Payback period in SPM

[Leonel Sandroni]

Hi there!

An specific client is requesting the incorporation of payback period in demands and projects. It involves building robust script and a lot of customizations so...I'm trying to find any simple solution.

Do you know about ootb solutions or any similar? Or maybe any of you have already solved it before with a customization.

[pavani_paluri]

Hi @Leonel Sandroni ,

ServiceNow does not provide Payback Period as a standard field or calculation in Demands or Projects.

OOTB financial metrics you get are things like: Planned cost, Actual cost, ROI, NPV, IRR.

Payback period (time to recover initial investment from cash inflows) isn’t included.

You can achieve this using below options

• Add a custom field (e.g. payback_period_months) on Demand and Project tables. Populate it manually or via a simple formula:

Payback Period = Initial Investment / Expected Monthly Benefit

You can pull “Initial Investment” from Planned Cost and “Expected Benefit” from financial benefit records if you’re already using those.

• Scripted Calculation 

Write a Business Rule or Script Include that calculates payback automatically when cost and benefit values change.

Example:

If Planned Cost = 120,000

Expected Monthly Benefit = 20,000

Payback Period = 6 months.

Mark it helpful if this helps you to understand. Accept solution if this give you the answer you're looking for

Kind Regards,

Pavani P

[yogesh41]

Hi,

Did you explore Benefit Plan on demand ? It captures the potential benefits accrued by the demand when the demand is executed. I am sharing documentation link for your reference

Create a monetary benefit plan for a demand

Yogesh