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Planned NPV Doesn't Automatically Recalculate When Changing Financial Management Defaults


Article ID: 229302


Updated On:


Clarity PPM SaaS


When changing Financial Management Defaults, projects are NOT automatically recalculating Planned NPV and other financial metrics.


Steps to replicate this (alleged) defect are as follows:

1) Set Financial Management Defaults as follows:
1a) Annual Total Cost of Capital % = 4.00%
1b) Annual Reinvestment Rate % = 11.00%

2) Create a new project with the following values:
2a) Start Date = 01-JAN-2022
2b) Finish Date = 31-DEC-2023
2c) FM defaults = those specified in #1
2d) Financial Status = Closed
2e) Active = False
2f) Open for Time Entry = False

3) Create a Benefit Plan as follows:
3a) Period Type = Monthly
3b) Start Period = 2022-01 (JAN 2022)
3c) Finish Period = 2023-12 (DEC 2023)
3d) Benefits 2022-01 to 2022-09 = 0
3e) Benefits 2022-10 to 2023-12 = 200,000/month (total = 3,000,000)

4) Create a Cost Plan as follows:
3a) Period Type = Monthly
3b) Start Period = 2022-01 (JAN 2022)
3c) Finish Period = 2023-12 (DEC 2023)
3d) Costs 2022-01 to 2023-06 = 90,000/month (total = 1,620,000)
3e) Costs 2023-07 to 2023-12 = 0/month (total = 0, grant total = 1,620,000)


Planned Cost: Expected = 1,6200,000 Actual = 1,620,000
Planned Benefit: Expected = 3,000,000 Actual = 3,000,000
Planned NPV: Expected = approximately $1.27 million, Actual = 1,265,467

So far, so good ... but now ...

5) Change Financial Management Defaults as follows:
5a) Annual Total Cost of Capital % = 11.00%
5b) Annual Reinvestment Rate % = 11.00% (NO CHANGE)
in our documentation we say that Planned NPV will be changed Annual Total Cost of Capital %

it says it will update in the background

Set Capital Cost and Reinvestment Rate for the System
Set the annual total cost of capital and the annual reinvestment rate for investments at the system level to calculate the MIRR for planned costs and budget for investments. If you change the total cost of capital and reinvestment rate values on the Financial management defaults page, the corresponding values change accordingly on the budget properties page of the investment. The corresponding values change only if you select the option to calculate financial metrics automatically and use the system rates for total cost of capital and reinvestment. The metrics for all investments that use system options are recalculated. This happens in the background and might take some time if the system needs to process many investments.


Based upon the cited paragraph, the Planned NPV on this project should eventually be recalculated and become approximately 1,083,000 with no action taken in the specific project (e.g., changing a Benefit or Cost Plan, etc.).

22 hours later, the project still has Planned NPV of 1,265,467.  The value has NOT recalculated after the default value of Annual Total Cost of Capital was changed from 4.00% to 11.00%.


6) Open the project

7) Navigate to the Financial Summary tab

8) Confirm that Planned NPV is still 1,265,467 (it is)

9) Make no changes of any kind, but click the SAVE button


Planned NPV recalculates and displays a value of 1,083,778


Automatic recalculation of financial metrics does not happen upon changing the rate defaults – recalculation doesn't occur until the project is opened and the SAVE button on the Properties - Main - Financial Summary page is clicked.


Release : 15.9.1



DE62574, Fixed in 16.0.1

Workaround: Click on Save or Save and Return