Oracle Projects - The Basics of Integration
Mehmood Merali
Ernst and Young LLP
Introduction
This paper introduces the basic concepts of
integrating Oracle Projects (PA) with five other
modules, namely Oracle General Ledger (GL),
Oracle Purchasing (PO), Oracle Payables (AP),
Oracle Receivables (AR) and Oracle Assets
(FA).
This paper discusses the following items for
each integration point:
1. the flow of data across the integration point;
2. the set up parameters necessary to enable
inter-module integration; and,
3. the required concurrent manager processes
to push or pull data across these integration
points.
References in this paper to navigation paths,
form names, implementation options, etc are for
Oracle Projects 10.7 SC. These may be
available under different paths and options in
other releases, or may not be available at all,
especially in earlier releases.
The scope of this paper does not include
differences between Oracle Projects release 10.7
SC and other releases.
In addition to the information in this paper, this
presentation at OAUG will also include
discussion of sample debit and credit entries of
each integration transaction.
Integration between Oracle
Projects and General Ledger
Oracle Projects (PA) is a sub-ledger which
collects detailed project costs and revenue.
These detailed costs and revenue are distributed
using the AutoAccounting (and Flexbuilder)
feature of PA. These features ensure that costs
and revenue are charged to valid accounts and
account code combinations as per the chart of
accounts. (For more information on the
Copyright © 1998 by Mehmood Merali
AutoAccounting and Flexbuilder in Oracle
Projects, please refer to the paper by Edward
Charity of Ernst & Young, LLP, entitled
‘Understanding Oracle Projects’
AutoAccounting and Flexbuilder Functions”,
presented at OAUG Sep ’97 in Orlando,
Florida.). Project costs are summarized in PA
and transferred to GL via the journal import
table, where they are posted to the general
ledger.
Data Flow
PA collects detailed project cost and revenue.
These costs are distributed to valid accounts in
the chart of accounts defined in the GL. PA uses
AutoAccounting and Flexbuilder features to
derive these accounts. Once distributed, PA
transactions are then summarized and
transferred into the journal import table. The
journal import process posts these transactions
to the general ledger. The tieback costs and
revenue process in PA verifies that these costs
and revenues were posted to valid account code
combinations in the general ledger.
Oracle predefines a journal source and several
journal categories for this integration. The
journal source is called ‘Project Accounting’ and
the journal categories are as follows:
• Labor Cost;
• Total Burdened Cost;
• Usage Cost; and,
• Revenue.
Set up Parameters
The following set up parameters are required to
enable data to flow from PA to GL.
In PA, set up implementation options as follows:
Setup>System>Implementation
Options>Costing
 Setup>Journal>Categories

Setup>System>Implementation Options>Billing

Concurrent Manager Processes

The following concurrent processes must be

executed for the data to be pushed into the
journal import table, and subsequently pulled
from this table to be posted into the GL:

(please note: expenditures must be distributed

and invoices generated prior to running these
processes.)

PRC: Interface Labor Costs to GL;

PRC: Interface Usage Costs to GL;
PRC: Interface Total Burdened Costs to GL;
In GL, ensure journal entry source and and,
categories are predefined, as follows: PRC: Interface Revenue to GL.

Setup>Journal>Sources Once data has been interfaced into the journal

import table, the journal import must be
submitted from the GL module. This process
brings the summary PA transactions into GL
and are ready to be posted. After they are
successfully posted, the tieback process is ready
to be invoked.

To tieback costs and revenue from GL to PA, the

following concurrent processes must run
successfully:

PRC: Tieback Labor Costs from GL;

PRC: Tieback Usage Costs from GL;
PRC: Tieback Total Burdened Costs from GL;
PRC: Tieback Revenue from GL;

Please note: you can use any combination of

streamline processes or perform individual
functions to invoke these interfaces. They must

Copyright © 1998 by Mehmood Merali

be invoked in the correct order for them to run
successfully.
Integration between Oracle
Projects and Purchasing
The integration between PA and PO allows you
to view committed costs of requisitions and
purchase orders within PA. This is
accomplished by entering project related
information into the source requisition or
purchase order. The project related information
is carried through the Req -> PO -> AP invoice -
> PA project expenditure process automatically.
Flexbuilder is also automatically invoked to
build account flexfields.
Data Flow
Commitments from PO are visible in PA via the
Project Status Inquiry (PSI) feature. There is no
intermediary import or interface table between
these modules. However, for project related
requisitions and purchase orders, each line item
must contain the following PA information:
• project name
• task name
• expenditure type
• expenditure organization
• expenditure item date
You can adjust the project information on a
requisition or purchase order at any time. If the
changes are made after the requisition and
purchase order have been approved and
processed, reversing entries are automatically
created. However, you must update both the
requisition and the purchase order in PO with
the relevant changes to project information.
Set up Parameters
To charge PO and PA against projects, you must
first set up your FlexbBuilder rules. (For more
information on the AutoAccounting and
Flexbuilder in Oracle Projects, please refer to
the paper by Edward Charity of Ernst & Young,
LLP, entitled ‘Understanding Oracle Projects’
AutoAccounting and Flexbuilder Functions”,
presented at OAUG Sep ’97 in Orlando,
Florida.).
Copyright © 1998 by Mehmood Merali
In addition, you should review the profile option
PA: Allow Override of PA Distribution in
AP/PO. This parameter allows you to enable or
disable a user from over-riding the accounting
flexfield generated by Flexbuilder. The
parameter can be set at a site level as well as at a
responsibility level.
Concurrent Manager Processes
There are no concurrent manager processes to
be run for the PO to PA integration.
Integration between Oracle
Projects and Payables
The integration between PA and AP allows for
three types of transactions to flow between them.
These are:
• supplier invoices;
• expense reports; and,
• adjustments.
Data Flow
Supplier invoices are sent from AP to PA. Each
invoice must contain project related information
for this interface, as follows:
• project number
• task number
• expenditure type
• expenditure organization
• expenditure item date
• quantity, if setup option “Cost Rate
Required” is set to “Yes”.
Expense reports entered into PA for project
related expenditures are sent to AP via the AP
interface tables. AP creates invoices from these
expense reports using the InvoiceImport feature,
approves and pays the invoices and transfers
these accounting transactions directly to GL.
Please note that the PA AutoAccounting rules
take precedence over the employee’s default
expense account when determining the invoice
liability account (and it does not invoke
Flexbuilder)
The tieback process is then invoked in PA to
ensure that AP transactions have been
successfully interfaced. The tieback process is
run after AP Invoice Import has run.
AP can also create pre-payments or advances
and apply them to PA expense reports and
invoices in AP. The expense report must be
already interfaced (AP interfaces table) or
loaded (AP invoice tables) in AP.
Set up Parameters
The following parameters and flexfields must be
set up in PA and AP.
SYSADM: Profile>System>Value
PA: Summarize Expense Report lines
PA: Default Expenditure Organization in
AP/PO (note: expenditure org. must have “HR
Classification” default value)
AP: Invoice Import Source = “Oracle Projects”
PA: Expenditure Type Class = “Supplier
Invoices”
Concurrent Manager Processes
The following concurrent manager processes
must be invoked to enable the interface from AP
to PA.
PA: Interface Supplier Invoices from Payables
PA: Distribute Expense Report Costs
PA: Interface Expense Reports to Payables
AP: Invoice Import
PA: Tieback Expense Reports from Payables
For adjustments, the following processes must
be invoked:
PA: Distribute Supplier Invoice Adjustment
Costs
PA: Interface Supplier Invoice Adjustment Costs
to Payables
Please note: you can use any combination of
streamline processes or perform individual
functions to invoke these interfaces. They must
be invoked in the correct order for them to run
successfully.
Integrating Oracle Projects and Assets
PA collects project related expenditures for
capital projects. Using AutoAccounting and
Flexbuilder features, these costs are assigned to
a Construction In Process (CIP) account. When
Copyright © 1998 by Mehmood Merali
the asset is ready to be placed in service, it is
interfaced to FA.
Data Flow
When expenditures for capital projects are
collected PA, they are classified as capitilazable
or non-capitalizable. These costs are then
interfaced from PA to FA via the FA Mass
Additions Table from where they are posted to
the FA Assets Table. They are then posted to
the GL via the GL interface table, at which point
the CIP account is relieved and costs transferred
to the asset account.
Please note that there is no tieback mechanism
from FA to PA. As well, if changes are made to
project related information in FA, they are not
visible in PA.
Set up Parameters
The following set up parameters are required in
FA to enable data to flow from PA:
(please note that these are also required for FA
implementation.)
• define corporate book
• define category flexfield
• define location flexfield
• define asset key flexfield
Concurrent Manager Processes
The following concurrent manager processes
must be invoked to enable the interface from PA
to FA.
PA: Generate Assets Lines
PA: Interface Assets to Oracle Assets
FA: manually review Mass Additions table and
update queue status from New, Merged or Cost
Adjustment to Post
FA: Post Mass Additions
FA: Create Journal Entries
To generate asset cost lines, you must first cost
and distribute all expense, usage and supplier
invoice costs in PA and interface these and AP
invoice costs to the GL prior to placing an asset Setup>Financials>Flexfields>Descriptive>Segm
in service in PA. ents

Integrating Oracle
Projects and Receivables.

PA integrates into AR by generating draft

invoices and sending them to AR for printing
and tracking customer payments.

Data Flow

PA loads the invoices into AR via AR’s

AutoInvoice feature. Project information is
stored in the invoice via the transaction
flexfield.

Set up Parameters You can also verify the predefined AR Line

Ordering Rules as follows:
Oracle predefines the following parameters in
AR: Setup>Transactions>AutoInvoice>Line
Invoice Source = “PA INVOICES”; Ordering Rules
AutoInvoicing Rule = “PA INVOICES”
Line Ordering Rule = “PA LINE ORDER”
Grouping Rule = “PA GROUPING RULE”

In AR, you can verify the predefined

AutoInvoice source for PA invoices by following
the navigation path below:

Setup>Financials>Flexfields
search for “Line Transaction Flexfield”

You can also verify the predefined AR Grouping

Rules as follows:

Setup>Transactions>AutoInvoice>Grouping
Rules

To verify the AR AutoInvoice source segments

for PA invoices, follow the navigation path
below:

Copyright © 1998 by Mehmood Merali

Concurrent Manager Processes

The following concurrent process must be

executed for the data to be pushed into the AR:

PRC: Generate Draft Revenue

PRC: Generate Draft Invoices
PRC: Interface Invoices to Receivables

Once data has been interfaced into AR, the

following process must be run in AR:

Interfaces > AutoInvoice > AutoInvoice Master

Program with Invoice source of PA INVOICES.

Once data has been interfaced to AR, you

tieback interfaced invoices into PA by running
the following concurrent manager process:

PRC: Tieback Invoices from Receivables

Copyright © 1998 by Mehmood Merali

Conclusion
There are many benefits of implementing an
ERP system such as Oracle Applications. One
of them is the ability to integrate modules to
allow accurate and natural data flow. Oracle
Projects is one application module that is
integrated with many other modules.
By integrating Oracle Projects to these other
modules, you benefit from:
• on-line validation of expenditures
with transaction controls for each
project. Transaction controls
determine who can charge what
types of costs during specific time
periods;
• automated generation of
accounting flexfields via
Flexbuilder;
• single source of all project related
expenditure and revenue data;
• reduction or elimination of
duplicate data entry, and the
related cost of time and accuracy;
• timely and accurate reporting of
project related transactions into the
general ledger; and,
• validation and adjustments of data
at a single source.
Copyright © 1998 by Mehmood Merali
About the Author
Mehmood Merali
Ernst & Young, LLP
Mehmood Merali is a management consultant in
Ernst & Young ‘s Oracle Service Line. He is
based out of Ernst & Young’s Seattle Office.
Mr. Merali has implemented several Oracle ERP
implementations in various capacities. He has
served as a team lead, module lead, Finance
lead, Manufacturing lead and Demand Team
lead. Currently, he is assisting an international,
high-tech capital equipment manufacturer
implement the full suite of fifteen Oracle
applications, including Finance,
Manufacturing, Supply and Demand.
Mr. Merali has presented several papers at
national and international conferences over the
past five years. He is a certified Information
Systems Professional (I.S.P.) of Canada, and a
Certified Management Consultant (CMC) with
the Institute of Certified Management
Consultants of Canada.