PFM Portfolio Planned NPV is using the calculated rate based on the Financial Investment Rate Options and ignores the 'Calculate Financial Metrics' option on the investment

Document ID : KB000019583
Last Modified Date : 14/02/2018
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Description:

The new Portfolio Management functionality ignores the investment configuration for calculating NPV and when a manually entered NPV value is used on the investment, the Portfolio Planned NPV amount is not matching because it is using a calculated value. This applies to any investment type included in the Portfolio. Clarity is using simple interest to calculate Planned NPV based on financial investment rate options. Sometimes customers want to use a compound interest calculation or other value for 'Planned NPV' so they enter the value manually into the field on the investment financial summary page. The Portfolio should match the investment Planned NPV value.

Steps to Reproduce:

  1. Create any type of investment
  2. Go to the Simple Budget / Financial Summary page
  3. Make a note of the currently calculated Planned NPV value (based on the Financial Investment Rate Options)
  4. Uncheck the option 'Calculate Financial Metrics' attribute. Click 'Save' button
  5. Enter a different value in the 'Planned NPV' field. Click 'Save' button
  6. Create a new portfolio, include the investment and be sure to set the Portfolio date range to cover the investment date range. Synchronize the Portfolio
  7. On the Portfolio, Investment Tab, configure the view to include the 'Planned NPV' attribute and compare the value here to the value on the investment

 

Expected Result: The Portfolio Planned NPV should match the investment Planned NPV
Actual Result: The Portfolio Planned NPV is using the calculated rate based on the financial investment rate options and ignores the 'Calculate Financial Metrics' option on the investment

Solution:

WORKAROUND:
None.

STATUS/RESOLUTION:
CLRT-73559 : Resolved in CA PPM 14.1

The resolution will fix all financial metric attributes.

When the investment has the box 'Calculate Financial Metrics' UNCHECKED, the Portfolio will use the values that are manually entered into the following fields:
  • Planned NPV
  • Planned ROI
  • Planned Breakeven
  • Planned IRR
  • Planned MIRR
  • Planned Payback Period
When the investment has the box BOTH 'Calculate Financial Metrics' UNCHECKED AND 'Budget Equals Planned' UNCHECKED , the Portfolio will use the values that are manually entered into the following fields. If the 'Calculate Financial Metrics' is CHECKED, even though the 'Budget Equals Planned' is UNCHECKED, the Financial Metric Attributes are calculated because of this option checked.
  • Budgeted NPV
  • Budgeted ROI
  • Budgeted Breakeven
  • Budgeted IRR
  • Budgeted MIRR
  • Budgeted Payback Period