oracle project accounting/contracts presentation integration overview

Oracle Project Accounting/ContractsPresentationIntegration Overview

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What does OKE stand for?

OKE is an acronym for Oracle Project Contracts

O Oracle

K Contracts (legal abbreviation for)

E Engineer to Order

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OKE Project Scope

• Defining, implementing, and training employees on standard processes and technology for integrated contract execution and management

• Converting active contract data– Converting contract data related to active Construction projects from legacy system and Oracle

Purchasing to OKE (8 Construction Projects)

– Scanning those contracts and related documents and saving them to Documentum

ContractExecution

BusinessDocument

Management

ContractChange

Management

Requisition/Purchase

Order

ProjectCloseout

Reporting and Analysis

Processes: Technology:

ProjectContracts

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What is OKE?

• A repository for contract financials and reporting information

• A structure for executing and managing contracts and their related documents (e.g. letters of intent, business documents, and change orders)

• A tool to link to contracts and business documents in Documentum

• A tool for contract creation--you cannot print out your final contract from OKE

• Generating additional work

• Intuitive--it will take some practice to get used to its functionality

OKE is...

OKE is not...

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Benefits

Consistent contract processes and technology

Automated reminders to facilitate contract compliance

Single data entry point for contract information

One version of the truth

Real-time access to comprehensive contract data in a single contract

repository

Enhanced reporting capabilities

Compliance with Sarbanes-Oxley Act

Intensive use of Oracle Workflow for approval authorizations

How will you benefit from OKE?

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Background

Systems view

HFM

PowerPlantAsset

Management

Bid Models inExcel

Spreadsheets

Oracle ProjectAccounting

Budget

Actuals

Actuals at thecompany level,Consolidated

forecast

Unconsolidatedforecast, Budget

Oracle GeneralLedger

Actuals

CWIP forconstruction Projects

Commitments

Oracle ProjectContracts

Forecast"Trends"

Capitalized Interest

OracleAccountsPayable

MaximoActuals

HyperionPlanning

Unposted Invoices& Actuals Actuals

Actuals at companylevel

Payroll

OraclePurchasing

Depreciation, Additions, Retirements, & Capitalized

interest

Invoices

Actuals

Actuals

PurchaseOrders

Commitments &Actuals

Fixed asset balances,depreciation & CWIPfor non-constr. capital

projects

EDW

Reporting

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High-level Execution/Management Process

BusinessDocument

Management

ChangeManagement

ProjectCloseout

Reporting and Analysis

ContractExecution

Requisition/Purchase

Order

Contract Execution• Enter letter of intent and contract

information in OKE• Utilize approval workflows• Access contract documents via

Documentum

Business Document Management• Send and receive business documents• Enter business document information in OKE• Access business documents in Documentum

Requisition/Purchase Order• Initiate requisitions via OKE• Import and autocreate requisitions into

POs in Oracle Purchasing

Change Management• Enter trends, internal contract adjustments,

and change orders

Project Closeout• Closing contracts and the project

Reporting and Analysis• Inquire on contract data• Run contract reports

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Integration Points of OKE with Other Systems




Documentum

OraclePurchasing

Trends Requisitions

Document Images

Commitments

OracleAccountsPayable

Actuals

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What is a Project?

• A Project is a body of work to which costs are charged and

tracked

• A Project can be made up of one or many tasks, which identify

the specific breakdown of the project work– The hierarchy of tasks is called the Work Breakdown Structure (WBS)

ProjectProject

Task 1Task 1 Task 2Task 2

Task 1.1Task 1.1 Task 1.2Task 1.2 Task 2.1Task 2.1 Task 2.2Task 2.2

Coding happens at the lowest level task

only

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What is a Project Template?

• A Project Template is a pre-defined WBS structure that can be

copied and modified to create new projects

• Mirant has various groups of templates/projects

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Template Example - Construction

00Indirect Accounts

01Sitework & Demolition

02Concrete

ConstructionTemplate

Tasks

0200000Boilerhouse HRSG

Slabs

000Home Office

Administrative Charges

010Site Prep, Grading &

Improvement

020Powerhouse Concrete

0203000Turbine / Generator

Equipment Foundation

0204000Misc. Powerhouse

Equipment Foundations

Sub-Tasks

LowestLevelSub-Tasksfor 020

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What is a Parent Project?

• Organization of multiple sub-projects under a primary project

• Allows inquiry across sub-projects

BusinessDev

Parent (Master)

Sub-Projects

Business Development

Tasks

Tasks

FinanceOps & Maint

Equipment Construction

Finance Tasks

Operations & Maintenance

Tasks

Equipment Tasks

Construction Tasks

(Cost Codes)

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Changes in Project Accounting Example - Contract to PO

Oracle Project Contracts

Contract Deliverables Tracking System

Budget

$ X$ X$ X$ X$40M

Commitments

$ X$ X$ X$ X$35M

Actuals

$ X$ X$ X$ X$0M

Forecast toComplete

$ X$ X$ X$ X$0M

Forecast atCompletion

$ X$ X$ X$ X$35M

Variance

Requisition PO

Board ApprovedProject Budget

Project Status Inquiry (PSI) in Project Accounting

$ X$ X$ X$ X

$5M

Oracle Purchasing

Commitments

Oracle Project Accounting

BDConstructionFinanceO&MEquipment

$40M $35M $0M $0M $35M $5MParent

Project

Mirant agrees to buy engineered equipment from a vendor for $35M.

(Updated Weekly)(Updated Nightly) (Updated Nightly)

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Changes in Project Accounting Example - Invoice

POOracle Purchasing

InvoiceOracle Payables

ActualsOracle Project Accounting


Vendor sends Mirant a progress billing for $10M.

Budget

$ X$ X$ X$ X$40M

Commitments

$ X$ X$ X$ X$25M

Actuals

$ X$ X$ X$ X$10M

Forecast toComplete

$ X$ X$ X$ X$0M


$ X$ X$ X$ X$35M

Variance

$ X$ X$ X$ X

$5M


$40M $25M $10M $0M $35M $5MParent

Project



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Changes in Project Accounting Example - Trend

Oracle Project ContractsForecast to Complete

Oracle Project Accounting


Mirant realizes the equipment may cost $40M instead of $35M.

Budget

$ X$ X$ X$ X$40M

Commitments

$ X$ X$ X$ X$25M

Actuals

$ X$ X$ X$ X$10M

Forecast toComplete

$ X$ X$ X$ X$5M


$ X$ X$ X$ X$40M

Variance

$ X$ X$ X$ X

$0M


$40M $25M $10M $5M $40M $0MParent

Project



Trend Deliverables Tracking System

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Changes in Project Accounting Example - Change Order


Mirant and Vendor agree the equipment will cost $39M.

Budget

$ X$ X$ X$ X$40M

Commitments

$ X$ X$ X$ X$29M

Actuals

$ X$ X$ X$ X$10M

Forecast toComplete

$ X$ X$ X$ X$0M


$ X$ X$ X$ X$39M

Variance

$ X$ X$ X$ X

$1M


$40M $29M $10M $0M $39M $1MParent

Project

Oracle Project Contracts

Change Order Deliverables Tracking System PO

OraclePurchasing

Commitments




Trend

oracle project accounting/contracts presentation integration overview

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