6

Define Project Financial Management

Organizations

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Objectives

After completing this lesson, you should be able to:

• Create business units for Project Financial Management
• Construct project organizations and project units
• Manage project organization classifications and hierarchies
• Use reference data
• Run Maintain Project Organizations process

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Define Organization Setup for Project Financial Management:
Setup Task Lists
Task List
Define Organization
Structures for Project
Financial Management
Define Business Units for
Project Financial Management
Define Workforce Structures
for Project Financial
Management
Description
Configure business units for controlling transactions and workforce
structures for managing the enterprise.
Access your business units, and specify units and attributes relevant to
Oracle Fusion Project Financial Management. Create and maintain
information on units of an enterprise to allow for flexible implementation,
to provide a consistent entity for controlling and reporting on
transactions, and to be an anchor for the sharing of sets of reference
data across applications.
Configure structures to represent the management and operating
requirements of the enterprise. Define the structures to support and
represent workers using jobs, positions, and grades.
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Business Units Overview

In Oracle Fusion Applications, use business units as a securing mechanism for transactions.
Use business units for:
• Management reporting
• Transaction processing
• Transactional data security
• Reference data definition and sharing

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Define Business Units for Project Financial Management –
Vision Corporation Example

Vision Corporation Consolidation

Ledger (USD) Calendar Year

Vision North America Vision China

US China
Primary Ledger (USD) Primary Ledger (CNY)
Calendar Year Calendar Year

US1 US1 China

Legal Entity 1 Legal Entity 2 Legal Entity 3

US1 Business US2 Business China

Unit Unit Business Unit

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Business Functions Overview

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Business Unit Hierarchy Example

Vision Corporation Consolidation

Ledger (USD) Calendar Year

Vision North America Vision China

Business Units
US2 US1 China
Business Business Business
Unit Unit Unit

Internal Services Consulting Services

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Business Unit Security

Use the Security Console to assign users to job or abstract roles.

Use the Manage Business Unit Data Access for Users task to assign users data context
values for business units.

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Project Units

Project units are operational subsets of an enterprise that conduct business operations
using projects and need to enforce consistent project planning, management, analysis, and
reporting.

Sales and Consulting Research and

Project Unit Development Project
Unit

• Project units often represent lines of business, such as Consulting Services, Sales, and
Research and Development.
• You must set up at least one project unit.

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Project Unit and Business Unit Associations

You can associate one project unit with multiple business units. Conversely, you can
associate one business unit with multiple project units.

US1
Business Unit

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Project Unit Associated with Two Business Unit

You can partition financial data using business units while sharing a single approach to
project financial management across all business units

Project Unit:
Consulting Services

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Vision Corporation Business Unit and Project Unit Associations

LE: China Legal Entity

Business Unit: China Business Unit
LE:US2 Legal Entity
Business Unit: US2 Business Unit
LE: US1 Legal Entity
Business Unit: US1 Business Unit

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Manage Organization Hierarchies and Classifications

Implement Project Financial Management applications with or without organization

hierarchies.

Organization hierarchy types

Organization classifications
available if not specified

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Using Capitalized Interest Rates

Capitalized interest rates require an organization hierarchy.

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Project Expenditure and Project and Task Owning Organizations

Project Expenditure Project and Task

Organization Owning Organization

Revenue
Financial Planning Expenditure Reporting Security Accounting

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Project Organization Classifications

To own projects and task, or project-related expenditures, an organization must be:

• Classified as a project and task owning organization or a project expenditure
organization as shown in the graphic.
• Assigned to the hierarchy that you specify in the project implementation options for the
business unit

Project and task owning

organization classification

Project expenditure
organization classification

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Vision Corporation Project Organization Structure

Project and Task Project Expenditure

Vision Corp
Owning Organization Owning Organization

China Business Unit US 1 Business Unit US 2 Business Unit

Consulting China Consulting USA Apps. Services

Data Center
Consulting East US
Global IT
Consulting West US
Global Networks
Consulting North US
Consulting Internal
Services Project Unit Consulting South US Services Project Unit

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Define Reference Data Sharing

Reference data sharing facilitates sharing of configuration data such as project types, rates
schedules, and financial plan types. Share data across organizational divisions such as
business unit or project units.

Consulting Common Internal

Services Data Services Data
Data

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Reference Data Partitions

Shared
Data
Contractor Consulting Internal
Services Data Services Data

Common
Data
Labor Rate
Shared Shared
Data Data

Healthcare
Services Data
Meals

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Set Assignments for Expenditure Types
Expenditure Type (Determinant = Project Unit) Project Unit Set Assignments
Expenditure Types Sets
Reference Data Object Project Unit Set Set
Labor Consulting, Real Estate Assignment
Airfare Consulting 3 Project Transaction Types Consulting Services Consulting
Hotel Consulting, Real Estate Project Transaction Types Real Estate Services Real Estate
Fringe Consulting, Real Estate
Raw Materials Real Estate
Project 2
Project Description Business Project Unit
Unit
ABC Customer ABC Implementation US Consulting Services
DEF Customer DEF Implementation UK Consulting Services
1 GHI Customer GHI Implementation France Consulting Services
XYZ SF Office Renovation US Real Estate Services

Expenditures 4
Project Task Exp. Item Date Expenditure Expenditure Type Amount
Organization
ABC 1.0 04/04/2016 US – West Hotel 200.00
ABC 1.0 04/04/2016 US – West Airfare 800.00
GHI 2.3 04/04/2016 France – Provence Hotel 250.00
XYZ 1.1.3 04/04/2016 San Francisco Raw Materials 2000.00

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Reference Groups

Reference groups for Project Financial Management are listed in the table below.

Reference Group Entities

Project Definition Class Codes, Financial Plan Types, Project

Plan Types, Project Roles
Project Transaction Types Expenditure Types, Work Types

Project Accounting Definition Project Types

Project and Contract Billing Invoice Formats

Project Rates Rate Schedules

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Determinant Types

The determinant types for Project Financial Management and their associated references
groups are listed in the table below.

Determinant Types Reference Group

Project Unit Class Codes, Financial Plan Types, Project

Plan Types, Project Roles

Project Unit Project Transaction Types

Business Unit Project Accounting Definition

Business Unit Project and Contract Billing

Business Unit Project Rates

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Reference Data Set Assignment

Financial Plan Type Set Project Unit

Consulting

Consulting Consulting Consulting

Bid Services Set Services
Projects

Internal Internal
Estimate
Services Set Services
Projects

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Maintain Project Organizations

Run the Maintain Project Organizations process after you add organizations, project
classifications, or business units. Also run the process after you update project organization
classifications or hierarchies.

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Project Organization Classification Security

Use the Security Console to assign users to job or abstract roles.

Use the Manage Project Organization Classifications Data Access for Users task to assign
users data context values for project organization classifications.

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Summary

In this lesson, you should have learned how to:

• Create business units for Project Financial Management
• Construct project organizations and project units
• Manage project organization classifications and hierarchies
• Use reference data
• Run Maintain Project Organizations process

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