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

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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.Major New Release Projects Family Pack M (FP. 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 Oracle Proprietary and Confidential Information .

all work will be project work” -Tom Peters Oracle Proprietary and Confidential Information .“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.

” .Proof Points 1 “Future killer applications for the enterprise are projected to be around business activity monitoring.The Project Management Institute.000 were awarded. in helping to manage projects.Capgemini Les Fontaines Future Trends Event .000 in just the first 5 months of 2005.000 PMP certifications were awarded. in a wider range of companies and industries.” .” Gartner [is] seeing a trend in its customers whereby almost everything today [is] a project with a beginning and an end. November 2005 3 “Ultimately. 2006 4 “Project management will increasingly be recognized as an enterprise core competence in its own right. In the five years since more than 100. about 25. 25.Bob Hayward. project based software solutions focus on managing an supporting project based business processes.Ray Wang. contract management and for managing vendors and suppliers. for asset management. Gartner August 2005 2 “In the first 17 years of PMP certifications through 2000.” .” . October 2005 Oracle Proprietary and Confidential Information . Forrester.

Project Management Revenue Soars! FY05 – FY06 38% Increase! Oracle Proprietary and Confidential Information .

How Efficient Are You?
APM 2005 Gartner 2005

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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, “What’s Next: Project Management”, Mary Brandel; Survey of 338 IT Executives

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Disconnected Information, Processes, and Systems
Strategy Risks Project Plans

Project Centric Dept
Resources

Contractors
Budgets & Forecasts

Business Units
Invoices & Actuals Standards & Processes

Management
Deliverables

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2006 Oracle Proprietary and Confidential Information .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.

9th Annual Global CEO Survey 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.

companies are globalizing to gain new customers and access new markets.” – HP SVP Dick Conrad Globalization is unstoppable. industry or income. • Custom Application Development: Virtually everyone Oracle “Our strategy is to work with global networks to leverage the best technologies on the planet. Source: 9th Annual Global CEO Survey – Globalization and Complexity. 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. PwC 2006 Oracle Proprietary and Confidential Information . • Design: Boeing designing navigation and landing gear systems offshore in India. Regardless of geography.Globalization Key to Competitiveness • The World is Flat • R&D: Proctor & Gamble to source 50% of new product ideas from global partners by 2010.

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 Oracle Proprietary and Confidential Information .Managing Complexity It’s About Simplification & Standardization 50% of senior executives say simplification is driving the Finance agenda.

divisions. manage. and regions” • Manage Globally to lower cost and increase performance •“R12 makes it easier and less expensive for me to implement.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. and scale global applications” Oracle Proprietary and Confidential Information 3 .

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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

• Extensible list of sources to derive accounts • Projects will be seeding over 300 sources to help customers derive accounts and account descriptions Oracle Proprietary and Confidential Information .Subledger Accounting Upgrade / Setup • 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.

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.Subledger Accounting Upgrade / Setup • 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. Oracle Proprietary and Confidential Information .

Subledger Accounting 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 Oracle Proprietary and Confidential Information .

Subledger Accounting 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) Oracle Proprietary and Confidential Information .

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

Oracle Proprietary and Confidential Information . 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.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.

America Data Entry Data Processing Reporting Data Entry Data Processing Reporting Data Entry Data Processing Reporting Oracle Proprietary and Confidential Information .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 Data Entry Data Processing Reporting Data Entry Data Processing Reporting Oracle Proprietary and Confidential Information .Shared Service Center Data Entry Data Processing Reporting N. America UK Data Entry Data Processing Reporting Data Entry Data Processing Reporting Germany Data Entry Data Processing Reporting France Japan S.

Run concurrent programs and reports for multiple operating units from a single responsibility Oracle Proprietary and Confidential Information .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 .Multi-Org Access Control • Data Entry .

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

etc. AP.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 Oracle Proprietary and Confidential Information .) and was self contained as to management.general data .A Set of Books was a general ledger with its associated subledger books (AR.Ledger Architecture Difference between SOB and Ledger SOB .transactions and balances . calendaring and reporting • Ledger .

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .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.

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

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

Release 12 Financial Initiatives • 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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .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.

eTax Uptake • Setup via eTax (at the project level. • Integration with Payables and Receivables Oracle Proprietary and Confidential Information . 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.

E-Business Tax Integration Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

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

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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

New Supplier Cost Audit Report Oracle Proprietary and Confidential Information .

Receipts. Supplier Invoices. Payments Oracle Proprietary and Confidential Information . Expense Reports.Supplier Cost Audit Report Runtime Parameters Parameters available: All.

Expenditure Inquiry Find Window Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

Invoice Workbench Oracle Proprietary and Confidential Information .

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 Date from Purchasing • Subcontractor Payment Management Uptake • Revenue in a Foreign Currency Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

Oracle Proprietary and Confidential Information . Retainage not shown as commitments .Subcontractor Payment Management Projects Impact • Commitment Reporting .Financing pay items.Unmatched prepayments are displayed as commitments • Budgetary controls – Retainage distributions are not funds checked against the project budget.

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 Date from Purchasing • Subcontractor Payment Management Uptake • Revenue in a Foreign Currency Oracle Proprietary and Confidential Information .

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 • Oracle Proprietary and Confidential Information .

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 Oracle Proprietary and Confidential Information .

Revenue in Foreign Currency Setup – Project Customers Invoice Transaction Currency = CAD (Project Functional Currency = USD in this example) Oracle Proprietary and Confidential Information .

Revenue in Foreign Currency Revenue Event Creation Event Currency = Invoice Transaction Currency = 150.000 CAD in this example Oracle Proprietary and Confidential Information .

Revenue in Foreign Currency Revenue Review New columns added Oracle Proprietary and Confidential Information .

com/technology/documentation/applications. Client Extensions.html Oracle Proprietary and Confidential Information –All .com/applications/projects/intro.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.oracle.oracle.oracle. and Open Interfaces Reference (B25624-02) – Projects Collateral & Whitepapers: http://www.com/ Oracle Product Documentation: –http://www.For More Information… Metalink Information: –http://metalink.