Planned Payback Period Calculation

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Article ID: 194575

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Updated On:

Products

Clarity PPM SaaS Clarity PPM On Premise

Issue/Introduction

How is the "Planned Payback Period" field calculated?

Environment

Release : All Supported Releases

Component : CA PPM SAAS PORTFOLIO MANAGEMENT

Resolution

Planned Payback period calculates from the first planned expenditure and not the beginning of the cost plan.

See more details below defined on techdocs at: Determine the Financial Metrics for Planning:

Payback Period
  • Displays the number of periods (in months) needed for the sum of the expected cash flows to equal the initial cash outlay for an investment.
  • The payback period matches with the breakeven date and considers the initial investment value. This value is part of the cost included in the first period of a given time period.
  • Payback Period is derived as one of the following:
    • If cost and benefit is defined in the budget properties of the investment, payback is a lump sum that is distributed evenly over the specified time.
    • If cost and benefit is populated from the detailed financial plan, payback is based on the detailed cost plan and its associated benefit plan.

Note: If the planned cost exceeds the planned benefit amount, the Payback period and Breakeven dates will be blank. See Planned Breakeven and Planned Payback Period Fields empty in Financial Summary page for more details.

Additional Information

Reference KB: Searching for known Clarity Issues using Self Service