Oracle Projects - The Basics of Integration

Mehmood Merali Ernst and Young LLP Introduction
This paper introduces the basic concepts of integrating Oracle Projects (PA) with five other modules, namely Oracle General Ledger (GL), Oracle Purchasing (PO), Oracle Payables (AP), Oracle Receivables (AR) and Oracle Assets (FA). This paper discusses the following items for each integration point: 1. 2. 3. the flow of data across the integration point; the set up parameters necessary to enable inter-module integration; and, the required concurrent manager processes to push or pull data across these integration points. AutoAccounting and Flexbuilder in Oracle Projects, please refer to the paper by Edward Charity of Ernst & Young, LLP, entitled ‘Understanding Oracle Projects’ AutoAccounting and Flexbuilder Functions”, presented at OAUG Sep ’97 in Orlando, Florida.). Project costs are summarized in PA and transferred to GL via the journal import table, where they are posted to the general ledger. Data Flow PA collects detailed project cost and revenue. These costs are distributed to valid accounts in the chart of accounts defined in the GL. PA uses AutoAccounting and Flexbuilder features to derive these accounts. Once distributed, PA transactions are then summarized and transferred into the journal import table. The journal import process posts these transactions to the general ledger. The tieback costs and revenue process in PA verifies that these costs and revenues were posted to valid account code combinations in the general ledger. Oracle predefines a journal source and several journal categories for this integration. The journal source is called ‘Project Accounting’ and the journal categories are as follows: • Labor Cost; • Total Burdened Cost; • Usage Cost; and, • Revenue. Set up Parameters Oracle Projects (PA) is a sub-ledger which collects detailed project costs and revenue. These detailed costs and revenue are distributed using the AutoAccounting (and Flexbuilder) feature of PA. These features ensure that costs and revenue are charged to valid accounts and account code combinations as per the chart of accounts. (For more information on the The following set up parameters are required to enable data to flow from PA to GL.

References in this paper to navigation paths, form names, implementation options, etc are for Oracle Projects 10.7 SC. These may be available under different paths and options in other releases, or may not be available at all, especially in earlier releases. The scope of this paper does not include differences between Oracle Projects release 10.7 SC and other releases. In addition to the information in this paper, this presentation at OAUG will also include discussion of sample debit and credit entries of each integration transaction.

Integration between Oracle Projects and General Ledger

In PA, set up implementation options as follows: Setup>System>Implementation Options>Costing

Copyright © 1998 by Mehmood Merali

They must In GL.Setup>Journal>Categories Setup>System>Implementation Options>Billing Concurrent Manager Processes The following concurrent processes must be executed for the data to be pushed into the journal import table. Once data has been interfaced into the journal import table. PRC: Tieback Total Burdened Costs from GL. the tieback process is ready to be invoked. PRC: Interface Total Burdened Costs to GL. PRC: Tieback Revenue from GL. This process brings the summary PA transactions into GL and are ready to be posted.) PRC: Interface Labor Costs to GL. the following concurrent processes must run successfully: PRC: Tieback Labor Costs from GL. PRC: Tieback Usage Costs from GL. PRC: Interface Usage Costs to GL. and. as follows: Setup>Journal>Sources Copyright © 1998 by Mehmood Merali . After they are successfully posted. and subsequently pulled from this table to be posted into the GL: (please note: expenditures must be distributed and invoices generated prior to running these processes. the journal import must be submitted from the GL module. PRC: Interface Revenue to GL. ensure journal entry source and categories are predefined. To tieback costs and revenue from GL to PA. Please note: you can use any combination of streamline processes or perform individual functions to invoke these interfaces.

However. The tieback process is run after AP Invoice Import has run. LLP. Please note that the PA AutoAccounting rules take precedence over the employee’s default expense account when determining the invoice liability account (and it does not invoke Flexbuilder) The tieback process is then invoked in PA to ensure that AP transactions have been successfully interfaced. presented at OAUG Sep ’97 in Orlando. Set up Parameters To charge PO and PA against projects. you should review the profile option PA: Allow Override of PA Distribution in AP/PO. This is accomplished by entering project related information into the source requisition or purchase order. AP creates invoices from these expense reports using the InvoiceImport feature. Integration between Oracle Projects and Purchasing The integration between PA and PO allows you to view committed costs of requisitions and purchase orders within PA. please refer to the paper by Edward Charity of Ernst & Young. Integration between Oracle Projects and Payables The integration between PA and AP allows for three types of transactions to flow between them. Expense reports entered into PA for project related expenditures are sent to AP via the AP interface tables. The parameter can be set at a site level as well as at a responsibility level. Flexbuilder is also automatically invoked to build account flexfields. Copyright © 1998 by Mehmood Merali . reversing entries are automatically created. However. for project related requisitions and purchase orders. These are: • supplier invoices. If the changes are made after the requisition and purchase order have been approved and processed. • expense reports. (For more information on the AutoAccounting and Flexbuilder in Oracle Projects. There is no intermediary import or interface table between these modules. entitled ‘Understanding Oracle Projects’ AutoAccounting and Flexbuilder Functions”. and. • adjustments. Each invoice must contain project related information for this interface. Concurrent Manager Processes There are no concurrent manager processes to be run for the PO to PA integration. you must first set up your FlexbBuilder rules. The project related information is carried through the Req -> PO -> AP invoice > PA project expenditure process automatically.). approves and pays the invoices and transfers these accounting transactions directly to GL. each line item must contain the following PA information: • • • • • project name task name expenditure type expenditure organization expenditure item date In addition. You can adjust the project information on a requisition or purchase order at any time. Data Flow Commitments from PO are visible in PA via the Project Status Inquiry (PSI) feature. Data Flow Supplier invoices are sent from AP to PA. you must update both the requisition and the purchase order in PO with the relevant changes to project information. Florida. as follows: • • • • • • project number task number expenditure type expenditure organization expenditure item date quantity.be invoked in the correct order for them to run successfully. if setup option “Cost Rate Required” is set to “Yes”. This parameter allows you to enable or disable a user from over-riding the accounting flexfield generated by Flexbuilder.

they are not visible in PA. the following processes must be invoked: PA: Distribute Supplier Invoice Adjustment Costs PA: Interface Supplier Invoice Adjustment Costs to Payables Please note: you can use any combination of streamline processes or perform individual functions to invoke these interfaces. PA: Generate Assets Lines PA: Interface Assets to Oracle Assets FA: manually review Mass Additions table and update queue status from New. the asset is ready to be placed in service. They must be invoked in the correct order for them to run successfully. As well. Set up Parameters The following set up parameters are required in FA to enable data to flow from PA: (please note that these are also required for FA implementation. They are then posted to the GL via the GL interface table. you must first cost and distribute all expense. at which point the CIP account is relieved and costs transferred to the asset account. SYSADM: Profile>System>Value PA: Summarize Expense Report lines PA: Default Expenditure Organization in AP/PO (note: expenditure org. When Copyright © 1998 by Mehmood Merali . Please note that there is no tieback mechanism from FA to PA.AP can also create pre-payments or advances and apply them to PA expense reports and invoices in AP. if changes are made to project related information in FA. must have “HR Classification” default value) AP: Invoice Import Source = “Oracle Projects” PA: Expenditure Type Class = “Supplier Invoices” Concurrent Manager Processes The following concurrent manager processes must be invoked to enable the interface from AP to PA. The expense report must be already interfaced (AP interfaces table) or loaded (AP invoice tables) in AP. they are classified as capitilazable or non-capitalizable. Data Flow When expenditures for capital projects are collected PA. it is interfaced to FA. These costs are then interfaced from PA to FA via the FA Mass Additions Table from where they are posted to the FA Assets Table. Set up Parameters The following parameters and flexfields must be set up in PA and AP. Using AutoAccounting and Flexbuilder features. PA: Interface Supplier Invoices from Payables PA: Distribute Expense Report Costs PA: Interface Expense Reports to Payables AP: Invoice Import PA: Tieback Expense Reports from Payables For adjustments.) • • • • define corporate book define category flexfield define location flexfield define asset key flexfield Concurrent Manager Processes The following concurrent manager processes must be invoked to enable the interface from PA to FA. usage and supplier invoice costs in PA and interface these and AP Integrating Oracle Projects and Assets PA collects project related expenditures for capital projects. Merged or Cost Adjustment to Post FA: Post Mass Additions FA: Create Journal Entries To generate asset cost lines. these costs are assigned to a Construction In Process (CIP) account.

Project information is stored in the invoice via the transaction flexfield. Set up Parameters Oracle predefines the following parameters in AR: Invoice Source = “PA INVOICES”. PA integrates into AR by generating draft invoices and sending them to AR for printing and tracking customer payments. follow the navigation path below: Copyright © 1998 by Mehmood Merali . you can verify the predefined AutoInvoice source for PA invoices by following the navigation path below: Setup>Financials>Flexfields search for “Line Transaction Flexfield” You can also verify the predefined AR Line Ordering Rules as follows: Setup>Transactions>AutoInvoice>Line Ordering Rules You can also verify the predefined AR Grouping Rules as follows: Setup>Transactions>AutoInvoice>Grouping Rules To verify the AR AutoInvoice source segments for PA invoices.invoice costs to the GL prior to placing an asset in service in PA. Setup>Financials>Flexfields>Descriptive>Segm ents Integrating Oracle Projects and Receivables. Data Flow PA loads the invoices into AR via AR’s AutoInvoice feature. AutoInvoicing Rule = “PA INVOICES” Line Ordering Rule = “PA LINE ORDER” Grouping Rule = “PA GROUPING RULE” In AR.

Concurrent Manager Processes The following concurrent process must be executed for the data to be pushed into the AR: PRC: Generate Draft Revenue PRC: Generate Draft Invoices PRC: Interface Invoices to Receivables Once data has been interfaced into AR. the following process must be run in AR: Interfaces > AutoInvoice > AutoInvoice Master Program with Invoice source of PA INVOICES. you tieback interfaced invoices into PA by running the following concurrent manager process: PRC: Tieback Invoices from Receivables Copyright © 1998 by Mehmood Merali . Once data has been interfaced to AR.

module lead. Merali has presented several papers at national and international conferences over the past five years. One of them is the ability to integrate modules to allow accurate and natural data flow. He is based out of Ernst & Young’s Seattle Office. Transaction controls determine who can charge what types of costs during specific time periods. Copyright © 1998 by Mehmood Merali . • single source of all project related expenditure and revenue data. • automated generation of accounting flexfields via Flexbuilder. He is a certified Information Systems Professional (I. Merali has implemented several Oracle ERP implementations in various capacities. Manufacturing. • timely and accurate reporting of project related transactions into the general ledger. and a Certified Management Consultant (CMC) with the Institute of Certified Management Consultants of Canada.S.P. • validation and adjustments of data at a single source. By integrating Oracle Projects to these other modules.Conclusion There are many benefits of implementing an ERP system such as Oracle Applications. LLP Mehmood Merali is a management consultant in Ernst & Young ‘s Oracle Service Line. Currently. He has served as a team lead. About the Author Mehmood Merali Ernst & Young. Mr. Finance lead. you benefit from: • on-line validation of expenditures with transaction controls for each project.) of Canada. and. Supply and Demand. Mr. high-tech capital equipment manufacturer implement the full suite of fifteen Oracle applications. he is assisting an international. Oracle Projects is one application module that is integrated with many other modules. • reduction or elimination of duplicate data entry. including Finance. Manufacturing lead and Demand Team lead. and the related cost of time and accuracy.

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