R12 Projects Students Guide - GreenChain

GreenChain Software Solutions Pvt. Ltd. Page 1 of 210

Oracle Applications Release12.1.1

R12 Project Accounting

White Paper

GreenChain Software Solutions Pvt Ltd

www.greenchain.biz


Table of Contents

1. Introduction ............................................................................................................................................... 3 2. Create Project Template ........................................................................................................................... 4 3. Create Project ......................................................................................................................................... 17 4. Budgets ................................................................................................................................................... 19 5. Incur Expenditure .................................................................................................................................... 23 6. Project Status ......................................................................................................................................... 32 7. Allocations .............................................................................................................................................. 35 8. Integration with Purchasing and Payables ............................................................................................. 42

8.1 Purchase Requisitions .......................................................................................................................... 43 8.2 Purchase Orders ................................................................................................................................... 46 8.3 Supplier Invoices ................................................................................................................................... 54

9. Integration with Oracle Time and Labor ................................................................................................. 56 10. Integration with Inventory ................................................................................................................... 60 11. Capital Projects .................................................................................................................................. 66 12. Cross Charge ..................................................................................................................................... 82 13. Overview of Oracle Project Billing ...................................................................................................... 92 14. Customer Agreements ..................................................................................................................... 103 15. Invoice Generation Process ............................................................................................................. 115 16. Inter-Project Billing ........................................................................................................................... 128 17. Processing Events ............................................................................................................................ 147 18. Project Accounting Setup Steps ....................................................................................................... 149

19. Define Organizations ................................................................................................................... 149 20. Implementation Options ............................................................................................................... 153 21. Project Accounting Periods .......................................................................................................... 160 22. Define GL Periods for Projects .................................................................................................... 161 23. Define Project Status ................................................................................................................... 162 24. Define Budget Status ................................................................................................................... 164 25. Define Budget Types ................................................................................................................... 166 26. Define Budget Entry Methods ...................................................................................................... 167 27. Define Resource Lists .................................................................................................................. 168 28. Define Project Classifications ...................................................................................................... 169 29. Define Service Types ................................................................................................................... 171 30. Define Expenditure Categories .................................................................................................... 173 31. Define Revenue Categories ......................................................................................................... 173 32. Expenditure Types ....................................................................................................................... 174 33. Define Non Labor Resources....................................................................................................... 176 34. Define Transaction Sources......................................................................................................... 177 35. Define Labor Costing ................................................................................................................... 179 36. Define Burden Costs .................................................................................................................... 182 37. Payment Terms ............................................................................................................................ 186 38. Agreement Types ......................................................................................................................... 187 39. Oracle Projects Lookups .............................................................................................................. 188 40. Event Types ................................................................................................................................. 189 41. How to Use Billing Extensions ..................................................................................................... 191 42. Define Invoice Formats ................................................................................................................ 198 43. Define Work Types ...................................................................................................................... 200 44. Defining Derived Columns in PSI ................................................................................................ 201 45. Define Control Actions ................................................................................................................. 203

46. Multiple Choice Questions................................................................................................................ 204 47. Frequently Asked Questions ............................................................................................................ 210


1. Introduction

Oracle Projects Suite combines multiple applications to work together to provide a complete enterprise Project management solution. They give you a flexible approach to defining and managing your projects and the people, schedules, deliverables, and finances associated with them. Projects enable project managers to oversee their projects, assess progress against predetermined milestones and budgets, staff their projects with appropriate talent, and quickly generate a wide variety of reports. It also helps virtual and globally distributed project teams to efficiently communicate, collaborate, and complete tasks. Oracle Projects also gives corporate executives the ability to quickly see how projects are performing across the enterprise. It enables them to drill down to areas of geographical interest or product specialization to review projects that are potential problems or are in immediate need of additional attention.

Oracle Project Costing Oracle Project Costing provides an integrated cost management solution for all projects and activities within an enterprise. With Project Costing you can manage costs across currency and organizational boundaries. Project Costing also acts as a central repository of project plans and transactions, processes project costs, and creates corresponding accounting entries to satisfy corporate finance requirements. Project Costing gives operations managers and finance managers complete and timely access to project performance and resulting accounting impacts thereof. It also empowers line managers with timely, detailed cost information to monitor project performance in a productivity-enhancing format, and enables financial managers to track the total cost of running the business. The key features of Oracle Project Costing are: • Versatile template-driven project definition • Multiple currency financial plan and budget creation • Diverse accrual and expenditure capture • Robust expenditure control, collection, and adjustment functionality, integrated • Powerful burdening functionality • Rule-based general ledger account functionality • Comprehensive reporting functionality with drilldown capability • Capable asset creation and CIP cost collection


2. Create Project Type

To create a new project, you find a template or an existing project that best matches your project needs, copy the template or existing project, use Quick Entry to modify information unique to the new project, and then modify or add tasks and any other project options that are required for your project definition. The project type controls how Oracle Projects creates and processes projects, and is a primary classification for the projects your business manages. You must set up at least one project type to create projects in Oracle Projects. Project Types are user defined and are based on project class. There are three project classes: Indirect, Capital and Contract. N: Setup > Projects > Project Types

Field Name Description

Name Enter Project Type Name, which is unique

Class Select Indirect, Capital or Contract from the list.

Effective From Enter start date, from which project type will be effective

Service Type Select appropriate service type from list. A service type is a custom reporting attribute that you assign to each financial task to represent activities that you want to track for financial purposes. You can use service types to group tasks for custom reporting

Work Type Select appropriate work type to represent a classification of work from list

Administrative Use this box to identify administrative indirect projects on which that you can create administrative assignments in Oracle Project Resource Management

Unassigned Time Enable this option if you want to track available resource time in utilization reporting

Intercompany Billing Choose this box if you want to use this project type for intercompany billing projects

Organization Planning

Define a unique project type to identify organization projects used in organization forecasting. Define project type for organization forecasting projects with a class of indirect and then enable the Organization Planning check box.


Sponsored Enable this to fund projects with awards in Oracle Grants Accounting


Burdened Indicates whether to burden raw costs charged to projects using this project type for internal costing purposes

Schedule The burden schedule to use as the default cost burden schedule. You enter a schedule only if the project type is burdened. If the project type is burdened, this field is required

Allow Schedule Override

Indicates whether you can override the default cost burden schedule when entering and maintaining projects and tasks. Deselect the check box if you want to ensure that all projects of a project type use the same schedule for internal costing. Check the box to allow updates to the cost burden schedule on the projects and tasks. You can enter this only if you enabled the Burdened check box.

Burden Cost Display and Accounting

Burden cost on same expenditure item

Select if you want to store burden amount in the same expenditure item

Account for Burden Cost components

Select this option to store the burden amount in the same expenditure item, and additionally to show the burden cost on separate, summarized expenditures on a separate project. Select a project and (optional) task that accounts for the expenditure item.

Burden Cost as separate expenditure item

Select this option if you want to account for burden amounts as a separate expenditure item

Enable Accounting for Total Burdened Cost

Select if you want to generate accounting entry for the total burdened cost. We need to submit additional concurrent program for generation of this entry.



Allow Cost Budget Entry

Enable the check box to enter other fields like entry method and resource list

Entry Method Select Budget Entry Method from list based nature of business requirement. This will be defaulted to all projects

Resource List Select Resource List, for which budgets will be entered

Allow Revenue Budget Entry

Indicates if you allow entry of revenue budget types. For contract projects, you must enter a revenue budget for a contract project before it can accrue revenue and be billed. For indirect and capital projects, you can choose to not allow entry of revenue budgets

Entry Method The default budget entry method for revenue budgets

Resource List The default resource list for revenue budgets

Status Reporting – Resource List

The default resource list to use for summarizing project amounts for status reporting. You must enter a value to ensure that you can view information in the Project Status windows and project status reports, even when you have not baselined a budget for the project. You typically select the same resource list as one of the resource lists you use for budgeting. When you create a new project template from scratch, Oracle Projects automatically creates a resource list assignment using this resource list.

Project Types > Classification


Category Assign classifications to group projects according to business needs. Classification includes a class category and a class code. The category is a broad subject within which

you can classify projects. The code is a specific value of the category.

Select Classification Categories to group projects from the list, which can be selected for project based on this type

Description Description for specified category will be displayed here

Mandatory Enable this for all projects of this project type to be associated with selected category


Enter values in this tabbed region if you want to set up budgetary controls and/or budget integration for the project type.


Allow Override at Project Level

Check this check box if you want to allow users to modify the default budgetary control settings that you enter for the project type. The budgetary control settings for the project type are used when a project template or project is created. If this check box is not checked, the user cannot change the values at the project template or project level

Budget Type Select appropriate budget type from list, for which budgetary control is required. Only one budget type can be selected for control purpose (Budgetary controls can be enabled for cost budgets only.)

Control Flag Check this check box to enable budgetary controls for the corresponding budget type. (Budgetary controls can be enabled for only one budget type per project type.)

Balance Type This field is used to define top-down and bottom-up budget integration. � For Bottom-Up Budget Integration: Select Budget � For Top-Down Budget Integration: Select Encumbrance � For No Integration (Independent Budgetary Controls): Leave field blank

Non Project Budget This field is used to define top-down and bottom-up budget integration. � For Bottom-Up Budget Integration: Select a GL budget from LOV. LOV

displays budgets with a status of Open or Current. � For Top-Down Budget Integration: Select GL Funding Budget from list � For No Integration (Independent Budgetary Controls): Leave field blank

Levels – Project Select “Absolute” from the list for complete control

Levels – Tasks Select “Absolute” from the list for complete control

Levels – Resource Groups

Select “None” or “Default from Resource List” from LOV based on business needs

Levels – Resources Select “None” or “Default from Resource List” from LOV based on business needs

Time Phase – Amount Type

The system uses these values to calculate available funds. Select an Amount Type to determine the beginning budget period.

Time Phase – Boundary Code

The system uses these values to calculate available funds. Select a Boundary Code to determine the ending budget period



Starting Project Status

Enter a starting project status for each project type you create. The starting project status is used as default when, project template is created. A project is created by copying an existing project or project template.

The project status of the new project is the same as the current status of the existing project or project template, unless that starting project status is invalid for the project type. In that case, the starting project status set in the Starting Project Status field for the project type.

Use Workflow for Project Status changes

Tick checkbox to initiate workflow based project status changes. Oracle workflow is activated.

Use Workflow for Budget Status changes

Tick checkbox to initiate workflow based budget status changes. Oracle workflow is activated.

Once all details are entered in all the tab pages, save the record and close the window.


3. Create Project Templates

A standard project you create for use in creating other projects. You set up project templates that have features common in the projects you want to create. Projects can not be created without template. Project Templates are created from Project Types. N: Setup > Projects > Templates

Press “New” button in the above window to enter template details.


Operating Unit This will be defaulted. If MOAC is enabled, select OU from list

Number Enter template number for template. This is always manual

Name Enter project name for the project

Type Select Project Type from the list

Organization Select project owning organization from list. Organizations are displayed based on Organization Hierarchy selected in Implementation options window under Projects Tab page.

Long Name Enter long name meaningful for all users in the company

Description Enter description to describe the project template

Status Initial status will be displayed, which will get changed either from Change Status button or Oracle workflow depending on design


To view other options available in the window, scroll down.

Now select the options one by one and design them.



Financials Structure Enable the check box for Project Accounting

Workplan Structure Enable the check box for Project Management

Deliverables Enable the check box for using Deliverables feature in PM

Use this option to create and update tasks and task details for the financial structure. Tasks are elements of the project that are contained in the project structures. Additional tasks at same level can be created using “Create Peer Task Button”. Subtasks can be created using “Create Subtask” button as shown above.


Task Number Enter unique number for task

Task Name Enter unique name for task

Description Enter meaningful description for task

Trans Start Date Select start date for the task

Trans Finish Date Select end or finish date for task

Once all tasks are created, save the records and close the window. Select a task and click “Options” button to see more details about the task and edit information about the task



Task Number Enter / edit task number for task

Task Name Enter / edit task name for task

Long Task Name Enter/ edit long task name for task

Trans Duration Enter transaction start date

Trans Duration Enter transaction end date

Task Manager Select task manager, who is an employee. Task Manager can be same as Project Manager or different

Organization Select task owning organization from list

Service Type Edit service type defaulted from project type

Work Type Edit work type defaulted from project type

Allow Charges This will be enabled by default. This must be enabled for entering charges against this task.

Location Select task location, where the task will be executed

Address Address will be displayed based on location selected

Receive Inter-Project Invoices

Enable this check box for implementing Inter Project Billing (Cross Charges)

Once all details about the task are entered, and then close all windows to come to project main page. Click on Classifications option to enter details.



Category Select Classification Categories to group projects from the list, which can be selected for project based on this type

Class Code Select code from list based on business needs

Code Description This will be displayed based on definition

Percentage If this is active, then enter %

Once details are entered, close the window and come to main page. Click on Currency to view, change project currency.

When a new project is created, the default value for the project currency code is copied from the functional currency defined in the Implementation Options for the project-owning operating unit. You can override the default currency code and enter default conversion attributes for the project in the Costing tab of the Currency window. Once details are entered, close the window and come to main page. Click on Key Members option to add employees to the project.

Team members are also referred to as key members.



Employee Name Select employee name from the list of employees. In case of new employee, job must be assigned for an employee before selection as key member

Employee Number Employee number is displayed based on employee name

Role Select the role of employee in the project from the list of roles

Effective From Enter the date from which employee is part of the project. The project start date will be defaulted, which can be edited

Effective To Enter the end date, when employee is released from project

Additional Information Use the Additional Information window to enter project-level values or default values.

Pipeline You can track sales opportunities for your pipeline projects by recording the probability of winning each project, the expected approval date, and the value of the project. You can define probability values based on how your company does business. For example, you can define values such as: � 100% Contract Processed � 60% Expect to Win � 0% Project on Hold Pipeline Window The Pipeline window contains the following fields, which are used to calculate the weighted project value of jobs:



Probability The probability that the project will be approved. If a Probability List exists for the associated Project Type, that probability list provides a list of values for this field.

Project Value The expected value of the project

Expected Approval Date

The expected date of approval for the project

Candidate Score Weightings Candidate scores define the level of importance of the availability, competencies, and job level of the resource when matched to the specifications of a requirement. The weightings are used to calculate a score for each resource identified by a resource search and for every candidate on your requirements. The score helps you identify stronger candidate. A higher score indicates a better match.

Organization Overrides You can reassign an employee's, or an entire organization's, costs and revenue to a different organization for a particular project. You can override all of the costs and revenue of an employee or organization, or you can redirect costs and revenue to another organization only for the expenditure categories you specify. When you enter an organization distribution override, the new organization you enter overrides the expenditure organization Oracle Projects uses in AutoAccounting and to determine the organization to use for burdening. For AutoAccounting processing, if an organization distribution override exists, the destination organization of the override is substituted for the actual expenditure organization of affected items. Organization Overrides Window You can enter the following information in the Organization Overrides window: � Source Organization: Enter the source organization whose costs and revenue you want to assign

to a different organization. � Employee Name/Number: Enter the name and number of the employee for this project whose

costs and revenue you want to assign to a different organization. � Expenditure Category: The expenditure category for the costs you want to assign to a different

organization. � Destination Organization: The new organization to which you want to reassign costs and revenue.


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. When you open the Resource List Assignments window for a project, Oracle Projects automatically displays the default resource list assignment from the project type, and you can enter additional assignments if necessary. Note that you can choose only one assignment as the drilldown default.

Transaction Controls You can use transaction controls to configure your projects and tasks to allow only charges that you expect or plan. You can define what items are billable and non-billable on your contract projects. You can define what items are capitalizable and non-capitalizable on your capital projects. You can configure transaction controls by the following: Expenditure Category, Expenditure Type, Non-Labor Resource, Employee, Scheduled Expenditure Only, Workplan Resources Only, Person Type

Cost burden schedule A burden schedule is used to derive the total cost amount. You assign the cost burden schedule to a project type that is burdened; this default cost burden schedule defaults to projects that use the project type; and then from the project to the tasks below the project. You can override the cost burden schedule for a project or a task if you have defined the project type option to allow overrides of the cost burden schedule.


4. Create Project

Once Project Template is ready, then we can create the Projects. Navigate to Projects window and click. Select Template or Existing Project and click on FIND button.


Number Select project template number for which project is created

Name Select project template name for which project is created

Long Name Select project template long name for which project is created

Press Find button, once any of the fields are entered. The template details will be displayed.

To Define New Project click on COPY TO (T) and enter Project Number and Project Name and Click on OK. If we need more fields in Project Quick Entry, then we can add them while defining the Project Templates. We can also decide whether these fields are mandatory or optional.


Project Number Enter actual project number for project

Project Name Enter actual project name for project

The new project is created automatically and can be viewed from the window. Click on Find button to see the details about the project.


Enter Number, Name, Project Owning Organization and Long Name. The options listed are dependent on the project template. If any changes are required at project level, they can be modified now. Click on Change Status button now.

Once all options are entered for a project, then we can change project status from Unapproved to Approved.


5. Budgets

Budgets can be entered for a project provided it is enabled in Project Type. Open Budgets window and enter either Project Number or Name and Budget Type. Click on “Find Draft” button to see if any budgets are defined. Oracle defaults Entry Method and Resource List based on data provided in Project Types, Budget Tab. N: Budgets


Project Number Select project number of project, for which budget needs to be created

Project Name Select project name of project, for which budget needs to be created

Budget Type Select Budget Type from list. It is possible to create budgets for multiple budget types for a project

Version Name Enter any version name for the budget

Status Status is display field. It will be “Working” initially and can not be changed manually

Change Reason Select change reason from list. This is required from second time onwards

Description Description for change reason is displayed

Entry Method Entry method is defaulted. Edit if necessary

Resource List Resource List is defaulted. Edit if necessary

If we are entering budget first time, then click on Details button.


Oracle displays Task Number and budget details, if they are already entered. Otherwise, they will be 0.00. Click on Budget Lines button to enter amounts. Enter Budget Amounts, Save and Close


Resource Alias Select Resource name, for which budget needs to be entered

Effective Dates From Effective From is populated for selected task

Effective Dates To Effective To is populated for selected task

UOM Unit Of Measure is displayed as “Currency”

Quantity Enter quantity for selected resource name

Raw Cost Enter budget amount for selected resource name

Burdened Cost Budget amount entered in Raw Cost will be populated. Do not edit the filed.


Budget lines are entered for a given resource and amount type. Resource Alias is displayed based on Resource List definition. Select the budget periods based on business requirements. Once data is entered, close the window to come to main window. Once Budget is entered, it will be in Working Status. To Submit Budget for Approval or Review, Click on Submit button.

When Budget is Submitted status, no changes are permitted. If any changes are necessary to this budget, then change the status to “Working” by clicking the “Rework” button. To Baseline and freeze Budget, Click on Baseline button.


Once Budget is baselined, then Oracle automatically create next budget version in “Working” status and baselined budget is moved to history. To find out Budget History, Click on History button.

We can see all versions created for this budget in History window. We can also copy the budget to another budget.


6. Incur Expenditure

Costing in Oracle Projects

Costing Processes


Pre-approved expenditure batches can have one of the following statuses: � Working The expenditure batch is not ready for review. You can enter timecards, usages,

miscellaneous transactions, burden transactions, inventory transactions, or work-in-process transactions and modify their expenditures and expenditure items.

� Submitted The batch is awaiting review. You can still retrieve the batch if you need to make corrections.

� Released The expenditure batch has been released for cost distribution. You can reverse incorrectly entered expenditure items within the batch.

Note: You can choose Unreleased from the Status poplist in the Find Expenditure Batches window to retrieve both Working and Submitted expenditure batches.

To create a new batch: 1. Navigate to the Expenditure Batches window. 2. Operating Unit. Enter the operating unit to which the expenditure batch belongs. 3. Batch. Enter a unique Batch name to identify this set of expenditures. Tip: Choose a unique, identifiable, and memorable batch name. For example, a timecard batch name might include your organization code, the letter T to indicate Timecards, and the week ending date. 4. Ending Date. Enter the expenditure Ending Date for the batch. If you enter a date that is not the last day of an expenditure week, the system automatically updates the date to the next valid week ending date. 5. Description. Optionally enter a Description of the batch, or leave the field blank to use the name of the expenditure type class. 6. Class. Choose the expenditure type class for this batch. 7. Reverse Expenditures In a Future Period. Optionally, check this check box to automatically reverse the batch.


8. Amounts. Optionally enter Control Totals and Control Count in the Amounts region. Use the Running Totals and Counts and the Difference column to verify actual versus entered totals. 9. Choose Expenditures to enter the batch. The status of a new batch is always Working. 10. Enter the expenditures and expenditure items in the batch. 11. Save your work.


Employee and Organization

• For time, enter an employee. • For asset usages, miscellaneous, and burden transactions, enter an employee or organization. • For all other expenditures, enter an organization. Note: When you enter an employee name, the Organization field is populated by default with the organization to which the employee belongs. You can only update the Organization value if you have the function security required to do so. If you do not have the required function security, you must enter an expenditure belonging to the default organization.

Control Total Optionally enter the total units of measure in the Control Total field. (Some companies record the total units of measure on the paper expenditure report. Record that total in the Control Total field.) When you have entered all the expenditure items, you can compare the Control Total with the Running Total, to verify your entries.

Oracle Projects validates expenditure item information as you enter it. For each expenditure item, enter the following information:


Expenditure Item Date

The date of the expenditure item

Project Number The Project Number to charge for this expenditure item

Task Number The lowest level Task Number to charge for this expenditure item

Assignment Name When Oracle Project Resource Management is installed, you can associate labor with scheduled work assignments

Work Type You can choose any active work type. This field is required when the PA: Require Work Type Entry for Expenditures profile option has a value of Yes

Expenditure Type You can choose any expenditure type within the current expenditure type class

Non-Labor Resource and Non-Labor Organization

If the expenditure type class for the batch is Usages, enter the non-labor resource and its owning organization. This enables you to track usage of company-owned assets

Currency Fields You can optionally display and enter the currency fields

Quantity The quantity of units (the unit of measure is determined by the expenditure type). For example, on a timecard, you can enter quantity in hours for professional labor

Comment Optionally enter a free text Comment


Once items are entered, then close the window and come main page. Notice the status of the batch now.

Now click on Submit/ Release buttons one by one to submit the batch for approval/ release for cost distribution.

To Review the Expenditure Batches, Enter Required Information and Click on FIND button

(N) Expenditures > Pre Approved Batches > Review


Expenditure batches can also be released from Review window. Once batch is released, then we need to submit cost distribution and account the expenditure. This can be done in two ways.

1) Submit the following Concurrent Programs:

• PRC: Distribute Labor Costs

• PRC: Distribute Usage and Miscellaneous Costs

2) Submit the above programs from Expenditure Inquiry window using stream line process:: To find Project Expenditure Items

� (N) Expenditures> Expenditure Inquiry>Projects � Enter Required Information and Click on FIND button

4. To Distribute Costs Click on RUN REQUST button and Select Streamline Processes (The first two are combination and must be selected together). Once checked, Click on OK to run the programs.


5. Refresh to Clear Concurrent Program

6. To find output click on VIEW OUTPUT button

6. To find out put click on OUT PUT button

To find out Cost Distribution Lines

Click on ITEM DETAILS button Select Cost Distribution Lines and click on OK


Once cost distribution is completed, we need to generate accounting events for the cost and then generate accounting entries, transfer them to GL.

Submit Request (PRC: Generate Cost Accounting Events), Leave the parameters blank.


Once the program is completed, verify the output and ensure that events are accounted.

Submit Request (PRC: Create Accounting), Leave Process Category Blank, but select Report: Details to see output.



7. Project Status

To Update Project Summary Amounts, Submit Request: PRC: Update Project Summary Amounts for a Single Project


Once the program is completed, we can verify the totals in PSI window.



8. Allocations

Allocations are used to allocate overheads to direct costs. This is a three stage process: � Create the Allocation Rule Template � Generate the Allocation for a selected period � Release the Allocation for expenditures N: Allocation


Operating Unit OU will be defaulted.

Name Enter Unique name for Allocation Rule

Allocation Method For Allocation Method, select Full or Incremental � Full Allocate only once within the same GL or PA run period � Incremental Allocate several times within the same GL or PA run period

Allocation Period Type

To identify amounts based on the General Ledger (GL) fiscal calendar or Projects (PA) calendar.

Basis Method � Spread Evenly: The rule divides source pool amount equally among all chargeable target tasks included in rule

� Target % and Spread Evenly: Specify % of source pool that you want to allocate to each target line. Rule calculates amount to allocate to line, and then spreads results evenly among tasks

� Prorate and Target % and Prorate: These two proration basis methods provide precise control over how rule distributes source pool. Rule uses attributes set in Basis window to derive rate at which source pool amount is apportioned among target projects and tasks. For Prorate basis method, rule uses basis attributes to apportion source amount among all tasks defined by rule. For Target % and Prorate method, rule first uses target % to calculate amount to allocate to line, and then goes on to apportion results among all tasks

� Use Client Extension Basis: Another way to define percentages and basis is to use Allocation Basis extension. If you use this extension, you cannot use the Basis window

Targets Selection For Target Selection, select Operating Unit, Legal Entity, Business Group, or All. This field specifies whether to select target projects from current operating unit only (default), the current legal entity (the default legal context organization), the current business group, or all project organizations in project hierarchy. The last three options require cross-charge setup


Defining the Sources You can create the allocation pool from a fixed amount, open projects (including resources within a project), Oracle General Ledger account balances, and projects defined by a client extension.

Important: Unless you define each source project and task individually, the results may change each time you run the allocation. The rule accumulates the amounts for the source pool during a specific period of time. The end date of that time period is based on the amount class. (The amount class is the period or periods during which the amounts are accumulated and is set in the Sources window.) The start date is determined by both the Allocation period type (either GL or PA, as set in the Allocation Rule window) and Amount class You must define at least one source. All source projects and tasks must be open and from the same operating unit. This means that tasks must be the top or lowest level task. The exception report for the allocation run lists any duplicate projects. � In the Allocation Rule window, choose Sources. The Sources window opens. � In the Allocation Pool % field, enter a percentage to specify how much of the source pool to allocate.

The default is 100%. Next, you specify the amounts that you want to include in the source pool. � (Optional) In the Fixed Source Amount field, enter an amount that you want to include in the source

pool. � For Amount Class, select from the list. The field name is preceded by GL or PA, depending on the

allocation period type you selected in the Allocation Rule window. � (Including project sources in the source pool is optional.) For Amount Type, select from the list of values. � Specify the projects whose amounts you want to include in the allocation pool. If you want to use

projects that are designated in the Allocation Source client extension, select Use Client Extension Sources. If you want to use one or more projects that you designate, enter a number greater than 0 for Line Num, You can enter project information in the following fields: Project Org, Project Type, Class Category, Class Code, Project, Task. To exclude a line, select the Exclude check box on the appropriate line.

Note: If the system does not display a list of values for Project and Task, it is possible that you entered a combination of project organization, project type, class category, class code, or other attributes for which no project (or task) exists. If you do not enter a task, the rule uses the amounts for all the tasks on the source line. You can add columns (Project Name, Service Type, Task Name, and Task Org) to the Sources window. Target Selection When you select targets on the Targets window, you can select projects owned by the entity. If you select Legal Entity, Business Group, or All, you must set up your system to use cross charge and Intercompany billing



None The PRC: Generate Allocations Transactions process does not create any offset transactions

Source Project and Task

The rule creates reversing transactions for the source projects and tasks

Source Project, Use Client Extension for Task

The rule creates reversing transactions in specific tasks in the source project. Specify the tasks in the Allocation Offset Tasks client extension

Use Client Extension for Project and Task

Use Client Extension for Project and Task

Specific Project and Task

The rule creates reversing transactions in one project and one of its tasks, as specified in the Project and Task fields

Expenditure Organization

Select Expenditure Organization from list

Expenditure Type Class

Select Expenditure Type Class from list

Expenditure Type Select Expenditure Type from list

Submit Request (PRC: Generate Allocations Transactions) and check the output


To find Allocation Runs, Enter Required Information and Click on FIND button (N) Allocations >Review Allocation Runs


To find Transactions click on TRANSACTIONS button, To find Source Details click on SOURCE DETAILS button, To Reverse an Allocation Run click on REVERSE button


Click on Release Button and press OK to release allocations. Once released, then if required, we can reverse the batch.


Notice the run status after the reverse batch creation.

Use AutoAllocation Workbench to combine multiple allocation batches in one set.


9. Integration with Purchasing and Payables

When Project-related transactions like PR, PO and Invoice are entered in Purchasing and Payables, project information is entered in source document. Purchasing, Payables, and Projects carry project information through document flow: from the requisition to the purchase order in Oracle Purchasing, to the supplier invoice in Oracle Payables, and to the project expenditure in Oracle Projects. PO and AP use Account Generator to determine default account number for each project-related distribution line based on project information that you enter in the document. For this purpose, it is necessary to customize the work flow (Account Generator) to populate accounts.

Projects is integrated with Purchasing and Payables applications using Commitments and Budgetary Control. As part of the demonstration, Purchase Requisitions, Purchase Orders and Supplier Invoice are entered. Seven transactions are entered as follows: � Unapproved Purchase Requisition � Approved Purchase Requisition � Unapproved Purchase Order � Approved Purchase Order � Supplier Invoice (Never Validated) � Supplier Invoice (Validated) � Supplier Invoice (Accounted) The first six transactions appear as commitments in projects and seventh transaction as actual cost. In case of commitments, there is no need to run any concurrent program except PRC: Update Summary Amounts to view the balances in PSI window. Purchase Requisitions and Purchase Orders must be entered as Expense Line Items. Project related information Project Number, Task Number, Expenditure Organization, Expenditure Date and Quantity are entered in Distributions area as shown below:


8.1 Purchase Requisitions


Number Enter requisition number based on company standards

Type Select Purchase Requisition from list

Preparer Employee attached to user ID is displayed here

Description Enter the requisition description here

Status Requisition status is displayed here and can not be changed

Total Oracle calculates the total from the lines and is displayed here

Num Enter line number in a sequential manner

Type Select line type from list, which are assigned Expense Item

Item Select item from list

Rev Enter the value if applicable

Category Category is populated based on item selected

Description Description for item is defaulted. This can be edited, if necessary

UOM Unit of measure for item selected is defaulted

Qty Enter quantity to be ordered for this item

Destination Type Expense Destination will be displayed

Requester Preparer name is defaulted and can be edited

Organization Select inventory organization from list. Only one value is defined

Location Select location from list. Only one value is defined

Subinventory Leave this field blank

Source Select Supplier from the list

Supplier Select the supplier name from the list

Site Select supplier site if there are more than one site per supplier. Otherwise this will be defaulted

Contact Select contact details from the list if there are more than one otherwise this will be defaulted

Phone Leave this field blank


Press Distributions Button and select the Project Tab Page to enter projects details.


Num Enter requisition number based on company standards

Project Select Project number from list. Only approved projects are displayed here. The Project Number is the project number incurring the charge from the requisition

Task Select lowest level task from list. The Task Number is the lowest level task incurring the charge from the requisition

Award This field is empty

Expenditure Type

Select expenditure type from list. The Expenditure Type is an expenditure type classified with an expenditure type class of Supplier Invoices

Expenditure Org Select expenditure organization from list. The Expenditure Organization is the organization that is ordering or has ordered the goods or services, which may be different from the project owning organization

Expenditure Date

Oracle populates system date. Expenditure Item Date is the date that you expect to incur the expense for the goods or services that you are requesting for a requisition

Quantity Requisition line quantity is defaulted here. But the quantity can be split into multiple lines.

We can select multiple projects and expenditures in one single PR.

Now close distributions window and come to main page.


Now click on Approve button


8.2 Purchase Orders Once PR is approved, it is necessary to use Autocreate as per the process suggested by Oracle in flow diagram. Otherwise it is not possible to select Expense destination for Inventory Items. So PO is created using this. Remove Buyer from the search criteria as default buyer in PR may be different from what is populated in this window.

PO can be created using Manual and Automatic options. Try both options for testing the cycle.


Press Shipments button to view the shipments for a line. Make a note of Org (V1) displayed here. Use same Org at the time of Receipt.

Project data is available in Distributions window. Press Distributions button and go to Project tab page.



Num Enter distribution number based on company standards

Project Select Project number from list. Only approved projects are displayed here. The Project Number is the project number incurring the charge from the requisition

Task Select lowest level task from list. The Task Number is the lowest level task incurring the charge from the requisition

Award This field is empty

Expenditure Type Select expenditure type from list. The Expenditure Type is an expenditure type classified with an expenditure type class of Supplier Invoices

Expenditure Org Select expenditure organization from list. The Expenditure Organization is the organization that is ordering or has ordered the goods or services, which may be different from the project owning organization

Expenditure Date Oracle populates system date. Expenditure Item Date is the date that you expect to incur the expense for the goods or services that you are requesting for a requisition

Quantity Requisition line quantity is defaulted here. But the quantity can be split into multiple lines.

Close all windows and come to the main page. Press Approve button to approve the PO.


Once the PO is approved, then we can receive the material using PO Receipt window.


Project related details (Project and Task) are available in Order Information tab page.

Once receipt is saved, note down the receipt number and then verify this in Receiving Transactions Summary window. At this point of time, submit Create Accounting Program for PO Receipts and post them to GL. In GL, source is Cost Management and category is Receiving.


Material cost can be transferred to projects at to stages: at the time of receipt or invoice. Now we have received the material and entered the PO Receipt. We can run “Interface Supplier Cost” Program from projects to transfer the receipt accrual to projects. (Note: Accrue at Receipt must be checked for this even for expense destination. This is possible by activating the option in Purchasing Options window for expense items).


Once the cost is transferred to projects, verify this from expenditure inquiry window. It possible to view PO Receipt.


Click on Item Details button and select PO Receipt option.


8.3 Supplier Invoices


Type Select Standard for normal invoices from suppliers. Select Prepayment for supplier advance payments

Supplier Select Supplier name from list, for which invoice is created

Supplier Num Select Supplier number from list, for which invoice is created

Site Site is defaulted if only one site is defined for supplier or one site is selected as default site

Invoice Date System date is populated as invoice date, but can be changed as necessary

Invoice Num Enter invoice number based on physical invoice submitted by supplier

Invoice Cur USD is displayed as currency

Invoice Amount Enter invoice amount as mentioned in the invoice


Validate Enable this check box to validate the invoice after creation

Cancel Invoices Enable this check box to cancel the invoice for any reason. This can be done anytime after creation

Create Accounting Enable this check box to generate the accounting entry for invoice in the subledger. This is enabled once invoice is validated


We have entered all the transactions in PO and AP. Now we want to verify these transactions in Projects as Commitments and Supplier Costs. Once invoice is validated and accounted, posted to GL, then we need to run “Interface Supplier Cost” program to accrue cost to project.


10. Integration with Oracle Time and Labor

Projects is integrated with OTL and time sheets can be migrated to projects from OTL after approval. For this purpose OTL must be implemented and access must be given to all project team members. This is applicable for employees and contingent workers. The process is as follows: � Employee enters the time sheet in OTL and submits for approval � Supervisor approves the time sheet after verification of hours. This can also be controlled through a

profile option where auto approval is also possible (PA: Auto Approve Time Cards) � Submit the concurrent program PRC: Transaction Import with Transaction Source: Oracle Time and

Labor � Time cards are available in Expenditure Inquiry window Login to OTL and click on Time Cards. Click on Create Timecard button.

Enter project number, task number, expenditure type and hours per day. It is possible to enter multiple projects in a day. Press Continue button to enter for multiple days. Once all details are entered, then press Submit button for supervisor approval. The employee and supervisor relationship is already defined in Define Employee window. If we want to change approver, we can also override approver. Templates can also be kept ready to save time in data entry.


One time card is submitted, and then status changes to Submitted as shown below. System will send notification to supervisor for approval. It is possible to delete the time sheet using delete button.

Once time card is submitted for approval, login as supervisor and approve the time card. Once card is approved by supervisor, then card status changes to Approved


Now the time card is approved in OTL. This information needs to be transferred to Oracle Projects for costing the labor hours. There are no additional steps within OTL. Now switch over to Projects and submit the Concurrent Program. N) Transactions -> Import. The expenditure batch name is automatically populated by Oracle. Verify the execution report output for results.


After this verify the time card transactions in Expenditure enquiry window for a specific project.


11. Integration with Inventory

Oracle Projects is integrated with inventory for issue and receipt of material for projects. These are entered as miscellaneous transactions. Separate Transaction Types need to be created and kept ready. Login into Inventory (Vision Services) responsibility to complete the transaction flow demonstrated below. The steps are as below: � Identify Item (Material) to be issued to Projects (Ex: AS1084) � Verify onhand quantity of Item using onhand quantity window � Enter Miscellaneous Transaction (Issue to Project) � Enter Miscellaneous Transaction (Receipt to Project) � Launch Interface Manager (Cost Manager) to cost the transactions � Submit the Concurrent Request Set PRC: Interface Miscellaneous Inventory Costs from Inventory � Verify the expenditure items in the Expenditure Enquiry Window Items -> Master Items

Item cost can be verified through Tools > Item Costs


Now verify the quantity on hand to issue the material to the project. Enter details and press Find button. On Hand, Availability -> On Hand Quantity

You can see on-hand quantity here. Details are available in “Availability” window as well.

Step 1: Enter Miscellaneous Transaction (Issue to Project)


We need to select only those transaction types, which are related to Projects. In the LOV, we can see a * in one of the fields. Enter Quantity, Account, Project, Task, Expenditure Type, Expenditure Org.

Step 3: Once material is issued, material costing must be performed. Launch Interface Manager (Cost Manager) to cost the transactions Setup -> Transactions -> Interface Manager

Usually the status would be inactive. In case it is active, that means the concurrent program is scheduled. Go to View Requests window and Cancel the program. Then it becomes inactive again. Launch the manager by clicking Tools -> Launch Manager Option. This opens the concurrent program window. No parameters are required. Simply press submit button to run the program.


Note that Cost Manager starts multiple Material Cost Transaction Workers Programs. These will get completed after costing. But Cost Manager will remain Pending. We can stop Cost Manager using “Cancel Request” button provided in the window. If we go to Cost Manager window, it will appear as Inactive. We can activate this whenever required. Step4: Now we need to transfer Manufacturing Costs to Projects. Submit the concurrent program: Accounting Close Cycle -> Project Cost Transfers

There is no output for both the programs. However log is available for Cost Collection Manager to indicate that it has selected the item cost. Step 4: Switch to Oracle Projects now. Submit Transaction Import Concurrent Program. Note that Batch Name is available for selection. This is generated during previous run. Expenditures -> Transaction Import -> Import Transactions


Ideally all details must be populated in the output. However number is visible in output. Step 5: Verify the expenditure items in the Expenditure Enquiry -> Project Window

Now click on Item Details button to all distribution details and a/c heads. Note that the a/c entries will be transferred by Cost Management to GL directly and no entries will be generated by projects.


Note that Issue to project will increase the project cost and Receipts from Projects inventory will reduce the project cost.


12. Capital Projects

You use capital projects to capture the costs of capital assets you are building, installing, or acquiring. You also use capital projects to create retirement adjustment assets that you associate with a group asset in Oracle Assets. You use a retirement adjustment asset to capture the costs of removing, abandoning, or disposing of assets you want to retire. You can set up capital projects to capture capital asset costs only, retirement costs only, or to capture both capital asset costs and retirement costs.

Using Capital Projects to Create Capital Assets

You define and build capital assets in capital projects using information specified in the project work breakdown structure (WBS). You define asset grouping levels and assign assets to the grouping levels to summarize the CIP costs for capitalization.

You can review and adjust capital project costs before and after capitalization. For example, you can allocate costs collected under common tasks to multiple CIP assets before you place them in service. You can also account for additional costs incurred after capitalization, since Oracle Projects allows you to place assets in service before completion of a project.

When a CIP asset is ready to be placed in service, you send the capital project amounts to Oracle Assets as asset lines. Oracle Assets places the asset lines in a holding area where your fixed assets department can post the capital costs in Oracle Assets as fixed assets. You can review detail transactions associated with the asset lines in Oracle Projects and Oracle Assets. If necessary, you can reverse capitalize an asset in a capital project.

Using Capital Projects to Process Retirement Costs

You capture retirement costs in a capital project by recording cost of removal and proceeds of sale amounts to a task that is designated as a retirement cost task. To distinguish cost of removal and proceeds of sale amounts, you must enter proceeds of sale amounts using expenditure types that you define to specifically classify these amounts. Oracle Projects automatically classifies amounts for all other expenditure types as cost of removal.

To associate retirement costs with a group asset in Oracle Assets, you create a retirement adjustment asset in the capital project and identify it with a specific group asset. As with capital assets, you define asset grouping levels and assign retirement adjustment assets to the grouping levels to summarize the retirement cost amounts for posting to Oracle Assets.

When retirement activities are complete, you generate asset lines for the retirement cost amounts and send the lines to Oracle Assets for posting as adjustments to the accumulated depreciation accounts for the group assets. To communicate notice of an asset retirement to Oracle Assets, you can optionally initiate retirement requests in Oracle Projects that are automatically passed to Oracle Assets.

Attention: To use Oracle Projects retirement cost processing windows and features, the value of the site-level profile option PA: Retirement Cost Processing Enabled must be set to Yes.

Creating a Retirement Adjustment Asset

You create retirement adjustment assets to collect cost of removal and proceeds of sale amounts for assets associated with a group asset in Oracle Assets that you are retiring, removing, abandoning, or otherwise disposing.

When you define a retirement adjustment asset in Oracle Projects, you must specify a valid Oracle Assets group asset identifier as the target asset. You can create retirement adjustment assets and interface retirement costs to Oracle Assets only for fixed assets that are classified as group assets in Oracle Assets. To interface a retirement adjustment asset to Oracle Assets, you must specify a retirement date for the asset in Oracle Projects.

Processing Retirement Requests

Documents

R12 Projects Students Guide - GreenChain