Collaborative SIG Presentation:
Projects to Profit Fundamentals
Becky Alvarez,
Rysigo Technologies Corp.
and
Wendy Lamar,
Rolta TUSC
• Agenda
– About the Presenters
– Introduction
– Configuration
– Flow
Wendy Lamar
• Senior Management Consultant with
Rolta TUSC
• Over 13 Years Experience Implementing
and Supporting Oracle Applications
• OAUG Project SIG Development Liaison
– Duties Include Gathering Customer ERs and
Facilitating Prioritization and
Communicating Those to Oracle Product
Strategy
Becky Alvarez – Director of E&C Practice
WHAT WE DO
Rysigo Technologies Corp. provides Collaborative Work Management
software and services.
STRATEGIC CONSULTING SERVICES
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Business and Finance Transformation
Management Consulting
ERP, CRM and Analytics Reporting
Applications Management
PRODUCTS
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Collaborative Proposal Management
Collaborative Risk Management
Risk Management for Oracle Projects
SPECIALIST AREAS
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Engineering and Construction
Professional Services
Energy and Utilities
Hi Tech / IT
Transportation
Oracle EBS, CRM, Primavera, OBIEE
Global Deployments, Shared Service Centers
Global Program Offices™
Project Centric Organizations
70 years of collective experience designing, building and implementing
many of the Oracle Application is use today.
[email protected]
Introduction
Where are we in the P2P Flow
Where are we now in P2P?
Start
Quote to
Cash
People to
Paycheck
Procure to
Pay
Project to
Close
Design to
Build
Accounting to
Financial
Reports
End
Configuration
How to Set Up Projects for P2P
Configuration
• Define Payables Options for Discounts
– Prorate Expense: Discount prorated across all
distribution lines
– Prorate Tax: Percentage of discount prorated
across all tax distribution lines
– System Account: Credits the total discount to the
discount taken account defined in AP Financial
Options
Configuration
• Profile Options
– PA: Allow Adjustments to Receipt Accruals and
Exchange Rate Variance
– PA: Allow Override of PA Distributions in AP/PO
– PA: Default Expenditure Item Date for Supplier
Cost
– PA: Default Expenditure Organization in AP/PO
Configuration
• Supplier Invoice and Project Related
Purchasing Account Generators
• Default Supplier Cost Credit Account
– (PA System Options)
• Interface AP & PO DFF Profile Options
– PA: Transfer DFF with AP
• Expense Reports, Vendor Invoices
– PA: Transfer DFF with PO
• Receipt Accruals
Configuration
Project Suite Considerations
• When running the process ‘PRC: Interface
Supplier Costs’ ensure that the following
parameters are set to Yes:
– Interface Supplier Invoices
– Interface Receipt Accruals
– Interface AP Discounts
Project Suite Considerations
• All modules have a Create Accounting process
that interfaces journal entries to Subledger
Accounting. The parameters control interface
to GL and posting of GL journal entry.
• The Create Accounting process per module
typically must complete successfully prior to
interface of expenditure item to Project
• Transactions create journal entries in the
source module – cost collects in Project
module
P2P Flow
How Contract/Billable Projects are
updated by POs
P2P Process Flow
Create Requisition and/or PO
• Requisition or PO Line is Entered Referencing:
– Project
– Task
– Expenditure Item and Expenditure Organization
– Account Generator Derives Default Charge
Account, Accrued Liability (Inventory AP Accrual),
and Variance Accounts
Create PO
Distribute to Project
Updates Committed Costs
Before
After
Receive Goods / Confirm Work
• Receive Goods / Confirm Work - Accrue on
Receipt Interfaces Cost to Project @ PO Price
– Receiving Transaction Processor
– Create Accounting for Receiving
DR Inventory or Expense Account OR CIP
CR Accrued Liability
– PRC: Interface Supplier Cost Parameter ‘ Interface
Receipt Accruals’ = YES
Receive Goods / Confirm Work
Match Vendor Invoice to PO
• Vendor Invoice Match to PO - Variances are
Interfaced to Project (New Expenditure Item)
– Validate Vendor Invoice
– Create Accounting
DR Accrued Liability
CR Accounts Payable
DR/CR Price Variance
Match to PO
Update Projects
Before Supplier Invoice for Match against PO
After $5,000 Supplier Invoice Entered and Interfaced to Projects. Period to Date
and Inception to Date Costs increase by the invoice amount and the Commitment
is reduced by the invoice amount.
Pay Vendor Invoice
• Pay Vendor Invoice - Discounts Taken are
Interfaced to Project (New Expenditure Item)
– Create Accounting
• DR
• DR
• CR
Accounts Payable
Discounts Taken**
Cash
– PRC: Interface Supplier Cost Parameter ‘Interface
Payment Discounts’ = YES
**Discounts Taken dependent upon AP configuration
P2P Flow
How Capital Projects are updated by
POs
Capital Project to Assets Flow
Asset Charges – AP to PA
• AP Distribution Line Charges Project and Asset
Clearing Account:
– Contract Project
• Payables Interfaces the Cost to Oracle Assets for
Capitalization and GL Accounting
• Payables Interfaces the Cost to Oracle Projects for Cost
Collection to the Project and Reporting; No GL Impact
– Capital Project
• Payables Interfaces the Cost to Oracle Projects for
Capitalization, GL Account Generation, Project Cost
Collection and Reporting. Journal Entry Sources are
Payables and Assets.
Capital Project
• Create Capital Project
– Add Asset Definition including Asset Attributes at
Project or Task
• Collect Costs against Project
– Distribute all Costs, Generate Cost Accounting
Events, Create Accounting BEFORE Generating
Asset Lines
– Summarize your Project Data (Project
Performance or Project Summary) BEFORE
Generating Asset Lines
Project Asset Setup
Project Task Asset Line
Project Task Asset Setup
Capital Project
• When Ready to Place the Asset in Service,
Update the Asset Assignment with an Actual
In Service Date (Current Period)
• Run the PRC: Generate Asset Lines process to
Create Summary Asset Lines
– Adjust Lines, Associate Unassigned Lines
– Auto Accounting Rules Determine Journal Entry
DR Asset
CR
CIP
Update Asset Service
PRC: Generate Asset Lines
Creates the Asset Line(s)
Capital Project
• Run the PRC: Interface Assets to Oracle Assets
process
• In Oracle Assets Review and Post Mass
Additions
• Monthly: Run Depreciation
– Creates Accounting
• Interfaces and Posts Journal Entry to GL
Interface Asset to FA
View Asset in FA after Additions
Contract Project
• Create Contract Project
– Include Customer and Billing Setup
• Collect Costs
– Distribute Costs
– Generate Cost Accounting Events
– Create Accounting
Customer Invoice Flow
Revenue Recognition Flow
Contract Project - Revenue
• Generate Draft Revenue based on Distribution
Rule of Project
– Release
• Generate Revenue Accounting Events
• Create Accounting
– Transfers and Posts Journal Entry to GL
DR UBR
CR
Revenue
Contract Project - Receivables
• Generate Draft Invoice based on Distribution
Rule of Project
– Approve and Release
– The next three steps can be combined in PRC:
Submit Interface Streamline (Option XI)
• PRC: Interface Invoices to Receivables
• Autoinvoice Import
• PRC: Tieback Invoices from Receivables
Thank You
Becky Alvarez, Director E&C Practice
Rysigo Technologies Corp.
[email protected]
Join us for a Project to Profit Q&A follow up and a drawing for a
FREE Wii Console & Game
Today (Wednesday) 3:00pm
The Peabody Hotel
Tower 2, Business Suite 21111
Q&A
Wendy Lamar: [email protected]
Becky Alvarez: [email protected]
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