Hi. In this video, I will show you how to add and edit contract information in the Expenses view.

In a typical planning process, the most detailed information about vendor contracts is probably managed by individuals in Finance. This can create a lack of visibility for IT leaders and inhibits IT from aligning their plan with the business' priorities.

Apptio's Contract planning capabilities give IT leaders a view of all vendor contracts, including total contract values, renewal dates, notice periods and budget increases.

Budget Process Owners can define rules to control how contract types are accounted for in plans. They can specify that a given contract type always accrues to a specific account.

To get to the Expenses view from the Summary page, select the desired Cost Object category in the Plan section and then the desired Group Cost Object or a specific Cost Object in the Plan sub-section. Note that if you have been assigned as an Owner or Editor to a Group Cost Object, you can edit or import line items to those Group Cost Objects rather than editing the child Cost Objects individually.

As an Owner, you can edit or import line items including External Line Items for all Cost Objects in an Open plan. As a user with edit permissions, you can navigate to a Group Cost Object and select the Edit button to enable group editing. Editing a Group Cost Object will edit the latest in-progress version of the child Cost Object. If no in-progress version is available, a new version will be created. Selecting Submit Changes when in group edit mode will submit all in-progress versions within that group.

Moving on, once you have the specific department selected, click Expenses.

The Expenses view is where all the direct costs are recorded. The first page displayed is the Summary tab. The Summary tab gives you a view of all the direct costs. If you have Project Financial Planning configured, Budget Owner can view the costs delegated from a Project Owner. These costs could have originated in a project but were since delegated back to a Department or Service once the project was completed. Delegated costs show up in the responsible Department budgets in the correct periods, along with the originating project information.

The Other tab allows you to view all other expenses that need to be captured by your organization, and to forecast OpEx and CapEx for your departments, projects, or services. If your company is doing resource planning as well, you’ll see tabs like Labor, Contracts, and Assets, along with the Other tab.

Within the Summary tab, you can Filter by OpEx or CapEx, or view KPIs of total OpEx and CapEx budget.

Now, let's click the Contracts tab.

As a budget owner, I can record the contract details, including amortization treatment, and see the resulting charges in the financial plans.

From the Contracts tab, I can:

• Review my existing contracts
• Add new contract details
• See which contracts are up for renewal, and
• Decide which contracts to renew

To renew a contract, which extends from a previous plan and/or is set to expire in the current fiscal year, I select the Extend check box and specify an extension adjustment percentage in the Extension Adjustment field. This will adjust the contract payment by the extension amount.

Note that if you extend a contract, it will continue to extend until the Extend check box is unchecked.

I can see the impact of renewing the contract on my overall budget reflected in the Extension Total KPI.

I can also add a new contract to my plan.

For example, let me add a new Professional Services contract to my budget.

I click the Contract Type drop down and select Professional Services from the list. After making the selection, the Account field is automatically populated and so is the Amortization Method field with a value associated with the Contract Type.

IT Planning supports the following straight-line amortization methods that can be defined for a specific Contract Type:

• Straight Line Even Periods
• Straight Line By Duration
• Straight Line Prorate First and Last
• Straight Line Using Calendar Days

You define the amortization method in the Contract Type Reference Data table. Note that the Straight Line Even Periods method is the default amortization method if you don’t define the other methods in the Reference Data table.

Next, I will specify the Vendor and Amount details for the contract. If the Value-Added Tax (VAT), also known as a Goods and Services Tax, has been enabled for contracts, IT Planning calculates the VAT amount per contract line item based on the Location.

I will enter the start and end date of the contract. The duration of the contract is automatically calculated and reflected in the Duration field in months.

I know that this contract will need to be extended at the end of its term. So, I will select the Extend check box and specify an extension adjustment percentage in the Extension Adjustment field.

I can also select the Amortize check box to see the contract expense spread over the course of the life of the contract.

I can also enter the number of periods in the Amortization Start Offset field to postpone the start of the amortization for the line item.

I can see the amortized amount and the financial impact of extending this contract per month in the month's field.

I can see details about the project contract costs that were delegated from a project to a department or service in the Expense Delegation section.

Note: This section is visible only if PFP is enabled.

This newly added contract is now reflected in my financial budget.

That’s a quick introduction to entering and editing contracts data in your budget. Thanks for watching!