Term | Description |
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Active | Initiatives are categorised as being in an Active Stage once the required investments have been made and the project is technically completed. On transition into the Active stage, any created assets are identified and valued. |
Activity | A financial analysis is based on the Activities that incur costs or produce benefits. Activities are linked to elements, which are in-turn linked to components. Activity Level attributes include Description, Duration, Inflow/Outflow, Classification, Internal/External (Supplier/Customer), Quantity (and Unit of Measure), Unit Value (and Currency), Cashflow profile (including escalations if periodic). Activities can be linked to each other, and this scheduling of costs and returns is important to evaluating the net present value of future cashflows. |
Actual Costs | Actual costs are incurred when ordered goods and services have been receipted or supplier invoices processed. These costs are normally recorded first in the financial system and then entered or uploaded into Stratex at a summary level for overall cost monitoring. |
Administrator | Administrators are responsible for updating the configuration, users and workflow rules of Stratex Online. Administrators are flagged in the User Administration function. Only Administrators will see the configuration functions within the menu structure. Only administrators are able to approve portfolio requests and budget allocations. |
Agent | Agents are the actual people assigned to Roles. Agents are normally assigned by Area. Corporate Agents can also be assigned within the Workflow configuration. The Agent determination strategy (by Area or Corporate) is specified in the Role definition. |
Alignment | Alignment dimension of an initiative measures the degree to which the Initiative addresses the Area’s strategic objectives. |
API | The Stratex Online Application Programmable Interface (API) is a technical mechanism for interacting with external systems. The Stratex Online API can be consumed for retrieving approved initiatives at proposal, business case or completion stage for the purpose of triggering budget ID’s, project ID’s or asset ID in down-stream systems correspondingly. The Stratex Online API can also be used to update Actual costs during the project phase of a project. IQX OneList approvals accesses the Stratex Online API for the purpose of providing executives with a mobile (email and mobile app) approval experience. |
Approval Sequence | The Approval Sequence is the order in which Initiatives are routed via the Workflow to process participants. An Approval Sequence is defined by name (eg Executive Approval) and numerical Sequence ID (eg 1000). Where multiple Roles are assigned to the same approval sequence ID, the approvals will be sought in parallel. Where Roles are assigned to unique sequence ID’s, the routing will occur sequentially from lowest sequence ID to highest sequence ID. |
Approved Amount | The approved amount of expenditure on an initiative is based on a business case or project supplement and is subject to delegation of authority approval. Approved amounts are based on the planned costs at the time of approval. Approved amounts may, or may not, have been budgeted. Commonly, approval of unbudgeted expenditure is subject to additional approval roles. |
Area | Organizational areas define capital budgeting responsibility domains. These areas may correspond with an organizations business units, cost centres or locations but can be freely defined within Stratex to reflect the current responsibility areas for the prioritization of initiatives and allocation of budget. Strategy, role assignments and budget capacities are all maintained at an Area level. The hierarchical relationship between areas is defined in the Organizational Structure. |
Area Manager | An Area Manager is responsible for validating and approving all initiatives that will impact their Area. This is normally the manager of the business unit or department. |
Attachment | Attachments are supporting documents that provide approvers with additional information to make more confident approval decisions. |
Attachment Type | Attachments are important to evaluating initiatives, and may of a variety of types, for example Quotation, Requirement Specification, or Risk Assessment. By configuring Screen Variants, required attachment types (e.g. Quotation) can be made mandatory at certain stages (e.g. Business Case) and attached in specified places (e.g. Option Cost section). |
Authorization Group | Authorization Groups are used to provide access to initiatives. By default, initiatives are restricted to Persons Responsible, Area Managers and Sponsors and other process participants derived through workflow. Through the assignment of Authorization Groups, key users are able to access initiatives within a defined scope of responsibility based on Company Code, Cost Centre, Plant, Investment Type and Investment Reason. If an initiative is marked as Confidential, these Authorization Groups do not apply and access is limited to assigned participants only. |
Benefit | Benefit dimension of an initiative evaluates the relative value or return expected from the implementation of an initiative and can be either a Quantitative metric or a Qualitative assessment. |
Budget | The Budget for an initiative is the amount that was pre-allocated to the initiative during the portfolio planning and budget approval process. Detailed budgeting helps ensure that funds are allocated to the most valuable initiatives. The budget is normally allocated per Budget Year. Budgeted initiatives are not all necessarily initiated, and not all approved capital expenditure is necessarily budgeted, but granular budgeting helps identify and control the variances between the the annual budget, approved expenditure and actual forecast expenditure. |
Budget Pool | Budget Pools are utilized when the specific assets to be purchased, or sub-projects to be executed, are unknown at the time of budgeting. Sub-projects (children) receive budget distributions from the parent Pool . |
Budget Version | Project portfolios are requested by Areas and can be approved and included in an initial Budget Version. Due to changing environmental circumstances, the budget may be refined through a series of budget versions. There can be only one open planning budget version by budget year. A budget version is completed once the Portfolio Requests of all areas have been approved by the Capex Controller. |
Budget Year | The Budget Year is effectively the Fiscal Year for budgeting purposes. All initiatives are assigned a budget year for analysis purposes. Initiatives that were completed in a prior budget year, or which are scheduled for a future budget year, can be excluded from the scope of current budget year initiative analysis. A multi-year project will commence in a budget year, but if still active at the end of the year, can be carried-forward to a new budget year. |
Business Case | This is the final Stage all Initiatives must go through to be approved for project expenditure. For Investment Reasons where the financial benefit is the deciding factor a full Financial Analysis may be required and it is often completed at this Stage. Examples would be Growth or Strategic Initiatives. On the other end of complexity, some asset purchases are low value and, although they will go through this Stage, the system can be configured so that they progress to the final budget allocation stage with minimal detail or scoring being required, so as not to over-burden or delay the process. |
CapEx | Capital Expenditure (CapEx) is expenditure that produces a valuable asset that will deliver ongoing future benefits. Compare with OpEx. |
Capital Controller | The Capital Controller is the business role responsible for administering the allocation of capital. The Capital Controller must be set-up as an Administrator of Stratex Online to fulfill their responsibilities in the system which includes:
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Capitalization Date | Capitalization Date is the planned completion of the investment in the initiative. Capitalization date is derived from the Financial Analysis (if maintained) or manually entered. Capitalization Date is assumed to be the last day of the month selected for date calculations. Start Date and Capitalization Date are utilized for the distribution of annual budget and approved amounts if a more detailed financial analysis has not been performed. |
Chart Type | The following chart types are available for graphical presentation of data within analytics and lists: column, bar, line and pie. |
Collaborator | Collaborators are able to perform all actions that the Person Responsible is able to perform on an Initiative. Collaborators are manually invited to collaborate on an initiative by the Person Responsible. |
Comment
| A message left within an initiative to share information, ask questions, or provide feedback. Comments help keep everyone informed and foster collaboration.
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Company Code | Company Codes represent the legal entities or independent operating units within an organization or group. Company codes have a local currency, discount rate, tax rate, and associated cost centres and plants. Company codes have an external ID that can be referenced in integration with accounting systems. All company codes must use the group fiscal year for budgeting and reporting purposes. Company codes are an important dimension for controlling data access authorizations and for determining workflow agents. |
Component | A financial analysis comprises Investment and Return Components. Investment components are the deliverables, and have an associated investment class - typically the type of fixed asset. For example, a new warehouse would have separate components for the land, building and fittings. |
Confidence | Confidence dimension of an initiative measures the relative risk of implementation, with a low-risk initiative achieving a higher score. |
Confidential | Confidential initiatives are restricted to direct initiative participants and the administrator exclusively. Indirect access to the initiative via assigned authorization groups does not apply. Initiatives are typically classified as Confidential if they contain highly sensitive competitive or industrial relations information. |
Contingency | In capex planning, a contingency refers to an additional amount of money set aside or budgeted to cover unexpected or unforeseen costs or events that may arise during the implementation of a project. Contingencies are typically included in capex budgets to mitigate the risks of cost overruns and scheduling delays. |
Cost | Cost is the estimated total investment amount. The cost includes both capital expenditure (capex) and operational expenditure (opex) required to deliver the initiative. The breakdown of expected cost by year and capex/opex is provided in the Fiscal Year Breakdown section of the preferred option of the initiative. |
Cost Centre | Cost centres are responsibility areas within a company code. In practice, these may either be used to represent an organization’s cost centres, profit centres or departments. Cost centres can be used for authorization and workflow agent determination. The cost centre of the benefiting area is passed through the interface to the accounting system for appropriate responsibility assignment and accounting purposes. |
Complete | The Complete action on an initiative at the project stage effects the transition to Active. The Area Manager and Sponsor are included in the project completion workflow to confirm that the initiative has been delivered. |
Criteria | Criteria are the factors considered in determining the score for a particular Dimension e.g. for a Risk Matrix the Criteria could be the impacts, for a Strategic Alignment the Criteria could be the Area Objectives and for a Benefit Matrix the Criteria could be Financial Metrics. |
Delegate | Delegates fulfill the responsibilities of the delegator for a specified period of time. For example, a manager may delegate their authority to a colleague for the duration of an absence. During the period of delegation, both the original assignee (delegator) and their delegate will be able to action any assigned workflow approval task. |
Depreciation | Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. Essentially, after an initial capital outlay, a business can spread out the cost of the asset for accounting and tax purposes. Straight-line depreciation is the most commonly used form of depreciation and is what Stratex uses to calculate monthly depreciations, as well as tax advantages for an asset. |
Dimension | Initiatives are assessed and evaluated from various perspectives or Dimensions. The standard dimensions are:
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Distribution | Sub-ordinate (children) of a Budget Pool receive budget distributions (if available). These budget distributions reduce the ‘available’ budget of the Pool and increase the budgeted amount on the child. |
EBITDA | EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial metric that measures a company's operating performance by excluding certain non-operating expenses such as interest, taxes, depreciation, and amortization from its earnings. This allows for a subjective assessment of the core profitability of a business's operations, independent of its financing structure or tax obligations. |
Element | A financial analysis comprises of work-breakdown structure elements to deliver components of the solution. Elements are classified as either CapEx, OpEx or Cash Movements. CapEx elements are included in the capital asset value of the component and depreciated over their useful life for tax purposes. OpEx elements impact the profit & loss statement in the period incurred and are immediately tax-deductible. Elements are delivered as a result of activities. |
Endorser | Endorses are optionally invited by the Person Responsible to endorse, or support, an initiative. Evidence of endorsement may help subsequent initiative approvers make more confident decisions. |
Evaluation | Evaluations are the assessed responses to scoring criteria within a scoring matrix. Based on this evaluation a score may be derived. Evaluations may be qualitative (e.g. a high degree of strategic alignment) or quantitative (e.g. Net Present Value). |
Financial Analysis | Financial Analyses are prepared to calculate financial metrics such as Net Present Value and Payback Period for initiatives. Financial Analyses can be included for evaluating and planning initiatives at Investment Proposal, Business Case or Project Stage. |
Financial Classification | Financial Classifications are assigned to activities in a Financial Analysis to consistently identify the nature of any cost or revenue flows associated with an initiative. Typically, financial classifications correspond to an organization’s chart of accounts or similar reporting structure. For example, a Financial Classification of “Consulting Fees” may be assigned to all external service activities across all initiatives. When reviewing a portfolio, these “Consulting Fees” are aggregated so that management can identify the nature of expenditure inherent in a budgeted portfolio. |
Financial Lease | Financial lease is a financing method similar to loans, where businesses acquire assets (like equipment or vehicles) through lease agreements. Instead of purchasing the asset outright, businesses make periodic payments over a set term. Stratex simplifies modelling of financial leases by integrating them into the Business Cases. When Activities in a Financial Analysis are classified as "Lease", Stratex allows the key lease terms to be input. Stratex will then automatically calculate the effective capital cost, depreciation and interest components. Operating leases are handled in Stratex as regular “Opex” activity types and expensed periodically. |
Financing Method | Financing Methods differentiate the funding approach for an initiative. Typical financing methods are Purchase, Operating Lease and Financial Lease. |
Financial Metric | Financial metrics encompass a range of potential financial performance objectives, spanning from metrics like Net Present Value and Payback Periods to indices such as Profitability Index, along with diverse components of cash flow. Certain weighting can be placed on each metric to determine the optimal investment decision based on tailored criteria configured by administrators. |
Forecast | The forecast is the expected total cost of a project and is calculated as the sum of actual costs to date plus the forecast to go. |
Forecast To Go | Forecasts to go are the estimated future costs to complete an initiative. Forecasts to go can be entered in the project progress transaction, or uploaded from spreadsheet. |
Group Currency | Group Currency is the common reporting currency of the entire organization. Planned costs and forecasts are automatically translated from Local legal entity reporting currency to Group Currency at annual planned exchange rates. Actual transactions are translated to Group currency at actual average historical rates. Expenditure variances as a result of differences in the planned and actual exchange rates are reported at FX Variances in Financial Analytics. |
Idea | This is intended to be the first and simplest Stage for registering a new Initiative. An idea is captured with minimal detail, costing or scoring and is evaluated before any significant effort or cost is expended in developing the Idea. The intention of this stage is to capture as many ideas as possible but weed out the weak ones before resources are spent on developing them further. |
Impact Analytics | Impact analytics refers to the process of evaluating and quantifying the potential impacts of capital projects on various aspects of a business in the long term. This analysis goes beyond traditional financial metrics to assess broader impacts such as operational efficiency, investment reasons/areas, and overall strategic alignment. |
Interest | Interest refers to the cost of borrowing funds to finance capex investments. Debt financing allows companies to access capital quickly and leverage resources to pursue growth opportunities without tying up large amounts of cash reserves. Stratex calculates the effective monthly interest on financial leases. |
Internal Rate of Return (IRR) | The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment by calculating the discount rate at which the Net Present Value (NPV) of cash inflows equals the NPV of cash outflows. A high IRR indicates a higher return on investment; thus, IRR can be useful for investment prioritization, long-term planning and risk considerations. IRR must exceed cost of capital (%) to be profitable and different projects will have different cost of capital, hence this is an important consideration when analyzing financial metrics. Moreover, although IRR is typically calculated using cashflow factors, specifically discounted cashflows, EBITDA and discounted EBITDA can be used as a proxy for cashflows if tangible cashflow estimations are not readily available. |
Investment Category | Investment Categories facilitate a further categorization of initiatives. Investment categories are optional, and multiple categories can be assigned to an individual initiative. Investment Categories can be used to drive workflow processes. Examples may include key strategies (e.g. Greenhouse Gas Reduction) or programs (e.g. Digital Transformation) or secondary investment reasons (e.g. Staff Wellbeing). |
Investment Class | Investment Classes are more granular than Investment Types, and are used to drive default useful life proposals when preparing financial analyses. Typical investment classes may include:
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Investment Reason | Investment Reasons are the underlying drivers of Stratex initiatives. Typical Investment Reasons include Sustenance (investments to maintain operating capacity) and Growth (investment is expand operating capacity). Other Investment Reasons may include Compliance, Environmental Health & Safety, and Transformation. Investment Reasons are a primary classification within Stratex and form the basis of budget allocation and comparative evaluation. Investment Reasons are assigned a scoring model, screen variant and default financial analysis template, and often drive workflow rules. Every initiative in Stratex Online must be assigned to a single primary Investment Reason. |
Investment Type | Investment types identify the nature of investment at a high-level for analysis and financial reporting purposes. Investment Types are often used to drive workflow processes and are a mandatory attribute of every Stratex Online initiative. Typical investment types would include:
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Local Currency | Local Currency is the legal reporting currency of the legal entity (company) assigned to the benefitting Area. In the financial analysis of the business, all transactional currencies are translated to the local currency of legal entity. Compare with Group Currency, which is the common reporting currency of the entire organization. |
Matrix Type | Scoring Matrix Types are the ways that evaluations are captured for relevant criteria when assessing initiatives. Matrix Types include Alignment, Heatmap, Matrix, and Metric. |
Net Present Value (NPV) | Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by comparing the present value of expected cash inflows to the present value of cash outflows over a specific period. A positive NPV indicates that a project is financially feasible and is not estimated to result in a loss given the continuation of predicted economic conditions. NPVAT (Net Present Value After Tax), is a similar metric that additionally considers the tax implications of a project which is beneficial when capex has complex tax structures or significant tax obligations. Factors such as company tax, depreciation tax shields, and other factors are included on top of NPV to produce a more refined and accurate estimation. |
OpEx | Operational Expenditure (OpEx) is expenditure incurred that does not result in the creation of a valuable asset. |
Option | Initiatives contain general assessments (Problem and Urgency) as well as assessments applicable to the solution Options. More than one option can be identified to deliver a solution, but all initiatives must have a preferred option. Each option will be independently scored. The preferred Option can be changed, and this will likely impact the overall score. |
Organizational Structure | The Organization structure provides the relationship between Organizational Areas. This relationship is important for the derivation of strategy, approval roles and budget, as the system will navigate up the organizational structure to find the most relevant strategic objectives, roles or budget availability. |
Overall Score | An overall score is produced to help rank and prioritize initiatives of the same class or investment reason. This score is calculated out of 10, and is a weighted average of composite dimensional scores, as defined in the scoring model. Scoring is a decision support tool to help executives expedite higher scoring initiatives, de-prioritize lower-scoring initiatives, and focus their attention on the items in the middle and does not replace sound executive judgement. |
Parameter | Parameter is a user-defined variable within a financial analysis. Parameters act as placeholders for specific values that can be easily changed, allowing for dynamic calculations. This eliminates the need to manually edit the Gantt chart for every value update. Parameters can be categorised as local or global.
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Payback Period | Payback Period is a financial metric used to assess the time it takes for an investment to recover its initial capital outlay through its generation of cashflows. A shorter payback period is more desirable as it essentially means a project becomes profitable in a shorter timeframe. Although Payback period is usually calculated with ordinary cashflows; discounted cashflow, EBITDA, and discounted EBITDA may depict a more accurate and complex payback period depending on the type of investment. |
Person Responsible | The Person Responsible for an initiate is tasked with the definition, justification, forecasting, and successful delivery of an initiative. All initiatives are required to have a single Person Responsible assigned at all times. By default, the initiator of an initiative is the Person Responsible, but this can be adjusted prior to submission, or on transition to a new stage. The Person Responsible is normally the assigned Project Manager or Internal Buyer (for direct purchases). The Person Responsible may engage Collaborators to assist with the update of information in the system. |
Planned Amount | The planned amount of an initiative is the best estimate of the likely capital and operational expenditure required to deliver the anticipated benefits. Planned costs may, or may not, be budgeted or approved. Budgeted and Approved amounts are always based on the planned costs at the time of budgeting or approval. Planned costs may be entered directly in the Fiscal Year Breakdown or via a more detailed Financial Analysis. |
Plant | Plants are physical responsibility areas within a company code. In practice, these may either be used to represent an organization’s factories, offices or shops. Plants can be used for authorization and workflow agent determination. The Plant of the benefiting area is passed through the interface to the accounting system for appropriate responsibility assignment and accounting purposes. |
Portfolio | Portfolios are a collection of initiatives for an area. Portfolio Requests are initiated by an Area Sponsor and approved by the Capex Controller. The expected cost and anticipated return of a project portfolio can be analysed in the Portfolio review function. |
Portfolio Request | Portfolio Requests are the mechanism for an Area Sponsor to select and request budget allocation to a prioritized and optimized collection of initiatives. Initiatives can be included in Portfolio Requests at Investment Proposal or Project Stage. |
Profitability Index (PI) | The Profitability Index (PI), also known as the Profit Investment Ratio (PIR) or the Benefit-Cost Ratio (BCR), is a financial metric used to evaluate the profitability of an investment by comparing the present value of its future cash flows to the initial investment outlay.  Formula for PI A PI of above one suggests profitability, while a PI less than one means an investment may not be profitable, and thus is not financially viable. |
Project | Initiatives at the Project Stage are in-progress. Initiatives may be in the Project Stage for a short-time only awaiting procurement and receipting of capital items, or for many years in the case of major capital construction works. During the Project stage, actual costs incurred are accumulated, and future expenditure forecast. Re-estimations can be performed, and supplementary budgeting and approvals sought if required. On completion, initiatives transition out of Project stage to Active stage. |
Project ID | A Project ID is assigned to an initiative on each approval of expenditure. Project ID is the link between Stratex Online and the financial accounting and procurement systems. Project ID’s can be manually assigned by the Capex Controller or automatically generated and provided by the downstream systems using the Stratex Online API. The Project ID can be viewed by drilling-down on the Approved Amount from the Initiative Summary screen and is an available column in the All Initiatives list. Finance systems can update Stratex Online with Actual Costs with reference to this Project ID. It is possible for an initiative to have separate Project ID’s for the initial budget allocation and subsequent Supplements. |
Proposal | An Investment Proposal is created in support of portfolio management and budget allocation. An initiative is automatically transitioned to this stage when an Area Manager approves an Idea to progress further. Subject to Organizational requirements, initiative scoring is performed to assist with the prioritization of initiatives. |
Proposed By | The Proposed By person assigned to an initiative is the originator. This role has access to the initiative but is not directly included in subsequent workflow communications. By default, the initiator of an initiative is the Proposed By person, but this can be adjusted prior to submission. |
Relationships | Relationships refer to the connections and dependencies between different capital projects. These relationships help in understanding how various CapEx activities interact with each other and how they contribute to the overall strategic goals of the organization. Stratex has a key focus on:
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Role | Roles are used to define responsibilities for workflow and approval processes. For example, Site Accountant may be defined as a workflow Role. The current individual fulfilling a role is specified by Organizational Area or in the Corporate agent determination configuration. It is possible for a number of different individuals to have a specified role (e.g. Site Accountant) within the various Organizational Areas. |
Segment | A segment is a dynamic classification that categorizes business units across legal entities and geographic boundaries. It is primarily defined as an attribute of an Area. Segment serves a critical role in driving both workflow automation and data analysis. |
Score | Initiatives are assigned a score to assist with prioritization and ranking. All scores in Stratex are out of 10. Where a scoring model assesses an initiative by multiple dimensions, the individual scores of each dimension are weighted to produce an overall summary score. As scoring models are applied by Investment Reason, ranking by score is most reliable when down for an individual Investment Reason. |
Scoring Dimensions | Stratex Online has four standard Scoring Dimensions: Urgency, Benefit, Confidence and Alignment. These scoring dimensions combine to produce an Overall Score for ranking and prioritization of time and money. |
Scoring Matrix | Scoring matrices are used to assess individual dimensions of an initiative. Scoring matrices can be of various matrix types. |
Scoring Model | Scoring models define which dimensions of an initiative are to be assessed at each stage of its evolution, what scoring matrices are to be applied in the evaluation, and how these dimensional scores are weighted to produce a summary score. |
Screen Variant | Screen variants define what attachments are required by initiative stage and form section. |
Sponsor | The Sponsor role provides the funding for an initiative. Sponsors consider the merit of all Initiatives in their area of responsibility especially with regard to limited resources such as budgets and internal resources. Where an Area Manager also has capital budget allocation responsibility, they will also be its Sponsor. Sponsors are typically defined at higher-levels of the organizational structure, and this responsibility cascades down to lower-levels. For example, sponsorship responsibility may be with the factory manager, whilst the sub-ordinate maintenance and production managers may only be area managers (not sponsors). |
Stage | Initiatives are transitioned through stages from idea to productive asset. At each stage more information is collected, and an approval workflow is normally required to transition an initiative from one stage to the next. The header of an initiative indicates its current stage. The standard stages are:
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Start Date | Start Date is the planned commencement of the investment in the initiative. Start date is derived from the Financial Analysis (if maintained) or manually entered. Start Date is assumed to be the first day of the month selected for date calculations. Start Date and Capitalization Date are utilized for the distribution of annual budget and approved amounts if a more detailed financial analysis has not been performed. |
Status | Initiatives transition through a range of workflow statuses at every stage. The first status is typically ‘draft’, and the followed by a variable sequence of approval statuses. If an initiative is rejected or terminated, that status will be set accordingly. After the final approval status, an initiative may transition to a system integration status. If an initiative is finally approved and the integration successfully completed, the initiative is normally transitioned to the next Stage. |
Strategy | Strategic objectives can be defined for every Area, and identify the important goals for the area. Initiatives assigned to the area will typically be evaluated with regard to degree of strategic alignment, If no specific Strategic objectives are set for an area level, Stratex will navigate up the org structure and derive the strategic objectives from a superior hierarchy node. |
Supplements | Supplements are additional funding approvals granted to initiatives during the project phase. Required supplements are determined by updating the Financial Analysis or Cost Estimate on the initiative. Supplements are subject to the same approval flow as original budget requests. |
Target | Targets are top-down planned CapEx spend in a Fiscal Year. This top-down capital planning is set by year, sponsoring area and investment reason in the Org Structure maintenance view. Portfolio requests are made with reference to these targets. The CapEx controller may over-ride the target amounts during CapEx approval to reflect a re-distribution of capital allocation between areas. |
Template | Financial Analysis Templates are a quick way of completing a financial analysis by referencing a common model for regular asset purchases or project types. |
Tax | Tax refers to the financial obligations imposed by governmental authorities on certain types of transactions, income, or assets related to CapEx activities. Notably, depreciation can reduce taxable income and thereby provide businesses with tax benefits in the long term. |
Tax Shield | The net present value of the tax benefit associated with future depreciation of any produced capital assets based on the useful lives of those asses. |
Urgency | Urgency dimension of an initiative assesses the risk of not undertaking an Initiative and considers both direct loss and opportunity cost. |
Workflow | Workflow is the automated routing of initiatives to process participants for their approval or rejection decision. |