Oracle Project Implementation Strategies

Agenda
■ Oracle Project Presentation
■ Roles and Responsibilities (Identifications of Core Team)
■ Implementation Strategy (which Projects / Locations)
■ Training Strategy (Key User and End user)

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 Overview of Oracle Project

The purpose of Oracle Projects is to track and control

work (or activity) on a project.

■ You track activity on a project by comparing actual

activity with expected activity.

■ Record actual activity as actuals (transactions).

■ Record expected activity in a budget.

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 Oracle Projects Features
Oracle Projects has many features that address
common business needs:
■ Project-tracking tools
■ Cost collection and calculation capabilities
■ Allocations and allocation sets features
■ Project asset creation functions
■ Flexible revenue accrual and invoicing functions
■ Online reporting and hard-copy reporting
■ Full adjustment capabilities
■ Oracle and non-Oracle applications integration

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 How to Use Oracle Projects
The following is a typical process flow using Oracle
projects:

■ Create a project
■ Enter a budget
■ Collect actuals (transactions)
■ Process cost, revenue, and invoice transactions
■ Capitalize asset costs
■ Perform analysis/reporting

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 Overview of Oracle Projects
You define a project and work breakdown structure
(WBS) to record work and process transactions as
you require. Project definitions can be simple or
complex, depending on your requirements.
Project definitions can include:

• Classification information • Revenue and billing

• Work breakdown information
structures • Single- or multiple-
• Charge controls organization usage

• Costing overrides • Function or project security

controls

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 Project Definition
A project is a unit of work made up of one or more
tasks. For example, you can use projects to track:

Product/Asset
Indirect Work Development Services
• Indirect projects • Cost of product/asset • Customer billing
development
• Research and • Professional
Development • Cost capitalization services consulting
• Capital projects • Construction/
engineering
• Government
contractors
• Contract projects

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 Project Classes
You can use three predefined project classes to track
the following types of information:
■ Indirect projects: Track overhead activities and
costs.
■ Capital projects: Track product/asset development
activities and costs. Costs are capitalized as one or
more assets.
■ Contract projects: Track activities, cost, revenue,
and billing for work performed for and reimbursed by
an internal or external customer.

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 Information in Oracle Projects
■ Costs
► What are the actual costs incurred?
(labor, expenses, materials, and usages)
► What are the outstanding committed costs?
► What are the forecasted costs over future time
periods?
■ Labor utilization
► What types of skills are used on projects?
► What percent of employees are billable?
► Can labor costs be recovered?

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 Information in Oracle Projects
Funding
► How have we allocated customer funding to projects?
► How much revenue have we accrued to date?
■ Customer invoice
► Did
we invoice for the latest completed deliverable?
► What is the total project billing?
■ Asset utilization
► Are the costs of nonlabor company assets recovered
with current bill rates or markups?
► Are all costs allocated from service centers to served
organizations?
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 Oracle Projects Central Repository

Oracle Projects is a central repository that provides a

completely integrated cost management solution for
all the projects and activities across your enterprise.
It has two main components:
■ Project Costing
■ Project Billing

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 Oracle Projects Costing

Project Costing provides:

■ A central cost collections system
■ A bridge between project management and
financial accounting
■ A mechanism for providing timely, detailed cost
information to project managers and financial
accountants

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 Oracle Projects Billing

Project Billing provides:

■ Simplified customer invoicing
■ Flexible revenue accrual
■ Profitability and performance measurements
■ Integration with Oracle Receivables

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 Project-Tracking Tools

Project managers use Oracle Projects to

track detailed costs, manage within budget,
and stay on schedule while achieving project
objectives.
Transaction Company-Cost Center—Account Amount
10 hours of labor on
Monday, May 13, 2007 on 01-100-5153 $220
project XYZ, task 1

Financial analysts require the details to manage the

overall business. Oracle Projects translates project
details into financial transactions so the financial
analysts have the details they require.

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 Work Breakdown Structure

■ Your project, which consists of one or more tasks,

can be as simple or detailed as you want it to be.

■ You can define an unlimited hierarchy of tasks,

called a work breakdown structure (WBS), to
organize and monitor project activities.

Project

Task 1 Task 2

Task 1.1 Task 1.2 Task 2.1 Task 2.2

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 Types of Cost

You record transactions against a project to record

actual work performed or cost incurred. For example:
■ Timecards
■ Expense reports
■ Usage logs
■ Posted supplier invoice (posted to GL)
You also record committed costs. For example:
■ Requisitions
■ Purchase orders
■ Pending supplier invoices (not posted to GL)

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 Methods of Cost Entry

Oracle Projects lets you track and account for all

project costs in your company using the following
methods:
■ Preapproved Expenditure Batch: Input charges directly
into Oracle Projects.
■ Oracle Self-Service Time and Expenses: Input labor and
expense charges using Oracle Self-Service applications.
■ Oracle Purchasing and Oracle Payables: Import charges
from requisitions, purchase orders, and supplier
invoices.
■ Transaction Import: Import charges collected in external
systems.
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 Methods of Cost Entry

Oracle Projects also provides a Project Allocation

feature that allows you to allocate costs from one or
more source projects, from GL accounts, or from a
fixed amount to one or more target projects on a
periodic basis.
Your allocations can:
■ Distribute costs to projects evenly
■ Distribute costs using target percentages
■ Prorate costs based on actual or budgeted amounts
■ Calculate cost distribution using a custom formula

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 Cost Calculations

Processed transactions can have the following costs:

■ Raw cost: The costs that are directly attributable to

work performed (also referred to as direct cost).

■ Burden cost: The cost of running the business that

supports the raw cost (also referred to as indirect
cost).

■ Total Burdened Cost: Raw Cost + Burden Cost

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 Capitalization of Project Costs

You can easily manage all project related

construction-in-process (CIP) costs and expenses
for capital projects. Oracle Projects becomes the
CIP subledger for project related CIP costs.

Work breakdown structures (WBS) provide an

efficient mechanism for managing the project and
tracking asset costs as they accumulate over time.

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 Capitalization of Project Costs

With Oracle Projects, you can:

■ Associate project assets with a work breakdown
structure
■ Collect actual project costs
■ Capitalize the assets
■ Use the Oracle Assets Mass Additions
functionality to allow project information to flow
directly from Oracle Projects to Oracle Assets
■ Easily adjust asset costs, even after
capitalization

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 Revenue Accrual and Billing

Oracle Project Billing functionality provides the

flexibility to keep up with your changing business
needs. You can automatically accrue revenue
according to your company policies. For example:
■ Time and material bill rates
■ Cost plus buildup
■ Percent spent ratio
■ Or any algorithm you define
You can accrue revenue differently based on the type
of project. You can also bill each project differently,
even if the same client has multiple projects. You can
easily manage cash collection in Oracle Receivables.

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 Billing Controls

You can control which transactions are billable for

projects and tasks.

Billable means that you can accrue revenue and

bill your customers.

Nonbillable means that you cannot accrue revenue

or bill your customers.

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 Oracle Projects Interfaces
Oracle
Payroll External Project
Human Fixed Assets
Service Transaction Management
Resources
Timecards
Actuals Assets

Reference Employees Oracle

and Organizations Import Plan
Inventory

Usages
Oracle Projects
Issues and Receipts
Reference Report Committed Costs Supplier Invoices,
Customers Invoice Adjustments

Invoices Adjustments Expense Reports

Accounts Accounts
Post Cash Purchasing
Receivable Payable
Post Actual Expense
Post Revenue
Post Labor Distribution General Ledger Post Usage Distribution

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Thank You !

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