This is our first year using ITP for budgeting and most of the process has been fairly easy. However, I discovered a curve ball in the calculation factors related to our labor allocation rules. We set rules using both flat amount per employee (insurance) and base compensation percentage (401K and payroll taxes). So far, so good but then I was given more detailed rules on rates for 2020-2022 and I'm stuck.

Our HR team has given us the detailed factors to use for calculations and the numbers change over the three-year period - insurance costs go up $40-$50 per employee year over year and the 401K percentage increases by 0.25% every year. Even worse, the payroll tax percentage varies by quarter. Does anyone else have this issue? If so, how are you handling it?

Hey Robert,

Where is your ITP data coming from? Do you have a CT project feeding ITP data, or are you manually entering or loading ITP values? Trying to think if this is something where you can have Apptio do the heavy lifting for you upstream before loading into ITP.

-Ed Brown

Hi - we used a copy of our prior year budget (manual load) as a base for cost center owners to build their new budgets. However, the tax and benefits percentages are provided by HR, so we have been trying to use the labor allocation rules for those calculations. 

Not sure if that really clarifies things ...

Do you create multiyear plans or a plan for each year individually?

We created a 3 year budget plan.

I have the exact same question.  We implemented ITP because our senior management wanted a recurring monthly 5 year plan/forecast.  This issue was just brought to my attention where we have different assumptions between various years.  We currently have about 30 users inputting into ITP directly; there are no feeds from from CT (There are feeds TO CT though); but I need to some way figure out how to have ITP have different assumptions in different years.

Hi Robert - in our organization we do have a 5-year Budget Plan and previously rolled out a 3-year Multi Year Forecasting. 

On our Forecasting, we used 3 Labor GL Accounts to allocate the Labor costs per Cost Center using "Percentage of Base Compensation". The dollar amount is is determined by number of Headcount x Annual base compensation x Percentage. We did not use any "Flat rate" in this model. 

Come 2020 Budget (which we created a 5 year plan 'till 2024), we changed our allocation rules and we are currently  using 15 Labor GL Accounts. The determination of percentages and respective accounts were based from the trending analysis from YTD information.

We have also leveraged the Adjustment % column in Labor to effect any inflation rate (in our case applied 2.5%) year over year. 

Just as you mentioned, since there would be some changes due to Employee increases, different bi-weekly paydays, bonuses, etc, coming from Corporate (HR), we have to consider it and make sure we account those in our Plan. 

Right now, we plan to input those in IT Planning by manually entering those amounts (month over month) before we finally close the budget plan. That said, it will normalized the Monthly spend (embedding all the factors mentioned above) that we have for Labor since using the % of base compensation- approach will only allocate the $$ evenly through 12 months. 

Another approach that I can think of (in your case since you are using a Flat Rate - approach) is that, you can consider using the "Adjust Amount" feature where you can define the % or Absolute amount of adjustment. You can also manipulate the Period range as determination on when will that adjustment take effect and when it will end. 

Hope this somehow helps.  

Thanks, 

Rose