Release 12 Oracle Projects Overview: Angela Chen, PMP Principal Sales Consultant

Release 12 Oracle Projects Overview
Angela Chen, PMP Principal Sales Consultant
Purpose: This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.
Oracle Proprietary and Confidential Information
Oracle Projects Suite

Project Initiatives
Sales Delivery Research Construction Information Technology Product Development Marketing
Integration to E-Business Suite Portfolio Management Project Resource Management Management

Global Project Repository
Financials HR Supply Chain Sales Time & Labor Documents
Collaboration
Accounting & Operations
Enterprise and Project Insight

Personalized Role-Based Views
Integration to Desktop Tools

MS Project & Excel
Major New Release

Projects Family Pack M (FP.M) released in May 2005 Project Selection

Project Categorization Project Prioritization Selection Reallocation
Project Reporting
Project
Performance Exception mgt. Program mgt
Project Planning
Integrated Work &
Work Resources Finances

Project Control Project Execution

Enhanced Progress
Collection Earned Value Budget vs. Actual Streamlined Forecasting Change Impact Charge Backs Enhanced Billing
Resource Planning Project Budgeting Enhanced workplan definition Financial and work structures Multiple resource types and hierarchies
Team Member Work Space Deliverables Contingent workers Progress Reporting
Everything is a Project
E&C Communications Vertical Applicability Utilities Professional/Business Services Public Sector Manufacturing Staffing Life Sciences Home Building Horizontal Applicability R&D Internal IT Facilities Mgt. Capital Projects Finance New Products
In the future, all work will be project work -Tom Peters
Proof Points
1
Future killer applications for the enterprise are projected to be around business activity monitoring, in helping to manage projects, for asset management, contract management and for managing vendors and suppliers. Gartner [is] seeing a trend in its customers whereby almost everything today [is] a project with a beginning and an end. - Bob Hayward, Gartner August 2005
In the first 17 years of PMP certifications through 2000, about 25,000 PMP certifications were awarded. In the five years since more than 100,000 were awarded; 25,000 in just the first 5 months of 2005. - The Project Management Institute, November 2005
Ultimately, project based software solutions focus on managing an supporting project based business processes. - Ray Wang, Forrester, 2006
Project management will increasingly be recognized as an enterprise core competence in its own right, in a wider range of companies and industries. - Capgemini Les Fontaines Future Trends Event , October 2005
Project Management Revenue Soars!
FY05 FY06 38% Increase!

How Efficient Are You?

APM 2005 Gartner 2005
Biggest Management Challenges of 2006

Budget Managing Projects Constraints 27% 33%
Other 5% Outsourcing 5% Managing Personnel 6%
Regulatory Compliance 13% Dealing with Mergers or Acquisitions 11%
Source: Computerworld, 1/9/06, Whats Next: Project Management, Mary Brandel; Survey of 338 IT Executives
Disconnected Information, Processes, and Systems

Strategy Risks Project Plans
Project Centric Dept

Resources
Contractors
Budgets & Forecasts
Business Units
Invoices & Actuals Standards & Processes
Management
Deliverables
Project Management Continuum

The Evolution of Project Management
PMI Estimates*:
16.5M Potential Global Practitioners US $10 Trillion spent globally on projects each year
Focus of R12 Project Team Size
Team of One
On Site Teams
National Teams
Global Teams
Project Complexity
Source: Project Management Institute, Presentation to Oracle February, 2006 Oracle Proprietary and Confidential Information
Business Complexity Increasing
Extent to which value creating activities increase complexity

Expansion into New Territories M&A
29 42 23
Some Extent Large Extent Very Large Extent
26
33
32
New Product Launches
33
35
23
Strategic Alliances
36
36
16
77% of global CEOs

say the level of complexity in their organizations is higher than 3 years ago
100
Offshoring Business Process Localization Outsourcing

0
34
33
16
39
29
11
39
26
10
20 40 Percent
60
80
Source: PWC, 9th Annual Global CEO Survey

Globalization
Key to Competitiveness
The World is Flat

R&D: Proctor & Gamble to source 50% of new product ideas from global partners by 2010. Design: Boeing designing navigation and landing gear systems offshore in India. Custom Application Development: Virtually everyone Oracle Our strategy is to work with global networks to leverage the best technologies on the planet. HP SVP Dick Conrad
Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed are positive about the impact that globalization will have on their organizations over the next three years.
Source: 9th Annual Global CEO Survey Globalization and Complexity; PwC 2006
Managing Complexity
Its About Simplification & Standardization
50% of senior
executives say simplification is driving the Finance agenda.
Major Focus
Standardizing operating practices and controls Standardizing policies and business rules Standardizing and integrating finance systems Adopting best practices Optimizing the finance organization and its reporting structure Reducing reliance on spreadsheets
69% 66% 59% 58% 52% 33%
Source: PWC Management Barometer
R12 Goals
The Global Business Release Think Globally to make the right decisions
I can make more informed decisions with a global view of customer / supplier / partner / operations
Work Globally to be more competitive

My business will be more competitive with better support for work that crosses applications, divisions, and regions
Manage Globally to lower cost and increase performance

R12 makes it easier and less expensive for me to implement, manage, and scale global applications
How Release 12 Contributes

The Global Business Release WORK GLOBALLY
To Be More Competitive
THINK GLOBALLY
To Make the Right Decisions
MANAGE GLOBALLY
To Lower Cost & Increase Performance
XML Publisher Fusion Middleware BPEL
Subledger Accounting Multi-Org Access Control (MOAC) Standardized Data Model for MRC Supplier Cost Management Subcontractor Payment Management Uptake Revenue in a Foreign Currency
Portfolio Management Performance Management Program Management
Oracle Projects Specific
Release 12 Financial Initiatives (Projects Uptake)

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake
Release 12 Projects Initiatives

Supplier Cost Management
Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Item Date
Subcontractor Payment Management Uptake Revenue in a Foreign Currency
Release 12 Financial Initiatives

Subledger Accounting
What is Subledger Accounting?
SLA is an intermediate step between subledger products and the Oracle General Ledger Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model
Subledger Accounting Upgrade / Setup

Release 11i
Accounting model and transaction model are tightly integrated
Subledger Products Projects General Ledger
Release 12.0
Accounting model is separated from the transaction model
Subledger Products Projects
Subledger Accounting PA Rules & journal entries AP Rules & journal entries AR Rules & journal entries General Ledger
Payables
Payables
Receivables
Receivables

Infrastructure to centralize accounting setup
Subledger Accounting is the engine used to store the rules for accounting transactions from various applications across the Oracle E-Business Suite
Infrastructure to standardize accounting policies

Business users can extend predefined accounting rules or create their own rules allowing organizations to react immediately to change.
Extensible list of sources to derive accounts

Projects will be seeding over 300 sources to help customers derive accounts and account descriptions

Upgrade process seeds SLA with rules to automatically accept the accounts that Projects sends (derived from AutoAccounting)
Existing Customers:
If the accounting provided in Release 11i is satisfactory, then it is recommended that customers leave their AutoAccounting and SLA setups untouched.
May utilize SLA setups if AutoAccounting did not fully meet their needs.
Flow Comparison for Expenditures
Release 11i
Enter or import expenditures
Release 12
Enter or import expenditures
Distribute costs
Distribute costs
Interface Costs to GL Journal Import (Oracle GL)
Generate Cost Accounting Events Create Accounting Journal Import (Oracle GL)
Tieback Cost Distributions from GL
Flow Comparison for Revenue
Release 11i
Generate Revenue for a Single/ Range of Projects
Release 12
Generate Revenue for a Single/ Range of Projects
Review Revenue Release Revenue Interface Revenue to GL Journal Import (Oracle GL)
Review Revenue Release Revenue Generate Revenue Accounting Events Create Accounting Journal Import (Oracle GL)

Multi-Org Access Control

Business Need
Companies are redesigning their support functions with the intent of pulling out non-strategic overlapping tasks from their individual business units, enabling them to concentrate on core business These functions (previously non-strategic) now become strategic and the core functions of a shared service center
Multi-Org Access Control provides the foundation for meeting the shared service requirements by allowing the access to data across operating units from a single responsibility.
Structure Prior to Share Service Center
N. America UK Data Entry Data Processing Reporting Data Entry Data Processing Reporting
Germany Data Entry Data Processing Reporting
France
Japan
S. America
Data Entry Data Processing Reporting
Shared Service Center

N. America UK Data Entry Data Processing Reporting Data Entry Data Processing Reporting
Germany Data Entry Data Processing Reporting
France
Japan
S. America
Multi-Org Access Control

Data Entry - Enter data for multiple operating units from a single responsibility Inquiry and Adjustments - Inquire and adjust data from multiple operating units from a single responsibility Processing and Reporting - Run concurrent programs and reports for multiple operating units from a single responsibility

Legal Entity Uptake

Provides a clear and consistent legal entity model. Strengthen the role of Legal Entity in Oracle Applications Separate Legal Structure and Operations Structure Projects Uptake -
Legal entity context derived from operating unit no change from 11i
Ledger Architecture
Difference between SOB and Ledger
SOB - A Set of Books was a general ledger with its associated subledger books (AR. AP, etc.) and was self contained as to management, calendaring and reporting Ledger - general data - transactions and balances - for a particular accounting entity
Benefits
Explicit Accounting Modeling for Legal Entities Cross/Multiple-Ledger Processing and Reporting Management Reporting Efficiency Rapid Close Single Data Source: Minimum Data Replication and Reconciliation Streamlined and Scalable High Volume Processes

Multiple Reporting Currency Migration

Oracle Projects has eliminated
Set of Books Currency Selection during the Inquiry MRC Columns in folders Switching currency for the Project Functional Amount Concurrent Programs for interfacing the MRC amounts to the Reporting Set of Books/Ledger
You can view the Multiple Reporting Currency (MRC) amounts in Projects by choosing the Alternate Ledger Currency from View Accounting Release 12 onwards, MRC amounts for new transactions in Projects will be displayed from Sub-Ledger Accounting Module
Key Benefits
Consistent approach in Alternate Ledger Currency amount calculation MRC calculation centrally managed

Funds Management Uptake

Budgetary Control API (commonly known as GL Funds Check API) is enhanced to provide better integration with other sub-ledger applications : Projects Impact:
Uptake SLA for Encumbrance Accounting Uptake new budgetary control API Streamlined funds check data flow to minimize dependencies

TCA Uptake
TCA a.k.a Oracle Trading Community Architecture is a model that includes:
A global registry of organizations, people, addresses, and the relationships among them Public APIs for custom development Support for Integration with 3rd party content providers
Projects Impact:
Migrate for RA_Views to HZ_Tables

eTax Uptake
eTax a.k.a E-Business Tax is a tax engine includes:
Content Repository which contains rules and definitions required to calculate tax Record Repository which is the actual transaction tax data required for auditing and reporting purposes Services such as tax content, tax determination & tax administration services
Business Need:
Requirement to calculate taxes consistently for intercompany transactions Requirement to show taxes on Draft Invoices within Projects Maintain consistency across e-Business Suite
eTax Uptake
Setup via eTax (at the project level, expenditure type level, event level) Customer Invoicing
Pass eTax tax code to AR on invoices/credit memos so that eTax can generate the appropriate tax lines.
InterCompany Invoicing
Tax line generation through eTax supported on Intercompany Invoicing. Integration with Payables and Receivables
E-Business Tax Integration

Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Item Date

Since its inception, Oracle Payables modeled invoices with headers and distributions. Disadvantages
Line item info on the physical document is not available in the system. Calculation of item charges is cumbersome because the item itself is split across multiple distributions. Approval and payment processing requires accounting and tax creation.
In Release 12, Payables is introducing a new entity called Invoice Lines. Advantages
Line item info can be captured and accurately reflected in the system. Transaction processing is separate from accounting (SLA) and tax (eTax) processing. Variances will now be separate lines and distributions.
Oracle Payables Invoice Lines Entity

Invoice
Supplier: Advanced Networks Invoice Num: 11111 Date: 13-JUN-2001
Line # Item Qty Unit Price 1 Computer 1 $1000 2 Printer 1 $500 3 Tax (10%) $150 _______________________________ Total $1650
Oracle Payables Invoice Workbench
Supplier Cost Management Projects Uptake

Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Supplier Cost Adjustment Accounting Performed by Oracle Projects New Mass Adjust Concurrent Process New Aids for Reconciling Supplier Cost with Other Products Removal of Pre-approved Batch Entry for Expense Report Entry in Projects
New Supplier Cost Audit Report
Supplier Cost Audit Report Runtime Parameters
Parameters available: All, Supplier Invoices, Expense Reports, Receipts, Payments
Expenditure Inquiry Find Window
Expenditure Inquiry
New columns available: Document Type PO Number Doc Distribution Type PO Line Number Invoice Number PO Distribution Number Invoice Line Number PO Price Type Payment Number PO Receipt Number Invoice Distribution Line Number
Invoice Workbench

Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Date from Purchasing
Subcontractor Payment Management

An integrated solution for services procurement used to model complex work contracts where advanced payment terms need to be considered during execution Commodities / Industries of Interest
Professional Services Engineering and Construction Aerospace and Defense Public Sector
Subcontractor Payment Mgmt

Business Flow
Supplier
Supplier Reports Progress Award Contract Submit SOV
Invoice
Request to Subcontract Work
Source
Author Contract
Certify Progress/ Stage of Completion
Apply Retainage Release Retainage Pay Advances Liquidate Advances
Subcontractor Payment Management Projects Impact

Commitment Reporting - Financing pay items, Retainage not shown as
commitments
- Unmatched prepayments are displayed as commitments Budgetary controls Retainage distributions are not funds checked against the project budget.

Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Date from Purchasing
Revenue in a Foreign Currency

Support Revenue Revaluation in GL
Calculate revenue including unbilled receivables and unearned revenue in revenue transaction currency Interface project revenue to Subledger Accounting for posting to General Ledger in project functional currency and in revenue transaction currency
Revenue in Foreign Currency Setup Project Billing Currency
Invoice by Bill Transaction Currency Box Unchecked
Enable Multi Currency Billing <Enter Option to Select Box Checked slide note> Revenue Transaction Currency
Revenue in Foreign Currency Setup Project Customers

Invoice Transaction Currency = CAD (Project Functional Currency = USD in this example)
Revenue in Foreign Currency Revenue Event Creation

Event Currency = Invoice Transaction Currency = 150,000 CAD in this example
Revenue in Foreign Currency Revenue Review
New columns added
For More Information

Metalink Information:
http://metalink.oracle.com/
Oracle Product Documentation:

http://www.oracle.com/technology/documentation/applications.html
Projects Books republished! Oracle Projects Fundamentals (B25617-02) Oracle Projects Implementation Guide (B25623-02) Oracle Project Costing User Guide (B25618-02) Oracle Project Billing User Guide (B25619-02) Oracle Project Resource Management User Guide (B25620-02) Oracle Project Management User Guide (B25621-02) Oracle Project Portfolio Analysis User Guide (B25622-02) Oracle Project Contracts Implementation Guide (B25715-01) Oracle Project Contracts User's Guide (B25716-01) Oracle Projects APIs, Client Extensions, and Open Interfaces Reference (B25624-02) Projects Collateral & Whitepapers: http://www.oracle.com/applications/projects/intro.html
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Release 12 Oracle Projects Overview

Angela Chen, PMP Principal Sales Consultant

Oracle Proprietary and Confidential Information

Oracle Projects Suite

Integration to E-Business Suite Portfolio Management Project Resource Management Management

Financials HR Supply Chain Sales Time & Labor Documents

Accounting & Operations

Enterprise and Project Insight

Integration to Desktop Tools

Oracle Proprietary and Confidential Information

Major New Release

Work Resources Finances

Team Member Work Space Deliverables Contingent workers Progress Reporting

Oracle Proprietary and Confidential Information

In the future, all work will be project work -Tom Peters

Oracle Proprietary and Confidential Information

Oracle Proprietary and Confidential Information

Project Management Revenue Soars!

FY05 FY06 38% Increase!

How Efficient Are You?

Oracle Proprietary and Confidential Information

Biggest Management Challenges of 2006

Other 5% Outsourcing 5% Managing Personnel 6%

Regulatory Compliance 13% Dealing with Mergers or Acquisitions 11%

Oracle Proprietary and Confidential Information

Disconnected Information, Processes, and Systems

Project Centric Dept

Oracle Proprietary and Confidential Information

Project Management Continuum

Focus of R12 Project Team Size

Business Complexity Increasing

Extent to which value creating activities increase complexity

Some Extent Large Extent Very Large Extent

New Product Launches

77% of global CEOs

Offshoring Business Process Localization Outsourcing

Source: PWC, 9th Annual Global CEO Survey

The World is Flat

Oracle Proprietary and Confidential Information

69% 66% 59% 58% 52% 33%

Source: PWC Management Barometer

Oracle Proprietary and Confidential Information

Work Globally to be more competitive

Manage Globally to lower cost and increase performance

Oracle Proprietary and Confidential Information

How Release 12 Contributes

Portfolio Management Performance Management Program Management

Oracle Projects Specific

Oracle Proprietary and Confidential Information

Release 12 Financial Initiatives (Projects Uptake)

Oracle Proprietary and Confidential Information

Release 12 Projects Initiatives

Subcontractor Payment Management Uptake Revenue in a Foreign Currency

Oracle Proprietary and Confidential Information

Release 12 Financial Initiatives

Oracle Proprietary and Confidential Information

Oracle Proprietary and Confidential Information

Subledger Accounting Upgrade / Setup

Subledger Products Projects

Oracle Proprietary and Confidential Information

Subledger Accounting Upgrade / Setup

Infrastructure to standardize accounting policies

Extensible list of sources to derive accounts