What is portfolio management? Discuss the uses and significance of various tools used to automate the portfolio management processes

The budget and financial management functionality of a PM solution should integrate with existing financial and Enterprise Resource Planning (ERP) applications to provide the organisation with real-time project-based budget and financial management capabilities. Easy access to accurate project-based financial information is mandatory so that the organisation can make better and faster business decisions and invest money for maximum return.

वास्तविक समय परियोजना-आधारित बजट और वित्तीय प्रबंधन क्षमता वाले संगठन को प्रदान करने के लिए पीएम समाधान के बजट और वित्तीय प्रबंधन की कार्यक्षमता मौजूदा वित्तीय और उद्यम संसाधन योजना (ईआरपी) के साथ एकीकृत होनी चाहिए। सटीक परियोजना-आधारित वित्तीय जानकारी तक आसान पहुंच अनिवार्य है ताकि संगठन बेहतर और तेज़ व्यावसायिक निर्णय ले सके और अधिकतम रिटर्न के लिए पैसा निवेश कर सके।

Functionality should also be provided to automate traditionally manual processes so that resources previously wasted on redundant data entry, manual analysis of project cost estimates, actual time and expenses can be redeployed.

पारंपरिक रूप से मैन्युअल प्रक्रियाओं को स्वचालित करने के लिए कार्यशीलता भी प्रदान की जानी चाहिए ताकि संसाधनों को बेमानी डाटा एंट्री पर व्यतीत किया जा सके, परियोजना लागत अनुमानों का वास्तविक विश्लेषण, वास्तविक समय और खर्चों का पुनर्वितरण किया जा सके।

Benefits that should be enabled by the application include the ability to:
• Align spend with projects of greatest return;
• Utilise project-based budgets to make better decisions;
• Manage project budgets against financial objectives, and
• Make project budgets transparent to sponsor organisations.

लाभ जो आवेदन के द्वारा सक्षम होना चाहिए, इसमें शामिल हैं:
• सबसे बड़ी रिटर्न की परियोजनाओं के साथ खर्च संरेखित करें;
• बेहतर निर्णय लेने के लिए परियोजना आधारित बजट का उपयोग करना;
• वित्तीय उद्देश्यों के खिलाफ परियोजना के बजट को प्रबंधित करें, और
• प्रायोजक संगठनों को परियोजना बजट पारदर्शी बनाएं

Functionality required while delivering the above value and benefits include:
• Project and Resource-driven Budget and Approval Process;
• Budget by project, initiative and organisation;
• Budget billable and non-billable projects;
• Budget revenue and expense;
• Configure budget rules;

• Define multi-year and rolling budgets;

• Comprehensive Rate Management:

o Define flexible rates for budget;
o Establish multiple rate hierarchies;
o Use the same or different rates for actual;

• Integration:

o Integrate with third-party general ledger systems, including providing
and sponsoring cost center transactions;
o Perform prior period adjustments;
o Align budget management with project management;

• Chargeback:

o Budget project chargeback to sponsoring organisations;
o Incurred vs. budgeted cost chargeback;

• OLAP Reports:

o General ledger cost analysis;
o Actual vs. total budget;
o Project detail cost analysis;

• Additional Financial Management Functionality:

o Inclusion of capital expenditures in non-labour expenses;

o Incremental project funding;

o Major expenditure requests;

o Real-time data vs. historical data views;

o View-based (resource, cost center, or organisation) breakdown of labour
components salary, fringe, etc.

As an example, budgeting is a relatively mature process within the majority of
organisations. However, the corporate requirement to ensure alignment with changing business and economic condition necessitates a continuous re-budgeting in order to remain competitive. As a result, thousands of hours of time, effort and paper are required to keep budget data current and aligned.

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