the items: e.g. Portfolio to Program, Portfolio to Project, etc.) 

When using Funding %:

In this case, the Funding Amount allocated is calculated by applying the Funding % to the Budgeted Amount of the Work Item to receive funding. If the Budgeted Amount on the target item changes, the Funding Amount allocated will also change automatically.

Funding Amount
 or
Funding %

See the total amount of funding allocated to items directly under the Portfolio or Work Item

Sub Allocation

See the total amount of funding allocated directly to the Portfolio or Work Item and its Sub Items

Total Allocation

See the total amount of funding yet to be allocated from the Portfolio or Work Item

Unallocated

See the total amount of funding given to all items under the Portfolio or Work Item that is yet to be allocated by them

Unused Allocation

See the total amount of direct and indirect unallocated funding for a Portfolio or Work Item downwards

Funding Available

See the difference between funding given to the Portfolio or Work Item and the Budgeted Cost**

Funding Variance

See the difference between the funding given to the Portfolio or Work Item and the Actual Cost**

Funding Remaining

 

* Denotes a change of use when Funding fields are being used
** Budgeted Cost and Actual Cost fields are now available on the Portfolio. Where these fields are not directly entered, they are rolled up from Portfolio Sub-Items (applying the relevant Funding % ratio from their links)
Example: If there is a 50% Funding Amount from a Portfolio to a Program, only 50% of the Budgeted Cost and Actual Cost from that Program would be apportioned and rolled up to the Portfolio Budgeted Cost and Actual Cost respectively.

 

Notes:

  • All funding fields require financial permissions
  • All funding fields support multi-currency (based on the Cost Currency of the Item)

Here is a full list of the new funding fields, as well as existing fields used in Funding Management.

  • Funding (“Funding Budget” on Portfolio) - The amount of funding given to this item. Can be entered manually or calculated from allocated Funding Amounts.
  • Budgeted Amount - Funding required for a Portfolio/Work Item
  • Budgeted Cost - A rolling-up cost field. Also known as Budget at Completion. (Planned Work * Hourly Cost Rates) + Non-Labor Budget Costs
  • Actual Cost - Work Item progress + Non-Labor Actual Costs
  • Funding Gap - Budgeted Amount - Funding. A negative figure indicates a Funding surplus (i.e. more funding received than was identified as being needed)
  • Allocation (“Allocated Funding” on Portfolio) - The amount of an item’s Funding allocated for use directly on the item
  • Sub Allocation - The sum of the Funding Amounts allocated from an item’s Funding to other items
  • Total Allocation - Allocation + Sub Allocation. The total amount allocated from an item’s Funding
  • Unallocated (“Funding Remaining” on Portfolio) - Funding - Total Allocation. The amount of Funding for an item has yet to be allocated.
  • Unused Allocation - The sum of the Funding Available from Sub Allocations made from an item
  • Funding Available - Unallocated + Unused Allocation. The total amount of Funding from an item and child items that remain unallocated
  • Funding Variance - Funding - Budgeted Cost
  • Funding Remaining - Funding Budget - Actual Cost
  • Funding Variance % - Budgeted Cost / Funding

Use the fields above to allocate, calculate, and track funding. The following diagram shows a typical hierarchy that includes a Program with Projects, sub-Projects, and Milestones. Note How funding amounts roll up and down to produce a complete funding solution.

mceclip1.png

Have more questions? Submit a request

Comments