Fiscal Optimization Use Cases

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It is possible to use Fiscal Optimization without defining a fiscal budget. However, if you define a fiscal budget, but do not use Fiscal Optimization, the fiscal budget is ignored during the scenario calculation.

The settings that impact Fiscal Optimization are:

• The IO_FISCAL_YR_STARTING_MONTH global setting

• The New Buy Budget Scope setting on the Budget Constraints tab of the Service Group Parameters page.

• The setting of the following fields in the Optimization Scope of the Scenarios page

Field	Description
Fiscal Optimization	An indicator of when the Fiscal Optimization feature is used. • On the Create/Edit Scenario page, this appears as a check box. Select the check box to use Fiscal Optimization • On the Scenarios page, this appears as a Yes or No indicator. When the check box is selected on the Create/Edit Scenario page, then Yes is displayed. When this option is selected on the Create/Edit Scenario page: • The Number of Fiscal Years and Fiscal Interval fields are enabled • The Horizon (periods) and Interval (periods) fields are disabled When this option is not selected on the Create/Edit Scenario page: • The Horizon (periods) and Interval (periods) fields are enabled • The Number of Fiscal Years and Fiscal Interval fields are disabled View Use Cases
Number of Fiscal Years	The number of years to consider for Fiscal Optimization.
Fiscal Interval	The timeframe of the fiscal period. Options are: • Period • Quarter • Year The default setting is Quarter when Fiscal Optimization is selected.

Here is a chart to help you further understand the possible use cases and results:

Use Cases	Fiscal Budget Defined on Service Group Parameter	Fiscal Budget NOT Defined on Service Group Parameter
Fiscal Optimization Enabled on Scenario	The Fiscal Optimization logic is enabled and the fiscal budget is considered when the scenario is calculated	The Fiscal Optimization logic is enabled but no fiscal budget is considered when the scenario is calculated
Fiscal Optimization NOT Enabled on Scenario	The Fiscal Optimization logic is not enabled and the fiscal budget is not considered when the scenario is calculated. When this situation occurs, a message is presented to the user as a warning that any fiscal budget defined will not be used.	The Fiscal Optimization logic is not enabled and no fiscal budget is considered when the scenario is calculated

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