Overview:

Financial Planning enables financial analysts to assemble spending data, build cost models, and generate reports by showing
how funds are allocated.

Cost management quan fies the financial costs of IT services and assets. The Cost Management applica on provides insight into
what is being spent and answers the ques on of where and why costs are being incurred. Among the features Cost
Management enables include:

 Using labor rate cards or task cards

 Tracking costs related to tasks and projects

Other features include defining configura on item (CI) costs, tracking one- me costs for CI, processing recurring CI costs to
generate expense lines, distribu ng bulk costs to mul ple expense line sources, aggrega ng configura on item costs, and
charging the total cost to a business service or applica on, alloca ng expense lines to business units with flexible alloca on
rules, tracking planned and actual budget costs by cost center.

Cost plan overview:

A PPS admin can configure cost type defini ons as part of the administra on ac vi es for the Project applica on. This role also
has access to some parts of the cost applica on; such as configuring deprecia on, fixed assets, costs, and configura on items
such as alloca on units, cost centers, and budgets.

Crea ng a cost plan creates a cost plan breakdown. The cost plan breakdown has a field Breakdown Type with the values –
Requirement, Task, Program, and Por olio.

EXAMPLE # 1

The requirement breakdown holds the cost for the cost plan.

A project manager creates a so ware expense cost plan for $4,000 between FY23: M01 and FY23: M02. The requirement
breakdown for FY23: M01 and FY23: M02 is $2,000 each.

EXAMPLE # 2

The task breakdown holds the cost for the project/demand.

If three cost plans with the same expense type are created for the project for a regular calendar year, the cost from each
individual cost plan rolls up to the project or demand level, and 12 cost breakdowns are displayed.

The image below shows three capex cost plans for a single calendar year with a total of $12,000 which results in 12 task cost
plan breakdowns also totaling $12,000.

Note: You may need to configure the Related lists to include Cost Plan Breakdowns.

EXAMPLE # 3

The program breakdown holds the cost for the program.

When mul ple cost plans are created for the projects belonging to the program, the cost from the individual projects persists in
the task breakdown, while the cumula ve sum of the cost is saved in the task breakdown.

EXAMPLE # 4
Similarly, por olio breakdown holds the costs for the por olio.

For example, if a project or a demand is part of a por olio, the breakdown type of Por olio provides the aggregate of por olio-
level costs per period.

The [pps_admin] has limited access to the cost management applica on. Specifically, they do not have access to the
Administra on module, which includes upda ng proper es, distribu on of cost rules, expense alloca on rules, rela onship
paths, and logs. If administra ve changes need to be made to any of these areas, consult the system administrator.

Domain separa on is not supported in the Cost Management applica on. The domain field may exist on data tables, but there is
no business logic to manage data.

Financials planning:

Before implemen ng Cost Management, an implementer should ask specific ques ons.

What...

What is the customer's current cost/financial model structure?

Where...

Where does the rela onship for crea ng General Ledger start? Is this with Project Management or Financial Management?
Typically, part of the IT Financial Management (ITFM) framework, a cost transparency admin does all the modeling and
grooming of GL, consolida ng transac ons and account numbers and pooling them into a cost model. Consider other admins
that may be involved.

What...

What breakdowns are needed to be er understand Cost of Service?

Example: Breakdown of Cost to Business Units by Business Services.

What...

What reports are needed by either the IT Business Unit or PMO to be er interface with the business?

Example: Business Service Cost by Fiscal Period, Business Unit Cost by Fiscal Period, Business Unit cost by Cost Pool, Cost of IT
Shared Services by Fiscal Period, Cost of Technology Services by Fiscal Period.

Cost types and fiscal calendar:

Cost type defini on:

Cost types are either opera ng expenses or capital expenses and are linked to the General Ledger (GL) table. Cost types must be
defined if Project Por olio Management with Financials is being u lized.

You can create new or update exis ng cost types by naviga ng to Project Administra on > Se ngs > Cost Type
Defini ons. Create cost types by selec ng New and complete the record. Each type is associated with a GL account, which must
be set up first. The image below lists the cost types that are provided out-of-the-box.

Scenario:
The theme park PMO is expanding its department and is looking to onboard 100 new employees. This will require addi onal
office space. There is a neighboring unit that is empty, which will offer 600 sq. of addi onal space. The theme park will need
to account for GL transac ons specific to hardware, so ware, and facili es (janitorial cost, mortgage cost, cost of desks, etc.).

Abel will need to create a new Cost Type for Facili es Capex and ensure the Cost Type is associated with a GL code.

Navigate to Project Administra on > Se ngs > Cost Type Defini on and select New to create a new cost type.

Enter the name for the new cost type and associate the Gl account. Then select Submit.

Fiscal year and fiscal calendar configura on:

A fiscal year (FY) is a period a company uses for accoun ng purposes and for preparing financial statements. A fiscal year may
not be the same as a calendar year, and for tax purposes, it allows companies to either follow a calendar-year or a fiscal-year
period. Fiscal years are commonly referred to when discussing budgets and are o en a convenient period to reference when
comparing a company’s financial performance over me.

A PPS admin can create fiscal periods, such as one month long or four weeks long or Q1 2024 or July 2024.

To review current fiscal periods, navigate to Project Administra on > Fiscal Calendar > Fiscal periods.

To create a fiscal calendar, navigate to Project Administra on > Fiscal Calendar > Generate.

Be sure to work closely with the customer to be er understand their requirements for building fiscal calendars, as it can vary,
depending on the industry.

New Project Workspace Financials:

Now, we will explore some ways that an admin can configure financial informa on on the new Project Workspace based on the
needs of an organiza on.

Generate labor costs:

In a previous module, we iden fied the default planning a ributes and reviewed the steps for crea ng a new planning a ribute.
Once the planning items have been created and/or enabled, an admin can configure the ‘Generate labor costs’ scheduled job to
run, which will automa cally generate labor costs for the latest resource assignments for all ac ve projects.

Abel wants to run the 'Generate labor costs' job daily at the end of the work day (4:45 p.m.) so that the managers have the
informa on they need when they get into the office in the morning.

Check out the steps Abel takes to complete this task:

1. Navigate to All > System Defini on > Scheduled Jobs.

2. Filter the Name field to locate and open the Generate Labor Costs scheduled job.

3. Enable the Ac ve checkbox.

4. Select US/Pacific in the Time zone field.

5. In the Time field, enter 16 in the hours box and 45 in the minutes box.

6. Select Update.

7. Once the job runs, cost plans are created for the unique combination of attributes which are displayed as the name of
the cost plans.
8. Abel can view the scheduled job by navigating to All > System Scheduler > Scheduled Jobs > Scheduled Jobs.
Configure the le pane view for financials:
Organiza ons may want to add fields to the le pane of the Financials screen in the new Project Workspace. An admin can
complete the task in a few simple steps.

Scenario

The team at the theme park would like to add the Created by field to the Financials view of Project Workspace so they can
quickly see who created a cost plan.

Abel knows just what to do, and quickly adds the field by configuring the Cost Plans list. He then moves the field up a er the
'Name' field, to make it easy for the team to spot right away.

How does Abel do this so quickly and efficiently? He shares his admin secrets below.

1. Navigate to System Defini on > Tables.

2. Filter the Label field to locate and open the Cost Plan table.

3. Select the Show List related link.

4. Select the Financials View by naviga ng to List Controls > View > Financials View. The selected view will be displayed
on the header.

5. Select the header op ons and then Configure > List Layout.

6. Move the Created by field from the Available slush bucket to the Selected slush bucket.

7. Move the Created by field up a er the Name field using the Up arrow.

8. Select Save.

9. Navigate to the Project Workspace and select the Financials screen to verify that the change has been made.

Customize the Cost Plan form:

Organiza ons may also want to add fields on the Cost Plan form that is displayed on the right-side of the screen on the new
Project Workspace. The Cost Plan form can easily be customized by an admin.

he team at the theme park has decided they also want to add the 'Created by' field on the Cost Plan form in the new Project
Workspace, so it is there when they create or edit a cost plan.

Our implementer is ready to take on this task! He customizes the form in a flash and then takes a well-deserved break on one of
the theme park's fastest roller coasters.

Check out Abel's high-speed approach to customizing the Cost Plan form on the new Project Workspace.

1. Navigate to System Defini on > Tables.

2. Update the applica on scope to Financials Core if needed.

3. Filter the Label field to locate and open the Cost Plan table.

4. Select the Design Form related link.

5. On the header row, select Cost Plan [cost_plan] from the table list and Financials View from the view list.

6. Drag the 'Created by' field to the form, under the 'Name' field.

7. Select Save.
 8. Navigate to the Project Workspace, select the Financials screen, and select the New cost plan bu on to verify that
the change has been made.

Change the default expense type:

An admin can configure the default expense type used to create or edit cost plans in the Project Workspace (and for planning
items in Por olio Planning). By default, this value is set to Opex.

Scenario

The team at the theme park wants to use the default expense type of Opex to create and edit their cost plans. Since Abel does
not need to configure this expense type, he can leave work a li le early and get ready to play in the company-sponsored soccer
game. He can't wait to defeat the Sales team!

Just as he is leaving his office, he receives a call from a former colleague, Belle, who needs some assistance with changing the
default expense type in Project Workspace for her organiza on.

Abel knows he has to get the ball rolling and move quickly if he wants to help Belle and make it to the game on me. A few
minutes later the default expense type has been updated and Abel is on his way to victory!

Abel is always on the ball when it comes to tasks in ServiceNow. Review the three easy steps below to see how he completes
this one.

1. Navigate to System Proper es > All proper es.

2. Filter the name to locate and open the [sn_plng_a _core.default.expense_type] table.

3. Select the required expense type in the Value field and select Save.

Configure financial widgets:

An admin can show or hide financial widgets on Project Workspace, depending on the needs of the organiza on. By default, the
following widgets are displayed at the top of the Financials page.

 Budget

 Es mate At Comple on

 Budget VS EAC Variance

 Planned Cost

 Actual Cost To Date

 Scenario

 The team at the theme park has asked Abel to hide a few widgets on the Financials page of the Project Workspace as

they mainly want to focus on the budget and estimate at completion.

 Abel is ready to approach this task zestfully, relishing the challenge ahead and looking forward to quenching his thirst

with a refreshing lemonade from the concession stand when he is finished.

Review the simple steps below to see how he completes this task for the theme park team.
 1. Navigate to All > Project Administra on > Widgets.

2. Update the value to false in the Ac ve column for the Actual Cost To Date and the Planned Cost widgets.

These widgets are no longer displayed on the Financials page of the Project Workspace.

Configure a new financial widget and associate it to the Project table:

As an admin, you can configure a widget to view and track the financial metrics of a project on the Financials tab of the Project
Workspace in a few easy steps.

Scenario

The project managers at the theme park have asked Abel to configure a widget on the Financials tab of the Project Workspace
that will display the return on investments for their projects.

Abel is super invested in this task! Check out the steps below to see how he configures this new widget.

1. Navigate to All > Project Administra on > Widgets.

2. Select New.

3. Complete the following fields on the form:

o Name: Total Actual Cost

o Ac ve: true

o Update the script to include the func on to return the value.

4. Select Update.

Next, Abel will associate the new widget to the Project table.

1. Navigate to All > Project Administra on > Widgets.

2. Select the new widget.

3. In the Widget associa ons related list, select New.

4. Complete the following forms on the field:

o Associa on ID: select the Tables [sys_db_objects] table in the Table name list and the Project
[pm_project] table in the Document list.

o Widget: Unique name of the widget.

o Order: Select the posi on of the widget in rela on to the other widgets in the Financials tab of the Project
Workspace. (Example: To have this widget appear a er Actual Cost To Date, select 600).

o Include by default: set to true to show the widget by default in the Financials tab.

o Select Submit.

o Select the Tables [sys_db_objects] table from the list in the Associa on table field.

o Select Save.

Financial baseline and planning grid:

In addi on to a schedule baseline, demand and project managers can also create a financial baseline, which captures benefit
and financial metric informa on, by naviga ng to Project Workspace > Financials tab in the classic Project Workspace (or in the
new Project Workspace by naviga ng to Project Workspace > Planning Page). Once the financial baseline is created, project or
demand managers can “Compare baselines.”

This capability is important for an implementer to know, as a baseline is a common ask from customers.

Financial planning grid-classic Project Workspace:

The Financials tab in the classic Project Workspace allows users to see the costs and benefits of a project all in one place.
Overview tab

Financials tab-Overview

Within the Financials tab, users can select Overview to track Planned Cost, and Actual Cost, and see Variance by fiscal periods.
They can also view the Budget, Es mate At Comple on, and Es mate To Comple on to help them properly forecast.
Addi onally, users can add more breakdown columns, including, Opex, Capex, etc., by selec ng the configura on icon on the
right side of the screen.

By default, financials are displayed by the quarterly breakdown. However, an admin can configure the minimum level by which
the financials overview data is displayed by naviga ng to Project Administra on > Se ngs > Preferences - Project. The admin
can choose from Month, Period, Quarter, or Year.

The team at the theme park has decided that they want to be able to view the breakdown of financial data by month on the
Overview tab, to keep a close eye on their Es mate At Comple on and Es mate To Comple on metrics. Abel updates the
property accordingly, and the changes are reflected on the Overview tab.

Note: Forecas ng metrics, including Es mate At Comple on and Es mate To Comple on, will update automa cally on the
Financials tab.

To update these fields on the Details tab, users can click the Calculate Comple on Es mates Related Link, or an admin can
configure the Calculate Project Comple on Es mates job to run to display the latest values. Admins should consider running the
job at a specific me/frequency that works best for their organiza on.

Cost plans and monetary benefit plans:

Cost and benefit plans can easily be created using the Financial Planning grid.

Note: Year/Quarter/Month op on is dependent on Fiscal calendar type. If it is a 13-period calendar, the user will only see
Year/Period.

Rate model:

A rate model is a collec on of mul ple rate lines and is configura on driven. Meaning, administrators can define a rate model's
criteria by adding a ributes from project, demand, project task, user, group, role, or resource plan en es.

 A project or demand manager can associate any one rate model as the default rate model that is automa cally
associated with new projects and demands.

 When a rate model is associated with a project or demand, the rate model derives an hourly rate for the resource
plans and me cards associated with the project or demand.
 A rate model can be marked as default by a 'Rate model Admin.' A default rate model can then default to all new
projects or demands.
 If there is no rate model associated with a project or demand, the system will use the default labor rate card.

Rate model is used in:

 Resource Planning for planned costs and confirmed/allocated costs.

 Timecard Processing for me card entries recorded against project tasks only.
Note: A rate model is not used for “ me worked” entries because these create me cards, which themselves will use
this model.
 Rate model overview:
If a rate model is associated with a project or demand, the resource plan will derive rates from the rate model during
Request, Confirm, and Alloca on. If a project or demand does not have a rate model associated, the old behavior of
deriving hourly rates from labor rate cards is used.
For Planning in FTE and Person Days, both are converted to hours. The number of hours are passed to the model,
which returns the hourly rates for the criteria passed.
Rate model tables and roles added to the base system.

Define criteria of a rate model

When crea ng a new rate model, you must define the rate model a ributes that will derive hourly rates, such as group,
resource, role, loca on, etc. You can define up to 10 a ributes from the following en es: Project, Project task, Demand, User,
Group, Role, and Resource plan.

You can further select a ributes of type String, Reference, Number, Boolean, and Choice.

Create a rate line

Create a rate line in the rate model to define an hourly rate based on a specific set of criteria effec ve for a given date range.
Before crea ng a rate line, note the following:

 Rate lines with the same set of criteria values cannot have overlapping dates.

 A criteria field can be empty.

 All the criteria fields on the form have a value All other (*). If selected, the rate model considers it during evalua on if
no exact match exists for that criteria.

 You can select a rate currency, which can be different from the rate model currency.

 To use a non func onal currency in a rate line, ensure that the corresponding budget reference rate is available.
Besides crea ng rate lines one at a me, you can add mul ple rate lines into a rate model using the export and import rate lines
func ons.

PPM Standard Mul currency plugin

The PPM Standard Mul currency plugin enables an advanced ability to manage PPM financials in mul ple currencies in both the
Demand and Project applica ons. The system administrator can install this plugin by naviga ng to System Defini on > Plugins.
A er the plugin is installed, two new views called Demand Currency and Project Currency are available on the Demand and
Project forms, respec vely.

Select demand currency preference

Once the PPM Standard Mul currency plugin is installed, there are several currency op ons that demand and project managers
can select from to manage demands and projects.

Note: If the PPM Standard Mul currency (com.snc.ppm_mul currency) plugin is installed, an admin can select the Demand
currency preference by naviga ng to Project Administra on > Se ngs > Preferences - Project.

Manage demands using the func onal currency

Select the 'Follow func onal currency' op on to manage demands using the func onal currency of the organiza on.

When a project is created from the demand, the project currency will be carried over to the Project form but can be changed
later.

Manage demands using the same currency as the project currency

Select the 'Drive project currency' op on to manage demands and projects using the same currency. The Project Currency field
in the Demand form automa cally populates with the selected currency as the project currency when the form is saved.

Manage demands and projects in different currencies

If the 'Flexi' op on is selected, demands and projects created from the Demand form can be managed using different
currencies.

Tables with demand currency fields

Demand currency fields are added to the following tables, which contain financial details:

 Demand [dmn_demand] table

 Demand Task [dmn_demand_task] table

 Cost Plans [cost_plan] table

 Cost Plan Breakdown [cost_plan_breakdown] table

 Benefit Plan [benefit_plan] table

 Benefit Plan Breakdowns [benefit_plan_breakdown] table

 Expense Line [fm_expense_line] table

 Project Funding [project_funding] table

Enable Demand Currency view

An admin or it_demand_manager role can change to the Demand Currency view to easily manage and track a demand's
planned costs in the selected currency.
To enable the Demand Currency view:

1. Navigate to the appropriate Demand form.

2. Right-click on the header of the form or select the Addi onal ac ons menu.

3. Select View.

4. Select Demand Currency from the list.

Demand Currency views displayed

Once the Demand Currency view is enabled, the demand currency fields are displayed in the Financials tab and several demand-
related forms. These forms include:

 Demand Task

 Cost Plan

 Cost Plan Breakdown

 Benefit Plan

 Benefit Plan Breakdown

 Demand Budget

 Additional Demand Currency tracking options

 Demands can also be tracked in the selected demand currency in the demand tasks and demand baselines.

Project mul currency:

Tables with project currency fields

Once the PPM Standard Mul currency plugin is installed, project currency fields are added to the following tables, which
contain financial details:

 Demand [dmn_demand] table

 Project [pm_project] table

 Cost Plans [cost_plan] table

 Cost Plan Breakdown [cost_plan_breakdown] table

 Benefit Plan [benefit_plan] table

 Benefit Plan Breakdowns [benefit_plan_breakdown] table

 Expense Line [fm_expense_line] table

 Project Funding [project_funding] table

Enable Project Currency view

An admin or it_project_manager role can change to the Project Currency view to easily manage and track a project's planned
costs in the selected currency.

To enable the Project Currency view:

 1. Navigate to the appropriate Project form.

2. Right-click on the header of the form or select the Addi onal ac ons menu.

3. Select View.

4. Select Project Currency from the list.

Project Currency views displayed

Once the Project currency view is enabled, the project currency fields are displayed in the Financials tab and several project-
related forms. These forms include:

 Cost Plan

 Cost Plan Breakdown

 Benefit Plan

 Benefit Plan Breakdown

 Expense Line

 Project Funding

 Project Currency in cost plans

 The cost plan breakdown records for a cost plan created in a non-functional currency, converted from the entered

currency to the project currency using the rate in the budget reference rates table that is in effect for the period in

question.

 The exchange rate for project currency and the exchange rate date is stamped on cost plan breakdowns at the time of

creation. The exchange rate captures the rate in effect.

 Assuming the exchange rates from EUR to USD are 1.5, 1.6, and 1.55 for FY23 Jan, Feb, and March respectively. The

image shows an example of a cost plan breakdown.

 Entered currency
Currency in which the cost is incurred.
 Total planned cost
Total estimated cost in the project currency. This is the sum of ‘Planned capital’ and ‘Planned operating.'
 Project currency
Currency in which the cost plan is to be implemented.
 Cost in project currency
Value that is rolled up from the Entered cost field of all cost plan breakdowns.
 Total actual cost in project currency
Value that is rolled up from the Actual cost field of all cost plan breakdowns in project currency.
Note: The Entered currency field on cost plans and benefit plans will default to the project currency value but can be changed.

Addi onal Project Currency tracking op ons

Projects can also be tracked in the selected project currency in the Project Workspace, project baselines, and project status
reports.
Cost roll-up from sub-projects to parent projects

If a sub-project and parent project have different project currencies, use the [com.snc.project.mul currency.rollup_if_different]
property for cost roll-ups.

Front of card

When the property is set to true...

You can:

 Associate a sub-project to a parent project, where both the projects have different project currencies.

 Roll up the sub-project amounts to the parent project amounts. Keep in mind that the accuracy of the rolled up
amounts in the parent project may differ due to currency varia on.

If the property is set to false...

You can:

 Associate any number of sub-projects to a parent project, whether the project currencies are same or different.

 Roll-up costs only if the project currencies of the sub-project and the parent project match

Please review our Product Documenta on site for addi onal informa on on mul currency cost roll-up property behavior.

Mul currency in financial baselines

When the Demand Currency or Project Currency views are enabled, financial informa on is displayed in the demand or project
currency when a user views and compares financial baselines.

The financial baseline view can also be configured to show widgets and addi onal details in the grid, in the specified demand or
project currency.

Mul currency in Classic Resource Management

Mul currency is also used in resource plans. A resource plan creates a cost plan. If the hourly rate of a user/group is defined in
non-func onal currency, the cost in resource plan breakdown is calculated by conver ng the non-func onal hourly rate to the
func onal hourly rate using the rate in the budget reference rates table that is in effect for the period in ques on.

The same is populated to the cost plan’s ‘Total planned cost’ and ‘Cost in project currency'. For a cost plan created from the
resource plan, the ‘Entered currency’ and ‘Project currency’ are always the same. This is because different resources may have
rates in different currencies, and ServiceNow does not currently store separate “per user” cost plans.

A project or demand manager can track the resource costs for projects or demands in the corresponding project or demand
currency by enabling the Project Currency view or Demand Currency view for the resource plans.

Several fields display costs in demand currency on a resource plan when the Demand Currency view is enabled.

There are several fields that display costs in project currency on a resource plan, when the Project Currency view is enabled.

Note: The Rate Model plugin allows mul currency to be used in Resource Management.

Mul currency for rate model

A default currency is set for a model. Each row has a currency field, which defaults from the currency set at the model header.
Currency is part of the uniqueness of the model row, i.e., two rows with the same set of a ribute values and currency cannot
have overlapping effec ve dates. The rate delivered is in the currency specified for the row returned.
The currency of the row returned becomes the currency of the related cost plan or expense line, which is converted to project
the currency as needed, using the rates from the budget_reference_rates table.

The PPM Standard Mul currency func onality does not currently extend to programs or por olios.