PSC NA - Financial Process - Monthly Forecasting (IPPF) v1 12-16-16

PSC NA Financial Process Monthly Forecasting (IPPF)
GBS Project Service Center

Financial Process
Monthly Forecasting (IPPF)
Document Version Control
Document version:
Version 1.0
Document status:
Posted
Owning process:
Document file name:

v1 12-16-16.doc
Revision history of this document:
See below
Version
Number
Revision
Date
Change Description
Changed
Name
Original Document.
David
Hurbough
Approved
Name
5/7/2008
5/12/2008 Made updates based on feedback received

from Jennifer Conlon.
David
Hurbough
7/16/2008 Changed from procedure to user guide to

better fit the document.
David
Hurbough
11/11/2016 Changed from procedure Monthly Compass

to Procedure Monthly IPPF
Dhanashree R
Zond/Jayashr
ee Sridhar
12/16/2016 Update to NA Version 1
Sharon Gallo
Last Update 12/21/2016
Page 1 of 15
Work
Ref No.
Table of Contents
Procedure Step Links:
GBS Project Service Center..................................................................................................... 1
Financial Process..................................................................................................................... 1
Monthly Forecasting (IPPF)................................................................................................... 1
Document Version Control.................................................................................................... 1
Process Overview................................................................................................................. 3
Business Process Step by Step Procedures...........................................................................4
Step A: Receive updates to future forecast from PM........................................................4
Step B: Enter PMs forecast updates................................................................................4
Step C: Add adjustments to IPPF Forecast Input...............................................................4
Step D: Perform Quality Checks.......................................................................................5
Step E: Highlight significant findings for PM review.........................................................5
Step F: Review and refine forecast to obtain approval.....................................................6
Step G: Complete reconciliation of approved forecast.....................................................6
Step H: Save approved forecast for future reference.......................................................7
Step I: Submit the approved forecast...............................................................................8
Step J: View confirmation of successful submission.........................................................8
Step K: View forecast submission date.............................................................................9
Key Considerations........................................................................................................... 9
Additional Support:........................................................................................................... 9
Glossary of Terms............................................................................................................... 11
Templates........................................................................................................................... 12
References & Contacts....................................................................................................... 13
Quick Reference Guide....................................................................................................... 14
Page 2 of 15
Page 3 of 15

Process Overview
The Monthly Forecasting process involves updating the current go-forward forecast,
receiving PM approval on the forecast (if applicable), and submitting that forecast in IBMs
financial management and forecasting too Integrated Project Planning & Forecasting
(IPPF)l. The expectation of IBM is to have an accurate forecast submitted each month in
accordance with the timing guidelines. This process must be completed each month
between 1W and 7W.
The intent of this process is to work with the PM to ensure a complete forecast is prepared,
reviewed and submitted on a timely basis. While not all PMs provide forecasts/staffing plans
in the same manner, the required method is to use the IPPF to ensure the forecast is as
accurate as possible. PSC resource involvement in the forecasting process will vary based
on project requirements and Project Management needs. Regardless of this level of
involvement, it is important to remember:
Forecasting is the responsibility of the assigned Project

Manager.
Project Financial Administration Process

Claim &
Expense
Management
Monthly
Invoicing
Subcontractor
Invoice
Reconciliation
Monthly Project
Financial
Reconciliation
Monthly
Forecasting
Monthly
Reporting
Verify/approve correct
coding of labor in ICLA
Review TDBR & IOL

3x close/release fixed
billing
Collect CAR forms

for hours / expenses
Update & review

monthly actuals in
financial mgmt tool
Send current
forecast to PM for
review and approval
Send financial summary

to Project Team
Identify & manage

lagging costs/revenues
Forecast updated
and approved
Reconcile
costs/revenues to CGP
Forecast submitted
Investigate & resolve

unreconciled items
Forecast validated
Verify/
approve correct coding of
expenses in ICLA
Verify amounts remaining

in bill codes
Reswizzle Hours
Submit travel corrections,

unbilled, REA and Intl
resource travel, to NSSO
d-base
Prepare manual
invoices/
adjustments to invoice
by working with SIRT
team or AR
Review/
approve invoice
Invoice sent/delivered
to client
Work with PM to
resolve billing disputes
Approve hours
/expenses
Enter/Submit hours
and expenses
Consolidate PMA reports
Resolve
discrepancies
Request PO updates
Work with PM/AR to
collect monies due and
cash application
Work with PMA to

resolve issues
Reconcile CAR forms

to IPVNs
Monitor/track supplier
POs
Prepare, analyze &

submit monthly
financial reports
Submit monthly financial

package to PFS Lead
Material changes
communicated to FA
Report to PFSC
Manager
Report to Senior
Leadership
Close/Cancel PO
Page 4 of 15
Business Process Step by Step Procedures
Step A: Receive updates to future forecast from PM

PMs are requested to email future forecast updates by 1X to ensure timely submission of the
forecast. The PSC Resource will perform the following in preparation of the forecast cycle:
1. Include 1X reminder in report findings sent to PM by 20th of month
2. Expect to receive forecast updates to future months by requested 1X due date
3. Suggested steps when no forecast updates received by 1X:
a. Proceeds under the assumption that PM wants no changes made to future
forecast shown in IPPF Forecast Input
b. When scheduling forecast review, include negative confirmation stating that since
no future forecast updates were received, the current IPPF Forecast Input for
future months was assumed
Step B: Enter PMs forecast updates

Upon receipt of the forecast updates, the PSC resource will enter the forecast received from
PM and submit into IPPF Forecast Input.
1. Follow the Initial Contract Setup procedure located in the PSC NA Community to load
PMs forecast updates into IPPF Forecast Input by resource and/or by category
a. PSC Operational Teamroom - IPPF Reconciliation Training
2. Save as draft
Note: IPPF supports the entry of monthly forecast values for current and next year, and
lump sum forecast values for all remaining years after that
Step C: Add adjustments to IPPF Forecast Input

Compare transactions expected to transactions received and add adjustments to IPPF
forecast for lagging transactions and/or corrections.
1. Follow the Monthly Reconciliation procedure to identify and add needed adjustments
2. Save as draft
Page 5 of 15

Step D: Perform Quality Checks
Perform Quality Checks to prepare for forecast review with PM.
1. Perform Quality Checks on draft forecast
b. Consistent Price Case?
c. Appropriately forecasted non labor cost and revenue estimates?
d. EAC revenue and cost within Approved Plan?
e. Gross versus Net Analysis for OEM HW/SW revenue > $100K?
f.
Unresolved Change/R&A log items under investigation?
g. Revenue accounting adjustments such as CCAM, accruals/deferrals and

amortizations allocated have no reversal adjustments forecasted?
h. Unbilled Travel Expense identified consider billed or closed within 2 months?
i.
FA informed of lagging subcontractor costs exceeding $100K for quarter-end

accrual?
j.
Recently changed rates assigned to future weeks?
k. Discovery forecast details match IPPF Forecast?

l.
Every month through project end date forecasted?
m. Cost accounting adjustments: accruals/deferrals and amortizations

n. Billable subcontractor expenses on CCAM/POC work number
2.
Save as a draft
Step E: Highlight significant findings for PM review

From forecast quality checks, highlight significant findings and send Research & Action Log
to PM with invitation to review and approve draft forecast.
Sample:
For our planned review, I am sending my Research & Action Log showing open items that Im
working to close. In addition, I want to highlight my significant findings:
1. EAC GP% is down 1% from what we forecasted last month.
2. Reduced EAC GP% is mainly due to increase in forecasted subcontractor labor cost.
Research & and Action Log

(attach a screen shot and/or paste)
Page 6 of 15
Step F: Review and refine forecast to obtain approval

Meet with PM to review IPPF Forecast Input details, make final adjustments, and obtain
approval to submit the forecast, using the Forecast Input page in IPPF.
Step G: Complete reconciliation of approved forecast

After making final adjustments and obtaining approval, complete the IPPF reconciliation.
Page 7 of 15
Step H: Save approved forecast for future reference

For audit purposes, export and save the IPPF Forecast Input that was approved for
submission.
Page 8 of 15

Step I: Submit the approved forecast
After all forecast preparation tasks have been completed, go to the bottom of IPPF Forecast
Input page and click the submit button.
Step J: View confirmation of successful submission

Once the forecast has been submitted, the Verification window will appear. Next step will be
for the forecast to be approved. At this stage, the PSC resource should complete the process
by clicking on OK.
Page 9 of 15
Step K: View forecast submission date

Verfiy the date of submission by reviewing the Last submitted date or locate the forecast
timestamps on the IPPF Change Log Forecast tab.
Key Considerations
Update IPPF Forecast Input with PMs updates
Follow Monthly Reconciliation process to identify and add needed adjustments to

forecast under preparation
Perform checks to ensure forecast quality and thoroughness, such as applying

changed rates
Highlight significant forecast preparation findings and recommendations for PMs

review
Obtain PMs approval to submit the prepared forecast between 5W and 7W
Export and save approved IPPF Forecast Input before submitting
Additional Support:
First line support - Training & Communities

o
IPPF training:
PM120G IPPF Basic Training
How to enter forecast in IPPF using resource method
Page 10 of 15

How to reconcile actual to forecast in IPPF
Recorded PSC Brown Bag session
GBS US IPPF Community (Monitor the forum and FAQ)
WW Integrated Project Planning & Forecasting Community
Second line support Your peers

o
Third line support Your PSC Manager, Lead or Program Manager

o
Learn together and help each other
Your PSC Manager, Lead or Program Manager will escalate as appropriate or

provide you with necessary instructions
If instructed, send an e-mail to the IPPF e-mail ID:

o
IPPF Help/Costa Mesa/Contr/IBM
Include as much detail as possible
Screenshots
Examples
Actions taken
Any other information that would assist the development team

investigate the issue(s)
Page 11 of 15
Glossary of Terms
For a complete listing, refer to the Glossary of Terms section in the NA PSC Wiki.
Page 12 of 15
Templates
Page 13 of 15
References & Contacts

A critical piece to successful project financial management is understanding which project
team member or IBM department to contact to resolve issues. Below is a listing of
commonly used role names and descriptions for the Monthly Invoicing portion of the overall
process, and examples of what types of issues should be directed to those departments.
These examples are not all inclusive.
PM
Role Name
Role Description
Project Manager
Partner
Project Partner
FA
Financial Analyst
Contact for
All project related items
(primary)
Project related items
(secondary)
Processing of journaled cost
transactions for travel
Page 14 of 15
Quick Reference Guide

Quick Reference Guide
Page 15 of 15

PSC NA - Financial Process - Monthly Forecasting (IPPF) v1 12-16-16

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

PSC NA - Financial Process - Monthly Forecasting (IPPF) v1 12-16-16

Hochgeladen von

Copyright:

Verfügbare Formate

PSC NA Financial Process Monthly Forecasting (IPPF)

GBS Project Service Center

Document Version Control