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Oracle E-Business Suite R12.1 Projects Essentials Implementation Boot Camp Training Courseware Project Billing Overview

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ForFor Oracle Oracle employees employees andand authorized authorized partners partners only. only. Do not Do not distribute distribute to third to third parties. parties. © 2009 © 2009 Oracle Oracle Corporation Corporation – Proprietary – Proprietary andand Confidential Confidential

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. 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 for Oracle’s products remains at the sole discretion of Oracle.

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Title of Presentation
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Overview of Oracle Project Billing
Presenter’s Name Presenter’s Title

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For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Oracle Project Billing Program Agenda • • • • • • • • • • Contract Projects Multi-Currency Billing Agreements and Funding Project Revenue Invoices E-Business tax Interfacing Invoices to Oracle Receivables Customer Retention Billing Interproject Billing Accounting for Revenue and Invoice 4 4 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

Contract Projects 5 5 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

and billing for services performed for and reimbursed by a customer. revenue.Contract Projects Overview of Contract Projects • A contract project is used to track activities. © 2009 Oracle Corporation – Proprietary and Confidential . Types of Contract Projects Time and Materials Fixed Price Cost Plus 6 6 For Oracle employees and authorized partners only. Do not distribute to third parties. cost.

© 2009 Oracle Corporation – Proprietary and Confidential .Contract Projects Project Classes and Project Types Project Classes Project Types Bid and Proposal Indirect Overhead Construction Capital Cost Plus Contract Fixed Priced 7 7 For Oracle employees and authorized partners only. Do not distribute to third parties.

Contract Projects Project Type Setups • Project type setup steps specific to Contract Projects are: Billing Information Billing Assignments Distribution Rules 8 8 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential .Contract Projects Billing Information tab on Contract Project Types 9 9 For Oracle employees and authorized partners only. Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential .Contract Projects Billing Assignments Tab Project Type Assign billing extensions to the project type Contract Projects The extensions will apply to all projects associated with the project type 10 10 For Oracle employees and authorized partners only. Do not distribute to third parties.

bill based on events Accrue revenue and bill as work occurs 11 11 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . bill as work occurs Accrue revenue as work occurs. bill as work occurs Accrue revenue and bill based on events Event/Work Work/Event Work/Work Accrue revenue based on events.Contract Projects Distribution Rules Tab Distribution Rule Cost/Cost Cost/Event Cost/Work Event/Event Definition Accrue revenue and bill using the ratio of actual cost to budgeted cost (percent spent) Accrue revenue using the ratio of actual cost to budgeted cost (percent spent). bill based on events Accrue revenue using the ratio of actual cost to budgeted cost (percent spent). Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential .Contract Projects Contract Projects Flow • A contract project is the primary billing unit at which you specify the following information: • Basic Project Information • Customers • Revenue accrual method • Billing method • Billing cycle • Other billing information 12 12 For Oracle employees and authorized partners only. Do not distribute to third parties.

Contract Projects Basic Project Information Project Name Location Long Name Access Level Project Number Public Sector Project Organization Description Project Type Project Status 13 13 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

Contract Projects Assigning Customers 14 14 For Oracle employees and authorized partners only. Do not distribute to third parties. For Oracle employees and authorized partners © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Contract Projects Customer at Top Task Navigation : Options>Task Detail>Billing Information>Billing Setup 15 15 For Oracle employees and authorized partners only.

job. or site Include text in invoice line Include bill rates. resource. or site Summarize nonlabor by category. units 16 16 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .Contract Projects Invoice Formats Concepts Formats control: Creation of invoice lines when generating an as-work-occurs invoice. Do not distribute to third parties. This includes: • How to summarize expenditure items into an invoice line • Which fields to display on the invoice line • Order in which to display the fields on the invoice line • Formats for • Labor • Nonlabor • Retention Invoice formats defined during implementation • Can create formats to: • • • • • Summarize at project or task level Summarize labor by category. amounts. type. employee.

Contract Projects Invoice Comment • You can optionally enter a free form invoice comment to appear on the invoices you generate for the project. © 2009 Oracle Corporation – Proprietary and Confidential . Invoice xxxx xxyz $xxx $xxx Thank you for your order Invoice comment 17 17 For Oracle employees and authorized partners only. Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Contract Projects Burden Schedules for Revenue and Invoicing 18 18 For Oracle employees and authorized partners only.

© 2009 Oracle Corporation – Proprietary and Confidential .Contract Projects Standard Bill Rate Schedule 19 19 For Oracle employees and authorized partners only. Do not distribute to third parties.

Do not distribute to third parties. When you override a job’s standard bill rate by rate override. © 2009 Oracle Corporation – Proprietary and Confidential . the new job bill rate becomes the job’s bill rate for this project or lowest task. 20 20 For Oracle employees and authorized partners only.Contract Projects Bill Rates and Discount Overrides • You can assign and override a job’s standard bill rate for a project or lowest task by rate or discount.

you can choose to copy the updates to all subtasks. When you update bill rate or burden schedule information at a project level. In addition. you can choose to copy the updates to the project tasks. or to exclude tasks. When you update the billing schedules information for a summary task. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential . Updating the information at Project Level 21 21 For Oracle employees and authorized partners only.1 Feature) • You can now streamline the process of updating billing schedules information either for all tasks in a project or for all subtasks of a task.Contract Projects Cascading Billing Schedule Overrides (New R12. you can select whether to apply the updates to all tasks. when you choose a copy option.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Contract Projects Cascading Billing Schedule Overrides (New R12.1 Feature) (contd…) Updating the information at Task Level 22 22 For Oracle employees and authorized partners only.

Amy Yes Yes Task Level No In this example. Billability for her other labor charges is determined from the task billable status.Contract Projects Billable Transaction Control Limit To: Enabled (Inclusive Control) Expenditure Category Labor Labor Expenditure Type Employee Chargeable Billable Marlin. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential . Nothing else is chargeable (inclusive control). Amy Clerical Marlin. Amy Marlin can charge labor. 23 23 For Oracle employees and authorized partners only. Clerical labor is not billable.

24 24 For Oracle employees and authorized partners only. You can use sales credit information for sales commission reporting in Oracle Receivables.Contract Projects Credit Receivers • • You can assign credit for project revenue to employees using credit receivers. Do not distribute to third parties. Credit receivers can be used for the following: • Reporting. © 2009 Oracle Corporation – Proprietary and Confidential . You can define custom reports to use with credit receivers. • Transferring sales credit information to Oracle Receivables.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Contract Projects Profile Options PA: Licensed to Use Project Billing Set profile option to indicate if Oracle Project Billing is licensed PA: Maintain Unbilled Receivables and Unearned Revenue Balances Set profile option to maintain unbilled receivables and unearned revenue balances 25 25 For Oracle employees and authorized partners only.

© 2009 Oracle Corporation – Proprietary and Confidential .Currency 26 26 For Oracle employees and authorized partners only. Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential . Multi-Currency Billing Operating Unit Project 27 27 For Oracle employees and authorized partners only. Do not distribute to third parties.Currency Multi-Currency • Multi-currency allows you to enter transactions in currencies different from the functional currency of the expenditure operating unit. • You can enable multi-currency billing for an operating unit and for a project.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Currency Currency Screen in Projects 28 28 For Oracle employees and authorized partners only.

Do not distribute to third parties.Currency Billing Transaction Currency Type of Transaction Events (manual and automatic) Expenditures with markups or burden multipliers (multi-currency billing enabled) Expenditures (multi-currency disabled) Expenditures with bill rates Expenditures with bill rate overrides Expenditure with labor billing extension that calculates the amount Transaction Currency Event transaction currency Expenditure transaction currency Project functional currency Rate schedule currency Override currency Billing transaction currency provided by the extension 29 29 For Oracle employees and authorized partners only. For Oracle employees and authorized partners © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Currency Invoice In Any Currency Customer Choose currency Create invoices Create invoices in any currency as agreed upon by the customer 30 30 For Oracle employees and authorized partners only.

enter the following currency attributes for the project customer: • Rate type • Rate date • Exchange Rate 31 31 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Currency Currency Attributes • If you want the project customer to be billed in a currency other than the project currency.

The Recalculate Invoice Currency window displays the following fields: Project Currency Invoice Currency Invoice Processing Currency Invoice Rate Type The project currency The invoice currency you desire The currency used to check against funding and evaluate hard and soft limits.Currency Recalculating Invoice Currency • To change the invoice currency. The rate type to be used for the invoice recalculation Invoice Rate Date Date to be used for rate calculation Invoice Rate The currency exchange rate 32 32 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . select an invoice that is eligible for recalculation and select Recalculate. Do not distribute to third parties.

Currency Funding Revaluation

• Funding revaluation allows you to periodically revalue your project funding, taking into account the effects of currency fluctuations between funding and project functional currency.

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Currency How To Revaluate Funding

PRC: Revaluate Funding for a Single Project

PRC: Revaluate Funding for a Range of Projects Submit processes to revaluate funding

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Agreements and Funding

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1.1 Subtask 3.2 36 36 For Oracle employees and authorized partners only.1.1 $30K Task 2 $70K Task 3 Subtask 1.1 Subtask 3. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.2 Subtask 3.Agreements and Funding Overview of Agreements Agreement Total $500K Funded $300K $150K Project A Bid & Proposal Project B Time & Material $50K Project C Fixed Price $100K Project D Cost Plus $50K Task 1 Subtask 1.2 Subtask 3.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Agreements and Funding Process Flow of Agreements and Funding Create Agreement Funded Contract Project Create Project Enter Approved Revenue Budget Generate Revenue Create Funding Baseline Generate Invoices 37 37 For Oracle employees and authorized partners only.

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Agreements and Funding Defining an Agreement Agreement Customer: Bigmart A hard or a soft limit for revenue and/or invoice Funding Currency amount Project Organization that owns the agreement Tasks Tasks 38 38 For Oracle employees and authorized partners only.

Agreements and Funding Agreements Entry Screen Agreement Screen with new R12. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.1 features that are marked in circles 39 39 For Oracle employees and authorized partners only.

• Unapply Receipt Button: to dissociate the receipts with the Agreement.1 Features in Agreements Entry Screen • Start date: to more accurately control the duration of the agreement • Customer order number and accounting reference: to track your customer’s references for the agreement • Billing sequence number: to control the order in which agreements are used for billing purposes • Advance Required checkbox: to control if an advance payment is required before invoicing can occur • 15 additional descriptive flexfield attributes (bringing the total to 25): to track any other information • Apply Receipt Button: to choose the receipts to associate with the Agreement. • View Receipts Button: to view available receipts of the customer • A client extension is available to determine which customers are required to provide an advance payment. the advance required flag will be enabled or disabled. Based on the outcome of the extension. 40 40 For Oracle employees and authorized partners only.Agreements and Funding New R12. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Agreements and Funding Project Versus Top Task Funding Project-Level Funding Top Task Funding Agreement Agreement Project Project Top Task Top Task Top Task Top Task 41 41 For Oracle employees and authorized partners only.

Do not distribute to third parties. 42 42 For Oracle employees and authorized partners only. one agreement can fund many projects. © 2009 Oracle Corporation – Proprietary and Confidential .Agreements and Funding Allocating Funding Amounts Agreement Project 1 Project 2 Project 3 Project 4 +200 -100 +500 +100 +300 -200 +100 -100 For example.

Agreements and Funding Revenue Budget Budget 1 Version 1 Version 2 Budget 2 Version 1 Version 2 Create multiple budgets and multiple versions for each plan type 43 43 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

Agreements and Funding Creating Baselines Enter Budget Rework Submit Create Baseline 44 44 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

Agreements and Funding Funding a Baseline Without a Budget X Baseline Funding Without Budget Optionally enable a project to baseline funding without budget 45 45 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

at the same time. 46 46 For Oracle employees and authorized partners only. When the project template is copied to create a project. the agreement template is. Do not distribute to third parties. One agreement template will fund one project template. © 2009 Oracle Corporation – Proprietary and Confidential . copied to create an agreement that is funding the new project.Agreements and Funding Defining Agreement Templates • Agreement templates are used to fund project templates.

fund the project template. 5. 2. Copy the project template to a new project. Set up an agreement template with the same customer name used in the project template. Do not distribute to third parties. Create cost and/or revenue budgets for the project template. In the agreement template. Baseline the budgets. 47 47 For Oracle employees and authorized partners only. 3. 6. © 2009 Oracle Corporation – Proprietary and Confidential .Agreements and Funding Creating a Project Using Quick Agreement Funding 1. Set up a project template and enter a customer name. 4.

revenue generation supports partial billing for transactions.Agreements and Funding Date Effective Funds Consumption • A new attribute on the Project Type form allows the customers to enable date effective funds consumption. In addition. transactions are only billed against the agreement if the full transaction amount can be funded. Do not distribute to third parties. When the option is not enabled. © 2009 Oracle Corporation – Proprietary and Confidential . When this option is enabled. cost and event transaction dates must fall within the agreement start and end dates to be billed against an agreement. 48 48 For Oracle employees and authorized partners only. This applies to both revenue and invoice generation.

49 49 For Oracle employees and authorized partners only. Do not distribute to third parties. • You associate payment terms with your customer invoices to determine your customer’s payment schedule. © 2009 Oracle Corporation – Proprietary and Confidential .Agreements and Funding Defining Agreement Type Setup • You define agreement types to help you distinguish internal agreements from those with your external customers. These payment terms are used for each invoice that is funded by a particular agreement. You specify payment terms when you define agreement types and agreements in Oracle Projects.

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Generating Revenue 50 50 For Oracle employees and authorized partners only.

Revenue received Work performed on a project 51 51 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .Generating Revenue Project Revenue Overview • Contract project revenue is the amount recognized as income to be received for work performed on a project. Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. As-work-occurs Cost-to-cost Event-based 52 52 For Oracle employees and authorized partners only.Generating Revenue Methods of Revenue Accrual • Oracle Projects supports three basic methods of revenue accrual.

© 2009 Oracle Corporation – Proprietary and Confidential . Outstanding Revenue to Accrue = Potential Revenue – Accrued Revenue You can report the outstanding revenue amount by project using the Potential Revenue Summary Report. 53 53 For Oracle employees and authorized partners only. For projects that hit a hard limit.Generating Revenue Hard Limit Processing Accrued revenue is the total amount of revenue accrued under the funding limits. Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential . 54 54 For Oracle employees and authorized partners only. • Percent completion information is used for revenue accrual and billing. Do not distribute to third parties. Oracle Projects does not calculate project or task percent completion.Generating Revenue Project Percent Complete • Use the Percent Complete window to enter the percent complete for a project or task. but uses the percent complete amounts that you enter. and for reporting purposes.

You must determine your accounting procedures and setup to ensure that you match expenses to revenue. it is possible to account for expenses (costs) and revenue in different accounting periods.Generating Revenue Revenue-Based Cost Accrual • Cost accruals are the accounting transactions to account for expenses in the same accounting period in which revenue is generated. 55 55 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . cost distribution and revenue generation are two separate processes. Do not distribute to third parties. Consequently. • In Oracle Projects.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Revenue Entering or Reviewing Events Enter or review events Project Top Task Top Task 56 56 For Oracle employees and authorized partners only.

The calculation is performed at the level of funding (project level. © 2009 Oracle Corporation – Proprietary and Confidential . • This method is typically a more conservative revenue accrual method than the as-workoccurs method. Basic Formula: Revenue = Actual Cost x Total Budgeted Revenue Total Budgeted Cost • This method relies on up-to-date budgets and uses the current budget. 57 57 For Oracle employees and authorized partners only. top task level).Generating Revenue Cost-to-Cost Revenue Calculations • With cost-to-cost revenue accrual. Do not distribute to third parties. revenue is calculated based on a ratio of actual costs to budgeted costs.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. the cost-to-cost formula is: Revenue = ( AC × (BR – ER)) BC AC = Total actual costs BC = Total budgeted costs BR = Total budgeted revenue ER = Manual event revenue • With this calculation: • Total Revenue = Automated Revenue + Manual Event Revenue 58 58 For Oracle employees and authorized partners only.Generating Revenue Events with Cost-to-Cost Revenue Accrual • The cost-to-cost revenue accrual method calculates revenue based on the actual cost of work performed. Manual events are additional revenue not included in this ratio. To account for manual events.

© 2009 Oracle Corporation – Proprietary and Confidential .Generating Revenue Revenue in Foreign Currency Description Pre-Release 12 Release 12 Post revenue to General Ledger in project functional currency only Post revenue to General Ledger via Subledger Accounting in project functional currency and invoice transaction currency View Unbilled Receivables and Unearned Revenue balances on Billing Workbench in project functional currency only View Unbilled Receivables and Unearned Revenue balances on Billing Workbench in project functional currency and project currency 59 59 For Oracle employees and authorized partners only. Do not distribute to third parties.

Do not distribute to third parties.Generating Revenue Revenue in Foreign Currency Setup and Process SETUP Enable Multicurrency Billing Box Checked Invoice by Bill Transaction Currency Unchecked Revenue Transaction Currency = Project Functional AND Invoice Transaction Currency Setup Customer Invoice Currency 60 60 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .

Generating Revenue Revenue in Foreign Currency Setup and Process (contd…) PROCESS Record Transactions Generate Revenue Generate Invoice Interface Invoice to Receivables Interface Revenue to Subledger Accounting Interface Receivables Invoice to Subledger Accounting Revalue Account Balances in General Ledger (AR/UBR/UER) at Period End Automated process 61 61 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Generating Revenue Revenue in Foreign Currency Setup – Project Billing Currency Invoice by Bill Transaction Currency Box Unchecked Enable Multi Currency Billing Box Checked <Enter slide note>Option to Select Revenue Transaction Currency 62 62 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Revenue Revenue in Foreign Currency Setup – Project Customers Invoice Transaction Currency = CAD (Project Functional Currency = USD in this example) 63 63 For Oracle employees and authorized partners only.

Generating Revenue Revenue in Foreign Currency Revenue Event Creation Event Currency = Invoice Transaction Currency = 150. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.000 CAD in this example 64 64 For Oracle employees and authorized partners only.

Generating Revenue Revenue in Foreign Currency Revenue Transaction Currency Review

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Generating Revenue Revenue in Foreign Currency Billing Workbench

Amounts Displayed in Project Currency Unbilled Receivables Amount in Project Currency

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Generating Revenue Revenue Flow

Generate Draft Revenue

Review Revenue

Release Revenue

Interface Revenue to GL

Tie back Revenue

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© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Revenue Generating Draft Revenue PRC: Generate Draft Revenue process for a Range of Projects PRC: Generate Draft Revenue for a Single Project Submit processes to generate draft revenue 68 68 For Oracle employees and authorized partners only.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. • You can view the following information: • Amount • Revenue category • Event description • Information about the distribution lines of a revenue item • Agreement providing the revenue funding • Date the revenue was interfaced to Oracle GL • Distribution warnings encountered while generating draft revenue 69 69 For Oracle employees and authorized partners only.Generating Revenue Reviewing Project Revenue • You use the revenue review windows to review detailed information about project revenue.

Generating Revenue Revenue Process Flow to GL Costdistributed expenditure items Events Adjustments Generate draft revenue Oracle General Ledger Interface to General Ledger GL interface Revenuegenerated expenditure items Revenuegenerated events GL journal import Tieback revenue GL journal entries 70 70 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

Do not distribute to third parties.Generating Revenue Extensions Revenue-Based Cost Accrual Extension Cost Accrual Billing Extension To extend the revenue and billing functionality. 71 71 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . you can optionally implement client extensions.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Revenue Profile Options PA: Interface Unreleased Revenue to GL Submit process to control processing for revenue and invoicing 72 72 For Oracle employees and authorized partners only.

© 2009 Oracle Corporation – Proprietary and Confidential .Generating Invoice 73 73 For Oracle employees and authorized partners only. Do not distribute to third parties.

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Generating Invoice Invoice Concepts Hard limit processing Accounting dates Billing amounts Methods of invoicing Percent complete Events 74 74 For Oracle employees and authorized partners only.

Do not distribute to third parties. 75 75 For Oracle employees and authorized partners only. but none of them with bill amount for $60 or less.2 3. © 2009 Oracle Corporation – Proprietary and Confidential .1 3.000 • Funded by an agreement with hard limit = Yes • Additional eligible items exist.Generating Invoice Hard Limit Processing for Invoices • Example of Invoice Hard Limit • Task 3.3 Marlin Gray Marlin Professional Field Equip Professional 6 5 6 TOTAL Hrs Days Hours 380 60 560 1000 Invoice Warning: Invoice has reached the hard limit.0 revenue budget = $1. • This table presents the “Billed Expenditure Items”: Task Employee Exp Type Qty Units Bill Amount 3.

Generating Invoice Overview of Accounting Dates All Invoices are accounted for using these dates : • GL date: Date accounted for based on GL periods • PA date: Date accounted for based on PA periods 76 76 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Generating Invoice Methods of Invoicing • You specify the invoicing method based on the distribution rule that you select for the contract project. © 2009 Oracle Corporation – Proprietary and Confidential . Supported Distribution Rules Distribution Rule Work/Work Work/Event Cost/Work Cost/Event Cost/Cost Event/Event Event/Work Revenue Method As-Work-Occurs As-Work-Occurs Cost-to-Cost Cost-to-Cost Cost-to-Cost Event/Milestone Event/Milestone Invoicing Method As-Work-Occurs Event/Milestone As-Work-Occurs Event/Milestone Cost-to-Cost Event/Milestone As-Work-Occurs 77 77 For Oracle employees and authorized partners only. Do not distribute to third parties.

• Percent complete history is maintained by the system. © 2009 Oracle Corporation – Proprietary and Confidential . but uses the percent complete amounts that you enter. Oracle Projects does not calculate project or task percent completion. Percent completion information is used for revenue accrual and billing. 78 78 For Oracle employees and authorized partners only.Generating Invoice Percent Complete • You can enter the percent complete for a project or task. Do not distribute to third parties. • The Percent Complete window includes the following features: • You can maintain percent complete information at all levels of the work breakdown structure (WBS). including at the project level. and for reporting purposes.

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential . 79 79 For Oracle employees and authorized partners only.Generating Invoice Event Billing • You enter events at either project-level or top-level tasks.

Do not distribute to third parties.Generating Invoice E-Business Tax Integration Description • Oracle E-Business Tax is a • Centralized tax application • Single source for tax content and rules • Oracle Projects is integrated with Oracle E-Business Tax to: • Utilize the common tax engine • Uptake common tax terminology and lists of values 80 80 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential .Generating Invoice E-Business Tax Integration Benefits • Single application for setup and maintenance • Setup the tax classification codes and projects tax default hierarchy using one single application. Do not distribute to third parties. • Utilize the common tax engine for tax code determination on project invoices. • Improved tax processing for internal invoices • Subscribe the provider and receiver operating units to the tax regime with Configuration for Taxes and Rules as Common Configuration. 81 81 For Oracle employees and authorized partners only. • Define the tax setup only once for the Global Configuration Owner.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Invoice E-Business Tax Integration Setup and Process Oracle E-Business Tax: Integration E-Business Suite Applications Transaction Data Oracle E-Business Tax Interface APIs Content Repository Services Tax Content Services Tax Determination Services Tax Administration Services Transaction Tax Data Record Repository Partner Tax Content Interface Tax Partner Partner Tax Services Interface Tax Content Tax Services 82 82 For Oracle employees and authorized partners only.

Generating Invoice E-Business Tax Integration Setup – Application Tax Options 83 83 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

Do not distribute to third parties.Generating Invoice E-Business Tax Integration Setup – Billing Workbench Invoice Details 84 84 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .

85 85 For Oracle employees and authorized partners only.Generating Invoice E-Business Tax Integration Setup – Internal Invoices • Tax Regime • Define tax regime. • Subscribe the provider and receiver operating units with Configuration for Taxes and Rules as Common Configuration in Oracle E-Business Tax. • Tax Setup • Define tax setup for the tax regime with Configuration Owner as Global Configuration in Oracle E-Business Tax. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Generating Invoice E-Business Tax Integration Dependencies and Interactions • E-Business Tax • Oracle Projects depends on Oracle E-Business Tax for the following: • Setup projects tax default hierarchy • Tax engine for tax code determination on project invoices 86 86 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Generating Invoice Customer Retention Billing 87 87 For Oracle employees and authorized partners only.

Generating Invoice Implementing Billing Retention Setting Up Billing Implementation Options Defining and Enabling AutoAccounting for Revenue and Billing Defining Invoice Formats Accounting for Unbilled Retention 88 88 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties.Generating Invoice Invoice Flow to AR Revenue distributed costs Generate draft invoice Approve/release invoice Events Interface to Receivables Oracle Receivables AR interface Adjustments AR AutoInvoice Tieback invoices AR invoices 89 89 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Invoice Generating Invoices PRC: Generate Draft Invoices for a Single Project Submit process to generate invoice for a single project. PRC: Generate Draft Invoices for a Range of Projects Submit process to run multiple invoice generation processes 90 90 For Oracle employees and authorized partners only.

• This flow uses the same type of processes as costing and revenue: Interface. Import. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. • You can use an Interface Streamline option to interface invoices to AR. and Tieback.Generating Invoice Interfacing Invoices to AR • Oracle Projects interfaces invoices to Oracle Receivables. Released invoices Invoices Oracle Projects Oracle Receivables Journal entries General Ledger 91 91 For Oracle employees and authorized partners only.

© 2009 Oracle Corporation – Proprietary and Confidential .Generating Invoice Implementing Oracle Receivables for Oracle Projects Integration • Oracle Projects interfaces with Oracle Receivables to process your invoices and track customer payments. • Oracle Projects predefines all of the information required for the Oracle Receivables AutoInvoice program to process Oracle Projects invoices. Oracle Projects Oracle Receivables 92 92 For Oracle employees and authorized partners only. Do not distribute to third parties.

Oracle Projects System Parameters 93 93 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Generating Invoice Defining Receivables System Options • If you have installed the standalone version of Oracle Projects. system parameters provide default values required for customer entry. • Use the System Options window to view and update the system options used by Oracle Receivables.

94 94 For Oracle employees and authorized partners only.Generating Invoice Defining Transaction Types for Invoice Processing • Oracle Projects generates draft invoices and uses Oracle Receivables features to post them to Oracle General Ledger. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential . • Oracle Receivables uses transaction types to determine whether the transaction generates an open receivable balance and whether it posts to Oracle General Ledger. and maintain and track customer payments on them.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. Oracle Projects assigns a primary salesrep to the invoice and interfaces sales credit lines for the invoice based on the project’s credit receivers. 95 95 For Oracle employees and authorized partners only. • Oracle Projects assigns the project manager on the project as the primary salesrep as long as the project manager is defined as a salesrep in Oracle Receivables.Generating Invoice Defining Salesreps for Sales Credit • When you interface Oracle Projects invoices to Oracle Receivables.

Generating Invoice Billing Adjustments • Billing adjustments include the following classes of adjustments: Adjustments during invoice review Adjustments to existing revenue and invoices Adjustments at project completion 96 96 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties. All expenditure items billed on the original invoice return to an unbilled state. • When you cancel an invoice: A credit memo is created. © 2009 Oracle Corporation – Proprietary and Confidential . The receivables account is reduced. or the unearned revenue is reduced upon interface to AR. 97 97 For Oracle employees and authorized partners only. the unbilled receivables account is increased.Generating Invoice Invoice Cancellation • You can cancel a released invoice.

• When you write off an invoice. © 2009 Oracle Corporation – Proprietary and Confidential . • The following table shows the resulting accounting transactions: Function Invoice writeoff Application Oracle Projects Account Invoice write-off (bad debt) DR 100 CR Receivables 100 98 98 For Oracle employees and authorized partners only.Generating Invoice Invoice Write-Offs • You can write off part or all of an invoice that cannot be collected. Use this feature for bad debts. a write-off invoice is created (with a crediting amount) with the amount prorated across invoice items. Do not distribute to third parties.

Click the Regenerate or Delete Invoices option. 99 99 For Oracle employees and authorized partners only. Revenue and Cost • You can regenerate adjusted revenue and invoice amounts from the Invoice Summary window for a single project. Click the OK button. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. Click the Run button. A Streamline Request is submitted to the Concurrent Manager.Generating Invoice Regenerating Invoices.

Generating Invoice Invoice Line-Level Write-Off 100 100 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Generating Invoice Invoice Method at Top Task Navigation : Options>Task Detail>Billing Information>Billing Setup 101 101 For Oracle employees and authorized partners only.

Generating Invoice Invoice Concessions

102 102

For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Generating Invoice Invoice Review in a New Interface

103 103

For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Generating Invoice Client Extensions

Billing Extensions Labor Billing Extension Retention Billing Client Extension Automatic Invoice Approve/Release Extension AR Transaction Type Extension Output Tax Extension

104 104

For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential

Interproject Billing 105 105 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Interproject Billing Interproject Billing Overview Receiver Project Payables invoice Costs Interproject Invoices Receivables Invoice Collect Costs Provider Project 106 106 For Oracle employees and authorized partners only.

The project must be a contract project but cannot use an intercompany billing project type. lowest tasks is performed on separate projects. Define Receiver Projects 107 107 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential .Interproject Billing Define Provider and Receiver Projects Define Provider Projects Define a provider project to perform work on the lowest task of a receiver project. You can define a provider project in any operating unit that has been identified as a provider operating unit. Do not distribute to third parties. Define a receiver project for inter-project billing so that work on some or all of the chargeable.

© 2009 Oracle Corporation – Proprietary and Confidential .Interproject Billing Interproject Billing Processing Flow Enter Expenditures on Provider Project Invoice automatically created in Receiver OU Payables AP Invoice Import Generate Draft Interproject (IP) Invoice Run Tieback from Receivables Approve AP Invoice/Transfer to GL Update PSI Approve & Release Draft IP Invoice Interface IP Invoice to Receivables Interface Supplier Invoices to Projects View Costs on Receiver Project/Task 108 108 For Oracle employees and authorized partners only. Do not distribute to third parties.

The provider assigns the receiver as its internal customer (Customers and Contacts). Do not distribute to third parties. The receiver must identify valid providers. 109 109 For Oracle employees and authorized partners only. The provider and receiver must enable their respective provider and receiver roles.Interproject Billing Defining Interproject Billing • To establish an interproject relationship the following tasks must be performed: A provider and receiver project must be created. The provider must identify valid receivers. The receiver must allow interproject invoices (Task Options). © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Interproject Billing Additional Setup Steps Defining Expenditure Types Defining Agreement Types Defining Billing Cycles Defining Invoice Formats 110 110 For Oracle employees and authorized partners only.

This internal customer generates interproject invoices. • For this supplier. • In Oracle Receivables. Do not distribute to third parties. 111 111 For Oracle employees and authorized partners only. you define supplier sites for each operating unit.Interproject Billing Defining an Internal Supplier and Customer • In Oracle Payables. define a customer for interproject billing transactions. define a supplier for interproject billing transactions. © 2009 Oracle Corporation – Proprietary and Confidential . Payables invoices will be sent to this internal supplier during the Tieback Invoices from Receivables process.

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties. 112 112 For Oracle employees and authorized partners only.Interproject Billing Implement Interproject Billing Extensions Internal Payables Invoice Attributes Override Extension Submit process to override the payables invoice attributes. Provider and Receiver Organizations Override Extension Submit process to enforce and maintain your business rules .

you must modify the Supplier Invoice Charge Account process so that it returns a generic cost account for internal invoices. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Interproject Billing Define the Supplier Invoice Charge Account • In Oracle Payables. • You can use different supplier types to differentiate between regular and internal invoices. 113 113 For Oracle employees and authorized partners only. You can further differentiate internal invoices between intercompany and interproject invoices by specifying the appropriate invoice source for Projects intercompany invoices and interproject invoices.

Accounting for Revenue and Invoices 114 114 For Oracle employees and authorized partners only. © 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.

the way you organize your chart of accounts affects your implementation data. • Consequently. © 2009 Oracle Corporation – Proprietary and Confidential . 115 115 For Oracle employees and authorized partners only. Do not distribute to third parties.Accounting for Revenue and Invoices AutoAccounting • The AutoAccounting feature in Oracle Projects derives values for account combinations based on project information for all accounting transactions in Oracle Projects.

© 2009 Oracle Corporation – Proprietary and Confidential .Accounting for Revenue and Invoices AutoAccounting Rules AutoAccounting Rules SQL Statement Constant Parameter Parameter Parameter Parameter Lookup Set Lookup Set Lookup Set Lookup Set 116 116 For Oracle employees and authorized partners only. Do not distribute to third parties.

Accounting for Revenue and Invoices AutoAccounting Rule Mapping AutoAccounting Rules SQL Statement Constant Parameter Intermediate Value Lookup Set Lookup Set Segment Value Segment Value Code Combination Segment 117 117 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Accounting for Revenue and Invoices Assign Rules Function Function Transactions Segment Rule Pairings 118 118 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

© 2009 Oracle Corporation – Proprietary and Confidential . Do not distribute to third parties.Accounting for Revenue and Invoices Contract Project Accounting Invoices Invoices Oracle Projects Oracle Receivables Customers Receipts Revenue Accounting Invoice and Receipt Accounting Oracle General Ledger 119 119 For Oracle employees and authorized partners only.

Track as a liability to be decreased later by a revenue transaction. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Accounting for Revenue and Invoices Unbilled Receivables and Unearned Revenue Revenue accrual and invoicing do not usually occur at the same time. 120 120 For Oracle employees and authorized partners only. You can: • Accrue revenue before invoicing • Invoice before revenue accrual Unbilled receivable is revenue accrued in excess of billing. Unearned revenue is billing in excess of revenue. Track as an asset to be converted later into a receivable asset.

Accounting for Revenue and Invoices Accounting for Revenue and Billing Usage Revenue Revenue Example: Time & Materials Project Oracle General Ledger Labor Revenue Implement revenue AutoAccounting functions to determine the revenue accounts interfaced to Oracle General Ledger 121 121 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Accounting for Revenue and Invoices Realized Gains and Losses PRC: Interface Revenue to General Ledger Submit processes to create a separate accounts for realized gains and realized loss accounts 122 122 For Oracle employees and authorized partners only.

3. When an amount is converted from currency A to currency B (and rounded to the nearest unit). Oracle Receivables converts the invoice to the functional currency for posting to General Ledger.Accounting for Revenue and Invoices Invoice Rounding • When currencies are converted. a rounding difference can occur. You generate a project invoice in invoice processing currency Oracle Projects then converts the invoice to the invoice currency (if it is different from the invoice processing currency). it is necessary to round figures to the nearest currency unit. then converted back to currency A. 2. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential . 123 123 For Oracle employees and authorized partners only. This can occur during the following sequence of events: 1.

124 124 For Oracle employees and authorized partners only. Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .

Do not distribute to third parties. © 2009 Oracle Corporation – Proprietary and Confidential .Thank You ! 125 125 For Oracle employees and authorized partners only.

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