oracle projects-

8/2/2019 Oracle Projects-

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Oracle Project Implementation Strategies

Agenda

Oracle Project Presentation

Roles and Responsibilities (Identifications of Core Team)

Implementation Strategy (which Projects / Locations)

Training Strategy (Key User and End user)


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Overview of Oracle Project

The purpose of Oracle Projects is to track and controlwork (or activity) on a project.

You track activity on a project by comparing actual

activity with expected activity.

Record actual activity as actuals(transactions).

Record expected activity in a budget.


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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 and non-Oracle applications integration


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How to Use Oracle Projects

The following is a typical process flow using Oracle

projects:

Create a project

Enter a budget

Collect actuals (transactions)

Process cost, revenue, and invoice transactions

Capitalize asset costs

Perform analysis/reporting


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Overview of Oracle Projects

You define a project and work breakdown structure

(WBS) to record work and process transactions asyou require. Project definitions can be simple or

complex, depending on your requirements.

Project definitions can include:

Classification information

Work breakdown

structures

Charge controls

Costing overrides

Revenue and billinginformation

Single- or multiple-organization usage

Function or project securitycontrols


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Project Definition

A project is a unit of work made up of one or more

tasks. For example, you can use projects to track:

Indirect Work

Indirect projects

Research andDevelopment

Product/AssetDevelopment

Cost of product/assetdevelopment

Cost capitalization

Capital projects

Services

Customer billing

Professionalservices consulting

Construction/

engineering

Governmentcontractors

Contract projects


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Project Classes

You can use three predefined project classes to track

the following types of information:

Indirect projects: Track overhead activities and

costs.

Capital projects: Track product/asset development

activities and costs. Costs are capitalized as one or

more assets.

Contract projects: Track activities, cost, revenue,and billing for work performed for and reimbursed by

an internal or external customer.


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Information in Oracle Projects

Costs

What are the actual costs incurred?

(labor, expenses, materials, and usages)

What are the outstanding committed costs?

What are the forecasted costs over future timeperiods?

Labor utilization

What types of skills are used on projects?What percent of employees are billable?

Can labor costs be recovered?


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Information in Oracle Projects

Funding

How have we allocated customer funding to projects?

How much revenue have we accrued to date?

Customer invoice

Did we invoice for the latest completed deliverable?

What is the total project billing?

Asset utilization

Are the costs of nonlabor company assets recoveredwith current bill rates or markups?

Are all costs allocated from service centers to served

organizations?


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Oracle Projects Central Repository

Oracle Projects is a central repository that provides aOracle Projects is a central repository that provides a

completely integrated cost management solution forcompletely integrated cost management solution for

all the projects and activities across your enterprise.all the projects and activities across your enterprise.

It has two main components:It has two main components:

Project CostingProject Costing

Project BillingProject Billing


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Oracle Projects Costing

Project Costing provides:

A central cost collections systemA central cost collections system

A bridge between project management andA bridge between project management andfinancial accountingfinancial accounting

A mechanism for providing timely, detailed costA mechanism for providing timely, detailed costinformation to project managers and financialinformation to project managers and financialaccountantsaccountants


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Oracle Projects Billing

Project Billing provides:

Simplified customer invoicing

Flexible revenue accrual

Profitability and performance measurements Integration with Oracle Receivables


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Project-Tracking Tools

Project managers use Oracle Projects to

track detailed costs, manage within budget,

and stay on schedule while achieving project

objectives.

Project managers use Oracle Projects to

track detailed costs, manage within budget,

and stay on schedule while achieving project

objectives.

Transaction10 hours of labor onMonday, May 13, 2007 onproject XYZ, task 1

Company-Cost CenterAccount Amount

01-100-5153 $220

Financial analysts require the details to manage theoverall business. Oracle Projects translates projectdetails into financial transactions so the financialanalysts have the details they require.

Financial analysts require the details to manage theoverall business. Oracle Projects translates projectdetails into financial transactions so the financialanalysts have the details they require.


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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 unlimitedhierarchy of tasks,called a work breakdown structure (WBS), to

organize and monitor project activities.

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 unlimitedhierarchy of tasks,called a work breakdown structure (WBS), to

organize and monitor project activities.

Task 2.1 Task 2.2

Task 2Task 2

Task 1.1 Task 1.2

Task 1Task 1

Project


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Types of Cost

You record transactions against a project to record

actualwork performed or cost incurred. For example:

Timecards

Expense reports

Usage logs

Posted supplier invoice (posted to GL)

You also record committedcosts. For example:

Requisitions Purchase orders

Pending supplier invoices (not posted to GL)


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Methods of Cost Entry

Oracle Projects lets you track and account for all

project costs in your company using the followingmethods:

Preapproved Expenditure Batch: Input charges directly

into Oracle Projects. Oracle Self-Service Time and Expenses: Input labor and

expense charges using Oracle Self-Service applications.

Oracle Purchasing and Oracle Payables: Import charges

from requisitions, purchase orders, and supplier

invoices.

Transaction Import: Import charges collected in external

systems.


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Methods of Cost Entry

Oracle Projects also provides a Project Allocation

feature that allows you to allocate costs from one ormore source projects, from GL accounts, or from a

fixed amount to one or more target projects on a

periodic basis.Your allocations can:

Distribute costs to projects evenly

Distribute costs using target percentages

Prorate costs based on actual or budgeted amounts

Calculate cost distribution using a custom formula


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Cost Calculations

Processed transactions can have the following costs:

Raw cost: The costs that are directly attributable towork performed (also referred to as directcost).

Burden cost: The cost of running the business thatsupports the raw cost (also referred to as indirectcost).

Total Burdened Cost: Raw Cost + Burden Cost


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Capitalization of Project Costs

You can easily manage all project relatedconstruction-in-process (CIP) costs and expensesfor capital projects. Oracle Projects becomes theCIP subledger for project related CIP costs.

Work breakdown structures (WBS) provide anefficient mechanism for managing the project andtracking asset costs as they accumulate over time.


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Capitalization of Project Costs

With Oracle Projects, you can:

Associate project assets with a work breakdownstructure

Collect actual project costs

Capitalize the assets

Use the Oracle Assets Mass Additionsfunctionality to allow project information to flow

directly from Oracle Projects to Oracle Assets Easily adjust asset costs, even after

capitalization


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Revenue Accrual and Billing

Oracle Project Billing functionality provides the

flexibility to keep up with your changing businessneeds. You can automatically accrue revenueaccording to your company policies. For example:

Time and material bill rates

Cost plus buildup

Percent spent ratio

Or any algorithm you define

You can accrue revenue differently based on the typeof project. You can also bill each project differently,even if the same client has multiple projects. You caneasily manage cash collection in Oracle Receivables.


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Billing Controls

You can control which transactions are billable forprojects and tasks.

Billablemeans that you can accrue revenue andbill your customers.

Nonbillablemeans that you cannot accrue revenue

or bill your customers.


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Oracle Projects Interfaces

Reference Employeesand Organizations Plan

ActualsTimecards

Import

AccountsPayablePurchasing

Oracle Projects

General Ledger Post Usage DistributionPost Labor Distribution

Post CashPost Cash

Usages

Supplier Invoices,Invoice Adjustments

Post Revenue

Invoices

Expense Reports

Post Actual Expense

Adjustments

Report Committed Costs

AccountsReceivable

Assets

Fixed AssetsOracleHuman

Resources

Payroll

Service

External

Transaction

Project

Management

ReferenceCustomers

OracleInventory

Issues and Receipts


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ThankThank You !You !

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