You are on page 1of 57

Oracle Projects

10th October, 2005

TCS Internal

Contents
• Overview Of Projects • Oracle Project Costing Concepts • Oracle Projects Agreement

• Oracle Project Funding Concepts
• Oracle Project Billing

TCS Internal

Oracle Projects Concepts

• A project is a primary unit of work that can be broken down into one or more tasks.

• You can use projects to track: • Indirect work • Product/asset development • Services

TCS Internal

Project Classes

You can use three predefined project classes that track the following types of information: • Indirect projects: Overhead activities and costs • Capital projects: Product/asset development activities and costs, used to capitalize project costs as one or more assets • Contract projects: Activities, cost, revenue, and billing for work performed for and reimbursed by a customer
TCS Internal

Oracle Projects Features

• Oracle Projects has many features that address common business concerns. • Oracle Projects is composed of: – Project-tracking tools – Cost collection and calculation capabilities – Project asset creation – Flexible revenue accrual and invoicing functions – Online reporting – Full Adjustment Capabilities – Integration with other Oracle and non-Oracle financial applications
TCS Internal

Usage. & Invoice Or Asset CIP Costs For Capital Projects Revenue Invoice Import Interface Supplier Costs FA GL AR Project Cost Collection Approve Invoice Issue Material Enter Invoice TCS Internal . Generate Rev. Misc Costs.Over View Of Oracle Projects Enter Project Approve Enter Budget Approve Enter Labor.

Contents • Overview Of Projects • Oracle Project Costing Concepts • Oracle Projects Agreement • Oracle Project Funding Concepts • Oracle Project Billing TCS Internal .

• Timecards • Expense reports • Usage logs • Posted supplier invoices (posted to GL) • Inventory • Work in process • Miscellaneous transactions • Burden transactions TCS Internal .Types of Costs • You record transactions against a project to record actual work performed or cost incurred.

Types of Costs You also record transactions against a project to record committed costs. • Requisitions • Purchase orders • Pending supplier invoices (not posted to GL) TCS Internal .

work in process. and supplier invoices) TCS Internal . and burden transactions) • Record supplier transactions for projects in Oracle Purchasing and Oracle Payables (requisitions. purchase orders. inventory. miscellaneous. expense reports. usage logs.Methods of Cost Entry • Import the charges using transaction import (timecards.

Distributing Costs • • • • After you distribute costs: Detail and summary cost amounts can be reported by: – Project and task – Organization or employee – Expenditure type – Period – Resource list – Budget Asset lines can be generated for capital projects. Cost distribution lines can be interfaced to GL/AP. TCS Internal .

Expenditure Categories An expenditure category describes the source of organization's costs. Define Expenditure Category: TCS Internal . an expenditure category with a name such as Labor refers to the cost of labor. For example. An expenditure category with a name such as Supplier refers to the cost incurred on supplier invoices.

a revenue category with a name such as Labor refers to labor revenue.Revenue Category A revenue category describes a source of your organization's revenue. For example. Define Revenue Category: TCS Internal .

Unit A unit of measure records quantities or amounts of an expenditure item Define Unit: TCS Internal .

Expenditure Type Define Expenditure Types: TCS Internal .

Non-Labor Resource Define Non-Labor Resource: TCS Internal .

Employee Cost Rate Entering Employee Cost Rate: TCS Internal .

Project Costing Flow Comprehensive online inquiry and reporting Collect costs Enter Rreqs/ POs in PO External transactions Enter Time and Expenses Enter preapproved expenditures Define Identify projects business terms and rules Define assets Enter project Enter budget Baseline budget Place asset in service Interface Import to GL Generate asset lines Review and adjust asset lines Interface to Oracle Assets Enter supplier invoices Transaction import Upload Interface Distribute costs Adjustments TCS Internal .

Capital Projects Processing Flow TCS Internal .

Capital Projects Flow TCS Internal .

Contents • Overview Of Projects • Oracle Project Costing Concepts • Oracle Projects Agreement • Oracle Project Funding Concepts • Oracle Project Billing TCS Internal .

Types of agreements include the following: • • • • Purchase order Verbal agreement Service agreement Contract TCS Internal .Overview of Agreements An agreement is an authorization from a customer that serves as a basis for funding and work.

Contents • Overview Of Projects • Oracle Project Costing Concepts • Oracle Projects Agreement • Oracle Project Funding Concepts • Oracle Project Billing TCS Internal .

One agreement to one project One agreement to many projects and/or top tasks Many agreements to one project Customer A £1.000 revenue Customer C £150.000. funding must equal the revenue budget.000 £50.000 Project Z1 revenue budget: £200.000 Task 2: £100.000 revenue Customer B £1.000.000 revenue FUND £1.000 Project Y1 Task 1: £ 50.000 Project X1 revenue budget: £1.000 £100.000 TCS Internal .Concepts of Funding Projects You assign some or all of an agreement’s funds to one or more contract projects and/or top tasks.000 £100.000.000. Key requirement: For the budget baseline to succeed.

Use of funding: • Denotes how much revenue/billing is assigned to a unit of work (project/top task) for reporting • Can control how much a project or top task accrues and bills (if using hard limits) TCS Internal . You decide whether to use project or top task funding based on the requirements of your project and your company.Project Versus Top Task Funding Agreements can fund at the project or top task level.

you can accrue and bill revenue and invoice amounts above the funded amount. • Hard limits control both revenue accrual and billing. You cannot accrue and bill past the funded amount. • Each project and top task limit is controlled by the agreements that fund it. TCS Internal . you specify whether to impose a hard limit.Concept of Hard Limit A hard limit places a firm cap on the revenue and invoice amounts that you can accrue and bill a project or top task. If a hard limit is not used. For each agreement.

Entering Agreements Comprehensive online inquiry and reporting Identify business terms and rules Define projects Enter project and tasks Collect costs Recognize revenue Enter revenue events Interface Generate invoices Enter invoice events Generate invoices Interface Approve invoice Print customer invoice Enter agreements Enter revenue budget Baseline budget Generate revenue Update project summary Fund project Adjustments TCS Internal .

Entering Agreements TCS Internal .

Agreement Summary Amounts TCS Internal .

Entering Funding Lines Comprehensive online inquiry and reporting Identify business terms and rules Define projects Enter project and tasks Collect costs Recognize revenue Enter revenue events Interface Generate invoices Enter invoice events Generate invoices Interface Approve invoice Print customer invoice Enter agreements Enter revenue budget Baseline budget Generate revenue Update project summary Fund project Adjustments TCS Internal .

Funding Projects TCS Internal .

Viewing Funding Summary TCS Internal .

Viewing Project Funding TCS Internal .

• Fund unallocated agreement funds to projects or tasks.Maintaining Agreements and Funding During the project life cycle. • Create a new agreement based on additional customer funds. Increase funding by creating new funding lines. • Increase agreement based on additional customer funds. you may need to change the funding amount. TCS Internal .

• You can reverse funding up to the amount not accrued/invoiced for the project or top task against the agreement • The total of all funding lines cannot exceed the total agreement amount.Maintaining Agreements and Funding • Reverse funding by creating negative funding lines. TCS Internal .

Contents • Overview Of Projects • Oracle Project Costing Concepts • Oracle Projects Agreement • Oracle Project Funding Concepts • Oracle Project Billing TCS Internal .

Overview of Invoices Comprehensive online inquiry and reporting Identify business terms and rules Define projects Enter project and tasks Collect costs Recognize revenue Enter revenue events Interface Generate invoices Enter invoice events Generate invoices Interface Approve invoice Print customer invoice Enter agreements Enter revenue budget Baseline budget Generate revenue Update project summary Fund project Adjustments TCS Internal .

Methods of Invoicing You specify the invoicing method based on the distribution rule that you select for the contract project. Supported Distribution Rules Distribution Rule Work/Work Revenue Method As-Work-Occurs Invoicing Method As-Work-Occurs Work/Event Cost/Work Cost/Event Cost/Cost Event/Event As-Work-Occurs Cost-to-Cost Cost-to-Cost Cost-to-Cost Event/Milestone Event/Milestone As-Work-Occurs Event/Milestone Cost-to-Cost Event/Milestone Event/Work Event/Milestone As-Work-Occurs TCS Internal .

you invoice projects based on predefined amounts that are not directly related to detail expenditure items.Event Billing With event billing. You define the events (also referred to as milestones) to specify: • How much to bill • When to bill (can specify future dates) An invoice is generated after the scheduled event date. TCS Internal .

you assign it to an event type.Types of Invoicing Events • When you create an event. • Oracle Projects uses these classifications to distinguish between types of events. • You define all event types during implementation. TCS Internal . each event type is mapped to an event type classification.

Review of Entering Events TCS Internal .

Non-Labor: We Can Define Standard Bill rates or percentage markups by non-labor expenditure type or non-labor resource. You can define bill rate schedules for your entire organization. TCS Internal . or define separate bill rate schedules for individual business units. Job: We Can Define Standard Hourly Bill Rate Against Job.Bill Rate Schedule A bill rate schedule maintains the rates and percentage markups over cost that you Charge clients for your labor and non-labor expenditures. We Can Define One Of The Following Schedule Type In Each Bill Rate Schedule: Employee: We Can Define standard Hourly Bill Rates Or Percentage markups by employee.

• Retains a percentage of the invoice as specified during project setup TCS Internal .Functions of Invoice Generation When you generate an invoice. the Generate Draft Invoice process: • Creates an invoice from the eligible expenditure items and events • Formats the invoice lines according to the invoice line formats defined during project setup invoices against the available funding based on the hard limit configuration of the agreement that is funding the project/top task .

Overview of Invoice Flow Oracle Projects has these primary functions for invoicing: Invoice Flow Approve invoice Generate draft invoice Review. adjust invoice Approve invoice Release invoice Interface invoice to AR Print invoice Send invoice to customer TCS Internal .

Billing Cycles TCS Internal .

PA periods may be more frequent than your accounting periods.PA Period Project accounting periods track Oracle Projects data on a periodic basis. TCS Internal . PA periods can be used for budgeting and for accounting for cost and revenue.

Reporting Period Set Reporting Period: Current PA period should be set as Reporting Period to allow Oracle Projects to summarize project amounts and to track project status TCS Internal .

Entry and interfacing transactions both are allowed. Future : Future periods in which entries are allowed but interfacing transactions is not allowed. : Current periods. Open TCS Internal . and in which no entry is allowed.PA Period Open/Closed Status Status Meaning Never Opened :New periods that are in the future.

TCS Internal . Closed Permanently Closed :This status is same as Closed only difference is once a period is permanently closed can’t be re-opened.PA Period Open/Closed Status (Contd.) Status Pending Close Meaning : In this period status only corrections of unprocessed items are allowed. : In this status entry and interfacing transactions are not allowed.Also a period can’t be You cannot be closed if unprocessed items exist. A closed period can be re-opened at any time.

Invoice Summary TCS Internal .

Reviewing Invoices TCS Internal .

Processes to Run Following are few processes which we need to run in Oracle PA: • PRC: Distribute Labor Costs • PRC: Interface Labor Costs to General Ledger • PRC: Distribute Usage and Miscellaneous Costs • PRC: Interface Usage and Miscellaneous Costs to General Ledger • PRC: Distribute Expense Report Costs • PRC: Interface Expense Reports to Payables TCS Internal .

TCS Internal .Processes to Run (Contd.) • PRC: Interface Expense Reports from Payables • PRC: Interface Supplier Costs • PRC: Transaction Import • PRC: Generate Draft Revenue for a Single Project • PRC: Interface Revenue to General Ledger • PRC: Generate Draft Invoices for a Single Project • PRC: Interface Invoices to Receivables • PRC: Generate Asset Lines for a Single Project • PRC: Interface Assets to Oracle Assets Please note that only few important processes are listed and this is not an exhaustive list.

Accounting Entries for Capital Projects When CIP cost is booked against Capital Project: Debit : CIP Credit: Liability When Asset is created and posted to GL: Debit: Asset Cost Credit: CIP TCS Internal .

Important Accounting Entries When Revenue is generated before invoicing: Revenue Generation: Debit : Unbilled Receivables Credit: Invoicing: Revenue Debit: Receivables Credit: Unbilled Receivables TCS Internal .

) When Revenue is generated after invoicing: Invoicing: Debit: Receivables Credit: Revenue Generation: Debit : Unearned Revenue Credit: TCS Internal Unearned Revenue Revenue .Important Accounting Entries (Contd.

TCS Internal .