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