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Project Portfolio Management in Budgets

This tutorial is created using Tempo Version 8.

In this tutorial, you will create an account and link it to a management project. You will create a folio that tracks costs and revenue, associate the required skills and resources with the folio, and plan the costs and revenue. Finally, you will generate and view folio reports. You need Budgets by Tempo and Timesheets by Tempo to complete these tasks.

In this tutorial:

Prerequisites:

  • A Jira project management project is needed for this tutorial. The project should be for a service delivery with 1-2 consultants. 
  • The project must have at least 2 project tasks with original and remaining estimates.
  • Make sure the Account field is available on the Issue page.
  • Make sure the Billable options are enabled on the Tempo Global Configuration page (Configuring Global Accounting options). 
  • Make sure you know which issues are OPEX and which are CAPEX related. For example, Task - 1: Development = CAPEX, Task - 2: Training = OPEX.

Step 1: Creating an account


With your Jira project ready, the next step is to link the project to accounts. Create one account for billable time and name it so that you can easily recognize it as a CAPEX account. Assign Taylor as the Account Lead and select Development as the Category. Similarly, create an account for non-billable time, including OPEX in the account name. Again, Taylor is the Lead and the Category is Training.

To create an account...

To create an account, you need Tempo Account Administrator permissions:

  1. From the Tempo menu, click more... under Accounts.
  2. Click Create Account at the top-right.
  3. In the Create Account dialog, enter or select the information for the account:
    1. Name: a descriptive name for the account. The combination of the account name and key is used to display the account in Jira issues or in the Log Work dialog in Tempo Timesheets, depending on configuration.
    2. Key: the account key needs to be unique for the account. A suggested key based on the account name is auto-generated, but you can enter any value you choose. The key can use letters (a-z, A-Z), digits (0-9), underscore ("_"), dash ("-") or a dot (".").
    3. Lead: the account lead is responsible for the account. You can either select an existing Jira username or simply enter a name.
    4. Customer: Optional. Select a customer to associate with the account from the drop-down menu. The customer does not need to be an outside customer, it may simply be a way to group together a common entity (Jira projects or cost centers) of your definition for the projects linked to the account.

    5. Contact: Optional. Depending on the purpose of the account, for internal or external use, the contact may or may not be a Jira user.

    6. Category: Optional. Select a category to associate with the account from the dropdown. The category is a way to group different cost centers and work activities, such as Development or Marketing.
  4. When you are finished, click Create. The account is added to the list on the Accounts page and can be opened from there.

Click to enlarge

When you have created the accounts, you need to link them to your Jira project.

To link a project to an account...

You can link accounts to one or many Jira projects. To link an account to Jira projects, you need Tempo Account Administrator permissions.

  1. From the Tempo menu, click more... under Accounts.
  2. Click the account to which you want to link Jira projects.
  3. The account's overview page is displayed. Click Configuration at the upper-left.
  4. Click Links in the left-hand sidebar. 
  5. From the Project drop-down, select the project you want to link to the account. 
  6. Click +Link. The selected project is listed on the page. You can click Delete link to unlink it from the account.


To link the account to all Jira projects:

Accounts that are linked to all Jira projects are called global accounts. 

  • On the account links page, click the gear icon
    , and then click Link account to all projects (global).

If there are no issues in your project, create at least one CAPEX = Development issue and one OPEX = Training issue. To help plan out the projected costs for the project, assign an original estimate in hours to each issue. Also, make sure that the issues are associated with the correct account.

If your project already has issues, you can edit them to ensure that they are associated to the appropriate account and have time estimates.

Step 2: Creating a folio


Now that you have set up your project and your accounts, you are ready to start using Budgets! When working with Budgets, the first step is to create a folio. A folio is aBudgets project that lets you define a financial plan, a scope, and a time frame for your Jira project. Folios can be associated with any number of Jira projects.

Create a new folio and use your Jira project to define the scope, and select to track Cost & Revenue. Give the folio a name (e.g. 'project_name folio'), select USD as the currency,  and pick a start and end date for the folio.

To create a folio...

To create a new folio in Budgets, you need to have Tempo Budgets Super Administrator permissions:

  1. From the Tempo menu, click more... in the FOLIOS section.

  2. On the Manage Portfolios page, click the Create New Folio button

    or Create a folio link in the sidebar.

  3. Select a folio scope. The Folio scope is a list of Jira issues, defined by a Jira saved filter. Select from:

    1. Jira projects – All issues from the selected Jira projects will be part of the folio's scope. A private filter will be created under the folio's creator.

    2. Issues – All selected issues will be part of the folio's scope. A private filter will be created under the folio's creator.

    3. Jira Saved filter – All issues derived from the Jira saved filter will be part of the folio's scope. The filter is reused as is.

    4. Custom JQL (Advanced) – All issues derived from the custom JQL will be part of the folio's scope. A private filter will be created under the folio's creator based on the entered JQL.

    5. Customers – All issues associated with an account linked to at least one of the selected Tempo customers. A private filter will be created under the folio's creator.

    6. Accounts – All issues associated with at least one of the selected Tempo accounts. A private filter will be created under the folio's creator. 

  4. Select what to track:

    1. Simple Costs – Plan and track costs only.

    2. Costs and Revenue – Plan and track costs, revenue, and profitability.

    3. Earned Value – Plan and track costs using the Earned Value Management(EVM) technique.                               

  5. Enter information about the new folio:

    1. Name – Enter a name for the new folio. Note that the ampersand (&) character is not supported as part of a title for folios or portfolios. Instead, type the word 'and' within your title.

    2. Main Currency – Select a default currency for your folio.

    3. Start Date – Select the start date for the folio. The start date and the end date for the folio will determine which worklogs are included in the folio cost and revenues.

    4. End Date – Select the start date for the folio. The start date and the end date for the folio will determine which worklogs are included in the folio cost and revenues.

    5. Projects – Select one or more projects to include in the folio. The issues in the project(s) will determine which worklogs are included in the folio cost and revenues.

    6. Portfolios – If you want to include this folio in a larger portfolio, select it here.

    7. Project Manager – Select a project manager.

    8. Risk Level – Select a risk level for this folio:

      1. High Risk

      2. Medium Risk

      3. Low Risk

    9. Description - Enter a description of the folio (maximum 500 characters).

  6. Click Create.

Any folio that you create will automatically grant you Folio Administrator permissions for that folio.

Step 3: Planning the salary expense for your folio


Having created your folio, you can start creating a cost plan for your project. In this step you will plan the salary expense for your folio using Plan from Estimates. Using this option, Tempo Budgets calculates the number of staff members required to complete your project. The plan is based on the estimated effort of issues within the folio's scope and time frame. Expenses are planned and tracked on the folio Costs tab. Name the human resource, such as Developer (this can be changed later), estimate the cost rate, and make sure to select the folio start date as the effective date.

To plan human resource costs based on estimates...

To plan human resource costs in Tempo Budgets for Server based upon estimates you need to be a Folio Owner or Folio Administrator:

  1. From the Tempo menu, click the folio name. You can also click more... to open a list of all folios.
  2. Click the Costs tab, and then click Planned at the top-left.
  3. Click Plan from Estimates.
  4. Under Select effort to plan for, select either the entire scope of the folio, or narrow it down using a filter or JQL function. 
  5. Under Plan Staff:
    1. Name - select a name for the positions created.
    2. Role - select a role for the positions created.
    3. Cost Rate - select a planned Cost Rate for the positions. This rate is individually set, it doesn't necessarily conform to the global user rates.
    4. Effective Date - select a date for the work to start, or choose the Folio's start date.
  6. Click PlanTempo Budgets for Server will set human resources based on the folio's scope.

The generated plan shows you how many staff positions (in this instance, developers) are needed to complete the project/folio.

Step 4: Planning expenses for your folio


Along with the salary forecast, you need to plan for other expenses such as travel costs, software licenses, training, etc. 

Plan some expenses that are related to your project and classify them by category and type.

To plan an expense...

To plan expenses in Tempo Budgets for Server, you need to be a Folio Owner or Folio Administrator:

  1. Click
     or select Tempo > Budgets.
  2. In the Manage Portfolios view, select a folio,
  3. Select the Costs tab, then click Planned at the top-left to view planned costs.
  4. Click the Plan an expense 
    icon.
  5. Fill in the Plan an Expense dialog box:
    1. Name - enter a name for this expense.
    2. Category - select either Operational Expenditures or Capital Expenditures.
    3. Type - click in the field to select from a list of pre-defined expense types.
    4. Amount - enter an amount.
    5. Currency - select a currency.
    6. Recurring - select Once, or select a frequency and start date for a recurring expense.
    7. Amortized - select this option to spread the expense in equal amounts over a specified period.
    8. Account - select an account for the expense.
    9. Labels - select labels to add to the human resource.
    10. Description - enter a brief description for this expense.
  6. Click Plan to create the expense.

The planned expenses are displayed on the Costs tab under Planned.

Step 5: Approving and baselining your folio


After you have planned the costs for your folio, you can set a baseline. A baseline is simply a point of comparison. Planned costs can be approved and baselined to help you track their evolution. You can create multiple baselines so you can compare various planning scenarios. You can access all baselines from the Planned view.

In this step you will approve your budget and set it as a baseline for future reference.

To approve a folio and set it as a baseline...

You can approve planned costs and revenues to help you track their evolution. Approving a budget sets it as a baseline, storing it for future reference. A baseline is a point of comparison or a benchmark. You can create multiple baselines, so you can compare and contrast various planning scenarios and approve the one that best suits your budget. Once a budget has been approved, you can always switch back to draft mode to continue editing it. The latest baseline is used for all calculations throughout the folio, from the financial information and health indices displayed in the Overview, to the forecasts and reports.

To approve a budget and set it as a baseline in Tempo Budgets for Server you must be the Folio Owner or be an Administrator for the folio:

  1. From the Tempo menu, click the folio you want to open. If you don't see the folio you are looking for, click more..., and then find it on the Manage Portfolios page.
  2. Open the Costs or Revenues tab, and then click Planned on the left.
  3. In the top-right corner of the folio, click Approve.
  4. Enter information about the baseline:
    1. Name – the name of the baseline. Each baseline must have a unique name.
    2. Approved By – the name of the user who will approve the baseline.
    3. Description – a detailed description of the baseline.
  5. Click Save. The view is switched to Baseline mode and the budget cannot be edited. 

Step 6: Planning a consulting revenue


With your planned costs approved, you can plan the revenues you expect the folio will generate. In this step you will plan consulting revenue from four full-time consultants. Assign them the Member role, the planned effort should be 100%, with a price rate of $95.00/hr. Select From and To dates to match the folio start and end dates.

To plan consulting revenue...

To plan consulting revenue in Tempo Budgets for Server, you must be the folio owner or be an administrator for the folio:

  1. Select a folio using Tempo > (folio name).
  2. Select the Revenue tab then click Planned to view the Total Planned Revenue page.
  3. Click Plan a consulting revenue (o).
  4. Enter information about the planned revenue:
    1. Name - enter a name for the revenue
    2. Role - select a role for the planned consultants.
    3. Repeat - select the number of human resources to plan the consulting revenue for.
    4. From - enter the date to start calculating revenue, or select the Folio start date.
    5. To - enter the date to stop calculating revenue, or select the Folio end date.
    6. Planned Effort - enter the planned effort for the position, either in fixed hours, or as a percentage of total capacity.
    7. Price Rate - enter or select a Price Rate for the consultants.
    8. Account - select an account to link.
    9. Labels - select Jira issue labels to associate with the human resource.
    10. Description - enter a description about this position.
  5. Click Plan to complete consulting revenue planning, or select Plan another and click Plan to continue planning consulting revenues.


Step 7: Adding staff to your folio


When you are ready to proceed with your folio, you can add the people who are working on the project to your folio. Be sure to check that the people are available by going to the Resource Planning overview in Tempo Planner. Filter by role and find out who is available (4 full-time + 1 day). Now go back to your folio to add your staff. Use folio's start and end dates and set the availability to 100%. Because you are using global user rates, the Cost Rate is fixed.

To add staff members to a folio...

To add staff members to a folio in Tempo Budgets for Serveryou must be the Folio Owner or be an Administrator for the folio:

  1. Select your folio using Tempo > (folio name).
  2. Select the Staff tab, then select Staff Members at the top-left.
  3. Click Add a staff member (o).
  4. Enter information about the staff member:
    1. Staff Member - select the name of the staff member from the list of Budgets users.
    2. Role - select a role for the staff member in this folio.
    3. Overtime Rule - if applicable, select an Overtime Rule to use for the staff member.
    4. Weekly Schedule - select a Weekly Schedule for the staff member.
    5. Holiday Schedule - select a Holiday Schedule for the staff member.
    6. From - enter the start date, or select the Folio start date.
    7. To - enter the end date, or select the Folio end date.
    8. Availability  enter the availability for the staff member, either in fixed hours, or as a percentage of total capacity.
    9. Cost Rate - enter the Cost Rate for the staff member. This can be individually set, or if the folio uses Global User Rates, the rate will be set automatically.
    10. Description - enter a description for the staff member.
  5. Click Add to add a new staff member, or select Add another and then Add to add more than one staff member.

At this time, there are no actual costs recorded in the folio since no hours have been logged.

Step 8: Synchronizing your folio with Price tables and Tempo Accounts


In this step you will make all consulting revenues in your folio use hourly rates from a globally defined price table. You will also synchronize your folio with Accounts so that all worked time on issues are associated with a Tempo account. 

To use price tables for consulting revenues in a folio...

To use price tables for consulting revenues in Tempo Budgets for Server, you must be the Folio Owner or Folio Administrator:

  1. Select your folio using Tempo > (folio name).
  2. At the top-right, click Folio, then select Configure from the dropdown.
  3. In the left sidebar, click Accounting.
  4. Select Use price table for consulting revenues to make all consulting revenues in this folio use hourly rates taken from a price table.
  5. You can click the price table name to see a list of available Price tables. Select the table you want to use. Note that if the selected Price table is later deleted, the folio will revert to using the default price table and a warning will be displayed next to the Price table field. 

Click to enlarge

To synchronize a folio with accounts...

 To synchronize a folio with accounts in Tempo Budgets for Server, you must be the Folio Owner or an Administrator for the folio:

  1. Select your folio using Tempo > (folio name).
  2. Click Folio then select Configure from the dropdown.
  3. In the left sidebar, select Accounting.
  4. Select the Synchronise with Accounts option to associate the folio with a Capitalized Tempo Account.

Click to enlarge

Step 9: Logging non-billable hours for the staff


Worked hours are hours that were spent working on the folio's scope by folio members. The worked hours will be included in costs and revenues. Navigate to Tempo Timesheets and log non-billable hours for your staff on project issues that are linked to your OPEX account. Make sure that the Billable field has 0h. Repeat for each member of your folio. 

To log time in the timesheet...


Creating worklogs for yourself requires the Work On Issues permission. Creating worklogs for other team members requires the Log Work for Others permission.

You can log time on Jira issues in any timesheet. 

  1. Access the timesheet either from My work :my_work_dc: Teams :teams_dc: , or Accounts :accounts_dc: .

  2. Make sure you're viewing days in the grid view.

  3. To create a worklog, do one of the following:

    1. Click the Log Time button at the top. The Log Time dialog box is displayed.
      -OR-

    2. If you have an issue in the timesheet, you can click an empty cell for that issue to log time on it. The Log Time dialog box is opened with the issue preselected. You can use the Show issue lists box at the top to display issue filters in the timesheet that are relevant to you. This will help you to quickly find the issues you need to log time on. For more information about how to show issue filters in a timesheet, see Displaying Issue Lists and Jira Filters in the User Timesheet - Tempo Server.
      -OR-

    3. Press w on your keyboard to open the Log Time dialog box.

  4. Fill in the Log Time dialog box.

    1. You can select a different issue from the issue drop-down list. Use the issues tabs and search box to find your issue. For more information about how to configure the issue picker, see Log Time - Tempo Server.

    2. If you have the permission to log time for other users, you can select a User.

    3. If you select the Period option, you can log time on the issue for a period of time.

    4. Click the calendar if you want to log time on a different date.

    5. Enter the Worked hours and Remaining estimate, if required.

    6. Give a brief Description of the work done.

  5. When you are finished, click Log Time.

Logging Time for Others

  1. Access the timesheet either from My work :my_work_dc: Teams :teams_dc: , or Accounts :accounts_dc: .

  1. Click the dropdown arrow next to your name to display an editable field and drop-down.

  2. Type the name of the team member whose timesheet you want to view. 

  3. Click Log Time at the top.

  4. Complete the Log Time dialog box.

Note

When you log time for another team member in My Work, the Calendar view is not available.

Logging Time with Start Time

By default, the Users can specify a start time when they log time option is disabled, but if enabled, any Tempo Timesheets user can set start and stop time when logging time. This means that the Date field in the Log Time dialog box changes to a date/time field in the enabled case. The current time is used as default.

If the option is enabled, the time is also displayed in all reports and the inline editing windows.

  • The time can be changed by writing directly into the boxes.

  • The time can also be changed by clicking the boxes and selecting from a calendar/list.

  • All dates from start date to end date in Period worklog show the same time as selected in the Time field.

Tip

A useful reading on the difference between my JIRA worklog and my Tempo worklog.


Related Topics

When you go back to your folio, you will see the logged hours in the Actual Costs

The Actual Revenue, on the other hand, is still 0.

Step 10: Logging billable hours for the staff


Similarly, log billable hours for the staff and see how your folio changes. Log billable hours for your staff on your project issues that are linked to your CAPEX account. Go to Revenue, select the worklogs to add as consulting revenue, then select a role for each staff member. Also select the Billable Ratio as 100%. You will notice how the Total Revenue changes.

Step 11: Synchronizing your folio with billable hours


In this step you will synchronize your folio with Jira worklogs so that the consulting revenue hours will be driven by billed hours logged in Tempo Timesheets. To do so, select Synchronise with the Tempo billed hours in the Accounting tab of the folio's configuration page.

Then navigate back to your folio and open the Revenue tab. You will see that the total hours are reduced.

To synchronize a folio with billed hours...

To synchronize a folio with billed hours in Tempo Budgets for Server, you must be the Folio Owner or Folio Administrator:

  1. Select your folio using Tempo > (folio name).
  2. At the top-right, click Folio then select Configure
  3. In the Folio Configuration sidebar at the left, select Accounting.
  4. Select Synchronise with the Tempo billed hours to synchronize the the folio with billed hours.

Click to enlarge


Step 12: Generating and viewing reports


The folio's Report tab offers several reports where you can visualize, analyze, extract, and export data in many ways. Go to the Report tab and play around with the following reports:

  1. Forecast Report
  2. Issue Costs Report
  3. Expenses / Revenue Report
  4. Steering Committee Report

To configure a Forecast report...

To configure a forecast report in Tempo Budgets for Server, you need Folio Owner or Folio Administrator permissions:

  1. Select your folio using Tempo > (folio name).
  2. Click the Report tab at the top (or press '5')
  3. Click Show Report for the Forecast Report.
  4. Configure the report:
    1. Enter a minimum and maximum amount in Min Amount and Max Amount fields at the top of the report.

    2. Use the date picker to select a Start Date and End Date. You can click Reset to start over.

  5. Set the report parameters at the right: 
    1. From the For dropdown select either Costs or Revenues, and from the Account dropdown select the account to associate with this report.

    2. Select the Folios, Categories, or Roles that you wish to include in the report.

To configure an Issue Costs report...

To configure an issue costs report in Tempo Budgets for Server, you need Folio Owner or Folio Administrator permissions:

  1. Select your folio using Tempo > (folio name).
  2. Click the Report tab at the top (or press '5')
  3. Select Issue Costs Report and click Show Report.
  4. Configure the report:
    1. For - Specifies which financial data source to use.

      1. Actual Cost displays folio's Issues actual cost.

      2. Actual Revenue displays the folio's Issues actual revenues cost

    2. From - The Report Start Date. Click the Folio start link to set the report start date to the Folio's start date. If the report start date is before the Folio's start date, only expenses with an incurred date later than the Folio's start date are displayed.
    3. To - The report end Date. Clicking on the Today link sets the report end date to be today's date. 

    4. Account - This allows you to display amounts of all expenses/revenues and worklogs of issues link to the selected account.
    5. Label - This allows you to display cost of issues for the selected Jira Issue Label. (not available at the portfolio level). Only expenses with the specified label will be use to calculate issue cost.
    6. Custom Fields - In the image below, 'Country' and 'Invoice Number' are custom fields. All custom fields of the type SELECT and TEXT will be added as parameters. The options are based on the values used by the folio items. This allows you to display amounts for the selected custom field values.

    7. Issue Types - Issue types to display in the report.







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