Smart Client - Real Property / Strategic Financial Analysis / Financial Analysis (SC) - Smart Client

Define Application Parameters for Strategic Financial Analysis

Strategic Financial Analysis (SFA) application parameters include the following:

Parameters for which the Parameter Code begins with CostCategory. The application uses these parameters :
- to determine the cost categories for the auto-forecasted costs created when you run the Forecast Income and Expenses, or Forecast Capital Costs actions.
- to determine the cost categories to use to sum costs when calculating the value for analysis metrics (Update Analysis Metrics action.) See Update Analysis Metrics.
Parameters that store a value used by the calculations, such as the InternalCostofDebt parameter. This parameter ensures that, for analysis purposes, there is one rate for your organization to normalize finance across its operating regions.
Parameters that specify the analysis metrics that are summed to create the metric. For example, TCO-OccupancyCosts is the sum of several metrics that are specified in the UpdateTCO-OccupancyCosts application parameter.

The application comes with values entered for each of these parameters. If needed, you can modify the Parameter Values to reflect your cost definitions. You should not modify the Parameter Codes or Application, as these settings are required for the calculations to run correctly.

For example, if you want to use your own cost category to forecast loan interest, you can modify the value of this parameter, CostCategory_InterestProperty. This parameter is also used by the corresponding analysis metric that calculates the interest for the current fiscal year, and each asset (fin_anlys_Interest_an_fy), and thus the fin_anlys_Interest_an_fy will use your cost category for Interest.

Application parameters that contain a single cost category

The following table lists the application parameter (Parameter Code), and the Parameter Value (the corresponding cost category for this parameter. ) The application parameters are grouped by the action that uses them.

Application Parameters for Strategic Financial Analysis - AbRPLMStrategicFinancialAnalysis
Parameter Code	Parameter Value
Parameters for Cost Creation and Analysis
The Forecast Income and Expenses action uses the following parameters
CostCategory_Administration	ADMIN
CostCategory_AdminSupplies	ADMIN - SUPPLIES
CostCategory_Appreciation	FORECAST - APPRECIATION
CostCategory_CapitalRenewal	FORECAST - CAPITAL RENEWAL
CostCategory_Custodial	CUSTODIAL
CostCategory_Disposition	DISPOSITION
CostCategory_IncomeOther	INCOME - OTHER
CostCategory_InterestCapProj	INTEREST - CAPPROJ
CostCategory_MaintenanceGrounds	MAINT-GROUNDS
CostCategory_Misc	EXPENSE - OTHER
CostCategory_PrincipalBuilding	PRINCIPAL - BLDG
CostCategory_PrincipalCapProj	PRINCIPAL - PROJ
CostCategory_PrincipalPPE	PRINCIPAL - EQUIP
CostCategory_PrincipalProperty	PRINCIPAL - PROP
CostCategory_RentExpense	RENT - LEASE EXPENSE
CostCategory_RentIncomeOffice	INCOME - RENT - LEASE INCOME
CostCategory_RentIncomeRetail	INCOME - RETAIL RENT
CostCategory_SalvageValue	INCOME - SALVAGE VALUE
CostCategory_SalvageValueCapProj	INCOME - SALVAGE VALUE - CAPPROJ
CostCategory_SalvageValuePPE	INCOME - SALVAGE VALUE - PPE
CostCategory_Security	SECURITY EXPENSES
CostCategory_Tax	TAX - TAX
CostCategory_Trash	CLEANING - TRASH REMOVAL
CostCategory_Utility	UTILITY
The Forecast Capital Costs action uses the following parameters.
CostCategory_CapitalBuilding	FORECAST - CAPITAL - BLDG
CostCategory_CapitalCapProj	FORECAST - CAPITAL - CAPPROJ
CostCategory_CapitalPPE	FORECAST - CAPITAL - PPE
CostCategory_CapitalProperty	FORECAST - CAPITAL - PROP
CostCategory_DeprBuilding	DEPRECIATION - BLDG
CostCategory_DeprCapProj	DEPRECIATION - CAPPROJ
CostCategory_DeprPPE	DEPRECIATION - PPE
CostCategory_DeprProperty	DEPRECIATION - PROP
CostCategory_DispositionCapProj	DISPOSITION-CAPPROJ
CostCategory_DispositionPPE	DISPOSITION-PPE
CostCategory_InterestBuilding	INTEREST - BLDG
CostCategory_InterestPPE	INTEREST - PPE
CostCategory_InterestProperty	INTEREST - PROP
CostCategory_Maintenance	MAINT
The Update Analysis Metrics action uses the following parameters
Cost_Category_CapitalProjectAll	PROJECT - CAPITAL%
Cost_Category_ExpensedProjectAll	PROJECT - EXPENSE%
CostCategory_AdministrationAll	ADMIN%
CostCategory_AppreciationAll	FORECAST - APPRECIATION%
CostCategory_CapitalAll	FORECAST - CAPITAL%
CostCategory_CapitalRenewalAll	FORECAST - CAPITAL RENEWAL%
CostCategory_CustodialAll	CLEANING%
CostCategory_DeprAll	DEPRECIATION - %
CostCategory_DirectServicesAll	SVCS-DIRECT%
CostCategory_DispositionAll	DISPOSITION%
CostCategory_IncomeAll	INCOME%
CostCategory_IndirectServicesAll	SVCS-INDIRECT%
CostCategory_InterestAll	INTEREST - %
CostCategory_MaintenanceAll	MAINT%
CostCategory_MiscAll	EXPENSE - OTHER%
CostCategory_PrincipalAll	PRINCIPAL - %
CostCategory_RentAll	RENT%
CostCategory_SecurityAll	SECURITY%
CostCategory_TaxAll	TAX%
CostCategory_TrashAll	CLEANING - TRASH%
CostCategory_UtilityAll	UTILITY%

Application parameters used for financial analysis

Parameters for Financial Analysis
InternalCostofDebt	0.04	Used by the Forecast Capital Costs action. The organizations estimated cost of borrowing money, used for evaluating projects and portfolio purchases that require financing. For analysis purposes, there is one rate for the organization, which often normalizes finance across its operating regions.
InternalCostofCapital	0.08	Used by the Forecast Capital Costs action. Your organization's minimum internal rate of return, used for evaluating the use of your organization's capital; for example, a down payment on a new property or non-liquid equity in owned assets. The rate of return is compared against other uses of the capital – for example, other projects, a buyback of the organization's own stock, or other investments.
DiscountRate	0.04	DiscountRate is used to calculate NPV (lifetime) This is the yearly discount rate to apply to future costs and income values in order to obtain a present value in today's dollars. Choose a real discount rate that reflects the true earning power of your money, and not the rate of inflation (which you can calculate out from the nominal discount rate that includes the effects of inflation to a real discount rate to use for planning).

Application parameters for metrics that are summed from several metrics or cost categories

Application parameters for financial analysis - These application parameters are used to calculate analysis metrics that are the sum of other metrics.

The following shows application parameters that specify the metrics used to sum other metrics side-by-side, so that you can review the definitions of each of these metrics.

UpdateTCO-OccupancyCosts	UpdateTCO-OwnershipCosts	UpdateTCO-WorkpointCosts	UpdateOpExCosts
List of Analysis Metrics that are summed to obtain Total Cost of Occupancy. ops_Costs-Maintenance_an_fy, ops_Costs-Custodial_an_fy, ops_Costs-Security_an_fy, ops_Costs-Other_an_fy, ops_Costs-Utility_an_fy, ops_Costs-PropertyTaxes_an_fy, leas_Costs-Rent_an_fy, work_Costs-DirectServices_an_fy	List of Analysis Metrics that should be summed to obtain Total Cost of Ownership. ops_Costs-Maintenance_an_fy, ops_Costs-Custodial_an_fy, ops_Costs-Security_an_fy, ops_Costs-Other_an_fy, ops_Costs-Utility_an_fy, ops_Costs-PropertyTaxes_an_fy, leas_Costs-Rent_an_fy, work_Costs-DirectServices_an_fy, fin_anlys_Income_an_fy, fin_anlys_Depreciation_an_fy; fin_anlys_DepreciationCapProj_an_fy, fin_anlys_DepreciationPPE_an_fy	List of Analysis Metrics that should be summed to obtain Total Workpoint Cost ops_Costs-Maintenance_an_fy, ops_Costs-Custodial_an_fy, ops_Costs-Security_an_fy, ops_Costs-Other_an_fy, ops_Costs-Utility_an_fy, ops_Costs-PropertyTaxes_an_fy, leas_Costs-Rent_an_fy, work-Costs-DirectServices_an_fy, fin_anlys_Income_an_fy, fin_anlys_Depreciation_an_fy; fin_anlys_DepreciationCapProj_an_fy, fin_anlys_DepreciationPPE_an_fy, work_Costs-IndirectServices_an_fy, fin_anlys_Interest_an_fy fin_anlys_CostOfCapital_an_fy	List of analysis metrics that should be summed to get Operating Expenses. ops_Costs-Maintenance_an_fy, ops_Costs-Custodial_an_fy, ops_Costs-Security_an_fy, ops_Costs-Other_an_fy, ops_Costs-Utility_an_fy, ops_Costs-PropertyTaxes_an_fy, leas_Costs-Rent_an_fy, work_Costs-DirectServices_an_fy

UpdateTCO-OccupancyCosts

UpdateTCO-OwnershipCosts

UpdateTCO-WorkpointCosts

UpdateOpExCosts

Used by Update Analysis Metrics action

List of Analysis Metrics that are summed to obtain
Total Cost of Occupancy.

ops_Costs-Maintenance_an_fy,
ops_Costs-Custodial_an_fy,
ops_Costs-Security_an_fy,
ops_Costs-Other_an_fy,
ops_Costs-Utility_an_fy,
ops_Costs-PropertyTaxes_an_fy,
leas_Costs-Rent_an_fy,
work_Costs-DirectServices_an_fy

List of Analysis Metrics that should be summed to obtain

Total Cost of Ownership.

ops_Costs-Maintenance_an_fy,

ops_Costs-Custodial_an_fy,

ops_Costs-Security_an_fy,

ops_Costs-Other_an_fy,

ops_Costs-Utility_an_fy,

ops_Costs-PropertyTaxes_an_fy,

leas_Costs-Rent_an_fy,

work_Costs-DirectServices_an_fy,

fin_anlys_Income_an_fy,

fin_anlys_Depreciation_an_fy;
fin_anlys_DepreciationCapProj_an_fy,
fin_anlys_DepreciationPPE_an_fy

List of Analysis Metrics that should be summed to obtain
Total Workpoint Cost

ops_Costs-Maintenance_an_fy,

ops_Costs-Custodial_an_fy,

ops_Costs-Security_an_fy,

ops_Costs-Other_an_fy,

ops_Costs-Utility_an_fy,

ops_Costs-PropertyTaxes_an_fy,

leas_Costs-Rent_an_fy,

work-Costs-DirectServices_an_fy,

fin_anlys_Income_an_fy,

fin_anlys_Depreciation_an_fy;

fin_anlys_DepreciationCapProj_an_fy,

fin_anlys_DepreciationPPE_an_fy,

work_Costs-IndirectServices_an_fy,

fin_anlys_Interest_an_fy

fin_anlys_CostOfCapital_an_fy

List of analysis metrics that should be summed to get Operating Expenses.

ops_Costs-Maintenance_an_fy,

ops_Costs-Custodial_an_fy,

ops_Costs-Security_an_fy,

ops_Costs-Other_an_fy,

ops_Costs-Utility_an_fy,

ops_Costs-PropertyTaxes_an_fy,

leas_Costs-Rent_an_fy,
work_Costs-DirectServices_an_fy

The following application parameters list other activity parameters containing cost categories that are used in the calculation for that metric.

UpdateAnnualWorth	UpdateNPV
List of activity parameters containing Cost Categories that contribute to the Annual Worth. Used to calculate analysis metrics that are sums of other metrics CostCategory_CustodialAll, CostCategory_MaintenanceAll, CostCategory_SecurityAll, CostCategory_UtilityAll, CostCategory_RentAll, CostCategory_AdministrationAll, CostCategory_TaxAll, CostCategory_TrashAll, CostCategory_MiscAll, CostCategory_DirectServicesAll, CostCategory_IncomeAll, CostCategory_DeprAll; CostCategory_AppreciationAll, CostCategory_DispositionAll, CostCategory_InterestAll; ;CostCategory_CapitalAll	List of activity parameters containing Cost Categories that contribute to the Net Present Value (NPV). Used to calculate analysis metrics that are sums of other metrics. CostCategory_CustodialAll, CostCategory_MaintenanceAll, CostCategory_SecurityAll, CostCategory_UtilityAll, CostCategory_RentAll, CostCategory_AdministrationAll, CostCategory_TaxAll, CostCategory_TrashAll, CostCategory_MiscAll, CostCategory_DirectServicesAll, CostCategory_IncomeAll, CostCategory_CapitalRenewalAll, CostCategory_AppreciationAll, CostCategory_DispositionAll

UpdateAnnualWorth

UpdateNPV

Used by Update Analysis Metrics action

List of activity parameters containing Cost Categories that contribute to the Annual Worth.

Used to calculate analysis metrics that are sums of other metrics

CostCategory_CustodialAll,

CostCategory_MaintenanceAll,

CostCategory_SecurityAll,

CostCategory_UtilityAll,

CostCategory_RentAll,

CostCategory_AdministrationAll,

CostCategory_TaxAll,

CostCategory_TrashAll,

CostCategory_MiscAll,

CostCategory_DirectServicesAll,

CostCategory_IncomeAll,

CostCategory_DeprAll;

CostCategory_AppreciationAll,

CostCategory_DispositionAll,
CostCategory_InterestAll;
;CostCategory_CapitalAll

List of activity parameters containing Cost Categories that contribute to the Net Present Value (NPV).

Used to calculate analysis metrics that are sums of other metrics.

CostCategory_CustodialAll,
CostCategory_MaintenanceAll,
CostCategory_SecurityAll,
CostCategory_UtilityAll,
CostCategory_RentAll,
CostCategory_AdministrationAll,
CostCategory_TaxAll,
CostCategory_TrashAll,
CostCategory_MiscAll,
CostCategory_DirectServicesAll,
CostCategory_IncomeAll,
CostCategory_CapitalRenewalAll,
CostCategory_AppreciationAll,
CostCategory_DispositionAll