Oracle Projects

Overview

Agenda
Overview of Oracle Projects Modules Setup Project Types WBS Project Templates Project Creation

Oracle Projects
Business application for Project Oriented Companies in different

industries:
Engineering & Construction PSA Consulting Aerospace & Defense Retail

Provides you a flexible approach to defining and structuring projects,

tasks and budgets

Oracle Projects
Track various costs related to project, track profitability Structure the project by breaking it down to tasks to effectively track the work to be accomplished Track Project Schedule, monitor progress, issues and manage changes

Create Budgets and maintain financial control Oracle Projects

Accrue revenue on project based businesses

Report status Financial (Actual vs budgets, schedule), schedule and others

Generate invoices to clients

Create resource requirements for the project and staff them

Collaborate project data across the project team seamlessly

Oracle Projects
Project Collaboration Expense Reports Project Management - Schedule - Progress - Issues - Changes Projects $ s $ e c oi Accounts Payable v n rI

Budgets

Expenditures

lie pp u S Mfg Costs

M at er ia l

co s

WIP
ts

La

Costing

bo xp re

s se en

Organization & Employees

Revenue Accrual

Inventory

Invoicing Project Resource Management $ $ Accounts Receivable VISIO CORPORATION $ GL Personnel

Oracle Projects - Modules

Project Costing (PJC) Project Billing (PJB) Project Resource Management (PJR) Project Management (PJT) Project Collaboration (PJL)

Oracle Projects - Modules

Project Costing: Allows you to enter and maintain project costs
Create tasks, control chargeability Record cost transactions Timecards, expense reports, asset usage, supplier invoices Track committed costs Requisitions, PO, Interfaces with AP, PO, GL, PJM

Target Users: Project Managers, Financial Managers

Oracle Projects - Modules

Project Billing: Allows you to generate revenue and create invoices
Enter project customers, agreements and Fund the project Generate Revenue T&M, Cost Plus, % Complete Create Invoices based on transactions, milestones Interfaces with GL, AR

Target Users: Project Managers, Financial Managers

Oracle Projects - Modules

Project Resource Management: Allows you to manage your project resource

needs and organization resource utilization

Defining resource requirements Searching for resources meeting requirements Tracking candidates Automatically processing approvals

Managing team schedules

Track resource utilization

Target Users: Project Managers, Resource Managers, Staffing Managers

Oracle Projects - Modules

Project Management: Enables you to track and manage a project from

creation and planning through to completion

Create, maintain, version and view workplans Track progress against the workplan Create Budgets and Forecasts to plan and manage financial performance Publish status reports to project stakeholders

Manage issues and changes in the project

Attach and manage documents for projects and tasks

Target Users: Project Managers

Oracle Projects - Modules

Project Collaboration: Enables the project team members to collaborate

and communicate with ease

Team Member Home page Entry page for team members to access different projects

related documents
Resolve issues and changes related to projects Sharing information and assigning

actions to different people

Decentralized project progress entry Receive project notifications, and status reports

Target Users: Project Team Members

Oracle Projects Setup

Vision Operations Set of Book

Legal Entity

Operating Unit

Vision Operations

Project Transactions controlled here

Organizations HR Org 1 Inventory Org 2 Inventory Org 3

Define SOB GL Define Organizations HR

Oracle Projects Setup

Organization Classifications
Project Expenditure/Event Owning organization
Project Task owning organization

Organization Hierarchy
Project/Task owning org hierarchy

Exp/Event org hierarchy

Burden Schedule hierarchy

Oracle Projects Setup

Set MO: Operating Unit profile option Setup Projects Implementation Option for each OU

Oracle Projects Setup

PA Periods: Define PA Periods (copy from GL, derived from implementation

options)
Schedule Calendars Calendar Shifts, Calendar Exceptions, Assign shifts Resource Definition
Job groups, Job Levels, Job categories, Jobs, Grades, Rating Scales, Competencies, PJR Job

Group profile option

Define Employees Roles, Role Lists

Oracle Projects Setup

Classifications Class Categories and Class codes Resource Lists Service Types Work Types Cycles

Statuses

Projects Foundation
Project Types The project type determines how Oracle Projects processes costs (expenditure items) for a project and provides defaults and controls for project entry and processing. Each project type must have a project type class.
Indirect To collect and track expenditure item costs and labor hours for overhead activities, such

as administrative and overhead work, marketing, and bid & proposal preparation. You can also define indirect projects to track time off including sick leave, vacation, and holidays
Contract To collect and track costs, labor hours, revenue, and billing for services performed for

and reimbursed by a client

Capital To collect and track costs and labor hours for asset development activities that you plan to

capitalize as one or more assets

Examples of project types:
Cost Plus Time and Materials Construction General and Administration

Projects Foundation
Work Breakdown Structure Hierarchical breakup of the project activities into manageable units
Financial WBS To aggregate costs and manage billing at the task level Workplan Detailed WBS to track task schedules Tasks Top Tasks, Summary Tasks and Lowest Tasks (activities)

Benefits in Oracle Projects Budgets at task level, costing can be controlled, controlled billing,

summarization of costs, schedule tracking

Project Foundation
Project Template: Defines the basic characteristics of the project, and consists of:
Basic project information Work breakdown structure (WBS) Agreement and funding (optional) Project and task options, including key members, classifications, Transaction controls, and any other

project and task options

Budgets (optional) Quick Entry fields which specify fields to enter for the new project when creating it from a template Project Option controls which list the project options to display for new projects created from a

template

Projects Foundation
Project Template screen shot

Project Foundation
Quick Entry Screen

Project Foundation
Project Creation: Create Project by copying
Project Template Another Project

Provide details in the quick entry Modify details as required after project creation

Projects Foundation
Project Creation screen shot

Projects Foundation
Project and Task Options
Project Classifications - Choose the class category for the project, then select one or more class

codes for the class category. For example, you can specify a class category of Funding Source, and assign a class code of Federal to indicate project funding by a federal agency.
Customers and Contacts- Specify the revenue and billing contribution of a paying customer for project

work, define the relationship of a customer to this project, and enter other information about this projects customer. The customer you choose must be an active customer in the Oracle Receivables database.
Cross Charge - Specify whether the project or lowest task allows charges from other operating units.

Key Members - Key members are employees who are assigned a role on the project. You assign

employees as key members who need access to the project.

Organization overrides - You can reassign an employees, or an entire organizations, costs and

revenue to a different organization for a particular project.

Resource List Assignments - You assign resource lists to a project to indicate which resource lists

you want to use for summarizing project actual amounts for project status tracking.
Transaction Controls - Configure your projects and tasks to allow only charges that you expect or plan.

You can also define what items are billable and nonbillable on your projects. is burdened. The costing burden schedule defaults from the project type.

Costing Burden Schedule - You must specify a cost burden schedule if you specify that a project type

Thank you

Oracle Project Costing

Part 1

Agenda
Oracle Project Costing overview Setup Expenditures Costing Burdening Auto Accounting

Oracle Project Costing

Project Costing: Oracle Project Costing provides you with the ability to define

projects, work breakdown structures, and budgets; record and report costs against projects
Enter projects and tasks. You can define chargeability control to limit charges to your

projects and tasks

Enter cost budgets and baseline them Track committed costs of requisitions, purchase orders, and supplier invoices Record detailed cost transactions for timecards, expense reports, asset usage, and

supplier invoices
Interface costs between other Oracle Applications while maintaining a detail audit trail
Report project status online and in reports

Business Process
Project Manager Create Project Issue Materials to Projects Project Resources Enter Time Cards Enter project Expenses Enter Usage and Misc Costs Accounts Staff Import Inventory and manufacturing costs Record project specific Manufacturing costs Inventory Supervisor

Define Tasks, project and Task options

Shop Floor Supervisor

Define Key Members

Import Supplier Costs

Enter Supplier Invoices for projects

Accounts payables Clerk

Enter Project Budgets Costing (Calculation of Raw, Burdened costs, Account generation) Receive materials against PO Create Purchase Orders

Project Budgets

Project Expenditures

Purchasing Clerk

Generate Project Summary Amounts

Summarized Project Amounts

Setup
Expenditure Categories
Revenue Categories Units (UOM) Expenditure Types Auto Accounting Lookup sets Accounting Rules Assign Auto Accounting Rules Non-Labor Resources

Setup
Labor Costing Multipliers
Labor Costing Rules Rate Schedules (shared between costing and billing) Organization Labor Costing Rules Cost Bases and Cost Base Types Burden Cost Codes Burden Structures Burden Schedule

Setup
Expenditure/Costing setup at implementation options

Setup
Setup costing options for a project type

Setup
Optionally, setup project/task override options
Costing Burden Schedule Burden Schedule Overrides Transaction Controls

Expenditures
Expenditure Group of transactions incurred by an employee or an organization for an expenditure period
Actual Cost To record actual work performed or cost incurred. Eg: Timecards, Expense

Reports
Commitments Future committed costs you expect to incur. Eg: PO, Requisition

Expenditure Type Classes: An expenditure type class tells Oracle Projects how to process an expenditure item. Oracle Projects predefines all expenditure type classes.
Oracle Projects uses the following expenditure type classes to process labor costs for interfacing

to Oracle General Ledger:

Straight Time Payroll straight time Overtime Overtime premium on a project Oracle Projects uses the following expenditure type classes to process nonlabor project costs: Expense Reports Oracle Projects expense reports are interfaced to Oracle Payables for

employee reimbursement
Usages Asset usage costs are interfaced to Oracle General Ledger. Supplier Invoices Oracle Payables supplier invoices are interfaced from Oracle Payables to

Oracle Projects.

Expenditure Type Classes

Miscellaneous Transaction Miscellaneous Transactions are used to track miscellaneous project

costs. Miscellaneous transactions may be used for the following costs:

Fixed assets depreciation Allocations Interest charges Burden Transaction Burden transactions track burden costs that are calculated in an external

system or calculated as separate, summarized transactions.

Work In Process This expenditure type class is used for Project Manufacturing WIP transactions

that are interfaced from Manufacturing to Oracle Projects.

Inventory This expenditure type class is used for the following transactions: Project Manufacturing transactions that are interfaced from Manufacturing or Inventory to

Oracle Projects.
Oracle Inventory Issues and Receipts that are interfaced from Oracle Inventory to Oracle

Projects in a manufacturing or nonmanufacturing installation.

Expenditure Entry

Pre-Approved Expenditure Batches Entry

Verify: Project Status Task Chargeable ? Start/Finish Dates

Fail

Error

Pass

Error

Fail

Verify Project/ Task Transaction Controls

Pass

Save Expenditure Lines

Submit for Review

Release

Distribute Costs

Expenditure Entry
Expenditure batch entry

Expenditure Entry
Expenditure Items for a Timecard

Expenditure Inquiry

Costing
Costing: 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. The Costing process includes the following steps:
1. Calculate raw cost (Quantity

Rate).
2. Calculate burdened cost 3. Perform accounting Determine account numbers to post

to in Oracle General Ledger

Create cost distribution lines

Costing
Labor Costs: Labor costs are calculated using the quantity and rate Raw Cost = Hours Worked*Cost Rate Cost Rate is derived from Organization Labor Costing Rules or employee rate overrides Expenses and Usages: Oracle Projects calculates the cost for expense reports, usages, and

miscellaneous transactions as follows:

Raw Cost = Quantity (if in Currency, for example,currency amount) Raw Cost = Quantity Cost Rate (if quantity is not in Currency)

Cost rates by expenditure type, or Cost rates by nonlabor resource and owning organization for usages (optional); overrides

expenditure type cost rate

Burden Cost = Raw Cost * Burden Multiplier Burdened Cost = Raw Cost + Burden Cost

Costing
Costing Processes
PRC: Distribute Labor Costs PRC: Distribute Expense Report costs PRC: Distribute usages and miscellaneous costs PRC: Interface Supplier Invoice Costs

PRC: Interface Expense Reports from Payables

PRC: Interface Expense Reports to Payables

Burdening
Burdening A method of calculating the burden costs by applying one or more burden cost components to the raw cost amount of each individual transaction.

Burdening
Burden Structure: A burden

structure determines how cost bases are grouped and establishes the method of applying burden costs to raw costs.
Burden Cost Code: Type of

burden cost that you want to attach for the raw cost
Cost Base: Grouping of Raw

Costs

Burdening
Burden Structure - Example

Burdening
Burden Schedule: Establish

the multipliers used to calculate the burdened cost.

Burden costs can be on the

same or separate expenditure line

When separate, accounting will

be based on exp type class for burden transactions

AutoAccounting
Use AutoAccounting to specify how to determine the correct general ledger

account for each transaction.

Examples of accounting practices you can implement using AutoAccounting

include:
Charge central headquarters with all advertising costs regardless of which region those

advertisements benefit. employee works. project.

Credit payroll costs to the payroll liability account belonging to the division for which an Assign revenue from subcontractors to the company and cost center managing the

When you implement AutoAccounting, you define the rules and circumstances

that determine which general ledger accounts Oracle Projects uses.

Oracle Projects then uses the rules when performing accounting transactions.

AutoAccounting
AutoAccounting Rule: Each AutoAccounting rule

you define supplies one Accounting Flexfield segment value. Thus, you need to specify one AutoAccounting rule for each segment in your Accounting Flexfield for each transaction
To define an AutoAccounting rule, you first specify

an intermediate value (an input for the rule). You can draw an intermediate value from one of three intermediate value sources:
Constant Parameter SQL Select Statement

AutoAccounting
Assign AutoAccounting Rules Window : Use this window to assign an AutoAccounting rule to each

segment of your Accounting Flexfield for the AutoAccounting transactions you want to use.
Example: Accounting for Labor Costs

Labor Cost Account Function: When you run the PRC: Distribute Labor Costs process, Oracle

Projects calculates labor cost amounts based upon employee labor cost rates. After calculating labor costs, Oracle Projects uses the Labor Cost Account transactions to debit an expense account for raw labor costs.
Enable the Private Billable Labor Transaction and Assign Rules: Function Name: Labor Cost Account, Transaction Name: Private, Billable Labor

Number 0 1 2

Segment Name Company Cost Center Account

Rule Name Employee Company Employee Cost Center Private, Billable Labor

AutoAccounting
Labor Cost Clearing Account Function: When you run the PRC: Interface Labor Costs to General

Ledger process, Oracle Projects credits a payroll clearing liability account to balance the labor expense account it debits when you run the PRC:Distribute Labor Costs process. The process then transfers both the liability credits and the expense debits to the Oracle General Ledger interface tables so you can post them to the general ledger.
Enable the Labor Cost Clearing Account Transaction and Assign Rules: Function Name: Labor Cost Clearing Account, Transaction Name: Clearing Account

Number 0 1 2

Segment Name Company Cost Center Account

Rule Name Employee Company Division Cost Center Payroll Clearing

Thank you

Oracle Project Costing

Part 2

Agenda

Allocations

AP-PO-PA Integration
Project Status Inquiry

Allocations
Allocations: Using Allocations, you can distribute amounts between and within

projects and tasks, or to projects in other organizational units.

For example, a manager could distribute across several projects (and tasks) amounts such

as salaries, administrative overhead, and equipment charges.

Oracle Projects performs allocations among projects and tasks.
MassAllocations in Oracle General Ledger performs allocations among GL accounts. You can use AutoAllocations in either General Ledger or Oracle Projects to run

MassAllocations.

Allocations
Allocation Rule: Allocation rules define how allocation transactions are to be generated,

including:
Source - The amounts you are allocating Targets - The projects and tasks to which you want to allocate amounts How much of the source pool you want to allocate, and if you want to include a fixed

amount, GL balance, or client extension (or any combination of these)

The time period during which the rule is valid You can leave the original expenditure amounts in the source project, or offset the

amounts with reversing transactions.

Allocation Rule
Source: Determines the source pool amount that needs to be allocated. Fixed Source Amount A fixed amount that you want to include in the source pool

Project Source: One or more projects and/or tasks as source. The costs collected in the

project/task add to the source pool.

All source projects and tasks must be open and from the same operating unit The tasks must be a top or lowest level task Optionally, limit the resources that are a part of source projects
GL Source: Select a GL Account as a source (if allocation period type is GL)
Allocation Pool % - Indicates how much of source pool to allocate The rule accumulates the amounts for the source pool during a specific period of time. The start

and end date of the time period is determined by:

Allocation period type (either GL or PA, as set in the Allocation Rule window) Amount Class PTD, ITD, QTD, YTD

Allocation Rule
Target: Targets are the projects and tasks to which the allocation distributes amounts. If you selected one of the target percentage basis methods in the Allocation Rule

window (Target % and Spread Evenly or Target % and Prorate), enter a value in the % field for each Target line
The value is the percentage of the source pool to allocate to the line. The total

percentage for included targets must equal 100.

Offset: Offsets are reversing transactions used to balance the allocation transactions with

the source or other project.

All projects and tasks to which you apply offsets must be open and chargeable.

Allocation Rule
Basis Method: When you define an allocation rule, you select a basis method. The basis

method defines how the amounts in the source pool are to be divided among the target lines.
Spread Evenly: The rule divides the source pool amount equally among all the

chargeable target tasks included in the rule.

Target % and Spread Evenly: You specify the percentage of the source pool that you

want to allocate to each target line. The rule calculates the amount to allocate to the line, and then spreads the results evenly among the tasks.
Prorate: Proration basis method provides precise control over how the rule distributes

the source pool. The rule uses the attributes set in the Basis window to derive the rate at which the source pool amount is apportioned among the target projects and tasks. For the Prorate basis method, the rule uses the basis attributes to apportion the source amount among all the tasks defined by the rule.
Target % and Prorate: For the Target % and Prorate method, the rule first uses the

target percentage to calculate the amount to allocate to the line, and then goes on to apportion the results among all the tasks.
Use Client Extension Basis: Another way to define percentages and a basis is to use

the Allocation Basis extension.

Allocation Rule
Basis: If you select a proration basis method (Prorate or Target % and Prorate) in the

Allocation Rule window, you must define exactly how you want to prorate the source pool amount to the target projects.
Proration basis methods derive the proportion of the source amount to be allocated to

target projects and tasks.

The Basis button is available only if you selected the basis methods of Prorate or

Target % and Prorate.

For example, based on the number of labor hours recorded by workers on a project,

you can allocate a proportionate amount of the source to that project.

Basis Category: Actual, Budget, Financial Plan Type Amount Type: Dependent on Basis Category (Eg: Total Raw Cost, Total Labor Hours)

Amount Class: PTD, YTD, QTD

Basis Resources (Optional)

Allocation Example
Assume a source Pool of $1000. The Target projects are P1 (with tasks A, B, C) and P2

(with tasks Y and Z) Basis Method Spread Evenly Target Project P1 Target Tasks A B C P2 Y Z Target % and Spread Evenly P1 A B C P2 Y Z 10% 90% Target Percent Labor Hours Allocation $ 200 $ 200 $ 200 $ 200 $ 200 $ 300 $ 300 $ 300 $ 50 $ 50

Allocation Example
Assume a source Pool of $1000. The Target projects are P1 (with tasks A, B, C) and

P2 (with tasks Y and Z) Basis Method Prorate (Proration basis is Labor Hours) P2 Target Project P1 Target Tasks A B C Y Z Target % and Prorate (Proration basis is Labor Hours) P2 P1 A B C Y Z 10% 90% Target Percent Labor Hours 40 60 200 80 20 100 200 300 0 50 Allocation $ 100 $ 150 $ 500 $ 200 $ 50 $ 150 $ 300 $ 450 $0 $ 100

Allocation Process
Define Allocation Rules Submit: PRC: Generate Allocate Transactions process

Error Fail

Specify Rule Name, Period Name as parameters

Verify Source, Target and Offset project statuses

Pass

Create Draft allocation runs

Release allocation runs

Create Allocated transactions in Target and Offset projects

Full allocations distribute all the amounts in the specified projects in the specified amount

class. The full allocation method is generally suitable if you want to process an allocation rule only once in a run period.
Incremental allocations create expenditure items based on the difference between the

transactions processed in the previous and current run. This method is generally suitable if you want to use the allocation rule in allocation runs several times in a given run period.

AutoAllocations
AutoAllocations: To generate allocations more efficiently, you can group allocations rules and

then run them in a specified sequence (stepdown allocations) or at the same time (parallel allocations).
Stepdown allocations use the results of each step in subsequent steps of the

autoallocation set. Oracle Workflow controls the flow of the auto allocations set.
Parallel allocations carry out the specified rules all at once and do not depend on previous

allocation runs.
AutoAllocation Set: Type: Recurring Journal, MassAllocations, MassBudgets, MassEncumbrances, Project

Allocations
Batch/Rule: Enter the Allocation batch or Allocation rule.

AutoAllocations
Workflow for StepDown AutoAllocations: The PA Step Down Allocations workflow (item type)

automates the execution of stepdown autoallocation sets to:

Create allocation runs Generate the allocation transactions

Release the allocation transactions (if the rule is set up to release automatically) or require

approval from a specific person before the process proceeds

Distribute costs Update the project summary amounts You can customize some aspects of the Workflow processes.

AP-PO-PA Integration
Expense Reports integration with AP

Enter Expense Reports in Projects

Distribute Expense Report Costs

Run the process: Interface Expense Reports To payables

Import Payables Invoices

View Expense Reports in Payables

Tie back expense reports to Projects

To import an expense report entered in payables to projects run the process Interface Expense

Reports From Payables

AP-PO-PA Integration
AP-PO-PA Integration: Oracle Projects fully integrates with Oracle Purchasing and Oracle Payables

and allows you to enter projectrelated requisitions, purchase orders, and supplier invoices using those products.
When you enter projectrelated transactions in Oracle Purchasing and Oracle Payables, you

enter project information on your source document.

Oracle Purchasing and Oracle Payables use the Account Generator to determine the account

number for each projectrelated distribution line based on the project information that you enter.

AP-PO-PA Integration
OraclePurchasing

Requisitions

Auto Create

PurchaseOrders

Receipt Entry

Receiving Transactions

Interface Receiptsfrom Purchsing to Projects

Matching

Expenditures

OraclePayables

Invoices

InterfaceInvoicesfrom PayablestoProjects OracleProjects

AP-PO-PA Integration
To interface supplier related costs from purchase receipts and supplier invoices, run the Concurrent

Process: PRC: Interface Supplier Costs. Set one of the following parameters:
Interface Supplier Invoices: Default Yes Interface Receipt Accruals: Default No Interface AP Discounts: Default No

AP-PO-PA Integration
Interface Receipt Accruals is Set to Yes:
Receipt accruals for project-related items with a destination type of Expense are transferred

from Oracle Purchasing to Projects

Receipt accrual entries are not interfaced if the received items are invoiced and the invoice

distributions are interfaced to Projects Interface Supplier invoices is set to Yes:

Project-related supplier invoice cost is interfaced from Oracle Purchasing to Projects When the item cost is not accrued on receipt, Invoice distributions are interfaced to Projects

When the item cost is accrued on receipt, variance amounts and additional charges are

interfaced to Projects Interface AP Invoices is set to Yes:

Invoice payment discounts prorated across project-related distributions are interfaced to

Projects

Project Status Inquiry

Project Status Inquiry: With Project Status Inquiry (PSI), you can review the current status of your

projects and then drill down for more detailed review of a project and its tasks.
Project Summary Amounts: To facilitate fast and easy status reporting and inquiries, Oracle Projects

maintains various levels of project summary amounts for cost, commitment, revenue, and budget amounts by project, task, and resource. Oracle Projects maintains todate amounts as follows:
PeriodtoDate Amounts (PTD) Prior Period Amounts (PP) YeartoDate Amounts (YTD) Project or InceptiontoDate Amounts (ITD)

Project Status Inquiry

Run the Update Project Summary Amounts process for your projects. The Project Status window

uses the data that is summarized by this process.

You can update project summary amounts anytime after you distribute costs, independent of when you

interface costs and revenue to Oracle General Ledger. This allows you to have uptodate information for project status reporting, independent of the accounting flow. are summarized for all projects in your system. A common reporting period facilitates cross project reporting.

Current Reporting Period: The current reporting period defines the period through which the amounts

Project Status Inquiry

Summarizing by Resource: Oracle Projects summarizes actuals and commitments by resource when

you update project summary amounts. Each transaction maps to one resource in each resource list assigned to the project.
The precedence by resource type is as follows: 1. Employee and Supplier 2. Job 3. Organization 4. Expenditure Type and Event Type 5. Expenditure Category and Revenue Category If a transaction cannot map to any resource defined in the resource list, the transaction is mapped to an

Unclassified resource.
If you make changes to the resource list, run the process PRC: Update Project Summary Amounts

after a Resource List Change to re-summarize data as per the latest resource list

Thank you

Oracle Project Billing

Part 1

Agenda
Oracle Project Billing overview Contract Projects Agreements and Funding Budgets Events Revenue Accrual

Oracle Project Billing

Project Billing: Allows you to define revenue and invoicing rules for your projects, generate revenue, create invoices, and integrate with other Oracle Applications to process revenue and invoices.
Enter project customers and contacts with whom you have negotiated and contracted project

work
Enter agreements (contracts) from your customers and fund projects with those agreements Generate revenue using various methods including time and materials, percent complete, and

cost plus
Create draft invoices from detail transactions and milestones for online approval by your project

or accounting managers
Interface revenue to Oracle General Ledger and invoices to Oracle Receivables while

maintaining a detail audit trail

Report project revenue, invoice, and receivables status online and in reports

Business Process

Customer

Contract/Account Manager Create Agreement

Project Manager Create Project Define Tasks, project and Task options, revenue and invoicing rules

Project Resources Enter Timecards, Expense Reports

Project Accountant Enter Usage and Miscellaneous expenses, import inventory and manufacturing costs

Awards Contract

Fund Projects

Enter Project Customer

Enter Cost and Revenue Budgets

Project Budgets

Project Costs

Accrue Revenue Project Accountant Print Invoices Generate Invoices

Interface Revenue to General Ledger

Interface to Accounts Receivables

Setup
Receivables System Options
Define and Assign Output Tax Codes Payment Terms Rate Schedules Invoice Formats Credit Types Event Types Customers Transaction Types AR

Setup
Billing setup at implementation options

Setup
Setup Billing options for a project type

Setup
Optionally, setup project/task billing options
Customers and Contacts Currency Billing Option Distribution Rule, Invoice Formats, Funding Rules Billing Assignments Assign billing extensions Credit Receivers Define the employees that receive credit for a project Retention Define retention terms for your customer Bill Rates and Discount overrides

Contract Projects
Contract Projects To track activities, cost, revenue, and billing for services performed for

and reimbursed by a customer

Time and Materials Fixed Price Cost Plus Contract Project Flow: Create a Contract Project & Tasks, Enter an agreement Fund the project Enter and baseline a draft revenue budget Distribute costs, generate revenue and invoices

Contract Projects
Billing Methods Billing methods determine how Oracle Projects generates revenue and invoices

for projects. Billing Method Cost/Cost Cost/Event Description Accrues revenue and bills using the ratio of actual cost to budgeted cost (percent complete) Accrues revenue using the ratio of actual cost to budgeted cost (percent complete) and bills based on events Accrues revenue using the ratio of actual cost to budgeted cost (percent complete) and bills as work occurs Accrues revenue and bills based on events Accrues revenue based on events and bills as work occurs Accrues revenue as work occurs and bills based on events

Cost/Work

Event/Event Event/Work Work/Event

Work/Work

Accrues revenue and bills as work occurs

Contract Projects
Bill Rate A bill rate is an amount or percentage that is applied to a unit (of time and materials) to

calculate revenue and invoicing. Bill rates are used for time and materials projects. You can specify the following bill rates in Oracle Projects:
Employee Bill Rates: Standard hourly bill rates or percentage markups assigned to employees.

You can assign a different bill rate to each employee for customer invoicing.
Job Bill Rates: Standard hourly bill rates assigned by job title. For example, all System

Administrators can have one bill rate, while all Consultants can have a different bill rate.
NonLabor Bill Rates: Standard bill rates or standard markups assigned to nonlabor

expenditure type or nonlabor resources.

Agreements and Funding

Agreement Represents any form of contract, written or verbal, between you and one of your

customers. An agreement contains the following:

Impose Revenue Hard Limit or/and Invoice Hard Limit for projects funded by this agreement.
A hard limit prevents revenue accrual and invoice generation beyond the amount allocated to

a project or task by this agreement.

A soft limit issues a warning when revenue accrual and invoice generation exceed the amount

allocated to a project or task.

Agreements and Funding

Funding: Funding is the step that

allocates an amount associated with a customer agreement to a specific project.

The total amount of allocated

project funding must equal the current approved project revenue budget amount in order to successfully baseline the project.
You can fund at Top Task Level or

Project Level

Agreements and Funding - Scenarios

One Customer, One Agreement
Use one agreement when you have one customer and one contract. All revenue is accrued and all invoices billed against the same agreement. The same agreement may fund multiple projects

Multiple Customers, One Agreement Per Customer

Use one agreement per customer when you have multiple paying customers
All revenue and invoice amounts are divided between each customer according to the percentage

splits defined for the project in the Customers and Contract Project options.
Each run of generate revenue creates one draft revenue per customer, and each run of generate

invoice creates one draft invoice per customer. The draft revenue and invoices for all customers contain the same items, but with prorated amounts.

Agreements and Funding - Scenarios

One Customer, Multiple Agreements
Use multiple agreements when you have one customer, but several contracts, and a requirement to

invoice by contract. For example, a project that was originally funded by one purchase order is subsequently funded by another purchase order
When revenue is generated, hard limit agreements are used first in order of expiration date, followed

by soft limit agreements in order of expiration date. Multiple Customers, Multiple Agreements Per Customer
Use multiple agreements per customer when you have multiple paying customers, multiple contracts

with one or more of the customers, and a requirement to invoice by contract.

This method is a combination of the two above. Revenue is prorated between the customers

according to their percentage split. For each customer, revenue is placed on agreements by the same rules as for multiple agreements and a single customer.

Funding at Top Task

One Customer, One Agreement
Use this method only if you want to accrue revenue costtocost at the task level or impose hard or

soft revenue limits at the task level

Task level funding with one agreement does NOT create separate task invoices

One Customer, Multiple Agreements

Use multiple agreements when you have one customer, but a requirement to create a separate invoice

for each top task. You can use this method to accrue revenue costtocost or impose hard or soft revenue limits by task, as well as automatically create separate invoices by task.
To create separate invoices by task, you must use a different agreement to fund each task. If you use

more than one agreement for a single task, the agreements are used according to the precedence described earlier for projects.

Events
Event: Signifies the occurrence of an event in the course of the project having a revenue
and/or invoice impact. Eg: A milestone, invoice reduction
Automatic Manual

Revenue Accrual
Revenue Oracle Projects generates revenue based on the transactions that you charge to your projects
When you generate revenue, Oracle

Projects calculates revenue, creates event and expenditure item revenue, determines GL account codings, and maintains funding balances
You can generate revenue for a

range of projects or for a single project

Revenue Accrual Process

Select eligible expenditure items, events

Calculate Potential Revenue, revenue events,

Verify availability of funding

Revenue Exceeds Hard Limit ? Yes

No

Create Draft Revenue

Error

Revenue Accrual
Steps to complete before revenue accrual
Baseline Project Budget Baseline Revenue Budget Distribute costs for all billable expenditures

Selection criteria:
Exp should be prior to Accrue through date, billable, cost distributed, should not be revenue

distributed
Cost to Cost - Should have summarized costs % Complete Enter a % Complete at funding level Events On a ready-to-accrue task, event date before accrue through date

Revenue Accrual
Revenue Calculation
Projects with Task Level funding calculate potential revenue at task level Time and Materials
Potential revenue is the sum of revenue of all expenditure items and events Revenue of expenditure items calculated using the bill rate schedules and the mark ups

Cost-to-Cost

Revenue Accrual
Search for agreements against which to accrue potential revenue If more than one customer, split the revenue as per % contribution Revenue Distribution line(s) are created for each exp item line Hard Limits If you specify a hard limit, the revenue accrual will be limited to the amount in the

agreement
Events All or None Exp Items Partial accrual allowed (during hard limits)

Revenue Accrual
PRC: Generate Draft Revenue for a Range of Projects (as per the billing cycle) Release and Interface revenue amounts Revenue Review Form To review detailed information about project revenue Regenerate Revenue for unreleased revenue lines (lines are deleted and

regenerated)

Thank you

Oracle Project Billing

Part 2

Agenda
Invoicing Percent Complete Revenue and Invoice Accounting

Invoicing
Invoicing: You can manage and control your invoices, review and adjust them online, and review the detailed information that backs up your invoice amounts.

Invoicing
Invoicing Terms
Bill Through Date: The date through which Oracle Projects picks up events and

expenditure items to be billed on an invoice.

Invoice Date: The date that is printed on the invoice and the date on which an invoice

receivables aging begins. You specify the invoice date when you generate the invoice.
Billing Cycle Code: The code that indicates when to generate invoices automatically a

project; determined from the project. The bill cycle code is used only during mass invoice generation.
First Bill Offset Days: The number of days that elapse between the project start date and

the date of the projects first invoice; determined from the project. Bill offset days are used only during mass invoice generation.

Invoice Currency: The invoice currency selected for the project customer. Invoice Transaction Type: If you choose decentralized invoice processing during

implementation, this is the name of the organization that is the invoice processing organization for the project owning organization. Otherwise, this is the default transaction type of Projects Invoice or Projects Credit Memo based on the PROJECTS INVOICES batch source.

Invoicing
Generating Invoices: You can generate an invoice for a single project, or for all projects having

potential invoices
For a single project, run PRC: Generate Draft Invoice process Submit the PRC: Generate Draft Invoices for a Range of Projects in the Submit Request

window to run multiple invoice generation processes in parallel.

When you generate an invoice, Oracle Projects first select projects, tasks, and their associated

events and expenditure items that are eligible for billing

Oracle Projects next creates invoice items for billing events, revenue events, and for expenditure

items based on invoice formats defined for labor and nonlabor items. When Oracle Projects creates invoice items, it also searches for available funding for each invoice item.

Retention
Retention: Retention is a provision in a contract to hold back a portion of invoiced amounts

for the duration of the project.

Retention Level: Project or Top Task level for each customer Retention Terms: Retention Terms determine how amounts are withheld from project

invoices and how the withheld amounts are billed to the project customer. Retention terms include:
Withholding Terms Withholding Terms by Expenditure Category Withholding Terms by Event Revenue Category Billing Terms

Retention

Retention
Witholding Terms: Apply terms to all sources of project invoice amounts for the specified

project or top task. For each term, you can define a withholding percentage or amount, and optionally, a threshold amount.
Withholding Terms by Expenditure Category: You define withholding terms for specific

classifications of cost, such as labor or materials. The following expenditure classifications are available for this definition:
Expenditure category Expenditure type NonLabor resource Withholding Terms by Event Revenue Category: You define withholding terms for specific

types of milestone events such as fees or incentives. The following classifications are available for this definition:
Revenue category Event type

Retention
Retention Billing Terms: Retention invoices bill project customers for previously withheld retention

amounts. Billing terms control the timing and calculation of retention invoices.
Total Withheld Amount: When the amount of unbilled retention on a project or top task exceeds a

stated threshold (total amount), the invoice generation process automatically creates a retention invoice for the specified percentage (billing percentage) or amount (billing amount).
Percent Complete: When your project or top task reaches the specified percent complete,

retention invoices are generated automatically.

Billing Cycle: Retention invoices are generated automatically based on a billing cycle.

Percent Complete
Percent Complete based Revenue and Billing Generate revenue and invoices based on the

percent complete that you enter for a project. Enter Percent Complete at the Funding level.
Oracle Projects performs the physical percent complete revenue calculation using the following

predefined billing extensions:

Percent Complete Revenue Percent Complete Invoicing

Creates an automatic revenue or invoice event based on the percent complete at the funding level.

Percent Complete

Percent Complete

Revenue Accounting
Revenue Accounting : Once revenue is created, Oracle Projects runs AutoAccounting to determine the

appropriate general ledger accounts.

Example: Accounting for Labor Revenue

Labor Revenue Account Function: When you run the PRC: Generate Draft Revenue process,

Oracle Projects uses the Labor Revenue Account transactions to credit a revenue account for labor items.
Enable the Private Labor Revenue Transaction and Assign Rules: Function Name: Labor Revenue Account, Transaction Name: Private, Labor Revenue

Number 0 1 2

Segment Name Company Cost Center Account

Rule Name Employee Company Employee Cost Center Private, Fee Revenue

Revenue and Invoice Accounting

Revenue and Invoice Accounts Function: When you run the PRC: Interface Revenue to General

Ledger process and then the PRC: Interface Invoices to Receivables process, Oracle Projects uses the Revenue and Invoice Accounts function to determine which accounts to use when it interfaces draft revenue and draft invoices.
The Revenue and Invoice Accounts function consists of the following transactions:
Unbilled Receivable Account Accounts Receivable Invoice Rounding Account Unearned Revenue Account Invoice WriteOff Account

Revenue and Invoice Accounting

Accrue prior to billing

Account Unbilled Receivables

Debit 200

Credit

Revenue

200

Invoice prior to Accrual

Account Receivables

Debit 200

Credit

Unearned Revenue

200

Revenue and Invoice Accounting

Accrue prior to invoicing and invoice partial amount of work

Account Unbilled Receivables Revenue

Debit 200

Credit

200

Account
Receivables Unbilled Receivables

Debit
100

Credit

100

Invoice prior to Accrual and later accrue more than invoice

Account
Receivables Unearned Revenue Account Unearned Revenue Unbilled Receivables Revenue

Debit
200

Credit

200 Debit 200 100 300 Credit

Thank you