Training
Projects
Oracle Applications 11.5.10
Oracle Projects
Consultant Training
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Overview of Oracle Project
Project Interface
Purpose Of Oracle projects
Oracle Projects Feature
How to use Oracle projects
Project Classes and Types
Project Template
Project Creation
Set Up Quick Entry
Process Flow
What is a Project / Task
Work Breakdown Structure (WBS)
Oracle Projects
Consultant Training
Agenda
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Budgets
Expenditure
Allocation
Capital Project (Asset Capitalization)
Integration With External System
Project Connect
Other Features
Overview of Projects Billing
Contract Projects
Billing Terms
Billing Cycle
Billing Distribution and Retention
Distribution Rules
Invoice Format
Oracle Projects
Consultant Training
Agenda
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
Job group and job Mapping
Bill Rates
Bill Rate Overrides
Labor Multiplier
Billing Schedule
Billing Assignment
Billable Status Control
Event type and Agreement Type
Credit Receivers
Data Elements and Options for Contract Project
Burden Schedule for Revenue and Invoicing
Changes Allowed
Setups Required
Billing Flow
43. Agreement
44. Revenue Flow
Oracle Projects
Consultant Training
Agenda
45.
46.
47.
48.
49.
50.
51.
52.
53.
Steps before Generating Revenue
Pre-requisites for Revenue Generation
Generate Revenue
Interface Revenue to General Ledger
Revenue Review.
Invoice Flow
Generating Invoice
Interface Invoice to AR
Billing Transaction Adjustment
54. Terminologies Used
Oracle Projects
Consultant Training
Project Overview
Overview of Oracle Project
Oracle Projects is a central part of the complete software solution for project–
oriented companies, providing you with a flexible approach to defining and
structuring projects, tasks, and budgets by which to monitor project status.
Oracle Project Costing provides you with the ability to define Projects, Work
breakdown structure, budgets, record and report Cost against projects
Oracle Project Billing provides you with the ability to define revenue and invoice
rules, generate revenue and create invoices
Oracle Projects
Consultant Training
Project Overview
Overview of Oracle Project
One Time
Perform
server and
client side
installation
Implement Oracle Projects
Set up project types, expense types, project
PA periods, AutoAccounting rules, and so on.
Many Times
Use Project
• Record actual against project
• Release and approve transactions
• Cost transactions (that is, determine
dollar amount and proper account)
• Summarize
• Identify and review variances
• Process revenue/invoice transactions
• Perform analysis/reporting
Oracle Projects
Create
project
Maintain
project
Revise
project
Close
project
Consultant Training
Project Overview
Self Service
Time and
Expense
Oracle Projects
Projects
Project
Management
Inventory
External
Budgets
Expenditures
WIP
Oracle
Human
Resources
Employees
and
Organizations
Revenue Accrual
Summarization
Data
Warehouse
BIS
Oracle Projects
Oracle
Payables
Costing
Project
Status
Inquiry
Capitalization
Oracle
Purchasing
Invoicing
Oracle
Receivables
Oracle
Assets
Oracle General Ledger
Consultant Training
Project Overview
Oracle Projects Interfaces
Oracle
Human
Resources
Payroll
Service
External
Transaction
Project
Management
Timecards
Actuals
Work
In
Process
Reference
Employees and
Organizations
Timecards
MFG Resource
Costs
Oracle
WorkFlow
Fixed Assets
Import
Assets
Oracle
Inventory
Plan
Usages
Oracle Projects
Reference
Customers
Invoices
Report Committed Costs
Expense Reports
Adjustments
Accounts
Post Cash
Receivable
Issues and Receipts
Supplier Invoices,
Invoice Adjustments
Purchasing
Accounts
Payable
Data
Warehouse
Post Actual Expense
Post Revenue
Post Labor Distribution
Oracle Projects
General Ledger
Post Usage Distribution
Consultant Training
Project Overview
Purpose of Oracle Projects
The purpose of Oracle Projects is to track and control work (or activity) on a
project.
• You track activity on a project by comparing actual activity with expected
activity.
• Record actual activity as actual (transactions).
• Record expected activity in a budget.
Oracle Projects
Consultant Training
Project Overview
Oracle Projects Features
Oracle Projects has many features that address common Business needs:
Project-tracking tools
•
•
•
•
•
•
•
•
Cost collection and calculation capabilities
Allocations and allocation sets features
Project asset creation functions
Flexible revenue accrual and invoicing functions
Online reporting and hard-copy reporting
Full adjustment capabilities
Oracle Projects supports attachments
Oracle and non-Oracle applications integration
Oracle Projects
Consultant Training
Project Overview
How to Use Oracle Projects
The following is a typical process flow using Oracle projects:
•
•
•
•
•
•
Create a project
Enter a budget
Collect Actual (transactions)
Process cost, revenue, and invoice transactions
Capitalize asset costs
Perform analysis/reporting
Oracle Projects
Consultant Training
Project Overview
Project Classes and Project Type
You can use three predefined Project Classes to track the following types of
information:
Indirect Project :
To track Overhead
Activities
Research and
Development
Capital projects:
Track product/asset
development activities
and costs.
Asset Development
Activity
Contract projects:
Track activities, cost,
revenue, and billing
for work performed
for and reimbursed by
an internal or external
customer.
Each project is assigned a project type. Project types are user defined and are used to:
Control processing, Control project defaults and Generate reports
Oracle Projects
Consultant Training
Project Overview
Project Classes and Project Types…
Project classes are predefined, but project types are implementation-defined.
Project Classes
Project Types
Bid and Proposal
Indirect
Overhead
Capital
Product Development
Time and Materials
Contract
(Project Billing Only)
Oracle Projects
Cost Plus
Consultant Training
Project Overview
Project Templates
All projects defined in Oracle Projects must originate from a template or an
existing project. You must define atleast one project template for every project
type class. You cannot change the project type class when you copy a project
from the template.
Templates are used to:
• Simplify the project setup process
• Copy projects and WBS
• Copy commonly used project and task options.
Quick Entry provides:
• A way to enter variable project information that may change between projects
• A way to override certain values defined for the project template.
Oracle Projects
Consultant Training
Project Overview
Project Templates…
Find the
Template
Oracle Projects
Consultant Training
Project Overview
Oracle Projects
Consultant Training
Project Overview
Project Creation
Required Project Data are
You can define a project with just the basic project information:
• Number
– Unique identifier
Name: Unique description of the project
• Type
– What type of project?
– What type of work?
• Organization: The organization responsible for the project
• Key members : Employee name and number
Oracle Projects
Consultant Training
Project Overview
Project Creation…
Key Members
Key members are employees who can:
• Enter and maintain project data
• View labor cost details charged to the
project (based on project role type
definition)
Key member information includes:
• Employee name and number
• Project role type (defined during implementation)
Each project can have only one project manager at a time.
Oracle Projects
Consultant Training
Project Overview
Key Members Creation During Project Creation
Oracle Projects
Consultant Training
Project Overview
Project Creation…
Optional Project Data
The following information is defaulted and can be changed:
• Duration: When does the project start and end?
• Status: Is the project active (chargeable) or closed (non-chargeable)?
• Public Sector: Is the client public or private? Selecting the Public Sector box
affects project reporting and AutoAccounting.
Oracle Projects
Consultant Training
Project Overview
Project Creation…
Additional Project Data
You can define additional information based on the requirements of your project
or company. Options may include:
•
•
•
•
•
•
Tasks
Classifications
Key Members
Resource List Assignment
Customers and Contacts
Asset Information
Oracle Projects
•
•
•
•
•
•
Burden Multipliers
Multinational
Billing Information
Bill Rates and Overrides
Organization Overrides
Transaction Controls
Consultant Training
Project Overview
Project Creation…
Transaction Controls
In the Transaction Controls window, you list controls based on the Limit to
Transaction Controls check box:
• Checked = Inclusive limit to transaction controls
Allows only charges that are included on the list. Anything not listed is not
chargeable.
• Unchecked = Exclusive limit to transaction controls
Specifies charges that are not allowed. Anything not listed is chargeable.
You can control exceptions to any rule using the Chargeable check box.
Oracle Projects
Consultant Training
Project Overview
Task Creation during Project Creation
Every Project will have one task by default .
Oracle Projects
Consultant Training
Project Overview
Task Creation during Project Creation
Oracle Projects
Consultant Training
Project Overview
Task Creation during Project Creation
To Create a
sub-task for
a Task
Oracle Projects
Consultant Training
Project Overview
Project Creation…
Task Options
Oracle Projects
Consultant Training
Project Overview
Task Details window during Project Creation
Oracle Projects
Consultant Training
Project Overview
Transaction entry at following levels
Oracle Projects
Consultant Training
Project Overview
Project Creation…
Project Status Controls :
You can use project status to control what processing is allowed at the various
stages of a project. Oracle predefines the following statuses:
•
•
•
•
•
•
•
Active
Unapproved
Submitted
Approved
Rejected
Pending close
Closed
Oracle Projects
Consultant Training
Project Overview
Project Creation…
Changing the Project Organization
Along with organization hierarchies, you can use organization classifications to
specify which organizations are allowed to:
• Manage projects and tasks (project organization hierarchy)
• Incur expenditures (expenditure organization hierarchy)
The following are business benefits of organization hierarchies:
• Accommodate company reorganizations for a single or for multiple projects.
• Determine which organizations can own projects or incur costs through
organization classifications.
• Indicate which organizations are valid project-owning organizations or
expenditure organizations for an operating unit through organization
hierarchy assignment.
Oracle Projects
Consultant Training
Project Overview
Set up of Quick Entry
Quick Entry
from a
template
Oracle Projects
Consultant Training
Project Overview
Set up of Quick Entry
Oracle Projects
Consultant Training
Project Overview
Project Creation
Oracle Projects
Consultant Training
Project Overview
Project Creation using Quick Entry
Use this to
create a new
Project
Oracle Projects
Consultant Training
Project Overview
Project Creation using Quick Entry
Oracle Projects
Consultant Training
Project Overview
Process Flow
• Create project types
• Create a project template and a Project
• Creating Budgets
• Incurring Actual Expenditures
• Revenue Generation (in case of contract Project)
• Invoice Generation (in case of Contract Project)
• Reporting and Inquiry
Oracle Projects
Consultant Training
Project Overview
What is a Project / Task
• A Project is a primary unit of work that can be broken into one or more tasks.
• A Task is smaller unit of project easily manageable. Tasks are the various
activities that will be performed on a Project.
Every transaction entered into Oracle Projects is charged to a Project / Task.
When we set up a Project, we must set up Work Breakdown Structure (WBS),
and enter project and task information.
Oracle Projects
Consultant Training
Project Overview
Work Breakdown Structure (WBS)…
• Organize project work into smaller, more easily manageable units called tasks.
• Every project has one task by default.
• Hierarchy of tasks is called a work breakdown structure (WBS).
Oracle Projects Processes tasks based on their position in WBS. The three
distinct positions are:
 Top Task – A task whose parent is the Project.
 Mid Task – A task that is not a top task or lowest task.
 Lowest Task – Bottom most task, without any child task.
Oracle Projects
Consultant Training
Project Overview
Work Breakdown Structure (WBS)…
In the WBS, a task can be:
Top Task or Middle Task or a Lowest Task.
•
Top task is one which does not have any Parent Task.
•
Middle Task is one which has a Parent Task and also have one or more Child
Tasks also known as the Lowest Tasks.
•
Lowest task is the last node in a project tree and will not have any further child
tasks.
Oracle Projects
Consultant Training
Project Overview
Work Breakdown Structure:
Your project, which consists of one or more tasks, can be as simple or detailed as
you want it to be.
You can define an unlimited hierarchy of tasks, called a work breakdown
structure (WBS), to organize and monitor project activities.
Project
Task 1
Task 1.1
Oracle Projects
Task 1.2
Task 2
Task 2.1
Task 2.2
Consultant Training
Project Overview
Work Breakdown Structure:
Task Numbering and Naming
Tasks are indented to indicate their location in theWBS. When planning your
WBS numbering method, choose your task numbers carefully.
The Task Number field is used as a sort key within a task level for reporting
purposes. Since it is alphanumeric, numbers precede letters.
Project
Project
01
1.1
1.1.1
Oracle Projects
02
2.1
11
1
2.2
1.1
2.2.1
1.1.1
11
2
2.1
2.2
2.2.1
Consultant Training
Project Overview
Budgets
A Budget is an estimated cost or revenue for a project or task. Each budget can have
detailed or summary Information in the following areas, as appropriate for each
project.
You track project status and performance by comparing budgeted amounts to actuals
using reports and Project Status Inquiry.
We can set up budget for data entry at the following levels of your WBS.
• Project
• Top Task
• Lowest Task
• Top Task and Lowest Task
We can enter budget for duration of the project or Task or we can enter time phased
budgets which contain budget amount by time period.
•
•
•
PA Period – Oracle Projects period
GL Period – Oracle General Ledger period
Date Range – User defined dates
Oracle Projects
Consultant Training
Project Overview
Budgets…
WBS level at which you enter the budget
• Whether the Budget will be for the duration of the project or tasks, or time–
phased by date range, GL period, PA Period
• Whether you enter summary budget lines or budget lines
categorized by resources
• which budget amounts you will enter for the budget. (For Cost Budgets, you
can enter Quantity, Raw Cost, and Burdened Cost. For Revenue Budgets, you
can enter Quantity and Revenue.
Oracle Projects
Consultant Training
Project Overview
Budgets…
Oracle Projects provides you with many budgeting features. You can:
•
Define multiple cost and revenue budgets for your project
•
Copy budget versions to simplify the budget setup process
•
Copy actual
•
Define time-phased budgeting
Oracle Projects
Consultant Training
Project Overview
Budgets…
Processing by Task Levels
Tasks can be used and processed based on their location in the WBS.
• Top tasks
– Budgeting
– Rollup Reporting
• Middle tasks
–
Rollup Reporting
• Lowest tasks
– Budgeting
– Transaction Entry
– Override Entry
Oracle Projects
Consultant Training
Project Overview
Budgets…
You can
budget here
PROJECT
You can
budget here
Top Task
Lowest
Task
Lowest
Task
You can
budget here
Oracle Projects
You can never
budget at this
level
Top Task
Lowest
Task
Mid task
Lowest
Task
Consultant Training
Project Overview
Budget Processing Flow
Create projects
Copy
budget
Enter/revise draft
Rework
submitted
budget
Submit draft
Baseline draft
Track budget vs. actuals
Oracle Projects
Baselined budget
versions
Consultant Training
Project Overview
Budget Types and Versions
Budget
Types
Budget
Versions
User-Defined
budget
Forecast Cost
budget
Approved Cost
budget
DRAFT
DRAFT
DRAFT
Original
1st
Submit and
baseline
Revised original
2nd
Historical
3rd
Revised original
4th
Current
5th version
Oracle Projects
Consultant Training
Project Overview
Budgets…
Budget versions are grouped as follows:
• Original: First baselined budget
• Current: Most recently baselined budget
• Revised original: Current and historical revisions of the original budget
• Historical: Historical copies of previously baselined budgets that are not
original or current
Oracle Projects
Consultant Training
Project Overview
Budgeting Features
• Enter budget amounts directly.
• Define standardized budget entry methods to enforce consistency of
budgeting at specific levels within the WBS
• Define budget calculations (using client extension)
Example: You can enter a quantity of hours that is used to calculate your
budgeted raw and burdened cost amounts, based on your rates and business
rules.
• Upload budget numbers from external sources
Oracle Projects
Consultant Training
Project Overview
Budgets…
Following are the setups for budget definition:
– Budget Type
– Budget Entry Method
– Budget Change Reason
– Resource List
Oracle Projects
Consultant Training
Project Overview
Budgets…
Budget types identify the different kind of budgets that are entered for the
projects. Every project entered is classified by a budget type.
Budget type is defined as either as a cost budget type or a revenue budget type.
For budget using cost budget type we can enter:
• Quantities
• Raw cost
• Burdened cost
For budgets using revenue budget type we can enter:
• Quantity
• Revenue amount
Oracle Projects
Consultant Training
Project Overview
Budgets…
Oracle Projects predefine 4 budget types:
•
Approved Cost Budget
•
Approved Revenue Budget
•
Forecast Cost Budget
•
Forecast Revenue Budget
User can define additional budget types.
Oracle Projects
Consultant Training
Project Overview
Budgets…
Defining Budget Types:
1.
Setup -> Budgets -> Budget Types
2. Enter a unique name and description for the budget type and whether the
budget is cost or revenue budget type. This effects what amounts you can
enter for the budget.
3. Enter effective dates for the budget type.
4. Select cost budget or revenue budget as amount type.
5. Save your work.
Oracle Projects
Consultant Training
Project Overview
Budgets…
Userdefined
Oracle Projects
Consultant Training
Project Overview
Budgets…
Budget Entry Method specify and control how you can enter a budget.
Oracle Projects predefine 3 budget entry methods:
•
•
•
By lowest task and Date range
By lowest task and GL period
By lowest task and PA period
User can define additional budget entry methods.
Navigate to the Budget Entry Method Window.
Setup -> Budgets -> Entry Methods
Oracle Projects
Consultant Training
Project Overview
Budgets…
Oracle Projects
Consultant Training
Project Overview
Budgets…
Resources are amounts needed to track, complete, and account for
project work.
For example --- Labor, Material, Equipment
You use Resource Lists as groupings by which you want to budget and
summarize actual For Eg: Expenditure Category and Expenditure Type.
You can define a simple list of resources or a two level hierarchy of resource
groups and resources. You can group resources by:
• Organization
• Revenue category
• Expenditure category
• No category
Oracle Projects
Consultant Training
Project Overview
Budgets…
Resources can be tracked by
A labor resource group
and individual employees
A material
resource group
Oracle Projects
An expenses resource group
and airfare, auto, hotel and
meals expenditure types
Consultant Training
Project Overview
Budgets
Resource list
Oracle Projects
Consultant Training
Project Overview
Budgets…
Oracle Projects
Consultant Training
Project Overview
Budgets…
You may want to modify the Original Budget to correct data entry errors
or scope changes which you want to include in the original budget
amounts.
Oracle Projects
Consultant Training
Project Overview
Budgets…
There are different methods for revising draft budgets in the Budgets window:
• Changing amounts
– Navigate to the budget line and easily change any field value, delete the
budget item if needed, and add a new line.
– Copy previous budgets or actuals into a draft.
• Changing BEM
– Navigate to the Entry Method field.
– Select a different method. All budget lines are deleted from the draft.
Oracle Projects
Consultant Training
Project Overview
Expenditures
Costing is the processing of expenditures to calculate their cost to each project
and determine the GL accounts to which the costs will be posted.
You record the following transactions against a project to record actual work
performed or cost incurred:
•
•
•
•
•
•
•
•
Timecards
Expense reports
Asset utilization usage logs
Supplier invoices
Miscellaneous
Burden
Work in process
Inventory
Oracle Projects
Consultant Training
Project Costing
Expenditures
Costing is the processing of expenditures to calculate their cost to each project
and determine the GL accounts to which the costs will be posted.
You record the following transactions against a project to record actual work
performed or cost incurred:
•
•
•
•
•
•
•
•
Timecards
Expense reports
Asset utilization usage logs
Supplier invoices
Miscellaneous
Burden
Work in process
Inventory
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Methods of Transaction Entry
You record transactions using these methods
• Preapproved batches
• Project allocations
• Transaction import
• Oracle Self-Service Time and Expenses
• Other Oracle applications
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Entering Project Expenditures
Labor, expense, and
usages
Self Service time and
expense
Oracle Projects
Project
cost
expenditures
Purchase
orders
Supplier
invoices
Transaction import from
other applications
Consultant Training
Project Costing
Expenditures...
Comprehensive online inquiry and reporting
Identify
business
terms and
rules
Collect costs
Define projects
Enter
Reqs/
POs in
PO
Enter
project
Enter
budget
Baseline
budget
Enter
supplier
invoices
Interface
Import to
G/L
External
transactions
Transaction
import
Enter Time
& Expenses
Upload
Enter
preapproved
expenditures
Adjustments
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Pre-approved Expenditure Batch Entry
Define projects
Collect Cost
Enter
project
Enter
budget
Oracle Projects
Baseline
budget
Enter
preapproved
expenditures
Online Enquiry
and Reporting
Consultant Training
Project Costing
Expenditures Set Ups…
Expenditure Category
An Expenditure Category describes the source of your organizations cost.
Expenditure category are used for grouping expenditure types of costing.
Defining Expenditure Category:
1. Setup -> Expenditures -> Expenditure Categories
2. Enter unique name for the expenditure category.
3. Enter description for the category.
4. Save your work.
Oracle Projects
Consultant Training
Project Costing
Expenditure Category
Oracle Projects
Consultant Training
Project Costing
Expenditure Set Ups…
A Revenue Category describes the source of your organizations revenue.
Defining Revenue Category:
1. Setup -> Expenditures -> Revenue Categories
2. Enter the following information.
•
•
•
•
•
Code
Meaning
Description
Tag Value (Optional)
Effective Date
3. Save your work
Oracle Projects
Consultant Training
Project Costing
Expenditure Set Ups…
Defining an Expenditure Type:
1. Setup -> Expenditures -> Expenditure Type
2. Enter unique for expenditure type.
3. Enter the expenditure category and revenue category you want to associate
with the expenditure type.
4. Enter unit of measure. For expenditure type enter hours as UOM.
5. Save your work
Oracle Projects
Consultant Training
Project Costing
Expenditures Set Ups…
A unit of measure records quantities or amounts of an expenditure item. WE
assign a unit for each expenditure type.
Defining Unit of Measure:
1. Navigate to the Units Lookup Window.
Setup -> Expenditures -> Units
2. Enter the following information.
•
•
•
Code
Meaning
Description
3. Save your work
Oracle Projects
Consultant Training
Project Costing
Unit of measure
Oracle Projects
Consultant Training
Project Costing
Expenditure Set ups…
Expenditure type cost rate is a currency amount that Oracle Projects multiplies by
the expenditure type unit to calculate cost. Cost rates for expenditure items are
specific to each operating unit.
Defining Expenditure Type Cost Rate:
1. Navigate to the Cost Rate Window.
Setup -> Expenditures -> Expenditure Type -> Cost Rate(B)
Oracle Projects
Consultant Training
Project Costing
Expenditures…
•
Defining Non-Labor Resources:
•
Navigate to Usage Cost Rate window.
Setup – Expenditures -> Non-Labor Resources -> Cost Rate(B)
Oracle Projects
Consultant Training
Project Costing
Expenditures….
Oracle Projects uses these terms for transactions:
• Expenditure item: The smallest unit of expenditure charged to a
project and task.
• Expenditure: A group of expenditure items incurred by an employee
or organization for an expenditure period.
• Expenditure batch: A user-defined name used to track a batch of
preapproved expenditures, such as timecards and expense reports.
Oracle Projects
Consultant Training
Project Costing
Expenditures..
Each transaction must be charged to a project’s lowest-level task.
Each detailed transaction is recorded with these attributes:
• Employee/supplier/organization that incurred transaction
• Expenditure item date = when work was performed or cost was incurred
• Project number
• Task number = lowest-level task
• Expenditure type = type of transaction
• Units of measure (UOM) = units defined by expenditure type
• Quantity = the quantity of units incurred
• Non-labor resource = asset utilized (for usage logs only)
• Non-labor organization = organization that owns the non-labor asset (for
usage logs only)
Oracle Projects
Consultant Training
Project Costing
Expenditure
Type Class
Straight
Time
Expense
Report
Supplier
Invoices
Usages
Expenditure
Category
Expenditure
Type
Labor
Administrative
Professional
Travel
Airfare
Meals
Other Expenses
Entertainment
Other Expenses
Outside
Services
Construction
Consulting
Nonlabor
Organization
Other Expenses Equipment
Rental
Supplies
In-House
Recoverables
Computer
Services
Vehicles
Oracle Projects
Nonlabor
Resource
PC
Sparc
Truck
Van
Data Systems
Finance
IS
Midwest
East
Consultant Training
Project Costing
Expenditure
Type Class
Expenditure
Category
Expenditure
Type
Miscellaneous
Fixed Assets
Depreciation
Computer Srvcs
Vehicles
Burden
Transaction
Overhead
Labor Overhead
Work
In
Process
Materials
Building Materials
Inventory
Materials
Building Materials
Oracle Projects
Non-labor
Resource
Non-labor
Organization
Consultant Training
Project Costing
Expenditures…
• Time Cards: This Expenditure type Class is used to capture the cost of labour.
• Expense Reports : Tracks the cost incurred by employees to be reimbursed by
the company.
• Miscellaneous transaction
Tracks miscellaneous project costs. Similar to the usages expenditure type
class. Does not require a non-labor resource or organization
• Burden transaction
Tracks burden costs that are calculated in an external system or generated
within the projects setup is created as separate expenditure item that has
burdened cost amounts, but has not quantities and no raw costs. Can be
interface to Oracle General Ledger
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• Work In Process transaction
Tracks manufacturing resource costs that are interfaced from Oracle
Manufacturing for project manufacturing integration. Can be used when
you import other manufacturing costs using transaction import.
• Inventory
Tracks manufacturing materials costs that are interfaced from Oracle
Manufacturing and inventory issues and receipts from Oracle Inventory.
Can be used when you import other manufacturing costs using transaction
import.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Employee Cost Rate
Employee cost rate is the hourly rate you pay an employee. Employee must have
a cost rate and a compensation rule.
Defining Employee Cost Rates:
1. Navigate to the Employee cost rates Window.
Setup -> Costing -> Labour -> Employee Cost Rates
2. Enter employee name or number.
3. Enter compensation rule and hourly rate for employee.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
•
Burdened Transaction – BT tracks burden cost calculated outside the system.
Burden cost quantity and raw cost value is zero. BT costs are interfaced to
General Ledger.
•
Work-in-progress – This expenditure type class is used by project
manufacturing WIP transaction interfaced from manufacturing to Projects.
•
Inventory – This type class is used for the following:
-
Project Manufacturing transactions that are interfaced from
Manufacturing or Inventory to Oracle Projects.
-
Interfaced from Oracle Inventory to Projects in manufacturing or nonmanufacturing installation.
Oracle Projects
Consultant Training
Project Costing
Expenditure entry
Oracle Projects
Consultant Training
Project Costing
Use Pre-approved batch to make transaction entry
Oracle Projects
Consultant Training
Project Costing
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• You submit the preapproved batch when you have finished entry.
• The batch running totals must equal the control totals (if using control totals)
before you can submit the batch. Releasing a batch is a second level of review
after entry. This is usually done by someone other than the entry person,
typically the entry person’s supervisor. You can use function security to
remove the release capability from the entry person’s responsibilities.
– Use the Preapproved Expenditure Entry Audit Report to review batch
input before release.
– Expenditure batches can be edited before release; the status must be
‘Working’ to make corrections.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• You can review and verify data entry of preapproved batches using the
Preapproved Expenditure Entry Audit Report.
• This report displays the details of preapproved expenditure batches,
including expenditures and expenditure items.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• After submitting a batch, you can make corrections such as adding, deleting,
and revising expenditures and expenditure items that were incorrectly
reported or entered.
• If the status of the batch is submitted, you must return it to working, and
then make the corrections at the expenditure/expenditure item level before
resubmitting the batch.
• If the status of batch is released, you must reverse the full amount of the
original item before entering the correct information.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Expenditure Batch Status and the Approval Process
Submitted
Working
Yes
Reversed
Needs
Adjustments?
No
Oracle Projects
Released
Approved
Consultant Training
Project Costing
Expenditures…
Entering Preapproved Usages
Similar to preapproved timecards, with a few differences:
Expenditure Batches window
Class = usages
Expenditures window
• In the Expenditures region, enter employee or organization.
• In the Expenditures Items region, select the usage expenditure type, such as
vehicle, field equipment, computer services.
• Nonlabor Resource and Organization: These fields are required for nonlabor
usage entry.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Entering Pre-approved Usages
• Resource: Enter the resource utilized. The list is limited to those defined
for the type and the organization.
• Organization: Enter the organization that owns the asset utilized.
• Quantity: Enter the number of units.
• Units vary by type, for example:
– Vehicles —> days
– Field equipment —> hours
– Computer service —> hours
Oracle Projects
Consultant Training
Project Costing
Expenditures…
You can copy preapproved transactions to speed entry.
• You can copy from one batch to another.
• The date ending for the target batch defaults on all line items.
• You can copy with or without expenditure detail.
• You can reverse an expenditure batch if the current batch is released and the
transaction source of the batch allows adjustments.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• You can reverse an expenditure batch if the current batch is released and the
transaction source of the batch allows adjustments.
• When you reverse an expenditure batch, all expenditure items are reversed
except:
– Related items
– Expenditure items that have been already reversed
– Reversing items (net zero adjusted items)
– Expenditure items that were created as a result of a transfer adjustment
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• You submit the preapproved batch when you have finished entry.
• The batch running totals must equal the control totals (if using control totals)
before you can submit the batch.
• Releasing a batch is a second level of review after entry. This is usually done
by someone other than the entry person, typically the entry person’s
supervisor. You can use function security to remove the release capability
from the entry person’s responsibilities.
– Use the Pre-approved Expenditure Entry Audit Report to review batch
input before release.
– Expenditure batches can be edited before release; the status must be
‘Working’ to make corrections.
• Release makes expenditures ready for cost distribution; only approved
expenditures can be cost distributed.
• Release is synonymous with ‘Approval.’
Oracle Projects
Consultant Training
Project Costing
Expenditure Inquiry
Oracle Projects
Consultant Training
Project Costing
Expenditure Inquiry
Find the
expenditure
entered
Oracle Projects
Consultant Training
Project Costing
Expenditures…
• After submitting a batch, you can make corrections such as adding, deleting,
and revising expenditures and expenditure items that were incorrectly
reported or entered.
• If the status of the batch is submitted, you must return it to working, and then
make the corrections at the expenditure/expenditure item level before
resubmitting the batch.
• If the status of batch is released, you must reverse the full amount of the
original item before entering the correct information.
Oracle Projects
Consultant Training
Project Costing
Expenditures…
Burden Multipliers
• A burden multiplier applies to a raw cost amount to reflect the actual cost of
doing business. These extra costs include employee benefits, office space,
and so on.
• A cost burden schedule is an implementation-defined set of burden
multipliers used for costing to derive total cost amounts. You can apply
costing burden schedules across projects.
• Burden schedule overrides are revisions to the burden schedule attached to
the project. When you define project types at implementation, you decide
whether overrides will be allowed for each project type.
Oracle Projects
Consultant Training
Project Costing
Expenditure…
You can transfer a transaction from one project or task to another and maintain
full tracing abilities.
When the transaction is posted, the following occurs:
• A reversing item is created for the old project.
• A new item is created for the new project.
• The new “transferred” transaction is posted to the current open period.
• The new transaction is recosted with the new burdened amount for the
destination project or task.
Oracle Projects
Consultant Training
Project Costing
Capital Projects
Purpose of Capital Project:
Use capital projects to collect construction in process (CIP) and expensed costs
for assets you are creating using internal resources.
These internal resources can include:
– Labor
– Equipment
– Inventory
– Outside services
– Internal service-center recharges
Oracle Projects
Consultant Training
Project Costing
Capital Projects…
General accounting rules require that CIP costs should not be expensed to the
income statement until the asset is placed into service. Then the asset cost is
incrementally depreciated over the life of the asset.
Therefore, CIP costs are:
• Treated as an asset on the balance sheet and not recorded directly as an expense
on an income statement.
• Reclassified as fixed assets when the asset is completed and placed in service.
Oracle Projects
Consultant Training
Project Costing
Capitalizing Project Costs
Send non-CIP
assets
Send purchasing
details
Oracle
Purchasing
Send
project
costs
Send expense
report costs
Oracle
Projects
Send CIP
asset costs
Post asset
costs and
clear CIP
accounts
Post invoice
CIP and
expensed costs
Post non-invoice CIP and
expensed costs
Oracle Projects
Oracle Assets
Oracle
Payables
Oracle
General Ledger
Consultant Training
Project Costing
Capital Project…
Defining Assets
CIP assets must be predefined within Oracle Projects before they are
interfaced to Oracle Assets. You can define assets:
• During project setup
• After the project starts (perhaps when the building process begins)
• Using the Projects window
• Using the Capital Projects window
Oracle Projects
Consultant Training
Project Costing
Capital Project…
Placing a CIP Asset in Service :
Placing a CIP asset in service involves the following steps:
• Finish building the project asset.
• Record the actual placed-in-service date.
• Complete the asset definition (if required).
• Generate asset lines.
• Interface assets to Oracle Assets.
Oracle Projects
Consultant Training
Project Costing
Capital Project…
Running the Interface Assets Process :
To send asset lines to Oracle Assets to become fixed assets:
• For either a single project or a range of projects, select the PRC: Interface
Assets process in the Submit Requests window.
• Review the mass addition lines in the Oracle Assets Prepare Mass Additions
window.
Oracle Projects
Consultant Training
Project Costing
Online Inquiry and Reporting
To ensure project control and profitability, you need immediate information for
informed decision making.
You can analyze project data at any point and make adjustments easily, while
maintaining a full audit trail.
Oracle Projects provides several reporting and analysis tools including:
•
•
•
•
•
Project Status Inquiry (PSI)
Standard reports
Database views for custom reports
Business Intelligence System (BIS) integration
Oracle Cash Management System integration
Oracle Projects
Consultant Training
Project Costing
Oracle Projects
Consultant Training
Project Costing
Setups Required
Set the profile option PA: Licensed to Use Project
PA: Licensed to Use Project Billing
Required
Define your set of books.
Required
Enable currencies that you plan to use.
Optional
Human Resources
Required
Define organizations.
Required
Define organization hierarchies
Required
Specify a project burdening hierarchy for each BG
Required
Define jobs
Required
Define employees
Required
Define customers
Required
Set up output tax codes for customer invoices
Optional
Set up output tax exemptions for customer invoices.Optional
Oracle Projects
Consultant Training
Project Costing
Setups Required…
Define implementation options.
Define PA periods.
Define expenditure categories.
Define revenue categories.
Define units.
Define expenditure types.
Define non–labor resources.
Define transaction sources.
Implement transaction control extension
Define cost rates for expenditure types.
Define usage cost rate overrides.
Define compensation
Define employee cost rates.
Oracle Projects
Required
Required
Required
Required
Required
Required
Required
Optional
Optional
Required
Optional
Required
Required
Consultant Training
Project Costing
Setups Required…
Define labor cost multipliers.
Implement labor costing extension
Implement labor transaction extension
Implement overtime processing
Optional
Define cost bases and cost base types.
Define burden cost codes.
Define burden structures
Define burden schedules.
Define billing cycles.
Implement billing cycle extension
Define payment terms.
Optional
Oracle Projects
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Required
Optional
Consultant Training
Project Costing
Setups Required…
Define agreement types.
Required
Define bill rate schedules.
Required
Define invoice formats.
Required
Define credit types.
Required
Define event types.
Optional
Assign event types for cost–to–cost revenue
Optional
Implement Percent Complete Revenue Accrual and Invoicing
Optional
Implement labor billing extension
Optional
Implement billing extensions
Optional
Implement automatic invoice approve/release extension
Optional
Implement AR transaction type extension
Optional
Implement cost accrual
Optional
Oracle Projects
Consultant Training
Project Costing
Setups Required…
Define budget types
Define budget entry methods
Define budget change reasons
Define resource
Implement budget calculation extension
Implement budget verification extension
Implement budget workflow extension.
.Define project statuses.
Define class categories and class codes
Optional
Define service types
Define project role types.
Define project customer relationships.
Define contact types.
Oracle Projects
Optional
Required
Optional
Required
Optional
Optional
Optional
Optional
Required
Optional
Required
Optional
Consultant Training
Project Costing
Setups Required…
Define project types
Define project templates.
Implement project verification extension
Implement project workflow extension.
Implement verify organization change extension.
Define displayed columns and derived columns
Define descriptive flexfields.
Define request groups for report and process security.
Define responsibilities for different functional users.
Set up accounting for labor revenue.
Set up accounting for labor costs
Set up accounting for expense report costs
Set up accounting for usage costs
Oracle Projects
Required
Required
Optional
Optional
Optional
Optional
Optional
Optional
Required
Required
Required
Required
Consultant Training
Project Costing
Setups Required…
Set up accounting for miscellaneous costs
Set up accounting for burden transactions.
Set up accounting for WIP and Inventory costs
(if you are using these expenditure type classes for costs
other than those originating in Oracle Manufacturing and
Oracle Inventory)
Set up accounting for supplier invoice adjustment costs.
Required
Set up accounting for total burdened costs.
Set up accounting for expense report revenue.
Required
Set up accounting for usage revenue.
Required
Set up accounting for miscellaneous revenue
Required
Set up accounting for burden transactions revenue
Required
Oracle Projects
Required
Required
Required
Optional
Consultant Training
Project Costing
Setups Required…
Set up accounting
Required
Set up accounting
Required
Set up accounting
Required
Set up accounting
Required
for inventory revenue
for work in process revenue
for supplier invoice revenue
for event revenue
Set up accounting for unbilled receivables, unearned
revenue, and receivables
Required
Define Invoice Rounding account
Required
Set up accounting for invoice write–offs.
Required
Oracle Projects
Consultant Training
Project Costing
Terminologies Used
Project/Task owning Organization - Organization that can own and
Manage projects and task.
PA Period- Project Accounting period (PA Period) track Oracle Projects data
on a periodic basis. PA periods can be used for budgeting and for accounting
for cost and revenue. PA Period can be different from GL period
Raw Cost- Costs that are directly attributable to work performed (also
Referred to as direct costs). For example, Hours × Hourly Cost Rate.
Burden Costs -Costs of running the business that support the raw costs (also
referred to as indirect costs). For example, fringe benefits, office
space, general and administrative (G&A).
Oracle Projects
Consultant Training
Project Costing
Terminologies Used…
Burdened Cost = Raw Cost + Burden Cost
Project Currency – The currency in which project amounts are summarized
for Project summary reporting.
Project Functional Currency – The functional currency of the Set of Books
(SOB) associated with a transaction for accounting purposes. For costing, the
expenditure functional currency is derived from the SOB associated with the
expenditure Operating Unit (OU).
Invoice Currency – The currency in which invoice is raised.
Oracle Projects
Consultant Training
Project Costing
Terminologies Used…
You can define the following types of organization in the organization hierarchy
for different uses:
• Project/task owning organization : These organizations “own” the project or
task.
• Expenditure/event organization : It is the organization providing the resource
to the project. To act as an expenditure organization, an organization must
have this classification and be an element of the “Expenditure/Event
Organization” hierarchy
• Project Invoice Collection Organization : Organizations with this
classification are used for decentralized invoicing.
Oracle Projects
Consultant Training
BILLING
Oracle Projects
Consultant Training
Project Billing
Billing Terms
You negotiate the billing terms of the contract with the project customers.
Billing terms for a contract project
• How should the project be billed?
Billing method: Milestone, Time and Materials,
Cost Plus
• How often should the project be billed?
Billing cycle
Oracle Projects
Consultant Training
Project Billing
Billing Terms…
• How should the information be displayed on the invoice?
What is the desired invoice currency?
• Does an amount have to be retained for the project invoices?
Retention percentage
• What rates should be used?
Standard rate schedule, negotiated rates
• What type of work can be billed? Cannot be billed?
Oracle Projects
Consultant Training
Project Billing
Billing Cycle
You enter billing-cycle information to control how often you create and send
invoices to your project customers.
• First bill offset
– Number of days following the project start date before first invoice cycles
off
– Defaults from implementation options
• Bill cycle days
– Frequency of billing following previous billing
– Defaults from implementation options
– Can create specific project invoices at any time
Oracle Projects
Consultant Training
Project Billing
Billing Distribution and Retention
A distribution rule specifies the revenue accrual method and the billing method.
• Notation: <Revenue Accrual Method>/<Invoicing Method>
• Supported revenue accrual and invoicing methods
– Work: Based on detailed transactions using bill rates, burden rates, and
markups
– Event: Milestone billing
– Cost: Based on percent spent calculation
Retention
• You use invoice retention to reduce a project invoice by a percentage amount
that you specify for a particular project.
• Retention invoice format defines what to display in the retention invoice line
description.
• Retention % defines the percentage to withhold from each invoice. This
percentage is applied to the total invoice amount.
Oracle Projects
Consultant Training
Project Billing
Distribution Rules
Oracle Projects
Consultant Training
Invoice Formats Concepts
•
Formats for
• Labor
• Nonlabor
• Retention
•
Invoice formats
defined during
implementation
Formats control
Creation of invoice lines when
generating an as-work-occurs
invoice. This includes:
• How to summarize expenditure
items into an invoice line
• Which fields to display on the
invoice line
• Order in which to display the
fields on the invoice line
Can create formats to
•
•
•
•
•
Oracle Projects
Summarize at project or task level
Summarize labor by category, job,
employee, or site
Summarize non-labor by category,
type, resource, or site
Include text in invoice line
Include bill rates, amounts, units
Consultant Training
Project Billing
Job Groups
Job groups enable you to group like jobs for specific purposes. Use the Job groups
window in HRMS to define job groups for project purposes. Jobs assigned to these
job groups are called Project Jobs.
Project jobs are used for:
•
•
•
•
Bill Rates (for Revenue, Invoicing, and Transfer Pricing amounts)
Project Invoice Line definitions
Resource List definition for Budgets
Resource summarization in PSI (Project Status Inquiry)
Oracle Projects
Consultant Training
Project Billing
Master Job Groups
A master job group is used as an intermediate mapping group between other job
groups.
• In Single Business Group Access mode, you can have one master job group for
each business group. You can map jobs only within the same business group.
• In Cross Business Group Access mode, there is only one master job group, and
you can map jobs across business groups.
Oracle Projects
Consultant Training
Project Billing
Bill Rates
You can use the following types of rates for as-work-occurs revenue accrual and/or
invoicing:
• Standard bill rates
• Negotiated bill rates
Standard Bill Rate Schedule
A standard bill rate schedule is a set of standard bill rates or markups that can be
assigned to a project as a group.
• Labor - By employee (bill rate or markup over cost) or job (bill rate)
• Non-labor - By expenditure type or non-labor resource (rate or markup over
cost)
Oracle Projects
Consultant Training
Project Billing
Bill Rates Overrides
Negotiated Bill Rates
You can define the following negotiated bill rates or markups for a project or
lowest-level task:
• Job bill rate override: Bill rate for a job
• Employee bill rate overrides: Bill rate for an employee or Labor Multipliers
• Nonlabor bill rate overrides:
Bill rate for a nonlabor expenditure type or
non-labor resource
Billing Title and Job Assignment Override
You can define negotiated billing titles and job assignments for a project or
lowest-level task.
• Job billing title overrides
• Job assignment overrides
Oracle Projects
Consultant Training
Project Billing
Bill Rates Overrides…
Employee Bill Rate Overrides
• You can override an employee’s standard bill rate for a project or task. When
you override an employee’s standard bill rate, the new bill rate becomes the bill
rate for the employee’s billing.
• When you override an employee’s bill rate, the new employee bill rate takes
precedence over the following override you can define at the project level --Job bill rate override
• In addition, the new employee bill rate takes precedence over the following
information you can define at the task level:
 Job bill rate override
 Standard bill rate schedule
 Labor multiplier
Oracle Projects
Consultant Training
Project Billing
Billing Schedules
• You specify the default type of schedule to use for labor and for non-labor.
– Bill rate schedule
– Burden schedule. You can use a burden schedule for labor and a standard
bill rate schedule for non-labor or vice versa.
• You specify the default schedules based on the type of schedule.
– You can specify different burden schedules for revenue and invoicing.
– If both labor and non-labor use a burden schedule, you must use the same
burden schedule for both.
Oracle Projects
Consultant Training
Project Billing
 Event type
An event is an entry assigned to a top task or project that generates revenue and
/or billing activity, but is not directly related to any expenditure items. You
classify events by event type. When you define an event type, you assign it one
of the predefined classifications. When you enter an event, its event type
classification determines how the event affects revenue and billing for a
particular project.
 Agreement types
Agreement types categorize the various kinds of agreements you negotiate with
clients. For example, you can define one agreement type for all verbal
agreements and another for all agreements using purchase orders.
Oracle Projects
Consultant Training
Project Billing
Credit Receivers
• You can assign credit for project revenue to employees using credit receivers.
• Credit receivers can be used for the following:
– Reporting. You can define custom reports to use with credit receivers.
– Transferring sales credit information to Oracle Receivables. You can use
sales credit information for sales commission reporting in Oracle
Receivables.
• You classify credit receivers with a credit type.
• Examples of credit types:
– Quota (predefined by Oracle Projects)
– Marketing
• Credit types are defined during implementation.
• The credit receiver must be a salesperson in Oracle Receivables, and the credit
type must be a sales credit type in Oracle Order Entry.
Oracle Projects
Consultant Training
Setups
Project
Billing
The following setups are required for billing
Billing Cycle
Agreement Types
Billing Extension
Bill Rate Schedules
Invoice Formats
Credit Types
Event Types
Oracle Projects
Consultant Training
Project
Setups…
Billing Cycle
Billing
Determines how often and on what date
project is billed.
1. Navigate to Billing Cycles Screen.
Setup -> Systems -> Cycles
2. Enter unique name.
3. Enter type, Value.
Oracle Projects
Consultant Training
Project
Setups…
Billing
Agreement
Types
Agreement Type categorizes various kinds of
agreement types.
1. Setup -> Billing -> Agreement Type
2. Enter name.
3. Enter Description.
4. Enter default payment terms.
Oracle Projects
Consultant Training
Project
Billing
Oracle Projects
Consultant Training
Project
Setups…
Billing
Billing Extensions enables users to implement company specific billing methods.
To use billing extensions we have to implement billing extensions and assign
them to project.
Defining Billing Extensions:
1. Setup -> Billing -> Extensions
2. Enter extension name.
3. Attach PL/SQL procedure.
4. Enter description.
5. Enter Order.
Oracle Projects
Consultant Training
Project
Setups…
Billing…
6. Enter effective dates.
7. Enter default event values.
8. Enter default budget type.
9. Check the options – Calling Process,
Required Inputs, Other Parameters and
Calling Place.
10. Save the work.
Oracle Projects
Consultant Training
Project
Billing
Oracle Projects
Consultant Training
Project
Setups
Bill
Rate
Schedules
Billing
…
You can define bill rate schedules to maintain
the rates and percentage markups
over cost that you charge clients for your labor
and non-labor expenditures.
1. Setup -> Billing -> Bill Rate Schedule
2. Enter schedule name and description.
3. Specify the organization tat uses the
schedule.
Oracle Projects
Consultant Training
Project
Billing
Oracle Projects
Consultant Training
Project
Setups
Invoice Formats
Billing
…
You create an invoice line using an invoice
format. You can define different
formats for labor, non-labor, and retention
invoice line items.
1. Setup -> Billing -> Invoice Formats
2. Specify Invoice format name.
3.
Specify Invoice format type.
Oracle Projects
Consultant Training
Project
Setups
Billing
Invoice
Formats
…
6. Specify the effective dates.
7. Specify the star and end position for each
field you want to include in the invoice line.
8. Specify the text – default.
9. Save the work.
Oracle Projects
Consultant Training
Project
Setups
Credit Types
Billing
…
You can award different kinds of revenue
credit to your employees, such as sales
credit and market credit. After defining the
project, you specify the employees as
a credit receiver of diversity credit.
1. Setup -> Billing -> Credit Types
Enter the following information:
Code
Meaning
Oracle Projects
Description
Consultant Training
Project
Setups
Event Types
Billing
…
You classify events by event type. When you
define an event type, you assign it
one of the predefined classifications.
Oracle Projects provides the following
classifications:
Automatic
Deferred Revenue
Invoice Reduction
Oracle
Projects
Manual
Consultant Training
Project
Setups
Event
Types
Billing
…
Defining Event Type:
1. Setup -> billing -> Event Types
2. Specify event type name.
3. Enter description.
4. Specify the revenue category.
Oracle Projects
Consultant Training
Project
Setups
Billing
Event
Types
…
5. Specify event type classification
6. Enter output tax
7. Enter effective dates.
8. Save your work
Oracle Projects
Consultant Training
Project
Billing
Oracle Projects
Consultant Training
Project Billing
Billing Flow
•
•
•
•
•
Enter an Agreement
Generating Revenue
Interfacing to General Ledger
Generating Invoice
Interface to Receivables
Enter an
Agreement
Oracle Projects
Generating
revenue
Interface
Revenue to
GL
Generating
Invoice
Interface
Invoice to
AR
Consultant Training
Project Billing
Oracle Projects
Consultant Training
Project Billing
Agreement
Agreement represents any form of contracts, written or verbal, between you and
one of your customers. We enter an agreement representing a purchase order or
any funding agreement we make with the customer.
Agreement provides funding for projects and tasks. We can allocate funds from
one agreement to any number of Projects or top-level tasks. All revenue and
invoices in Oracle Projects are recorded against an agreement, and all items that
accrue revenue against an agreement subsequently bill against the same
agreement.
Oracle Projects
Consultant Training
Project Billing…
•An Agreement is a contract with a customer that serves as a basis for
funding and work authorization.
– Construction Contract, Purchase Order,Verbal Agreement



One agreement to one project
One agreement to many projects
and/or top tasks
Many agreements to one project
Oracle Projects
Customer A
$1,000,000
Revenue
FUND
$1,000,000
Customer B
$1,000,000
Revenue
$50,000
$100,000
Customer C
$150,000
Revenue
$100,000
Project: X1
Revenue Budget
$1,000,000
Project: Y1
Task 1 $ 50,000
Task 2 $100,000
Project: Z1
Revenue Budget
$200,000
Consultant Training
Project Billing
Agreement…
1.
Billing -> Agreements
2.
Enter the customer who is providing the agreemtn funding.
3.
Enter the number to identify this agreement, such as customer’s purchase
order number. Agreement number should be unique for the customer and
agreement type.
4.
Enter an agreement type.
5.
Enter amount of this agreement
6.
Enter the accounts receivable term.
7.
Chose hard limit, if for revenue accrued and invoice generated
Oracle Projects
Consultant Training
Project Billing
Agreement…
8.
Enter date this agreement expires.
9.
Enter description for the agreement.
10. Enter the administrator for the agreement.
11. Enter creation date.
12. Save the work.
Oracle Projects
Consultant Training
Project Billing
Oracle Projects
Consultant Training
Project Billing
Oracle Projects revenue flow follows the following steps.
Oracle Projects
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Project Billing
Steps before Generating Revenue
• Enter and fund the agreement.
• If you want to generate revenue or invoices for the project based on percent
complete, enter percent complete information either at the project or the
funding level.
• If you want the project customer to be billed in a currency other than the
project currency, enter currency attributes for the project customer.
• Enter budgets and Baseline the project budget.
• Projects using event billing enter billing events using the Event option in
the Project or Task window
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Project Billing
Interface Revenue to General Ledger
The information you can view in these windows includes:
• Amount
• Revenue category
• Event description
• Information about a revenue item’s distribution lines
• Agreement providing the revenue funding
• Date the revenue was interfaced to Oracle General
Ledger
• Distribution warnings encountered while generating
draft revenue
Oracle Projects
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Project Billing
Generating Revenue
Revenue can be generated for single project or for range of projects using:
Others -> Request -> run
PRC: Generate Draft Revenue Process
For single project:
Generate Draft Revenue for Single Process
For range of projects:
Generate Draft Revenue for a range of project
Oracle Projects
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Project Billing
Generating Revenue
Process:
•
•
•
Oracle Projects selects projects, tasks and their associated events and
expenditure items that are eligible for revenue generation.
Projects create the potential revenue and create - revenue events and
expenditure items.
Projects also calculate the bill amount for each expenditure item, based on
revenue distribution rules associated.
Oracle Projects
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Project Billing
Interface Revenue to General Ledger
1. Projects releases revenue to interface to Oracle General Ledger. Released
revenue cannot be deleted or updated.
2. Oracle projects automatically releases revenue when interfaced to Oracle
General Ledger via submit request window.
3. Request: PRC: Interface Revenue to General Ledger
Oracle Projects
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Project Billing
• Invoice Flow
Generate
Draft
Invoice
Review
and Adjust
Invoice
Approve
Invoice
Release
Invoice
Interface
Invoice
To AR
Print and
Send Invoice
To Customer
Oracle Projects
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Project Billing
Generate Draft Invoice
To generate invoices across a range of projects:
PRC: Generate Draft Invoices for a Range of Projects
To generate invoices for a single project:
PRC: Generate Draft Invoices for a Single Project
You can use the Invoice Review report to review the draft invoices of a project
before approving and releasing them for interface to Oracle Receivables.
Oracle Projects
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Project Billing
Generate Draft Invoice
Reviewing Invoice:
You should review each invoice before you approve and release it for billing.
Use the Invoice Summary window or the Invoice Review report to review
invoices. You can review invoice information such as:
Invoice amount
Invoice lines
Currency attributes
Expenditure items that back up invoice items
Invoice customer
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Project Billing
Interface Invoice to Accounts Receivables
Oracle Projects fully integrates with Oracle Receivables to process your invoices
and track customer payments. Oracle Projects generates draft invoices and uses
Oracle Receivables to collect payments for the project invoices and transfer the
accounting transactions to Oracle General Ledger.
Manual Invoice Release.
Usually project administrator or project manager releases invoices. Oracle
Projects records the invoice released information of the person who releases the
invoice and the date it was released.
Automatic Invoice Release.
The Automatic Invoice Approve/Release Extension allows you to release
invoices automatically as part of the Generate Draft Invoice Process.
Oracle Projects
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Project Billing
Use this window to review Invoices Generated and interfaced to receivables
Oracle Projects
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