R12 General Review on Oracle Project Costing

Presented by : Shanmugaraj.S

Agenda

Oracle Project Costing Overview

Integration with other modules

Project Classes

Project Costing Process Flow

Collect and Manage Costs

Project Costing Pre-requisites

Projects & Task Overview

Burden Schedules for costing

Budgetary control & Budget integration

Project & Task Creation

Costed & Uncosted Transaction Flow

Oracle Project Costing Overview:

Oracle Project Costing is an integrated project-based cost collection, management, and

accounting solution that enables organizations to effectively manage projects and activities.
Project managers are empowered with timely, detailed cost
information to monitor project performance, while financial managers can track and account
for the total costs of running their business

Detailed cost information to monitor project performance

Can track and account for the total costs of running business

 Integration with other modules

Oracle Project Costing imports
data from these Application
Oracle Project Costing sends
data to these Application

Oracle Purchasing
Oracle Payables
Oracle Time & Labor

Oracle Assets

Oracle Project Manufacturing

Oracle General Ledger

Oracle Asset Tracking

Oracle Sub ledger Accounting

Oracle Project Costing

Oracle Internet Exp

Oracle iProcurement

 Project Classes
Collect costs for all project classes
Indirect

Track Overheads
Cost Such as
Research and
Development

Capital

Track capital
assets costs and
retirement
adjustment asset
costs

Contract

Track costs,
revenue, and bill
customer

 Project Costing Process Flow (Costed)

 Project Costing Process Flow (Uncosted)

Enter and Approve Expenditure

Import Transactions

PRC: Distribute Labor Cost ( Distribute cost concurrent)

PRC: Generate Cost Accounting Events
PRC: Create Accounting
PRC: Transfer Journal Entries to GL (Optional)
Journal Import
(Oracle General Ledger)

 Collect and Manage Costs

Costs Types

Oracle Project
Costing Features

Straight Time

Adjustments

Over Time

Cross Charge

Expenses Report
Supplier Invoices

Collect Cost

Manage Costs

Allocation

Usages
Inventory
Burden Transaction
Work In Process
Misc. Transaction

Burdening

Asset Capitalization
Track Actual & Committed Cost

 Pre-requisites

Org Level
Organization Classification
Organization Hierarchy

Project Based Setups

Implementation Options
GL period
PA period
Resource List
Expenditure Categories
Revenue Categories
Expenditure Types
Project Type
Auto Accounting

 Overview of project and Task

Project
Top
Task
Middle
Task
Task 1.1
Task 1.1.1
Lowest
Task

WBS

Task 1

Work Plan Management

Task 2

Task 1.2

Task 2.1

Task 2.2.1

A Project is a primary unit of work that can be broken

down into one or more Tasks

Task 2.2

Task 2.2.2

The Work Plan

management Functionality
helps project manager &
Team members deliver
project on time.
Financial Management
The Financial
management Functionality
helps financial
administrators &
managers track billing,
cost , budgets, and other
financial information for
projects

 Burden Schedules for costing

Raw cost = Quantity x Rate
Burden Cost = Raw cost x Burden Multiplier
Burdened cost = Raw cost + Burden cost
Burden cost (also referred to as indirect
costs) allocates over head costs to project
to provide a more accurate view of total
cost

 Budgetary control & Budget integration

Budget
integration
Top Down integration budget:
Generate encumbrance journal entries
for project budget to reserve funds against
a GL funding budget

Budgetary control
validation

Purchasing

Payables

Enforce budgetary
control against a GL
budget and against a
project budget

Project Costing

General
Ledger

Bottom up integration budget:

Generate budget journal entries for
Project Budget to post to an
organizational level GL budget
Non integrated budget with budgetary
Controls:
Use budgetary control features without
sending budget accounting entries to GL

 Project & Task Creation

 Budget Creation

 Purchase Requisition against a Project

 Purchase Order Auto-Create

 Purchase Order Auto-Create

 Deriving Commitment Cost

 Project Status Inquiry

 Receipt against PO

 Interfacing Costs to project

 Project Expenditure Inquiry

 Pre-Approved Expenditure Entry

 Distributing Costs

 Cost Exception Report

 Generating Cost Accounting Events

 Cost Accounting Events report

 Create Accounting

 Posting in GL

Thank you