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:

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

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
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