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Unauthorized reproduction or distribution prohibitedฺ Copyright© 2013, Oracle and/or its affiliatesฺ
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Oracle Projecto r a
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Planning Create
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D76116GC10
Edition 1.0
September 2012
D78925
Author Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
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Contents
1 Project Financial Planning Overview

Objectives 1-2
Oracle Hyperion Planning 1-3
Planning Components 1-4
Product Integration 1-6
Planning Architecture 1-7
Client Tier 1-8
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Middle Tier 1-9 ) h a
Data Tier 1-10
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External Services 1-11
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Oracle Project Financial Planning 1-12
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Project Financial Planning Features 1-13 ia den
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Project Financial Planning Process 1-15
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Step 1: Entering Project Details 1-16
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Step 2: Planning for Expenses 1-17
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Step 3: Planning for Revenue 1-18
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Step 4: Reviewing Financials 1-19
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Step 5: Managing Funding 1-20
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Step 6: Submitting Plans for Approval 1-21
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Project Financial Planning Business Scenario 1-22
M no Training Environment 1-24
Quiz 1-25
Summary 1-27
Practice 1-1 Through 1-4 1-28
2 Administration Tasks
Objectives 2-2
Lesson Agenda 2-3
Initial Implementation Tasks 2-4
Loading Required Dimensions and Members 2-6
Loading Data 2-7
Templates Overview 2-9
Extracting Template Files 2-10
Template Format 2-11
Data Load File Order 2-12
iii
Running the Import Utility 2-14
Setting Substitution Variables 2-15
Managing Smart Lists 2-17
Selecting User Variable Members 2-18
Lesson Agenda 2-20

Project Administration 2-21
Project Administration Task List Tasks 2-22
Project Assumptions 2-23
Setting Discount Rates and Taxes 2-24
Project Scoring 2-26
Investment Criteria 2-28
Defining Weightage for Criteria 2-30
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Defining Weightage for Financial Goals 2-31
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Defining Weightage for Subjective Groups 2-32
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Defining Weightage for Subjective Goals 2-33
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Overhead Assumptions 2-34
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Overhead Assumptions: Indirect Costs 2-35
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Overhead Assumptions: General and Administrative Costs 2-36
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Allocation Basis Assumptions 2-37
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Approval Settings 2-38
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Key Performance Indicators 2-39
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Intercompany Partners 2-40
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Preparing Base Forecast Data 2-41
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Lesson Agenda 2-43
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Workforce Administration 2-44
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Importing Employees 2-47
Calculating Employee Compensation 2-48
Lesson Agenda 2-49
Capital Asset Administration 2-50
Importing Existing Assets 2-51
Asset Class and Asset Detail 2-52
Setting Capital Assumptions 2-54
Rolling Up Asset Expenses 2-56
Verifying Loaded Depreciation and Amortization 2-57
Calculating Asset Related Expenses 2-58
Quiz 2-59
Summary 2-61
iv
3 Creating Projects
Objectives 3-2
Determining a Project Type 3-3
Capital Projects 3-4
Types of Capital Projects 3-5

Contract Projects 3-6
Types of Contract Projects 3-7
Indirect Projects 3-8
Preparing Project Tasks 3-9
Entering New Project Details 3-10
Capital Projects: Adding Projects 3-11
Capital Projects: Adding Project Details 3-12
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Capital Projects: Adding Capital Sub-Projects 3-13
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Contract Projects: Adding Projects 3-14
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Contract Projects: Adding Project Details 3-15
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Indirect Projects: Adding Projects 3-17
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Indirect Projects: Adding Project Details 3-18
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Viewing Project Proposals 3-19
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Capital Projects: Deleting Project Proposals 3-20
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Contract Projects: Deleting Project Proposals 3-21
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Indirect Projects: Deleting Project Proposals 3-22
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Changing Project Status 3-23
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Project Status Runtime Prompts 3-24
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Reconciling Projects 3-25
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Moving Projects 3-26
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M no Quiz 3-27
Summary 3-30
4 Planning for Project Expenses

Objectives 4-2
Expense Planning: Task Overview 4-3
Assigning and Calculating Labor Expenses 4-4
Adding Labor 4-5
Calculating Labor Expenses 4-8
Reviewing Labor Expenses 4-9
Assigning and Calculating Equipment Expenses 4-10
Adding Equipment 4-11
Calculating Equipment Expenses 4-13
Reviewing Equipment Expenses 4-14
Adding and Calculating Material and Other Requirements 4-15
v
Adding and Calculating Material and Other Resources 4-16
Calculating Material and Other Expenses 4-18
Reviewing Material and Other Expenses 4-19
Entering Direct Project Expenses 4-20
Calculating Overhead Expenses 4-21

Reviewing Indirect and G&A Expenses 4-22
Reviewing Total Expenses 4-24
Quiz 4-25
Summary 4-27
5 Planning for Contract Project Revenues

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Objectives 5-2
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Revenue Planning: Task Overview 5-3
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Entering Revenue Drivers for Cost Plus Projects 5-4
Adding and Removing Revenue Assumptions 5-6
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Calculating Revenue for Cost Plus Projects 5-8
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Quiz 5-9
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Entering Revenue Drivers for Time and Materials Contract Projects 5-11
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Viewing Standard Hourly Rates 5-12
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Copying the Base Billing Rate 5-13
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Calculating Labor Revenue 5-14
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Calculating Material Revenue 5-15
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Calculating Equipment Revenue 5-16
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Calculating Total Project Revenue 5-17
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M no Entering Revenue Drivers Based on Units Sold and Sales Price Per Unit 5-18
Entering Direct Project Revenue 5-20
Revenue Recognition 5-21
Summary 5-22
6 Reviewing Project Financials

Objectives 6-2
Reviewing Project Financials Overview 6-3
Performing Calculations 6-4
Reviewing Project Financial Statements 6-5
Reviewing Project Metrics and KPIs 6-6
Reviewing Project Justification 6-8
Reviewing Project Score 6-9
Requesting Project Funding 6-10
Adding and Canceling Funding Requests 6-12
vi
Reviewing Allocated Funds 6-14
Quiz 6-15
Summary 6-18
Practices 6-1 Through 6-8 6-19
7 Managing Intercompany Projects

Objectives 7-2
Managing Intercompany Projects 7-3
Limitations of Intercompany Projects 7-4
Tasks for Intercompany Projects 7-5
Calculating Cost Plus Intercompany Revenue 7-6
Calculating Project Data 7-7
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Reviewing Intercompany Reconciliations 7-8
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Summary 7-9
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8 Managing Existing Projects
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Objectives 8-2
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Managing Existing Projects 8-3
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Process for Managing Existing Projects
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Managing Existing Projects Task to 8-5
List Tasks
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Quiz 8-7
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Summary 8-9
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Practices
m f era 8-8 8-10
ed 8-1sThrough
h9am - t r anand Approving Projects
o
M non Reviewing
Objectives 9-2
Lesson Agenda 9-3
Process for Reviewing Projects 9-4
Calculating Departmental Financial Statements 9-5
Reviewing Project Proposals 9-6
Reviewing Existing Projects 9-7
Comparing Project Scores 9-8
Reviewing Project Performance 9-9
Reviewing Departmental Financial Performance 9-10
Reviewing the Impact on Financial Statements 9-11
Lesson Agenda 9-12
Project Financials Overview 9-13
Finance Analysis Task List 9-14
Running Rollups 9-15
Viewing the Financial Overview 9-16
vii
Financial Overview: Allocating Funds 9-17
Financial Overview: Changing Funding Status 9-19
Financial Overview: Reviewing the Impact on Financial Statements 9-20
Financial Overview: Reviewing Project KPIs 9-21
Performing Detailed Analysis 9-22

Reviewing Project Funding 9-23
Approving Projects 9-24
Submitting Plans for Approval 9-25
Reviewing Projects 9-27
Quiz 9-29
Summary 9-32
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10 Analyzing the Workforce
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Objectives 10-2
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Analyzing the Workforce 10-3
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Driver-Based Planning for Workforce Costs 10-4
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Required Metadata and Data Overview 10-5
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Analyzing Workforce: Task Overview 10-7
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Task Lists for Workforce Analysis and Planning 10-8
Rolling Up Data 10-9 o
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Reviewing the Resource Manager Dashboard 10-10
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Utilization Trend Chart 10-11
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Hiring Plan Chart 10-12
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Project Staffing Request – FTE 10-13
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M no Project Staffing Request – Labor Hrs 10-14
Reviewing Resource Utilization 10-15
Reviewing Resource Requests Across Projects 10-16
Staffing Projects 10-17
Requesting New Hires 10-19
Recalculating Compensation Costs 10-20
Reviewing Total Compensation 10-21
Reviewing Employee Headcount and FTE 10-22
Quiz 10-23
Summary 10-26
11 Analyzing and Planning for Capital Assets

Objectives 11-2
Analyzing Capital Assets 11-3
Required Metadata and Data Overview 11-4
viii
Analyzing Capital Assets and Equipment 11-6
Task Lists for Capital Asset Analysis and Planning 11-7
Reviewing Equipment 11-8
Reviewing Equipment Utilization 11-9
Asset Utilization Calculation Examples 11-10

Reviewing Equipment Requests Across Projects 11-11
Assigning Equipment to Projects 11-12
Requesting New Equipment 11-13
Recalculating Equipment Costs 11-14
Reviewing the Impact on Financial Statements 11-15
Capital Planning 11-16
Reviewing Existing Assets 11-17
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Reviewing and Updating Asset-Related Expenses 11-19
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Adding New Assets 11-20
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Adding New Leased Assets 11-21
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Reviewing Construction-In-Progress Assets 11-23
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Calculating Asset-Related Expenses 11-24
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Reviewing Asset Per Unit Cost Detail 11-25
Quiz 11-26
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Summary 11-29
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Project Financial Planning Overview
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Objectives
After completing this lesson, you should be able to:

• Describe Oracle Hyperion Planning (Planning) and its

components
• Identify the main components of the Planning architecture
• Describe the features of Oracle Project Financial Planning
(Project Financial Planning)
• Describe the Project Financial Planning process s a
) h a
• Describe the business scenario om
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Oracle Project Financial Planning 11.1.2: Create Projects 1 - 2

Oracle Hyperion Planning
Oracle Hyperion Planning:

• Streamlines data entry through web and Excel interfaces

• Provides a calculation engine to promote business
modeling with complex business rules and allocations
• Enables annotations at multiple levels to capture budget
details
• Accommodates potentially sophisticated budget review as a
processes m )h
• Facilitates dynamic reporting by using Financiall e ฺco eฺ
Reporting
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Oracle Hyperion
a a n (Planning) is a budgeting and planning solution that provides
m trPlanning
h
o onmethods
streamlined - for entering data through web and Excel interfaces. Planning supports
M n plans that are based on global assumptions, such as interest rates and headcount,
driver-based
and promotes modeling with complex business rules and allocations. It enables users to annotate
and justify data at multiple levels to capture budget details. It enables decision makers and
managers to collaborate with budget holders during potentially complex budget review processes,
and provides the tools to create and publish dynamic financial reports by using Oracle Hyperion
Financial Reporting (Financial Reporting).

Planning Components
Relational
Database
s
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The application
a a n provides the environment for running Planning applications. Oracle
h
o oServer
WebLogic n-in theis Planning
the application server provided with Planning. It facilitates user access to non-
M
numericndata relational database and to numeric data in Oracle Essbase
databases.
Planning requires a system database and a database for each deployed application. The Planning
application database is used primarily to store the application’s definition.

The following information is stored in relational databases:
• Smart lists
• Approvals hierarchies
• Approvals details
• Annotations, comments in cells, and supporting details
• Task lists
• Preferences
• Application setup
• Data forms and data form validation rules
• User variables
• Non-numeric data
The following information is stored in Essbase databases:
• Smart lists numeric values
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• Numeric data
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• Currency calculation scripts
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Product Integration
• EPM System: Profitability and Cost Management,

Performance Scorecard, Strategic Finance, Financial

Management, and FDM
• ERP systems: Oracle E-Business Suite, Oracle
PeopleSoft Enterprise, and Oracle Fusion Applications
• Oracle Business Intelligence Suite, Enterprise Edition
for dashboards and real-time reports a
h a s
• Data management applications: Oracle Data Integrator )
o m
and ERP Integrator (FDM module) leฺc ฺ e
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Planningm
a can
t r a n
integrated with the following products:
h -Enterprise Performance Management System (EPM System) product suite,
M•o Oracle’s
non
including Oracle Hyperion Profitability and Cost Management, Oracle Hyperion Performance
Scorecard, Oracle Hyperion Strategic Finance, Oracle Hyperion Financial Management, and
Oracle Hyperion Financial Data Quality Management (FDM).
• Enterprise resource planning (ERP) systems, including Oracle E-Business Suite, Oracle
PeopleSoft Enterprise, and Oracle Fusion Applications
• Oracle Business Intelligence Suite, Enterprise Edition for interactive dashboards and real-
time reports
• Data management applications, including Oracle Data Integrator and Oracle Hyperion
Financial Data Quality Management ERP Integration Adapter for Oracle Applications (ERP
Integrator; FDM module)

Planning Architecture
Client Tier
Workspace: Microsoft Office Web Analysis
Administration
Planning, EPMA, Integration Studio and
Services Console,
Reporting and Reporting Studio

Smart View Essbase Studio
Analysis Clients
Middle Tier
Application Server Web Server Services

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ism
Planningm n application that combines the advantages of Essbase (a multidimensional
a multitier
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- a relational database to optimize performance and maintenance.
o oand
database)
M n n
The slide illustrates the client, middle, and data tiers as well as external services that integrate
with Planning.

Client Tier
• Workspace for accessing the Planning web interface,

creating and deploying classic and Performance

Management Architect applications, and creating and
publishing reports
• Smart View for entering Planning data in Excel
• Administration Services Console and Essbase Studio for
modifying multidimensional outlines and calculation scripts a
h a s
• Reporting Studio for developing and running financial )
reports ฺ c om ฺ
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Client Tier o r G
Workspace:
i a @ n t
Planning, Microsoft Office
k a r ude Studio
Administration
Web Analysis
Performance Integration
ฺ z a Services S t
Console,
and
Management
Architect, Reporting ed e thEssbase
Smart View is Studio Reporting Studio
Clients
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The client tier
t r a n Oracle Enterprise Performance Management Workspace (Workspace),
h
M on- Smart View
o Hyperion
Oracle
Consolen(Administration
for Office (Smart View), Oracle Essbase Administration Services
Services Console), Oracle Essbase Studio (Essbase Studio), Hyperion
Web Analysis Studio, and Oracle Hyperion Financial Reporting Studio (Reporting Studio).
You access and manage Planning applications, Oracle Hyperion Enterprise Performance
Management Architect (Performance Management Architect) applications, and reports in
Workspace.
On the client tier, Planning administrators and users enter data, perform approvals tasks, manage
users and security, launch business rules, copy versions, develop data forms, work with Financial
Reporting, and perform other administrative tasks, such as updating Essbase outlines.

Middle Tier
• Application server for running applications

• Supported web servers for handling HTTP requests from

Planning
• Services for Performance Management Architect, Essbase
Studio, and Financial Reporting
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Application Server me WebeServer
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The middle tier
r a n of Oracle WebLogic Server (the application server) for running Planning
h -
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applications, web servers for handling Hypertext Transfer Protocol (HTTP) requests
M n and the required services for Performance Management Architect, Essbase Studio,
from Planning,
and Financial Reporting.
The web server can be on a separate machine or on the same machine as the Planning
application server. The web server enables you to access Planning applications from a web client
through a browser. The web server uses HTTP as the communications protocol.

Data Tier
• Relational databases store data for Shared Services,

Performance Management Architect, Calculation Manager,

Reporting and Analysis, Administration Services, and
Planning.
• Essbase databases store security, Planning data and
metadata, and calculation scripts.
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h a m
Databases u s Essbase Databases
m o et o
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Z
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The datam
a tier consists
t r a n of the relational (non-numeric) and Essbase (numeric) databases.
h
o following -components require a relational database:
non
The
M
• Oracle Hyperion Shared Services
• Oracle Hyperion Performance Management Architect
• Oracle Hyperion Calculation Manager
• Oracle Hyperion Reporting and Analysis
• Oracle Essbase Administration Services
• Oracle Hyperion Planning

External Services
• Integration with Oracle and other systems

• Oracle Data Integrator and ERP Integrator for data and

metadata integration
• ERP systems integration for drill-back capabilities
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External Oracle Data Integrator/ed t i Systems
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To load m me and
metadata n s fe
data from Oracle and other systems into Planning applications, you can
o
work
a several
hwith n - traexternal services, including Oracle Data Integrator, ERP Integrator, and, for
M no
classic applications, Outline Load Utility.

Oracle Project Financial Planning
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Project Financial
a n bridges the gap between the detailed projects an organization
m traPlanning
h
o onand- the overall corporate impact/resources. It gives organizations a high-level
undertakes
M
snapshotnof how their assets and resources are allocated, and then it monitors performance and
provides information about return on investment.
Project Financial Planning addresses planning for the various tasks and resources for any project
initiative with an underlying multidimensional database. Specific functionality was built to handle
various scenarios and calculations that are typically used in Project Financial Planning.

Project Financial Planning Features
Project Financial Planning features enable you to:

• Perform planning for Indirect, Capital, and Contract

projects
• Import metadata and data (using the provided template
files)
• Perform expense planning at detail level or account level
(labor, material, equipment)
• Allocate workforce resources and capital assets to projects s a
• Calculate driver-based overheads for projects ) ha
m
• Perform different types of revenue planning andlerevenue ฺco eฺ
recognition based on the type of Contract o rac G(Time
projects uid
and Material, Fixed Price, Cost Plus,riOther)
a @ ent
• View the impact on financial statements
z a ka Sfrom
t ud a project
ฺ Loss,
level or an entity level (Profit
m e dand
e this Cash Flow, key
am us
performance indicators(KPIs))
o h to
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r i a c e
aka ble li
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Project Financial
a n leverages core Planning features to enable you to accomplish the tasks
m traPlanning
h
o on the
listed -
slide.
M non

Project Financial Planning Features
• Rank and approve projects based on a project score using

financial measures and subjective measures (net present

value, return on investment, payback, lifetime investment,
risk assessment, strategic assessment, business
assessment, organization missions)
• Perform planning for intercompany projects and reconcile
them a
• Request funding h a s
m )
o
• Track the project approval flow
c l eฺc deฺ
• Use out-of-the-box reports o ra Gui
r i a @ ent
• Leverage from sample projects forka tud technology
information
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h a m tran Planning features listed are a continuation from the previous slide.
The Project Financial
Mo non-

Project Financial Planning Process
1 2 3
Enter project details. Plan for expenses. Plan for revenue

(Contract projects only).
s a
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Submit the plan for Managem ed e thi Review the financials.
funding.
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h a m tran Planning process includes the following steps:
The Project Financial
M1.o Enter - details.

non
project
2. Plan for expenses.
3. Plan for revenue (Contract projects only).
4. Review the financials.
5. Manage funding.
6. Submit the plan for approvals.

Step 1: Entering Project Details
Enter project details:

• Determine the project type: Capital, Indirect, or Contract.

• Enter any new project details, such as new project
assumptions and supplemental information.
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propose s fe by launching the Enter New Project Details task to open the New
o haProposals
Project n - traform. You use the New Project Proposals form to gather basic project
M nosuch as type of project, project start and end dates, project location, and project
information
manager. You can add properties to the application, as needed.

Step 2: Planning for Expenses
Expense planning:
• Add labor.
• Add equipment.
• Add material and other resources.
• Enter direct project expenses.
• Apply overheads.
a
• Review indirect and general and administrative (G&A) has
m )
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t r a nthe Expense Planning task list folder to guide you through the process of
h
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providing - about the expense components of a project.
M n n

Step 3: Planning for Revenue
Revenue planning:
• Enter revenue drivers:

– Cost Plus
– Time and Materials
– Unit Price
• Enter direct project revenue.
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t r a nthe Revenue Planning task list folder to guide you through the process of
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entering
differentnways
about the revenue components for a Contract project. Revenue can be derived in
on the category of the project (Cost Plus, Time and Material, and Unit Price).
Note: Revenue planning can only be performed for projects classified as Contract projects.

Step 4: Reviewing Financials
Review the project financials:

• Calculate the financial statements.

• Review the impact on the financial statements.
• Review the project KPIs.
• Review the project justification.
• Review the project score.
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You usemthemtasks in nthe Review Project Financials task list folder to review the project impact on
h a
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financial statements.
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These tasks are discussed in Lesson 9, “Reviewing and Approving Projects.”

Step 5: Managing Funding
Review project funding:

• Request the funding.

• Review the allocated funds.
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a the tasks in
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h
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Step 6: Submitting Plans for Approval
Submit the plan for approval:

• Promote the plan for approval.

• Review the plan’s approval status.
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statements n- requested funding, you can promote your plan to another user for approval. You
M
use the n
“Submit Plan for Approval” task list to promote your plan.
Project approval is separate from plan approval.
Consider the following layers of approval:
• Labor request approval
• Equipment request approval
• Funding request approval
• Project approval
• Planning unit approval
Labor, equipment, and funding requests are typically approved when the request is fulfilled.
Project approval locks the project for editing, sets the status, and copies over project information
to the Final and Forecast Final intersections. Plan approval goes through the planning unit review
cycle.

Project Financial Planning Business Scenario
ABC Training Corporation recently purchased Oracle’s EPM

System and implemented Project Financial Planning and

supporting tools. Project Financial Planning will enable the
company to manage projects in line with its efforts to expand its
business and track training development projects.
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Deliver end-user
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h
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a ( m nsand/or its affiliates. All rights reserved.
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In line with
t r a nto expand its business and track training development projects, Project
h
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Financial - will enable ABC Training Corporation to manage the following projects:
M • n n
Capital project: Build classrooms in a newly purchased training facility.
• Contract project: Deliver end-user training to Miller Corporation.
• Indirect project: Develop a Scope and Track system to monitor billing hours.

The following stakeholders are involved in these projects:
• Martha Jones, Program Manager Head Office: Responsible for creating, tracking, and
managing projects required for the expansion.
• Will Mott, Program Manager Human Resources: Responsible for tracking the utilization of
employees across projects, review new hire requests, forecast work orders, and manage the
schedule and use of resources.
• Thomas Martin, Program Manager Asset Management: Responsible for tracking the
utilization of assets across projects, manage the use of existing assets, approve asset
requisitions, and reconcile Construction In Progress assets, new assets, leased assets with
existing assets.
• Mickey Smith, Application and Budget Administrator: Responsible for approving projects
and budgets before they are submitted to Finance for funding.
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Training Environment
Planning and Data Sources Third-Party Software Web Application

Product Components and Web Servers
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h a m tran is a single-server compact deployment that combines all tiers on one
The training environment
M o oOracle
machine.
who rolln
n- recommends this configuration for a development environment or for customers
out Planning to a very limited number of users.
For a list of products and modules that are included in the training environment, see “Planning
Architecture” in this lesson.

Quiz
Select three Planning components.

a. Dimension Services
b. Application Server
c. Essbase databases
d. Relational databases
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Answer:
h a m dtran
b, c,
Mo non-

Quiz
Revenue planning is required for all types of projects:

a. True
b. False
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Answer:
o h am -tran
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M non only.
Contract Projects

Summary
In this lesson, you should have learned how to:

• Describe Oracle Hyperion Planning (Planning) and its

components
• Identify the main components of the Planning architecture
• Describe the features of Oracle Project Financial Planning
(Project Financial Planning)
• Describe the Project Financial Planning process s a
) h a
• Describe the business scenario om
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Practice 1-1 Through 1-4
The practice covers the following topics:

• Starting EPM Services

• Identifying Your Server Name
• Preparing the Browser
• Reviewing the Business Scenario, Users, and Roles
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Administration Tasks
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Objectives

• Identify project administration tasks

• Enter values for user variables
• Set discount rates
• Set investment criteria
• Enter overhead assumptions
s a
• Select approval settings
) h a
• Set KPIs o m
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• Identify intercompany partners o ra Gui
• Set workforce and capital asset global r i a @ ent
rates
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Lesson Agenda
• Application Administration
• Project Administration
• Workforce Administration
• Capital Asset Administration
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h a m trantasks discussed in this lesson are divided into the following sections:
The administration
- Administration
Mo• Application
•
non
Project Administration

Initial Implementation Tasks
1. Install and configure Project Financial Planning.

2. Create and initialize the Project Financial Planning

application.
3. Load the required dimensions and dimension members.
4. Refresh the application.
5. Load data.
6. Set values for substitution variables. s a
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7. Manage Smart Lists. o m
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8. Set user variables. ra c uid
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From a m meAdministrator
Global n s fe standpoint, you must perform the tasks listed on the slide prior to
o
working n tra Financial Planning.
ha in Project
-
MInitial project,
no workforce, and capital assumptions can be loaded using the utilities specified in
the next sections. You can then manage these assumptions through the administration task
lists covered in this lesson.
Installing and Configuring Project Financial Planning
See the Oracle Enterprise Performance Management System Installation and Configuration
Guide.

Creating and Initializing the Project Financial Planning Application
To create a new Project Financial Planning application using Planning application
administration, see the Oracle Hyperion Planning Administrator’s Guide. When using the
Planning Application Wizard to create a Project Financial Planning application, select the
Oracle Project Financial Planning application type. You can select to initialize the application
with the IT Industry sample.
Note the following when initializing Project Financial Planning:
• If you are creating a basic Project Financial Planning application, select None. You will
then be prompted to define the application calendar, set currency options, and set the
customizable plan types, if required.
• If you are creating an information technology (IT) industry-specific Project Financial
Planning application, select Information Technology. You will not be prompted to define
the application calendar, currency, and plan types. They will be set automatically with
predefined settings. For details about creating, loading security for, and loading data for
an IT industry–specific Project Financial Planning sample application, see Appendix B, s a
) h a
“Sample Project: Information Technology” of the Oracle Project Financial Planning User’s
Guide.
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Loading Required Dimensions and Members
Load the required dimensions and members that correspond to

the following metadata in your organization:

• Entity
• Job
• Employee (Existing Employees)
• Asset Class
• Asset Detail s a
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• Existing Projects c o m
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Note them me nwhen
following s feloading dimensions:
o
• - tra You do not need to bring every asset into the application. Project Financial
haAssetnClass:
M no Planning enables you to group together similar assets. For example, if your organization
is using 1,000 laptops, you do not need to add 1,000 members to the Asset Detail
dimension. You can add just one Laptop member to the Asset Detail dimension and while
loading the data corresponding to this asset, specify the Asset Units as 1000.
• Existing Projects: Ensure that you are loading the project under the correct project
classification hierarchy. For example, before loading a project in Project Financial
Planning, if it is determined to be a Contract project, it should be added under the Existing
Contract Project hierarchy. Failing to do so may result in loss of functionality associated
with the project.
Refreshing the Application
After loading metadata (dimensions and members), you must refresh the application to
synchronize it with Oracle Essbase.

Loading Data
Before you import data, you must ensure that the members in
the data load files are specified in the data load settings of your
Project Financial Planning application.
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Project m me Planning
Financial n s fe provides utilities that leverage the Outline Load Utility in Planning.
htoa loading
- a with the PFPImportUtility, you ensure that driver members are specified on
trdata
o
Prior
Mthe Planningn
no Data Load Administration page.
You import the following Workforce, Capital Asset, and Project data into your application:
• Assumptions
- Capital Assumptions
- Overhead Assumptions
- Workforce Assumptions
• Asset Depreciation and Amortization
• Project Details
- Existing Project
- New Project
• Project Actuals
- Project Expenses
- Project Revenues

• Employee Project Assignments
• Asset Project Assignments
• Project Material Requirements
• Existing Employee Data
• Existing Major Asset Data
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Templates Overview
Project Financial Planning provides import utilities and sample

template files that you can use to import data and metadata into
your application.
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mExport
Import m
a and
t r a nUtilities
h -
o ExportPFPTemplates
MThe non utility extracts the sample template files to a user-defined root folder.
The PFPImportUtility imports the data and metadata into the Project Financial Planning
application.
Sample Template Files
After extracting the sample template files, you use them to format your metadata and data in
order to load it to a Project Financial Planning application. The template files are saved in a
comma-separated values (CSV) file type.
After preparing your metadata and data using the template files, you use the PFPImportUtility
to load the information into your application.

Extracting Template Files
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a m trsample
You extract the a n template files from the HspPPIT.JAR file using the
h
o on-
MExportPFPTemplates
n
utility.
To extract the sample template files:
1. Open a command prompt, and navigate to the Planning installation location. For example,
if your Oracle instance is C:\Oracle, navigate to
C:\Oracle\Middleware\user_projects\epmsystem1\Planning\planning1.
2. Enter ExportPFPTemplates.cmd <root folder location> <language>, where <root folder
location> is the directory where you want to extract the sample template files and
<language> is the language code of your Planning locale (for example, fr for French, en
for English, or zh_cn for Simplified Chinese). Use lowercase letters for the language
code.
3. Navigate to the <root folder location> and review its contents.

Template Format
This sample data row loads Laptop Lenovo T400 data to the
Capex cube at Plan (Scenario), Working (Version), Laptop

(Asset Class), Contract Project 1 (Project), USA (Entity), FY11
(Year), Jan (Period), Local (Currency).
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The firstm mine a sample
row n s fe template file contains the header records, which identify the member
ha and - a values to load. The header records include the budget item (for example,
trthe
o
properties n
MEntity, Asset
no Class, Employee, or Project), the data load cube name, the kind of data to be
loaded (for example, project start and end dates, asset descriptions, or employee types), and
the point of view (POV) to which you are loading data. The POV column contains information
about the budget to which you are loading data (the scenario and version) and the artifacts that
are associated with the data that you are loading (such as entity, position, employee, and so
on).

Data Load File Order
When loading metadata and data using templates, consider the

following:
• Create and test CSV load files using a copy of the current
application in a test environment prior to running them in
your production environment.
• Load metadata first, and then data using the order
specified in the next section. a
h a s
• Load data only to level 0 members, and then roll up the)
data to parent members as required. ฺ c om ฺ
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• All dates should be in the format mm-dd-yyyy o fort Gthe CSV
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a m tryour
To ensure that a nsource data loads correctly, metadata and data are loaded in this order by
h
o when n-you use the PFPImportUtility script:
Mdefault n o
• Smart List: SmartList.csv
• Asset Detail metadata: AssetMem.csv
• Employee metadata: EmployeeMem.csv
• Entity metadata: EntityMem.csv
• Project metadata: ProjectMem.csv
• Capital Assumptions: ImportGlobalCapitalAssumptions.csv
• Overhead Assumptions: ImportOverheadAssumptions.csv
• Workforce Assumptions: ImportWFPAssumptions_1.csv
• Asset Depreciation and Amortization data: Asset Depreciation and Ammortization.csv
• Existing Project data: ProjectDetails.csv
• New Project data: NewProjectDetails.csv
• Project Actual Expense data: ProjectActualsExpense.csv

• Project Actual Revenue data: ProjectActualsRevenue.csv
• Existing Employees’ Assignment to Projects: ImportEmployeeProjectAssignment.csv
• New Employees’ Assignment to Projects: ImportNewEmployeeProjectAssignment.csv
• Existing Asset Assignment to Projects: ImportProjectAssetAssignments.csv
• Material Requirements for Projects: ImportProjectMaterialRequirements.csv
• Existing Employee data: ImportExistingEmployees.csv
• Existing Major Asset data: ImportAssets.csv

Note: After loading metadata and before loading data, you must refresh your application to
synchronize it with Oracle Essbase.
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Running the Import Utility
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After creating
t r a n files, you can run the PFPImportUtility.bat. Ensure the data load file has
load
h
osameoname - as the template file and that the format of the data load file is the same format
Mthe n n template.
as the provided
To import the CSV data load files:
1. Navigate to the Planning installation location. For example, if your Oracle instance is
C:\Oracle, navigate to
C:\Oracle\Middleware\user_projects\epmsystem1\Planning\planning1.
2. Run PFPImportUtility.bat.
3. When prompted, enter the application, username, and the location for the root folder that
contains the data load files, password, and language code.
4. When finished, open your Project Financial Planning application and verify that the data
was loaded.

Setting Substitution Variables
Essbase Administration Console Planning

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h a m tran are used in Project Financial Planning forms and in predefined reports.
Substitution variables
- the application, you must set values to the following substitution variables:
o to accessing
MPrior
• non
LastYr: Set this to the previous year (for example, FY11).
• CurYr: Set this to the current year. For example, if the current year is 2012, set this to
FY12.
• NextYear: Set this to the next year (for example, FY13).
• Yr2: Set this to the year after NextYear (for example, FY14).
• Yr3: Set this to the year after Yr2 (for example, FY15).
• Yr4: Set this to the year after Yr3, for example, FY16.
• ThisMonth: Set this to the current month.
• CurScenario: Set this to the current scenario (for example, Current).
• CurVersion: Set this to the current version (for example, Working).
• ActVersion: Set this to the actual version (for example, Prior FCST).

• ForVersion: Set this to the forecast version (for example, Prior FCST).
• PlanVersion: Set this to the working version (for example, Working).
Ensure that these values are existing dimension members in your application.
You can use Essbase Administration Console to manage substitution variables.
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Managing Smart Lists
You must update the following Smart Lists based on your

business needs:
• AssignmentLocation
• Customer
• FundingSource
• PhysicalLocation
• ProjectCostLevel s a
) h a
• ProjectManager o m
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• SkillSet c
ra Guid
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• Grade r i a
• Project Billing Level z a ka Stud
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a m trcustom
Smart Lists are a n drop-down lists that users access from form cells. When you click cells
h
o members - are associated with a Smart List (as a member property), you select items
Mwhose non lists instead of entering data.
from drop-down
Note: You cannot type in cells that contain Smart Lists.
Oracle recommends using the Project Financial Planning template and import/export utility
delivered with the product to load Smart List values. After you load Smart Lists to the
application, you manage the values using the Manage Smart Lists page.
To create or work with Smart Lists:
1. In your application, select Administration, then Manage, and then Smart Lists.
2. Perform one of the following actions:
- To create a Smart List, click Create, enter the name, and click OK.
- To change a Smart List, select it and click Edit.
- To delete Smart Lists, select them, and click Delete and OK. Deleting Smart Lists
also deletes any associated mappings with dimension members and reporting
applications.
- Optional: Click Synchronize to synchronize Smart Lists between an application that
uses Planning application administration and a reporting application.
Note: Data cells can display only one Smart List. If multiple Smart Lists intersect at cells, set
which one takes precedence.
Selecting User Variable Members
You select user variable members before accessing Project

Financial Planning forms.
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You setm me to the
values n s fe
following user variables to limit the number of displayed members in
h a t r a
- Planning forms:
o Financial
MProject
• non
Scenario View
• Version View
• Entity View
• Reporting Currency
To select user variable members:
1. In your application, select File, and then Preferences.
2. Click the Planning icon, and then select User Variable Options.
If a user variable is set, an entry displays in Selected Member.
3. To select members, click the Select Members icon.
4. Select members from the left pane.
5. Click the Expand All icon or the Collapse All icon to expand or collapse the list.

6. In Member Selection, perform one of the following actions:
To select, click the Add icon.
To remove, click the Remove icon.
To remove all members, click the Remove All icon.
7. Click Save.
8. In User Variable Options, click OK.
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Lesson Agenda
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The administration
- Administration
Mo• Application
•
non

Administrators perform the following tasks:

• Setting discount rate and tax rates

• Setting investment criteria
• Entering overhead assumptions
• Setting approval settings
• Setting KPIs
s a
• Managing intercompany project partner relationships
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• Preparing base forecast data o m
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The Project Administration task list guides administrators through the project administration
- tasks and instructions to ensure that all relevant data is collected and
o byonlisting
Mprocessn
calculated.

Project Administration Task List Tasks
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h a m tranthe Project Administration Tasks List Tasks:
The slide displays
Mo• Set -
non
Discount Rate and Tax Rate: Enter values for discount rate and tax rate
assumptions.
• Set Investment Criteria: Enter investment criteria, including defining weight and
reviewing criteria.
• Enter Overhead Assumptions: Enter overhead assumptions, including indirect cost and
general and administrative cost assumptions.
• Approval Settings: Set the approval status for labor, asset, and funding requests.
• Import Projects: Import projects and refresh the application.
• Set KPIs for Projects: Set key performance indicators (KPIs) for projects.
• Intercompany: Add intercompany partners for a project and review intercompany
reconciliations.
• Prepare Base Forecast Data: Prepare and clear base forecast data.

Project Assumptions
Administrators enter the following assumptions at the entity

level:
• Discounting approach and related information used to
derive the effective discount rate
• Taxes applicable for the entity
• Predefined rules for apportioning to projects the entity’s
indirect and general and administrative expenses s a
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• Setup requirements for intercompany projects m
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• Upper and lower limits for KPIs for project evaluation
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The project administration process enables administrators to set up the required assumptions
n- that will
o information
Mand noinformation
the setup
be used for project planning and forecasting. Administrators can import
from transactional systems or they can add it manually.
The setup information is used as defaults for planning newly created projects or for forecasting
existing projects. Assumptions provided here are entered at the entity level and, when a project
is created for an entity, these assumptions are used as a starting point when you begin your
planning.

Setting Discount Rates and Taxes
Administrators provide the discount and tax rate information

using the Set Discount Rate and Tax Rate task:
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Administrators
a a nthe Set Discount Rate and Tax Rate task to open the Global Discount Rate
h
o Tax Rate -Assumptions form to define values for the following:
Mand
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Tax Rate: Enter the rate at which taxes are paid for the given period.
• Discount Rate Approach: Select the approach for discounting your project’s cash flows
to determine their NPV. There are two predefined approaches: Direct Discount Rate
Approach, whereby you input the discount rate, and Capital Asset Pricing Model (CAPM),
which considers the systematic risk or market risk of the project in the industry.
• Discount Rate: Enter the rate of return that could be earned on an investment in the
financial markets with similar risk.
• Beta: Enter the expected rate of return and risk-free return.
• Riskless Rate: Enter the minimum return the business expects for an investment.
• Market Risk Premium: Enter the difference between the expected return on a market
portfolio and the risk-free rate. Market risk premium is equal to the slope of the security
market line (SML), a capital asset pricing model.

• Debt Ratio: Enter the proportion of debt your company has relative to your assets.
• Cost of Borrowing: Enter the interest rate paid for funds that the business spends in
total for goods or services including money, time, and labor.
The Effective Discount Rate value is the interest rate used in discounted cash flow analysis to
determine the present value of future cash flows. The value can be calculated either by Direct
Discount Rate Approach or CAPM (Capital Asset Pricing Model).
The effective discount rate drives the following accounts:

• Discounting factor
• Present value (PV) of cash flow
• Net present value (NPV)
The rates entered in the Global Discount Rate and Tax Rate Assumptions task are the default
for all new projects created in Project Financial Planning if the rates are not defined at the
project level. The details entered can be overridden later for a specific project.
To set discount rates and taxes: s a
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1. If task lists are not displayed, select View, then Task List, and then Task List.
ฺ c om ฺ
2. In the Task List Tasks – All content area, expand Expand Project Administration.
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3. For Set Discount Rate and Tax Rate, click the Launch Tasklist Wizard icon in the Action
column. @ o tG
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4. Verify the Scenario and Version selections.
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5. Select an Entity for the page dimension.
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Project Scoring
Project scoring tracks a project’s performance against a

predefined set of targets at the entity and project level and

scores projects based on subjective and financial factors.
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a use
t r a nscores to rank a project and analyze the performance of a project with
h
o tooother - projects and to a predefined set of limits. Financial scores are dependent on
Mrespect n nmetrics and factors of the project, and are based on financial planning, while
the financial
subjective scores are based on qualitative factors and responses to some predefined questions
and their assessment by the entity head. You can review project scores for individual projects
and across projects.
Process for Project Scoring
1. The entity head defines the weightings for the components of the project score. These
weightings are defined at the subjective and financial level, and the subjective weightings
are further divided into components and subcomponents. Subjective scoring is based on
the questions that are defined by the entity head and which pertain to the project’s
performance.

2. After the project manager completes financial planning for the project, details about
calculated financial metrics and parameters help in calculating the financial scores
automatically. For subjective scores, the project manager must answer a set of predefined
questions and, based on the responses, the entity head can determine the project’s
subjective score.
3. The combination of financial and subjective scores is used to rank the project. Project
ranking helps the entity, Finance, and corporate management to determine whether to
approve of a project and fund it.
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Investment Criteria
Administrators define investment criteria based on financial and

strategic factors:
• Weightage for criteria
• Weightage for financial goals
• Weightage for subjective groups
• Weightage for subjective goals
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h a m tranweights for scoring the projects are defined at the organization level, taking
These predefined
- the corporate strategic plan and goals. They help to determine the factors
o consideration
Minto nothenproject performance based on the parameters defined at corporate level.
affecting

Investment Criteria
Administrators use the Set Investment Criteria task to open the

Investment Criteria form:
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Administrators
a a nthe Set Investment Criteria task to open the Investment Criteria form and
h n- criteria in terms of detailed financial and strategic factors for scoring the
o investment
Mdefine byogiving weights to them.
project n
The Investment Criteria contains four sections, which are discussed in the succeeding sections.

Defining Weightage for Criteria
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Administrators
a a n weightage for the following criteria:
h - Criteria enables weighting and evaluating based on the financial metrics and
Mo• Financial
non
factors of the project, and financial planning.
• Subject Criteria enables weighting and evaluating a project’s value beyond its financial
(objective) merits alone. Examples of Subjective Criteria: how strongly a project expands
a product line or contributes to meeting a company strategy.
• Investment Criteria allows projects to be evaluated against other projects on the basis of
objective financial measures, such as its NPV or Benefit Cost Ratio, and subjective
measures.

Defining Weightage for Financial Goals
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Administrators
a a n weightage for the following financial goals:
h - Value (NPV) is an indicator of how much value an investment or project
Mo• Net
non
Present
adds to an organization. It is calculated as a sum of all net cash flows over the years
discounted to their present value.
• Return on Investment (ROI) is a performance measure used to evaluate the efficiency of
an investment or to compare the efficiency of a number of different investments. To
calculate ROI, the benefit (return) of an investment is divided by the cost of the
investment; the result is expressed as a percentage or a ratio.
• Payback Period is the amount of time taken to break even on an investment.
• Benefit Cost Ratio (BCR) is an indicator of the overall value of a project, based on the
ratio of the benefits of a project or proposal, expressed in monetary terms, relative to its
costs, also expressed in monetary terms.
• Lifetime Investment (LI) is a KPI that measures the amount of a project’s funding over
the project’s life.

Defining Weightage for Subjective Groups
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h a m tranis divided into the following groups. Administrators define the weightage for
Subjective criteria
Mtheofollowing -groups:
• non
Risk Assessment/Impact is used for scoring the project based on various risks, such as
schedule, cost, resource, time to market.
• Strategic Assessment/Impact is used for assessing projects based on alignment to
business unit or corporate strategy.
• Business Assessment/Impact is used for scoring based on revenue potential.
• Organization Missions is used to assess the project based on how it will help improve
the process efficiency in the organization. Organization missions are commonly used in
Indirect projects.

Defining Weightage for Subjective Goals
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a m tscores,
For subjective
r a n the project planner must answer a set of predefined questions and,
h
o onothe -responses, the entity head can determine the project’s subjective score.
Mbased n nis entered in the Define Weightage for Subjective Goals section of the Investment
Weightage
Criteria form.
The objective weights correspond to questions answered in the Detailed Justification task. The
project administrator defines the subjective score for the corresponding questions. If no data is
entered for a goali n the Define Weightage Subjective Goals section, that item is not included in
project scoring.
For example in the slide, there is no weightage entered for Resource and Time to Market.
These goals are not included in project scoring even if the project planner enters responses to
these questions in the Detailed Justification task.

Overhead Assumptions
You enter overhead assumptions for indirect expense, and

general and administrative expenses by using the Enter

Overhead Assumptions task:
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Overheads
a are a n
m trexpenses necessary for the performance of a job or continued functioning of the
h
o obutn-cannot be specifically attributed to a project. Examples of overhead expenses are
Mbusinessn expenses, direct material expenses, and facilities allocation expenses.
direct labor

Overhead Assumptions: Indirect Costs
Project Financial Planning provides the following indirect cost

pool categories:
• Labor Overhead
• Engineering Overhead
• Manufacturing Overhead
• Material Overhead
• Information System Overhead s a
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• Training Overhead o m
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• Fringe Overhead c
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• Common Overhead Pool r i a
• Facilities Allocation z a ka Stud
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Indirect m meare necessary
costs n s fe to a job but are difficult to assign to a project. Costs to a project
o
are
a -based
hallocated
n tra on the Indirect Cost Rate (ICR) and an ICR can be set for different types of
Mexpenses.noThe project administrator sets the indirect cost pool and allocation basis for each
overhead line item, and then provides the ICR.

Overhead Assumptions:
General and Administrative Costs
General and administrative costs are:
• Related to the entire company

• Necessary to run the business but cannot be assigned to a
specific job or project
• Used to calculate the general and administrative cost rate
(GACR) for each general and administrative cost pool
Project Financial Planning provides one general and s a
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administrative cost pool category: Corp G&A m)
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h a m tran sets the general and administrative cost pool and allocation basis for
The project administrator
o general
Meach -and administrative element, and then provides the GACR.
non

Allocation Basis Assumptions
Project Financial Planning provides the following allocation

basis options for indirect cost assumptions and for general and
administrative cost assumptions:
• Total Direct Labor Cost
• Total Direct Labor Hours
• Total Direct Material Cost
• Total Number of Employees s a
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• Total Direct Costs o m
• Total Square Footage c l eฺc deฺ
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• Total Machine Hours r i a @ ent
• Value Added Cost Input z a ka Stud
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Approval Settings
You use the Approval Settings task to set whether the project
can be approved directly without first obtaining the approval of

the resource, asset, or finance manager:
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h a m tranis set to Yes, the project can be approved without the resource, asset, or
If the auto approval
o manager’s
Mfinance - approval. The project status is set to Approved.
non
f the auto approval is set to No, the resource, asset, or funding must be approved before the
project can be approved.

Key Performance Indicators
Key performance indicators (KPIs) are high-level snapshots

of a project based on specific predefined measures.
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Administrators
a a nthe Set KPIs for Projects task to define the upper and lower limits of KPIs
h n- attargets.
oall projects
Mfor nolevel
with entity
the entity level. These limits will be used for tracking performance of projects
If projects are not within these limits, warnings will result.
You set KPI limits to the following:
• NPV
• ROI
• Payback Period (Years)
• Benefit Cost Ratio
• Lifetime Investment

Intercompany Partners
Administrators perform the following intercompany tasks:

• Adding intercompany partner relationships

• Rolling up intercompany transactions
• Reconciling intercompany transactions
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a r a n
m tpartnerships
Intercompany arise when the scope of the work requires multiple entities to work
h - to complete it. Intercompany partnerships consist of:
Monothe project
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An owning entity, who assigns the project work and is responsible for the overall delivery
of the project
• A service-provider entity, who completes the project work within the time line provided by
the owning entity.
The service-provider entity charges the owning entity for the expense incurred on the project.
The reimbursement for these expenses are considered intercompany revenue to the service
provider and become an intercompany expense for the owning entity. At the corporate level,
these intercompany charges are eliminated.

Preparing Base Forecast Data
The following business rules help you prepare base forecast

data: PrepareDetailForecastBaseData,
PrepareHighLevelForecastBaseData, and ClearForecastData.
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Financial n s fe helps you prepare base forecast data by copying the actual data and
a to the
hdata - a
trspecified
o
plan
Mon factors n forecast version. Then, you can adjust created forecast version based
nolike pending work and resource availability. You can set the actual data to read-only
by setting the start and end period or year for the scenario. Forecasting can occur at a high
level or at the detailed assignment level of the project.
Note: Actual data must be loaded to the Actual scenario for “Direct Cost Input” and “Revenue
Direct Input.”
Preparing Forecast Data with Assignment Details
The Preparing Forecast Data with Assignment Details task launches the
PrepareDetailForecastBaseData business rule, which helps you prepare the data for
forecasting project expenses and revenues at a detailed resource level.

This business rule does the following:
• The rule deletes existing data in the “Prior FCST” forecast version.
• The rule copies data from the “Final” forecast version and moves it into the “Prior FCST”
forecast version.
• The rule copies detailed data (including employee, asset, and material assignments) from
the “Final” actual version into the “FORECAST VERSION” version.
• If data is not available in the “FORECAST VERSION” version, the rule copies the data
with assignment details from the “Final” plan version into the “FORECAST VERSION”
forecast version for the remainder of the budget cycle.
• The rule copies assumptions from the “Prior FCST” forecast version to the “FORECAST
VERSION” version.
Preparing Forecast Data Without Assignment Details
The Preparing Forecast Data without Assignment Details task launches the
PrepareHighLevelForecastBaseData business rule, which helps you prepare the data for s a
) h a
forecasting project expenses and revenues at a high level. Assignment details are not copied.
This business rule does the following: ฺ c om ฺ
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• The rule deletes existing data in the “Prior FCST” forecast version.
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• The rule copies data from the “Final” forecast version and moves it into the “Prior FCST”
forecast version.
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• The rule copies high-level data from the “Final” actual version into the “FORECAST
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• If future data is not available in the “FORECAST VERSION” version, the rule copies high-
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level data from the “Final” plan version into the “FORECAST VERSION” version for the
a r l i ce
remainder of the budget cycle.
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• The rule copies assumptions from the Prior FCST forecast version to the “FORECAST
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VERSION” version.
hamForecast
Clearing - t r anData
o
M non
This task launches the ClearForecastData business rule, which deletes the data from the
selected Forecast Version.

Lesson Agenda
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The administration
- Administration
Mo• Application
•
non

Workforce Administration
The Workforce Administration task list enables administrators

to:
• Set global rates
• Import employees
• Calculate compensation
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h a m tran represents one of a company’s largest expenses and its most critical
Employee compensation
o oAsn-you prepare plans to help manage future expenses, you can use Workforce
Mresource.
n to manage and prioritize resources.
Planning
Administering workforce expenses involves planning or forecasting employee compensation
expenses. The Workforce Administration task list includes tasks involved in this process:
• Importing Employees: Track whether this process has completed.
• Set Global Rates: Set and update workforce compensation assumptions (also called
“global rates”) that drive various expense calculations and include such elements as
salary, health care expenses, merit increases, taxes, and default working days, hours,
and standard hourly rates
• Calculate Compensation: Calculate and roll up compensation by Entity, Scenario,
Version, and Year to aggregate expense totals

Setting Workforce Global Rates
Administrators use the Set Global Rates task under Workforce

Administration to enter assumptions for the following:

• Midpoint salary compensation assumptions
• Employee benefits assumptions
• Default working days and hours
• Standard hourly labor rates
• Base billing rate s a
) h a
These assumptions are set at the entity or the No Entity o m
level,
but can be changed at the project level. c l eฺc deฺ
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Global rates
a are n in various calculations to derive costs. These assumptions are often set
h n- and,byforgrade,
oa high olevel
Matmidpoint
nsalaries
certain assumptions, can be changed at a lower level. Administrators set
employee benefits assumptions, default working days and hours,
and standard hourly rates.
The following forms are included in the Set Global Rates task under Workforce Administration:
• Set Mid Salary Compensation Assumptions enables the administrator to enter
midpoint salaries by grade. The form displays 13 predefined grade levels. Administrators
can add, edit, and delete grade levels by using the Grade Smart List and Assumption
Input member under Workforce Planning - Accounts of the Account dimension.
• Set Employee Benefits Assumptions enables the administrator to enter benefit rates
used to calculate for annual salary increases, merit increases, health care costs, and
merit increases.

• Set Default Working Days and Hrs enables you to enter default number of hours per
week and number of working days.
• Enter Standard Hrly Labor Rates enables you to enter standard hourly compensation
for employee positions.
• Set Base Billing Rate enables you to set the different billing rates for the project. Three
predefined levels allow you to bill based on varied levels. Administrators can add, edit,
delete billing levels.
Note: At the project level, Project managers can only override values to the billing rates.
Values for Mid Salary Compensation Assumptions, Employee Benefit Assumptions, Default
Working Days and Hrs, and Standard Hrly Labor Rates must be set by Project Administrators
at the entity level.
If the assumptions are set at the entity level, they will be used for calculations; otherwise, the
assumptions set for the organization will be used.
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Importing Employees
You must import employee metadata and data to integrate

Workforce Planning with Project Financial Planning.
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Workforce primarily requires you to import z k Stufor the Employee
amembers
and Job dimensions.
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Employee Dimension
MTo noninto
perform
employees
detailed employee planning in Project Financial Planning, you must upload existing
Project Financial Planning, including the existing employee structure and
employee properties account members such as Grade or Salary.
Job Dimension
To perform high-level employee planning in Project Financial Planning with the Job dimension,
ensure that all the positions present in the organization are present in Project Financial
Planning as members of Job dimension. When importing the data for existing employees from
the company’s HRMS, the data should be imported at the correct intersection of the Job and
Employee.
For more information on loading metadata and data, see “Initial Implementation Tasks” in this
lesson.

Calculating Employee Compensation
You complete the Calculate Compensation task to view the

updated total compensation for an entity.
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mCalculate
You runm
a the
t r a n Total Employee Compensation business rule associated with the
h n- execute thetask
o oCompensation
MCalculate
n can
data. You
to calculate employee compensation by entity, based on expense
Calculate Total Employee Compensation business rule either in a
batch process after loading employee data from the source HRMS or after you plan resources
for an entity.
To calculate employee compensation:
1. Under the Workforce Administration task list, select Calculate Compensation.
2. Click the Launch button to run the Calculate Total Employee Compensation business
rule.
3. In the Calculate Total Employee Compensation runtime prompt, enter the required
values.
4. Click Launch.

Lesson Agenda
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The administration
- Administration
Mo• Application
•
non

Capital Asset Administration
The Capital Administration task list enables administrators to:

• Import existing assets

• Set capital assumptions
• Run rollup rules
• Verify loaded depreciation and amortization
• Calculate asset-related expenses
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a m tcapital
Administering
r a n assets begins with setting several company assumptions for capital
h n- depreciation methods, useful life of assets, depreciation conventions, and
o including
Massets noassumptions.
other key
Oracle recommends that you update existing asset category and asset detail data (dimensions
and data) before preparing financial plans, either Plan or Forecast. After you update the two
dimensions and refresh the application, you can execute asset-related expense calculations to
consolidate up-to-date asset-related expenses for plans or forecasts.

Importing Existing Assets
Capital planning typically starts by loading existing major

assets from your company’s source fixed asset system.
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h a m tran and expensing existing assets to projects, Project Financial Planning
To facilitate assigning
o oimport
Mprovides n- utilities and sample template files that you can use to import data and metadata
n application.
into your
Note the following when importing existing assets:
• Oracle recommends loading data from external systems for future periods because
depreciation and amortization for existing assets are typically calculated for future periods
in the source system (for example, the fixed asset ledger). To accurately reflect the
impact of purchases and retirements on depreciation and amortization, you must regularly
refresh this data from the source system.
• You must regularly maintain the Asset Detail dimension to reflect newly-acquired assets
and remove retired assets.
• Oracle recommends that you not load every asset from your fixed asset system into
Project Financial Planning. You need load only those assets that will be used in projects.
• After updating capital asset information, you synchronize the application with Oracle
Essbase by refreshing the application.

Asset Class and Asset Detail
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Asset Class
MThe Asset n dimension details the different categories of assets that a company owns. You
noClass
update the following asset class members:
• Tangible assets (furniture and fixtures, machinery and equipment, computers, and so on)
• Intangible assets (leasehold improvements, software rights, goodwill).
The Asset Class dimension contains a list of standard equipment that you may request for use
on projects. When you request for resources, you can only specify the type of equipment
needed for the project.
The Standard Equipment member provides a concise list of material assets that are requested
for use on a project. Other types of assets should not be included.

You must add Standard Equipment to the application before using Project Financial Planning
and that you update Standard Equipment data (dimensions and data) before you prepare
financial plans, either Plan or Forecast.
Asset Detail
You can perform detailed asset planning in Project Financial Planning. The process involves
uploading existing assets into Project Financial Planning, including asset properties (Account
members) such as Useful Life, In Service Date, Capacity, and Cost should
Oracle recommends that you update existing major equipment information (dimensions and
data) before preparing financial plans, either Plan or Forecast.
You load asset details by using a data file with the same format as the AssetMem.csv template
load file. For more information on loading metadata and data, see “Initial Implementation
Tasks” in this lesson.
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Setting Capital Assumptions
Administrators use the Set Capital Assumptions task under

Capital Administration to enter rates for the following:

• Tangible assets
• Intangible assets
• Equipment
If no assumptions are set at the entity level, global assumptions
will be used in calculations. a
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Administrators
a a nthe Set Capital Assumptions task to work with asset information, set drivers
h
Mby on- global
oestablishing
or for allntangible
assumptions for each asset class (for example, buildings or machinery)
or intangible assets.

Setting Capital Assumptions
Set drivers by entering global assumptions for each asset class

(for example, buildings or machinery) or for all tangible or

intangible assets. You can set these default assumptions at the
entity level or at the “No Entity” (global) level.
• Useful life of assets
• Depreciation methods
• Depreciation conventions s a
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• Amortization methods m
o
• Taxes (%) c l eฺc deฺ
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• Insurance expenses (%) a @ ent
a r i d
• Repairs and maintenance expenses zak (%)Stu dฺ this
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a m rates
The standard
t r a nfor equipment that you set in this form are used to calculate the cost of
o h - to a project. The standard rate is multiplied by the units requested by the
Mequipment
project.no
nusage

Rolling Up Asset Expenses
Before reviewing asset expenses, you must launch the

business rule to consolidate the data in the assets hierarchy.
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a the a n
m trRollupCapexCube
You launch business rule to calculate and consolidate asset data.
h n- asset expenses:
MTooroll up
nocapital
1. Under the Capital Administration task list, select Run Rollup Rules.
2. Click the Launch button.
3. Enter the required runtime prompt values.
4. Click Launch.

Verifying Loaded Depreciation and Amortization
You view the loaded depreciation and amortization values

using the Verifying Loaded Depreciation and Amortization task.
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a m and
After loading
t r a n up capital asset expenses, you verify existing assets for each period
rolling
h
o entityobyn-launching the Verify Loaded Depreciation and Amortization on Existing Assets
Mand n task enables you to review depreciation and amortization amounts by period for
task. This
existing tangible assets.
To verify loaded depreciation and amortization:
1. Under the Capital Administration task list, select “Verify Loaded Depreciation and
Amortization.”
2. Review the Verify Loaded Depreciation and Amortization form.

Calculating Asset Related Expenses
To view the total expenses for asset related expenses, launch

the Calculate Asset Related Expenses business rule from the

Calculate Asset Related Expenses task.
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a m tAsset
The Calculate
r a n Related Expenses task enables asset managers to calculate the asset
h
o expensesn- (Taxes, Insurance, Repairs and Maintenance) based on the assumptions
Mrelated
definednatothe entity level for the asset and asset class combination. Taxes, Insurance, Repairs,
and Maintenance expense are entered as a percentage of the asset value. The rates are
defined on a yearly basis.
To calculate asset related expenses:
1. Under the Capital Administration task list, select Calculate Asset Related Expenses.
3. Enter the required values in the runtime prompt.
4. Click Launch.

Quiz
Administrators enter which of the following assumptions at the

entity level and when a project is created for an entity?

a. Discounting process and factors
b. Predefined debt ceilings at the project level
c. Average cost of revenue
d. Taxes applicable for the entity
e. Predefined rules for apportioning to projects the entity’s has
a
indirect and general and administrative expenses om)
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Answer:
h a m td,raen
a, b,
Mo non-

Quiz
Only administrators can set up intercompany partner

relationships.
a. True
b. False
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Answer: a
o
M no

Summary

• Identify project administration tasks

• Enter values for user variables
• Set discount rates
• Set investment criteria
• Enter overhead assumptions
s a
• Select approval settings
) h a
• Set KPIs o m
c l eฺc deฺ
• Identify intercompany partners o ra Gui
• Set workforce and capital asset global r i a @ ent
rates
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• Accessing Project Financial Planning from Workspace

• Setting User Variable Options
• Reviewing Project Administration Tasks
• Accessing Essbase Administration Services Console
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Creating Projects
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Objectives

• Describe project types

• Create projects
• Prepare for project task lists and tasks
• Enter new project details
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Determining a Project Type
Project Financial Planning enables you to propose new

contracts for the following types of projects:

• Capital
• Contract
• Indirect
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Capital Projects
Capital projects are long-term and capital-intensive, resulting in

the creation of a new company asset.
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h a m traisna long-term investment project undertaken for construction of a capital asset
A Capital project
- bridges, and roads).
o as obuildings,
M(such n n
If a project has a classification of Capital, you can perform only expense budgeting for the
project. Project Financial Planning tracks the incurred expenses for a Capital project as
Construction in Progress (CIP) on the Balance Sheet while the assets are being developed.
Once a Capital project is placed in service and the assets are ready, the CIP assets must be
reconciled with existing assets.

Types of Capital Projects
Project Financial Planning supports two types of capital

projects:
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Single-Asset Capital Projects Multiple-Assetra cle uProjects
Capital ide
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When creating
a a nCapital projects, you must select a project type, also referred to as a
h
o Project n- Asset property:
MCapital n o
• Single-Asset Capital projects are projects that consist of building one Capital asset
using different resources.
• Multiple-Asset Capital Projects are projects that consist of building a group of assets
called sub-projects. The parent project is used to track the budget for all of the sub-
projects.

Contract Projects
A Contract project is work performed for a customer and the

customer reimburses the company.
Expenses
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h a m tranis work performed for and reimbursed by a customer. Contract projects
A Contract project
o oboth
Mgenerate n- expenses
n revenue,
expenses,
and revenue based on an underlying contract. The Contract project
and billing can be for services performed and reimbursed by a customer.

Types of Contract Projects
Time and Materials Cost Plus
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m o et o
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Project m
a t r n
FinancialaPlanning supports the following types of Contract projects:
h - Materials: A project billing type whereby the customer is charged for all of the
Mo• Time
non
and
hours of work performed, for asset expenses, for any direct expenses incurred, and for
materials purchased during project delivery. Examples of Time and Materials
arrangements are typically found in the construction industry, for contractors, and for
consulting firms.
• Cost Plus: An agreement to pay a company for a job based on the expenses required to
complete the job (for example, materials and labor), plus an added payment (or margin).
You can set different Cost Plus margins for different expenses (for example, set a
different margin for labor, materials, and equipment).
• Fixed Price: A project billing type whereby the customer is charged a set negotiated price
for the work performed on the contract (for example, sales revenue with a specified value
of $200,000). This contract type places upon the contractor maximum risk and full
responsibility for all costs and resulting profit or loss.
• Other: A project billing type that can be used for complex contract terms. For example, a
customer may be charged a fixed price for some services delivered as part of a project
while they may also be charged time and material or a markup on expenses.

Indirect Projects
Indirect projects are also known as administrative projects.

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They have a cost impact but do not generate r ia revenue.d e n
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Indirect m me arensalso
projects
fe known as administrative projects and have a cost impact but do not
o ha revenue.
generate n - tra For example, you create a project for your IT department to create a
Msolution/portal
no for the Human Resources team to track personal details of employees.

Preparing Project Tasks
As a Project Manager, you perform the following tasks to create

projects:
1. Enter new project details.
2. Plan for expenses.
3. Plan for revenue for contract projects.
4. Review project financials.
5. Manage funding. s a
) h a
6. Submit project for approval. c o m
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Project m me nperform
managers s fe the following tasks to create projects:
o
1.
ra and enter any new project details, such as new project assumptions and
haCreaten-atproject
M no supplemental information.
2. Perform expense planning, such as adding labor resources, project equipment, material
and other requirements, entering direct project expenses, applying overheads to the
project, reviewing indirect and general and administrative allocated expenses, and
reviewing total expenses.
3. For Contract projects only, perform revenue planning, such as entering revenue drivers
and entering direct project revenue.
4. Review the project’s financials, such as calculating financial statements and reviewing the
project’s impact on financial statements, reviewing project KPIs, providing a detailed
project justification, and reviewing the project score.
5. Request project funding and review allocated funds.
6. Submit the project for approval.

Entering New Project Details
Enter New Project Details

for Capital Projects

for Contract Projects
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Project m meare grouped
tasks n s fe by project type. To create a new project, you launch the Enter New
ha Details - a under the project type that you want to propose.
trtask
o
Project
M no n

Capital Projects: Adding Projects
Right-click a row and select Add Project.
s a
Select to add Capital or
) h a
sub-projects.
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m traEnter
By selecting
a the n New Project Details task for Capital projects, you launch the New Project
h
o o–nCapital-
MProposals
n
form.
To add a Capital project in the form, right-click a row and select Add Project and select one of
the following:
• Add Capital Project: To create a parent single-asset or multiple-asset project.
• Add Capital Sub Project: To create a sub-project associated with a parent multiple-
asset project.

Capital Projects: Adding Project Details
You add project details in the Add Project runtime prompt:

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a the
r a n information in the Add Project runtime prompt:
m tfollowing
You enter
h -Enter a name for the project.
Mo• Name:
non
• Description: (Optional) Enter a description for the project to describe its purpose.
• Capital Project Asset: Select Single Asset or Multiple Asset
• Project Start Date and Project End Date: Enter the start and end dates for the project.
• Project Location: Select from a predefined list of locations.
• Project Manager: Select from a predefined list of managers.
The predefined list of locations and managers are based on Smart Lists prepared by the project
administrator.

Capital Projects: Adding Capital Sub-Projects
You enter sub-project details for multiple-asset Capital projects

in the Add Sub Project runtime prompt:
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a the
r a n information in the Add Sub Project runtime prompt:
m tfollowing
You enter
h - Project: Select a parent project. For multiple-asset Capital projects, you must
Mo• Enter
non
Base
select a Base CPx base project.
• Name: Enter a name for the project.
• Description: (Optional) Enter a description for the sub-project to describe its purpose.
• Project Start Date and Project End Date: Enter the start and end dates for the sub-
project. If you do not specify a start and end date for the sub-project, the values default to
the base project’s start and end dates.
The base project is the parent Capital project that contains the project properties, including
Start Date, End Date, and so on. You should not use the base project for budgeting expenses.
When planning expenses for each asset, you should use the corresponding sub-project.

Contract Projects: Adding Projects
Right-click a row and select

Add Contract Project .
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By selecting
a the n New Project Details task for Contract projects, you launch the New
m traEnter
h
o Proposals - – Contract form.
MProject non
To add a Contract project, in the form, right-click a row and select Add Contract Project.

Contract Projects: Adding Project Details
You add project details in the Add Contract Project runtime

prompt:
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a m tfollowing
You enter the
r a n information in the Add Contract Project runtime prompt:
Mo• Name:
non
• Project Type: Select Time and Material, Cost Plus, Fixed Price, or Other.
• Revenue Cash Flow Incidence: Select how cash will be collected from revenues: Before
2 Months, Before 1 Month, Same Month, Next Month, After 2 Months, After 3 Months, or
After 4 Months. The selection directly impacts the cash flow statement. If the same month
is selected, the cash flow statement will show an inflow of cash from customers in the
amount of the contract revenue in the same period. If the next month is selected, the cash
flow statement will show an inflow of cash from the customer with a one month lag. Two
months will be a two month lag, and so on.

• Revenue Recognition: Select when revenue will be recognized: Monthly, Quarterly,
SemiAnnual, After Completion, or When Billed. The default, Monthly, recognizes revenue
in the month the work is performed. If Quarterly is selected, the revenue is recognized in
the last month of each contract quarter. If SemiAnnual is selected, revenue is recognized
in the sixth and twelfth month of the contract. If After Completion is selected, revenue is
recognized after the last month of the contract. If revenue can only be recognized when a
milestone is reached or there is no predefined time frame, select When Billed.
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Indirect Projects: Adding Projects
Right-click a row and select Add

Indirect Project .
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m traEnter
By selecting
a the n New Project Details task for Indirect projects, you launch the New
h
o Proposals - – Indirect form. To add an Indirect project, in the form, right-click a row and
MProject nonIndirect Project.
select Add

Indirect Projects: Adding Project Details
You add project details in the Add Indirect Project runtime

prompt:
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a the
r a n information in the Add Indirect Project runtime prompt:
m tfollowing
You enter
Mo• Name:
non
• Project Category: Select Annual by Fiscal Year if a project must be annually closed out,
justified, or approved. Select Multi-Year if the project can continue year after year.

Viewing Project Proposals
View proposed projects by selecting the Review Project

Proposals task:
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a m projects,
After creating
t r a n you view them by selecting the Review Project Proposals task under the
h
o Projects n- updating
MReview noand
white cell
task list folder. You can edit project details on this form by double-clicking a
the information.

Capital Projects: Deleting Project Proposals
Right-click a project and

select Delete Project.
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Select to delete Capital or
r a cle uide
sub-projects.
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a Capital n
m traprojects,
To delete in the New Project Proposals – Capital form, right-click a project and
h
o Delete -Project. Then, select one of the following:
Mselect
• non
Delete Capital Project
• Delete Sub Capital Project

Contract Projects: Deleting Project Proposals
Right-click a project and select

Delete Contract Project.
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h a m tranprojects, in the New Project Proposals – Contract form, right-click a project
To delete Contract
- Contract Project.
o selectoDelete
Mand n n

Indirect Projects: Deleting Project Proposals

Delete Indirect Project.
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a Indirect n
m traprojects,
To delete in the New Project Proposals – Indirect form, right-click a project
h - Indirect Project.
o selectoDelete
Mand n n

Changing Project Status
In the New Project Proposals form for Capital, Contract, and

Indirect projects, right-click a row and select Change Project

Status.
Change Project Status.
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Then, select a newoprojecttstatus.G
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Project m me isnseparate
approval s fe from plan approval. Approving the project sets the status of the
o
project n tra and locks the project for editing. You cannot make any changes to
hato Approved
-
Mapprovednoprojects.
The approved project will be copied to current scenario Final and to the Forecast Final
intersections.
To start updating the project status, right-click a project and select Change Project Status.
Then, select Approve Project, Disapprove Project, or Put Project on Hold.
The project status must be changed by the approving authority before promoting the project
through the Approvals process.
Note: You can change the project status if you have access permissions for this task.

Project Status Runtime Prompts
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After selecting
a n status, the corresponding runtime prompt is displayed. In the runtime
m taraproject
h
o verify - the project name, (optionally) enter comments, and click OK.
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Reconciling Projects
Reconciling a project moves the new project to an existing

project:
For Capital projects, right-click and select
Reconcile Capital Project.
Enter and verify the source (proposed) project

and existing (imported) projects in the
Reconcile Project runtime prompt.
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When you
h a m tran projects, the data for the source project is moved to an existing project in
reconcile
n- and
osameoentity,
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then the source project is deleted from the entity. For example, you
to assign a true project number (existing project) to a temporary project. This
moves the data from the (source) temporary project to the existing (destination) project, and
then deletes the source project.
To reconcile Capital, Contract, and Indirect projects in their corresponding New Projects
Proposals forms, right-click a project and select Reconcile Capital Project. Then, enter and
verify the source and destination projects.

Moving Projects
Right-click and select Move

Projects.
Select the project, existing version,

and destination version in the Move
Projects runtime prompt.
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You canm mea project
move n s fefrom one version to another. For example, from Working to Final.
o hayou move
When n - traprojects, the selected projects will be deleted from the source version and
Mmoved ntoothe destination version.
For example, in a use case scenario, you can move projects with a status of On-hold or
Unapproved from the Working version so that the entity-level financials will reflect only those
projects that are Proposed or Approved.
Note: You must have rights to move a project to perform this task.

Quiz
As a Project Manager, you perform which of the following tasks

to create projects?
a. Enter existing project details.
b. Plan for expenses.
c. Plan for revenue for contract projects.
d. Submit plan for approval.
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Answer:
h a m tdran
b, c,
Mo non-

Quiz
When you reconcile a project, you transfer it from one version

to another.
a. True
b. False
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Answer: b
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M no

Quiz
You enter sub-project details for multiple-asset Capital projects.

a. True
b. False
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Answer: a
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Summary

• Describe project types

• Create projects
• Prepare for project task lists and tasks
• Enter new project details
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• Capital Project: Furnishing Classrooms

• Contract Project: Delivering Training to Miller Corporation
• Contract Project: Developing Scope and Track
• Indirect Project: Training for Scope and Track
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Planning for Project Expenses
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Objectives

• Assign and calculate labor expenses

• Assign and calculate equipment expenses
• Assign and calculate material and other requirements
• Enter direct project expenses
• Calculate overhead expenses
s a
• Review indirect and G&A expenses
) h a
• Review total project expenses o m
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Expense Planning: Task Overview
You use the Expense Planning task list to guide you through
the process of providing details about the expense components

of a project, including the following:
• Add labor
• Add equipment
• Add material and other resources
• Enter direct project expenses s a
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• Apply overheads o m
l ฺc eฺ
e(G&A)
• Review indirect and general and administrative c
ra Guid
allocated expenses o
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a r i a d
• Review total expenses zak Stu
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Assigning and Calculating Labor Expenses
When assigning labor, you perform the following tasks:

• Add labor
• Calculate labor expenses
• Review labor expenses
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Adding Labor
You add labor to projects by using the Add Labor task.

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You canm me ornsdecrease
increase
fe labor hours, add more resources to the project, change the
h a t r a
- frame, and so on. Changes made here are reflected in the revised Total Labor
o ontime
Massignment
n for the project.
Expense
To assign labor resources to a project:
1. Navigate to one of the new project proposal task lists.
2. Expand Expense Planning, and then expand Add Labor.
3. Under the Add Labor task list folder, select Add Labor.
4. Review the Labor Assignment Details form.
5. Right-click a row and select Add Labor Assignment.
.

6. Enter the following information in the Add Labor Resource runtime prompt:
- Select Job: Select the type of job required for the project from a predefined list of
jobs.
- Enter Headcount: Enter the number of resources needed to accomplish the work. If
more than 1 is entered, the hours are calculated.
- Enter Skill Sets: Select the skills needed to perform the job from a predefined list of
skills. This field is informational and does not impact the labor calculations. You can
customize this field by adding new members to the Smart List. Adding additional
values to the Smart List will not impact the business rules.
- Assign for Project Duration (Y/N): The default is Yes. Select Yes if the resource
will be assigned for the duration of the project. If Yes is selected, you do not need to
enter the assignment start and end dates. The rule will automatically take the project
start and end dates. Select No if the resource will not be assigned for the duration of
the project. If No is selected, you must enter the assignment start and end dates for
the resource. If a resource is used sporadically, enter the resource start and ends a
h a
dates for the first period of the project to add the resource line item to the form. Then
)
ฺ c om ฺ
expand the year in the form to add additional hours for the resource by period.
r a cle uide
- Assignment Start Date/Assignment End Date: If the resource will not be
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assigned for the project duration, you must enter the start and end dates. If the start
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and end dates are not completed, the rule assumes the resource will be assigned
for the duration of the project.
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- Allocation Percentage: (For Capital and Indirect projects only) Enter the
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percentage of time a labor resource is allocated to a project. The Allocation
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Percentage drives the labor expense of that resource to a project.
a (m nse
- Enter Labor Hours per Headcount: (For Capital and Indirect projects only) If
i
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requesting more than one headcount, enter the number of hours per headcount for
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the calculation.
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- Onsite Labor Hours: (For Contract projects only) Enter the number of hours the
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resource will perform project work onsite. Onsite labor hours is used in the Contract
M no revenue calculation.
- Offsite Labor Hours: (For Contract projects only) Enter the number of hours the
resource will work on the project. Offsite labor hours is used in the Contract revenue
calculation.
- Non-Billable Hours: (For Contract projects only) Enter the number of labor hours
that needs to be included on the project but cannot be billed to the customer. Non-
billable hours is used in the labor expense calculation, but is excluded from the
Contract revenue calculation.

- Spreading Logic: Select the logic that determines how values are distributed:
Fill: Copies the value entered to all of the cells in a grid. For example, if a value of 200
hours is entered for a project, then the values for each month between the start and end
dates of the project are set to 200.
EvenlySplit: Divides the value entered between all of the cells in a grid. For example, if a
value of 200 hours is entered for a project, then the 200 is divided over the number of
months between the start and end dates.
- Comments: (Optional) Enter comments about the labor assignment.

7. Click OK.
Note: For Contract projects, the project billing level is unspecified by default. Update it to
correct the billing level, if required. This is used for calculating revenue.
From the form, you can use the shortcut menus to add and remove labor assignments,
calculate project labor, change labor assignments, view the standard hourly cost, and remove
an employee assignment.
Removing a Labor Assignment s a
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or to remove a labor assignment that was added by mistake. ฺ c om ฺ
You use the shortcut menu to remove a labor resource that is no longer required on the project
Changing Assignments r a cle uide

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You use the shortcut menu to make changes to a labor assignment.
r e ncan extend or shorten
the labor assignment, change the headcount, or change a a tu of hours assigned to the
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Calculating Labor Expenses
Calculating project labor is a critical step for costing the project.

After completing the Assign Labor Resources task, you must

launch the business rule that calculates labor expenses.
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h a m traaren calculation based on the hours per month and standard hourly labor rates,
Labor expenses
Masoshown - formula:
in this
non
Hours per month * Standard Hourly Rates of Labor = Project Labor
To calculate labor for new projects:
2. Expand Expense Planning, and then Add Labor.
3. Select the Calculate Labor Expenses task.
4. Launch one of the following business rules:
- For Contract projects: CalculateProjectLaborExpenses-Contract
- For Capital and Indirect projects: CalculateProjectLaborExpenses-Other
5. Enter the required information in the runtime prompt.
6. Click OK.
Alternatively, you can use the shortcut menu on the Labor Assignment Details form (Add Labor
task) to calculate labor expenses for the project.

Reviewing Labor Expenses
You review labor resource requests and their financial impact in

the Project Labor Detail form.
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To review the
r a nexpense:
h - to one of the new project proposal task lists.
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2. Expand Expense Planning, and then Add Labor.
3. Launch the Review Labor Expense task.
4. Review the Project Labor Detail form.

Assigning and Calculating Equipment Expenses
You can request use of equipment for a project based on

project requirements. When assigning equipment, you perform

the following tasks:
• Add equipment
• Calculate equipment expenses
• Review equipment expenses
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You canm mefor related
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ha nFor - a
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Mequipment you can increase, decrease, or remove equipment hours. The
nocost to the project is based upon the standard rates for equipment.

Adding Equipment
You specify the equipment requirements for the project by

using the Add Equipment task.
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h a m tran based on values defined in the Standard Equipment member. For
You assign equipment
o oyou
Mexample, -can request for laptops by selecting the Laptop standard equipment member.
nunits
Specifynthe required and the duration of the assignment.
To assign project equipment:
2. Expand Expense Planning, and then expand Add Equipment.
3. Under the Add Equipment task list folder, select Add Equipment.
4. Review the Add Equipment form.
From the form, you can use the shortcut menu to add, remove, and change equipment
requisitions, calculate equipment expenses, and view standard equipment rates.
To add equipment to a new project:
1. Open the Add Equipment form.
2. Right-click a row and select Add Equipment Requisition.

3. In the Add Equipment Requisition runtime prompt, specify or select the settings that are
applicable for your project:
- Standard Equipment: Select the equipment needed from a predefined list of
equipment.
- Equipment Description: (Optional) Provide details about equipment specifications.
- Equipment Units: Enter the number of equipment units needed for the project. For
example, if two cranes are needed for 200 hours per month, enter 2 in this field and
200 in the Equipment Usage/Unit field.
- Equipment Usage/Unit: Enter the number of hours per equipment unit for the
calculation. This is optional and you need only enter usage per unit if it is required
for the project. For example, if three laptops are needed per month, enter 3 in the
Equipment Units field and leave this field blank.
- Assign for Project Duration (Y/N): The default is Yes. Select Yes if the equipment
enter the assignment start and end dates. The rule automatically takes the project s a
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start and end dates. Select No if the equipment will not be assigned for the duration
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of the project. If No is selected, you must enter the assignment start and end dates
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for the equipment. If the equipment is used sporadically, enter the equipment start
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and end dates for the first period of the project to add the resource line item to the
@
a r ia den
form. Then expand the year in the form to add additional hours for the equipment by
period.
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- Assignment Start Date/Assignment End Date: If the equipment will not be
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assigned for the project duration, enter the start and end dates. If the start and end
o
dates are not entered, the rule assumes the equipment will be assigned for the
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project duration.
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- Spreading Logic: Select the logic that determines how values are distributed in a
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grid:
m e sfeFill: Copies the value entered to all of the cells in a grid. For example, if a value of
n
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M no start and end dates of the project are set to 200.
EvenlySplit: Divides the value entered between all of the cells in a grid. For
example, if a value of 200 hours is entered for a project, then the 200 is divided
over the number of months between the start and end dates.
Note: If the start and end dates are not completed, the Spreading Logic will use
the full project duration to populate the months appropriately.
- Justification: Provide a reason why the equipment is needed.
4. Click OK.
Removing Equipment Requisitions
You use the shortcut menu to remove an equipment requisition that is no longer required on the
project or to remove an equipment requisition that was added by mistake.
Changing Equipment Requisitions
You use the shortcut menu to make changes to an equipment assignment. You can extend or
shorten the assignment, or change the equipment units assigned to the project.

Calculating Equipment Expenses
After equipment requisitions have been entered or modified,

you must run calculations to derive the project expenses for

equipment usage based on equipment units and standard
equipment rates.
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When the
h a m tran is executed, it determines the cost for all equipment assigned to the
calculation
o forothe
Mproject - duration of the project based on the following formula:
n n
Equipment Usage * Equipment Standard Rate = Equipment Expense
If there is no Equipment Usage, then Equipment Units will be used instead and Equipment
Expense will be calculated as follows:
Equipment Units * Equipment Standard Rate = Equipment Expense
To calculate project equipment expenses:
3. Select Calculate Equipment Expense.
4. Launch the CalculateProjectAssetExpenses business rule.

Reviewing Equipment Expenses
You review expenses for the assigned equipment for a project

in the Project Expense for Equipment – Detail form.
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a project n
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To review expenses:
h - to one of the new project proposal task lists.
Mo1. Navigate
non
3. Select Review Equipment Expenses.
4. Review the Project Expense for Equipment – Detail form.

Adding and Calculating Material
and Other Requirements
With the Add Material and Other Resources task list, you
manage project materials, subcontractors, and other expenses

resources.
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Adding and Calculating
Material and Other Resources
You add materials, subcontractors, and other resources for
project expenses by using the Add Material & Other Resources

task.
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To add m me andnsother
material
fe resources to a project:
o
1.
haNavigate
n - trtoaone of the new project proposal task lists.
M no
2. Expand Expense Planning, and then expand “Add Material and Other Resources.”
3. Select Add Material & Other Resources.
4. Review the Material and Other Requirement form.
From the form, you can use the shortcut menu to add and remove material and other
requirements, and calculate material and other resources.
You use this task to enter labor and material resources not available within the organization.
For example, you can hire a subcontractor as a potential labor resource and rent an asset that
you do not need to purchase.

To add material and other requirements to a project:
1. Open the Material and Other Requirement form.
2. Right-click a row and select “Add Material and Other Requirements.”
3. In the Add Material and Other Requirements runtime prompt, specify or select the settings
that are applicable for your project:
- Enter Resource Name: Enter the name of the material or other expense to be
added.
- Resource Descriptions: (Optional) Provide details about the resource being
added.
- Resource Class: Select from the following predefined resource classes: Material,
Subcontractor, and Other.
- Assign for Project Duration (Y/N): The default is Yes. Select Yes if the resource
enter the requirement start and end dates. The rule will automatically take the
s a
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project start and end dates. Select No if the resource will not be assigned for the
ฺ c om ฺ
duration of the project. If No is selected, you must enter the requirement start and
end dates for the resource. If the resource is used sporadically, enter the
a cle uide
requirement start and end dates for the first period of the project to add the resource
r
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line item to the form. Then expand the year in the form to add additional units for the
@
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- Requirement Start Date/Requirement End Date: If the requirement will not be
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assigned for the project duration, enter the start and end dates. If the start and end
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dates are not completed, the rule assumes the requirement will be assigned for the
duration of the project.
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Note: The requirement start and end dates must occur within the project start and
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end dates. Assignments cannot start before the project start date nor can they end
after the project end date.
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- Spread Logic: Select the logic that determines how values are distributed in a grid:
o
M no Fill: Copies the value entered to all of the cells in a grid. For example, if a value of
200 hours is entered for a project, then the values for each month between the
start and end dates of the project are set to 200.
EvenlySplit: Divides the value entered between all of the cells in a grid. For
example, if a value of 200 hours is entered for a project, then the 200 is divided
over the number of months between the start and end dates.
- Units Required: Enter the number of units required for the material or other
expense.
- Cost UOM: Select from a predefined list the unit of measure for the cost.
- Cost/Unit: Enter the cost per unit for the material and other expense. The materials
and other expenses calculation will be based on Units Required × Cost/Unit.
4. Click OK.

Calculating Material and Other Expenses
You run business rules to calculate the expenses for materials

and other expenses. This calculation multiplies the number of

units entered by the cost per unit on a monthly basis for the
duration of the project.
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h a m tran and other expenses for a project:
To calculate material
Mo1. Navigate- to one of the new project proposal task lists.
2.
non
Expand Expense Planning, and then expand Add Material & Other Resources.
3. Select Calculate Material & Other Expenses.
4. Launch the CalculateMaterialExpenses_Ruleset business rule.
5. In CalculateMaterialExpenses_Ruleset, specify or select the settings that are applicable
for your project.
6. Click Launch.

Reviewing Material and Other Expenses
You review summaries of the total material and other expenses

associated with a project in the Total Material and Other

Expenses form.
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h a m tranand other expenses for a project:
To review material
- to one of the new project proposal task lists.
Mo1. Navigate
non
2. Expand Expense Planning, and then Add Material & Other Resources.
3. Select Review Material & Other Expenses.
4. Review the Total Material and Other Expenses form.
You can use the shortcut menu to calculate project expenses.

Entering Direct Project Expenses
You enter lump sum amounts for expenses that do not have
any logic defined to arrive at the values in the Enter Direct

Project Expenses task.
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Financial n s fe provides two methods for getting project data into the application.
o
You
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hcan:
M non
• Perform detailed planning that uses rules to add data.
• Import data from a source system, and use Project Financial Planning to consolidate the
projects.
• Enter expenses directly to a project.
To enter direct expenses for a project:
2. Expand Expense Planning.
3. Select Enter Direct Project Expenses.
4. Review and update the Enter Direct Project Expenses form.

Calculating Overhead Expenses
You apply overheads for a project by using the Apply

Overheads task.
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a are a n that are necessary for the performance of a job or continued
m trexpenses
Overheads
h
o onof-the business but cannot be specifically attributed to a project. With the Apply
Mfunctioning
n task list, you run the CalculateOverheads business rule that applies the overheads,
Overheads
both indirect expenses and general and administrative expenses, to the projects to arrive at a
fully-loaded cost of the project.
To apply overheads to a new project:
2. Expand Expense Planning, and select Apply Overheads.
3. Launch the CalculateOverheads business rule.
4. In CalculateOverheads, specify or select the settings that are applicable for your project.
5. Click Launch.

Reviewing Indirect and G&A Expenses
You use the Review Indirect and G&A Allocated Expenses task
to review the drivers and the associated costs for each

overhead line item that is applied to your project.
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Generalm &m n (G&A) expenses relate to the company as a whole. These expenses
Administrative
a
h a t r
- administration, and general costs, such as:
o facilities,
Minclude
• non
Lease or mortgage
• Utilities, electric, and gas
• Cleaning
• Routine building maintenance
• Administering employee benefits, employee reviews, and related human resource activity
• Company parties
• All-hands staff meetings
• Employee training on soft skills

Indirect expenses are costs that do not logically fit into overhead and are usually included in
G&A. Examples of indirect expenses include:
• Company-paid portion of health insurance
• Salary for time taking training related to the type of project
• Paid time off
• Company cost of relocating a new hire
• Unemployment compensation premiums

To review indirect and general and administrative allocated expenses:
3. Select “Review Indirect and G&A Allocated Expenses.”
4. Review the Review Indirect and G&A Allocated Expenses form.
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Reviewing Total Expenses
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After allm me nhave
expenses s febeen planned and associated overheads applied, you use the Review
o haExpense
Project n - traform to review the expenses for a project.
M no
To review project expenses:
3. Select Review Total Expenses.
4. Review the Review Project Expense form.

Quiz
The Adding Equipment task enables you to request use of

equipment for a project based on project requirements.

a. True
b. False
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Answer: a
o
M no

Quiz
Overheads are expenses that are necessary for the

performance of a job or continued functioning of the business

but cannot be specifically attributed to a project.
a. True
b. False
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Answer: a
o
M no

Summary

• Assign and calculate labor expenses

• Assign and calculate equipment expenses
• Assign and calculate material and other requirements
• Enter direct project expenses
• Calculate overhead expenses
s a
• Review indirect and G&A expenses
) h a
• Review total project expenses o m
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• Capital Projects: Adding Equipment

• Reviewing Total Expenses for Capital Projects
• Contract Project: Adding Labor for PLNIU-Miller
• Contract Project: Adding Equipment for PLNIU-Miller
• Contract Project: Adding Other Expenses to PLNIU-Miller
s a
• Reviewing Total Project Expenses for PLNIU-Miller
) h a
• Indirect Projects: Adding Expenses o m
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Planning for Contract Project Revenues
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Objectives

• Enter revenue drivers for Cost Plus Contract projects

• Enter revenue drivers for Time and Materials Contract
projects
• Enter revenue drivers based on units sold and sales price
per unit
• Enter direct project revenue s a
) h a
• Calculate project revenue o m
• Identify revenue recognition options c l eฺc deฺ
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Revenue Planning: Task Overview
You use the Revenue Planning task list to plan for project
revenue based on one of the following categories:

• Cost Plus
• Time and Materials
• Fixed Price
• Direct Revenue
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Revenue
h a m tranapplies to projects classified as Contract projects. Project Financial Planning
planning
- revenue for Indirect or Capital projects. If these projects need to generate
onot calculate
Mwill
revenue,noyoun must reclassify the project.

Entering Revenue Drivers for Cost Plus Projects
You define revenue parameters for a Cost Plus project

category by providing margin requirements for different types of

project expenses.
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a m the
You manage
t r a n
contractual arrangement for Cost Plus contracts in the Enter Revenue Drivers
h - The form enables you to view the Cost Plus revenue assumptions and the
o Plusonform.
M-revenue
Cost
nrecognition for a project.
The Cost Plus margin percent (%) can be defined at the detail level (labor, equipment,
materials, and other) or for total expenses. If the revenue definition is based on total expenses,
Project Financial Planning will not allow you to build your assumptions at the detail level. The
margin can be defined on a monthly basis, if needed. Expand the columns to override the
margin % for a period.
The Cost Plus driver is defined for the duration of the project. In the lower half of the form, you
can review the revenue generated.
Cost Plus revenue is also known as markups. The driver calculates the cost of the product,
then adds a proportion of it as markup. For example, you enter labor expenses as the cost
basis. Then you enter a 40% markup as revenue.

To enter revenue drivers for Cost Plus Contract projects:
1. Navigate to the Propose New Contract Projects task list.
2. Expand Revenue Planning.
3. Select Enter Revenue Drivers - Cost Plus.
4. Review the Enter Revenue Drivers - Cost Plus form.
In the form, you can use the shortcut menus to add and remove revenue assumptions,
calculate Cost Plus revenue, and calculate intercompany revenue.
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Adding and Removing Revenue Assumptions
You can add and remove Cost Plus revenue assumptions in

the Enter Revenue Drivers – Cost Plus form.
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Addingm me nAssumptions
Revenue s fe
o a -tra
hPlus
Cost n
M noassumptions are set by selecting a Cost Plus driver base from which the margin is
applied.
To add revenue assumptions:
1. Open the Enter Revenue Drivers - Cost Plus form.
2. Right-click the form, and select Add Revenue Assumptions.
3. In Add Revenue Assumptions, specify or select the settings that are applicable for your
project:
- Cost Plus Driver: Select the expense base to which the margin will be applied. The
margin can be set to Labor Expenses, Material Expenses, or Equipment Expenses
or it can be applied in total to Total Expenses.
- Revenue Source Description: An optional field to add a description for the
revenue source.
- Cost Plus Margin %: Enter the Margin % or mark-up that will be applied to
expenses.
4. Click OK.

Note: If the Cost Plus revenue was set to Total Expenses, Project Financial Planning does not
allow you to also build assumptions at the detail level (for labor, equipment, and materials). To
change the manner in which revenue is earned, you must first change the driver from Total
Expense to a detail line item, then you can add detail line items.
Removing Revenue Assumptions
You can remove revenue assumptions that are no longer required on the project or that were
added by mistake.
To remove revenue assumptions:
2. In the form, right-click the revenue element that you want to remove.
3. Select Remove Revenue Assumptions.
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Calculating Revenue for Cost Plus Projects
You use a task-based business rule to calculate project

revenue based on the assumptions provided.
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a project n
m trarevenue
Cost Plus is calculated from the details (labor, equipment, and materials) or
h
o the total-expenses for the project duration:
Mfrom non
Labor Expense *(1 + Margin %)
or
Total Expense *(1 + Margin %)
If a revenue assumption is not specified for a particular expense, it will be assumed at the cost
(0% margin).
To calculate Cost Plus revenue:
2. Right-click the form, and select Calculate Revenue.
3. Click OK.

Quiz
You must enter revenue information for all types of projects.

a. True
b. False
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Answer: b
n only.
MContractnoProjects

Quiz
You can plan for revenue based on which of the following

drivers?
a. Cost Plus
b. Total Capital
c. Time and Materials
d. Fixed Price
e. Direct Revenue s a
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Answer:
a m d,
a, c, en
a
h t r
Mo non-

Entering Revenue Drivers for Time and Materials
Contract Projects
You define revenue parameters for the time and material
project category by providing revenue details at the per-unit

level of project resources.
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mEnter
You usem
a the
t r a nRevenue Drivers - Time and Material form to manage time and materials
h -
o onarrangements
Mcontractual for the project. Project Financial Planning helps you build revenue
n for labor, equipment, and materials. You can enter the billing rates at the project
assumptions
level or they can be derived from company assumptions. Billing rates can be defined at the
resource level (that is, at the employee or equipment level).
Labor revenue is based on the billing level of the employee. Each labor resource has an
associated billing level; you can override the assigned billing level on a monthly basis, if
necessary. Billing rates for the project are defined on a monthly/yearly basis for the duration of
the project.
To enter revenue drivers for Time and Material Contract projects:
3. Launch the Enter Revenue Drivers - Time and Materials task.
4. Review the Enter Revenue Drivers - Time and Materials form.
5. From the tabbed area of the composite form, you can use the shortcut menus to view
standard hourly rates, copy the base billing rate, calculate labor, material, and equipment
revenue, and calculate total project revenue.

Viewing Standard Hourly Rates
You view the standard hourly rates in the Enter Standard

Hourly Labor Rates form.
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h a m tran Hourly Labor Rates form displays the costs by job level that were used in
The Enter Standard
Mthe
form. no
n-
olabor calculation. You cannot override or change the labor rates that are displayed in this
To view standard hourly labor rates:

1. Open the Enter Revenue Drivers - Time and Materials form.
2. Right-click the Employee Billing Detail form, and select View Standard Hourly Labor
Rates.
The Enter Standard Hourly Labor Rates form displays standard rates for each job.

Copying the Base Billing Rate
Standard billing rates are set by entity.

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h a m tranrates in the labor revenue calculation, you must perform the Copy Base
To use the default
o Rate
MBilling - to copy the default rates to the project. Alternatively, you can set the billing
ontask
rates fornthe project.
To copy the base billing rates:
2. Right-click the Set Project Billing Rate form, and select Copy Base Billing Rate.
3. Click OK.

Calculating Labor Revenue
You run the Calculate Labor Revenue business rule to update

the total labor revenue for the project.
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This task
h a m tran the labor revenue. Labor revenue is calculated by multiplying Labor Hours
calculates
Mpero resource -per month times Billing Rate per month:
non
Labor Hours * Billing Rate
To calculate labor revenue:
2. Right-click the Employee Billing Detail form or the Set Project Billing Rate form, and
select Calculate Labor Revenue.
3. Click OK.

Calculating Material Revenue
You run the Calculate Material Revenue business rule to

update the total material revenue for the project.
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h a m tran the material revenue. Material revenue is calculated by multiplying Material
This task calculates
o times
MUnits - Rate per Material.
Billing
non
To calculate material revenue:
2. Right-click the “Billing - Material and Other Resources” form, and select Calculate Material
Revenue.
3. Click OK.

Calculating Equipment Revenue
You run the Calculate Equipment Revenue business rule to

update the total equipment revenue for the project
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a m tEquipment
The Calculate
r a n Revenue task calculates the equipment revenue. Equipment revenue
h -by multiplying Equipment Usage, or Equipment Units if an Equipment Usage value
Misisonot
calculated
nontimes the Equipment Billing Rate.
used,
Equipment Usage * Equipment Billing Rate
To calculate equipment revenue:
2. Right-click the Billing – Equipments form, and select Calculate Equipment Revenue.
3. Click OK.

Calculating Total Project Revenue
You can calculate each type of revenue individually or calculate

all of the sources at once.
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a m tTotal
The Calculate
r a nProject Revenue task calculates the revenue for the following sources:
h
o Material,- and Equipment.
MLabor, non
To calculate the total project revenue:
2. Right-click the tabbed area of the form, and select Calculate Total Project Revenue.
3. Click OK.

Entering Revenue Drivers Based on Units Sold
and Sales Price Per Unit
You define revenue parameters for revenue that are based on
sales price per unit.
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h a m tran the Enter Revenue Drivers – Unit Price form helps you define the
For Contract projects,
Mrevenue
unit. no
n-
o assumptions for projects that earn revenue based on units sold and sales price per
For example, you enter sales revenue for 10 units of licenses sold at $1500 each.
You can review, update, or add any additional revenue assumptions.
To enter revenue drivers for Unit Price Contract projects:
3. Launch the Enter Revenue Drivers - Unit Price task.
4. Review the Enter Revenue Drivers - Unit Price form.
5. Right-click the tabbed area of the form, and use the shortcut menu to add and remove
revenue assumptions and to calculate Unit Price revenue.

After you enter revenue drivers for Unit Price, you must run the calculation to update the
revenue for the project based on all of the assumptions defined.
Revenue is calculated as Units Sold multiplied by Price Per Unit.
Revenue will be recognized in accordance with the revenue recognition defined under the
contract terms.
To calculate Unit Price revenue:
1. Open the Enter Revenue Drivers - Unit Price form.

2. Right-click the tabbed area of the form, and select Calculate Revenue.
3. Click OK.
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Entering Direct Project Revenue
You enter revenue for sources that are not derived at a detailed
level.
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mReview
You usem
a the
t r a n and Update Direct Revenue form to enter all other revenue that the project
h -to generate, but that is not covered in the other methodologies.
Misoanticipated
non
Project Financial Planning provides two methods for getting project data into the application:
• Perform detailed planning by using rules to add data.
• Import data from a source system and use Project Financial Planning to consolidate the
projects.
If the import method is used, the project revenue is displayed in this form.
To view and enter direct revenue for Contract projects:
3. Launch the Enter Direct Project Revenue task.
4. Review the Review and Update Direct Revenue form.

Revenue Recognition
Revenue recognition options:

• Monthly
• Quarterly
• Semi-Annual
• After Completion
• When Billed
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Revenue
h a m tran based on the value defined in the Revenue Recognition text box when
is recognized
Myouo created - project proposal.
your
• non
Monthly: (Default) Revenue is recognized in the month the work is performed.
• Quarterly: Revenue will be recognized in the last month of each contract quarter.
• SemiAnnual: Revenue will be recognized in the 6 and the 12 month of the contract.
• After Completion: Revenue will be recognized after the last month of the contract.
• When Billed: Revenue will be recognized when a milestone is reached. Typically, this
option is selected when there is no predefined time frame as to when revenue will be
recognized.
Revenues are recognized when they are realized, realizable, or earned, depending on your
company’s policies. Revenue is often recognized when goods are transferred or services
rendered, no matter when cash is received.
Revenue recognition affects when the income is included in the company’s financial
statements.

Summary

• Enter revenue drivers for Cost Plus Contract projects

• Enter revenue drivers for Time and Materials Contract
projects
• Enter revenue drivers based on units sold and sales price
per unit
• Enter direct project revenue s a
) h a
• Calculate project revenue o m
• Identify revenue recognition options c l eฺc deฺ
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• Entering Revenue Fixed Price Drivers

• Entering Time and Material Revenue
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Reviewing Project Financials
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Objectives
After completing this lesson, you should be able to review:

• Review project financial statements

• Review project metrics and KPIs
• Review project justifications
• Review project score
• Review project funding
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Reviewing Project Financials Overview
This lesson covers the following tasks under the Propose New
Projects task list for all types of projects.
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After allm me and
revenue n s fe
expenses are entered and calculated, you can view the financial
h a t r a
o onfor- a project. This step assists you in evaluating projects before submitting them for
Mstatements
n You begin reviewing projects by calculating the financial statements. After they are
approval.
calculated, you can review the project’s impact on the Cash Flow and Income statements. You
can then review the project KPIs, provide a detailed project justification, and review the project
score so you can start analyzing the full financial outlook of the project and request funding.

Performing Calculations
Prior to viewing financial statements, you must run a business

rule that calculates the financial statements for a project.
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The CalculateFinancialStatements business rule calculates project cash flow, taxes, and KPIs,
- up with a project score based on the financial impact. This calculation must be
o then ocomes
Mand n innorder to view complete and correct data in financial statements.
executed
To calculate financial statements:
2. Expand Review Project Financials.
3. Launch the Calculate Financial Statements task.
4. Launch the CalculateFinancialStatements business rule.
5. In CalculateFinancialStatements, enter the values that are applicable for your project.

Reviewing Project Financial Statements
You review the effects of the project on cash flow and income.
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After allm me and
revenue n s fe
expenses are entered and calculated, you can view the financial
h a t r a
o onfor- a project.
Mstatements
n
To review the project impact on financial statements:
3. Launch the Review Impact on Financial Statements task.
4. Review the Review Impact on Financial Statements form.
5. From the tabbed area of the form, you can use the shortcut menu to calculate the project.
Oracle recommends that you review the project’s impact on Cash Flow and Income statements
before submitting the project for approval.

Reviewing Project Metrics and KPIs
You next calculate the project metrics and review and compare
the performance of the project with corporate objectives.
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You canm me thenkey
review s feperformance indicators (KPIs) for Contract projects. Some KPIs are
o haand nsome
yearly - traare based on the life of the project. Review the project-level defaults for
Mdiscountnrate
o and tax rate that were defined in the entity, and make necessary changes.
Before reviewing project KPIs, you must run the business rule that calculates all the KPIs and
yearly performance indicators for a project.
To open the Review Project KPIs form:
3. Launch the Review Project KPIs task.

To calculate project metrics:
1. Open the Review Project KPIs form.
2. Select the Yearly Performance Indicators tab.
3. Right-click and select Calculate Project Metrics.
4. Click OK.
After calculating project metrics, review the contents of the Review Project KPIs form.
Note: If you modify the global discount rate and assumptions at the project level, you must
recalculate project data by running the CalculateFinancialStatements business rule.
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Reviewing Project Justification
You complete the project justification by reviewing and

answering predefined questions.
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You justify the
r a n by providing responses to a list of predefined subjective questions; doing
h
ohelps the -
Mso onbusiness
used fornproject
unit manager assign subjective scores to projects, which will then be
ranking. Additional questions can be added to the application.
The Detailed Project Justification form also enables you to rate a project for the subjective
score.
To review the detailed justification for a project:
3. Launch the Detailed Project Justification task.
4. Review the Additional Information - Project Justification form.
The questions correspond to the subjective criteria on the right side of the form. The subjective
scoring is based on the weightage for subjective goals defined in the Project Administration
task list.
Administrators can update the justification questions defined in the Accounts dimension.

Reviewing Project Score
You calculate the project score to measure the performance of

the project based on predefined sets of financial and strategic

targets.
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Project m me is used
scoring n s feto track a project’s performance against a predefined set of targets at
o
the n ra level, and to score projects based on subjective and financial factors. You
a and-tproject
hentity
Mcan usenthese
o scores for ranking a project and for analyzing the performance of the project with
respect to other projects and to a predefined set of limits.
Financial scores depend on the financial metrics and factors of the project, which are based on
financial planning. Subjective scores are based on qualitative factors and on the responses to
some predefined questions and their assessment by the entity manager. You can review
project scores for individual projects and across projects.
To review the project score:
3. Launch the Review Project Score task.
4. Review the Review Project Score form.
For more information on project scoring and criteria, see Lesson 2.

Requesting Project Funding
After planning expenses for a project, you determine the

funding required for the project, and create a funding request.
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Projectsm me funding
require n s feto offset their expenses. Usually, projects require more funding at the
o
start, n ra streams come later in the project cycle. While some of the expense
a -trevenue
hbecause
Mfundingncan
o be taken from project revenue, the rest of the expenses must be funded from other
sources.
Funding requests are typically submitted to a company’s financial department. After a funding
request is approved, the project can be assigned with the sources of funds, its cost-of-capital
details, and time line of funding. This will help in calculating the cost of capital (interest
expense) to be allocated for the project.
Project Financial Planning provides funding request forms and predefined business rules so
that you can create the funding request.
For capital projects with multiple assets, you must request funding at the sub project level.

To request funding for a project:
2. Expand Project Funding.
3. Launch the Request Project Funding task.
4. Enter the required information in the Request Project Funding form.
5. In the form, you can use the shortcut menus to add new fund requests, cancel fund
requests, and calculate the project.
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Adding and Canceling Funding Requests
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Addingm me Requests
Funding n s fe
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hAdd
M noNew
The n Fund Request task enables you to request funds for a project. In the runtime
prompt, you enter the funding request amount for the periods where the project requires
additional money to meet the financial obligations of the project.
To add a new fund request:
1. Open the Request Project Funding form.
2. In the form, right-click and select Add New Fund Request.
3. In the Add New Fund Request runtime prompt, specify or select the settings that are
Funding Request Type: Select the type of funding request:
- Initial Request: This is the initial funding request.
- Request for Change: You are changing an existing request for funding.
- Off Specification: The funding request is due to an omission in the product or
service that is being offered

- Funding Comment: (Optional) Provide comments about the funding request.
- Requested Amount: Enter the amount of the funds that you are requesting.
- Month/Year: For a lump sum requests, specify the month and year of the request. If
funding is needed on a regular basis, enter a single month and year and then enter
the additional months as needed.
4. Click OK.
Canceling Funding Requests

You run the Cancel Fund Request task to cancel a previously entered funding request.
To cancel a fund request:
1. Open the Request Project Funding form.
2. Right-click the request that you want to cancel.
3. Select Cancel Fund Request.
4. Click OK. a
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Reviewing Allocated Funds
The Review Allocated Funds task enables you to analyze

apportioned project funds.
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A project can
t r a n
approved for the full amount of the funding requested, or just a portion can be
h -
o Additionally,
Mfunded. if a company obtains outside financing for projects, you can review how
nonare allocated to each project.
those funds
The Review Allocated Funds task enables you to review the allocated funds, the sources of the
funds, fund time lines, cost of funds, and repayment frequency for a project. Each finance round
has different terms (for example, the interest rate), so each round of funding will impact the
project differently.
To review the allocated funds for a project:
2. Expand Project Funding.
3. Launch the Review Allocated Funds task.
4. Review the Review Allocated Funds form.
5. From the Fund Requests form, you can use the shortcut menu to add or cancel a fund
request.

Quiz
You calculate the project score to measure the performance of

the project based on predefined sets of financial and strategic

targets.
a. True
b. False
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Answer: a
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Quiz
A project can only be approved for the full amount of the

funding requested.
a. True
b. False
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Answer: b
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Quiz
You must run a business rule that calculates the financial

statements for a project prior to viewing financial statements.

a. True
b. False
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Answer: a
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Summary
In this lesson, you should have learned how to review:


• Review project metrics and KPIs
• Review project justifications
• Review project score
• Review project funding
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Practices 6-1 Through 6-8

• Reviewing the Impact on Financial Statements

• Rolling Up Project Data
• Reviewing Contract Project KPIs
• Capital Project: Adding Project Justification
• Contract Project: Adding Project Justification
s a
• Indirect Project: Adding Project Justification
) h a
• Reviewing Project Scores o m
c l eฺc deฺ
• Requesting Funding ora Gui @ ent
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Managing Intercompany Projects
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Objectives

• Describe managing intercompany projects

• Review existing projects
• Calculate project data
• Review intercompany reconciliations
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Managing Intercompany Projects
Intercompany projects are transactions between two entities in

the same organization.
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m tpartnerships
Intercompany are relationships established between two internal entities to work
h
oa project. -The project-owning organization establishes an intercompany partnership with the
Mon nonthat is acting as a service provider to the project. The intercompany partner is
organization
reimbursed for its expenses through intercompany revenue.
After you create a new project, you can request that your administrator add an intercompany
partner to that project. When administrators add an intercompany partner to a project, the
ownership status of the partner entity is set to service provider.
After setup, the service provider plans its expenses and then defines the terms for
reimbursement from the owning entity. After the service provider defines the terms for
reimbursement, the intercompany revenue can be calculated. When calculations are run, the
intercompany expenses for the project owner are calculated at the total company level, and
intercompany revenue and expenses are eliminated. Intercompany eliminations can be verified
by using the forms provided in the application.
Note: You must be provisioned to view intercompany eliminations at the total company level.

Limitations of Intercompany Projects
• Intercompany partners can only be added to Cost Plus

Contract projects.
• Intercompany partners are only allowed to budget in the
base currency of the owning entity, because currency
exchanges between the partner entity and the owning
entity are not currently supported.
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Tasks for Intercompany Projects
You perform the following tasks to plan financials of Cost Plus

Contract projects for both the owning entity and the service
provider entity:
• Plan for expenses for the owning entity.
• Plan for expenses for the service provider entity.
• Plan for revenue for the service provider entity.
• Review project financials for the service provider entity. as a
• Plan for revenue for the owning entity. m )h
l e ฺco eฺ
rac
• Review project financials for the owning entity. id o tG u
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a are n
m tradescribed
These tasks in the following lessons:
h -4, “Planning for Project Expenses”
Mo• Lesson
non
• Lesson 5, “Planning for Contract Project Revenue”
These are the same standard project tasks, but they must be performed in both owning entity
and service provider entity projects.
Note: When planning for expenses and revenue, you must ensure that you select the correct
entity on the POV.

Calculating Cost Plus Intercompany Revenue
You run the Calculate Inter Company Revenue rule to derive

project revenue.
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h a m tranthe organization is a service provider, you must run the Calculate Inter
For projects where
o oRevenue
MCompany - rule to derive the project revenue based on a cost plus margin.
n n
To calculate Cost Plus intercompany revenue:
1. Navigate to the Manage Existing Contract Projects task list.
2. Expand Update Process, and then expand Project Revenue.
3. Click Review and Update Revenue Drivers - Cost Plus.
4. Review the Review and Update Revenue Drivers - Cost Plus form.
5. In the form, right-click and select Calculate Inter Company Revenue.
6. Click OK.

Calculating Project Data
Running the business rule rolls up and reconciles intercompany

data at the entity level.
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Administrators
r a nthe Roll Up Project Cube task by launching the RollupTotalProjectCube
h
o orule -to consolidate and calculate project data.
Mbusiness
n n

Reviewing Intercompany Reconciliations
Project Financial Planning automatically reconciles the

intercompany transactions at the entity level.
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Administrators
r a nthe Review Intercompany Reconciliation task to review intercompany
h
o on- between the owning entity and the service provider entity for a project at the
Mreconciliations
n
year level.

Summary

• Describe managing intercompany projects

• Review existing projects
• Calculate project data
• Review intercompany reconciliations
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• Setting Up the Intercompany Partner

• Expense Planning for the Owning Entity
• Expense Planning for the Servicing Entity
• Revenue Planning for the Servicing Entity
• Calculating Financials
s a
• Reviewing Impact on Financial Statements
) h a
• Reviewing Project KPIs and Justifications o m
c l eฺc deฺ
• Reviewing Intercompany Reconciliations ora Gui
• Requesting Funding r i a @ ent
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Managing Existing Projects
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Objectives

• Describe existing projects

• Describe the process for managing existing projects
• Identify the tasks for managing existing projects
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Managing Existing Projects
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Financial n s fe compares actual and budgeted expenses, schedules, and
o ha n-and
performance traprovides tools to forecast project expenses and revenue. It enables you to
M no
change the base assumptions for labor, equipment, materials, and revenue, and it
recalculates the financial outlook of the project.
Existing projects are approved projects imported from transactional systems that may be
reconciled with proposed projects in Project Financial Planning. By reconciling projects, you
can compare financials between your plans, forecasts, and actuals.

Process for Managing Existing Projects
1 2 3
Import and Review project Create and update

reconcile projects performance. forecast data
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Submit plan for Review financialseand d thi Update assumptions,
approvals. manage m m
funding. se resources, and
o h a t o u expenses.
( m e
r i a c e
aka ble li
Z
m ed sfera
Before m
a t r a n existing projects, your administrator must load project details and any
you can manage
h
o data - external source systems. After the project is loaded, you can review the
Mactual non
from
performance of the project with respect to key project drivers by using the Review Project
Performance task. You can then update the assumptions for the key elements of the project
(for example, realigning resources, changing equipment, updating expenses, and requesting
funds).
The process for managing Capital, Contract, and Indirect projects is similar. Notable
differences include:
• For Capital Projects, asset values are listed in the Construction in Progress (CIP) asset
list. Asset managers can use this list to provide details for assets and prepare them to
be used as normal assets for other projects.
• For Contract Projects only, you can update revenue assumptions.

Managing Existing Projects Task List Tasks
• Review Project Performance Dashboard

• Review Existing Projects

• Update Process
• Review Project
• Project Funding
• Submit Plan for Approval
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Reviewm me Performance
Project n s fe
o a -tra
hReview
M nonProject Performance task opens the Financial Overview – PM form, which
The
displays a snap shot view of a project’s performance from a financial perspective. The key
financial measures included in the form are financial variance analysis, cash flow, profit and
loss impact, and project score. By reviewing these measures, you can determine areas in the
project that are efficient and areas that are lagging. You can drill down into the project details
to view the areas that may need attention or where forecasts need to be updated.
Review Existing Projects
The Review Existing Projects task enables you to review the financial and non-financial
details of the project.
You can edit project details in the Existing Project Details section of the form, including project
name, description, revenue recognition and incidence (for Contract projects only), project
manager, project customer, and project details.

The project start and end date, type, status, and ownership are also viewable in this section.
You can review the project variances, impact on income statement, impact on cash flow, life
time KPIs, and funding requests in the Financial Impact section of the form.
Update Process
The Update Process task list contains several tasks that allow you to manage project
expenses and project revenue (for Contract projects only).
The Project Expenses task list guides you through the process of reviewing details about the
expense components of a project and contains the following tasks:
• Review and Update Labor Assignments
• Review and Update Equipment Assignments
• Review and Update Material & Other Requirements
• Review and Update Direct Expenses
• Apply Overheads a
• Review Indirect and G&A Allocated Expenses h a s
)
• Review Project Expenses
ฺ c om ฺ
The Project Revenue tasks list is available for Contract projects and a
r cle uyou
enables i dtoe review
the revenue generated by the project from various sources:
@ o t G
i a n
• Cost Plus
a k ar tude
• Time and Materials
e dฺz this S
• Fixed Price
m m se
• Direct Revenue o h a t o u
Review Project i a (m nse
ar eare l e
icentered
Z k
After all revenue andaexpenses l and calculated, you can view the updated
b
ed sforfearaproject.
financial statements
m
h am Project
The Review
- t r an task list includes the following tasks:
o
•
non Financial Statements
M • Calculate
Review Impact on Financial Statements
• Review Project KPIs
• Detailed Project Justification
• Review Project Score
Project Funding
You can modify project funding requests and review allocated funds using the tasks in the
Project Funding task list.
Submit Plan for Approval
After you complete the tasks for the project, review financial statements, and request funding,
you can promote your plan to another user for approval.

Quiz
Before you can manage existing projects, your administrator

must load project details and any actual data from external
source systems.
a. True
b. False
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Answer: a
o
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Quiz
You must update revenue for all project types after importing
projects from source systems.

a. True
b. False
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Answer: b
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Summary

• Describe existing projects

• Describe the process for managing existing projects
• Identify the tasks for managing existing projects
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• Reviewing Existing Project Details

• Updating Labor Expenses
• Reviewing Equipment Expenses
• Reviewing Other Expenses, Overheads, and Indirect Costs
• Reviewing Projects
s a
• Reviewing Project Justifications
) h a
• Reviewing Project Scores o m
c l eฺc deฺ
• Reviewing Other Existing Projects ora Gui @ ent
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Reviewing and Approving Projects
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Objectives

• Identify financial analysis and project approval tasks

• Run business rules to calculate data
• Review project financials and perform detail analysis
• Review funding requests
• Review project proposals and scores
s a
• Review financial performance
) h a
• Submit and approve projects o m
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Lesson Agenda
This lesson covers two sets of task lists:

• Finance Analysis
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h a m tranin this lesson is divided into two sections:
The tasks covered
- Projects tasks are, typically, performed by a project planner
Mo• Reviewing
•
non
Finance Analysis tasks are, typically, performed by a financial analyst or a budget
administrator

Process for Reviewing Projects
1. Calculate Project
2. Review Project Proposals and Existing Projects

3. Analyze Impact of Forecast Updates
4. Review Financials
5. Compare Financial and Subjective Scores
6. Review Project Justifications
s a
7. Submit Project Plan for Approval
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a m for
The process
t r a n
reviewing projects begins with calculating the financial statements for the
h -
o organization.
Mentire non
After the calculation is performed, you can begin the review project details, first by focusing on
the financial impact of new project proposals, then analyzing the impact of forecast updates
for existing projects. You can review financials by accessing forms and tasks that display
income statement impact, cash flow, funding requests, and KPIs.
You can then compare project scores to help evaluate the project from both a financial and a
subjective perspective, as well as review the project justifications as another analysis point in
viewing and approving projects.
Finally, you are presented with the financial overview, which provides you with a high-level
view of the financial performance of each project and of your organization as a whole. The
overview helps you identify issues and enables you to work interactively with the financials.
You can review current year financials, net income, cash flow trends, and the project-level
project score.
When the review process is completed, you can approve or reject the plans associated with
the projects.

Calculating Departmental Financial Statements
Before reviewing projects, you must run the Calculate

Department Level Financial Statements task to update data.
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mCalculate
You runm
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t r a n Departmental FS_Ruleset business ruleset to calculate financial
h
o onfor- the entire organization.
Mstatements
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To calculate department level financial statements:
1. Launch the Calculate Department Level Financial Statements task under the Review
Projects task list.
2. Click Launch.

Reviewing Project Proposals
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a m trReview
You launch the a n Projects task list to view new project proposals that are awaiting
h
o and -
Mreview non
approval. You can access project details, income statement impact, cash flow,
funding requests, and KPIs by launching this task.
To review project proposals:
1. Under the Review Projects task list, click the Review Project Proposals task.
2. Review the Review Project Proposals form.

Reviewing Existing Projects
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With them me Existing
Review n s fe Projects task, you can evaluate the financial and non-financial
o
details n tra projects. You can review the income statement impact, cash flow, funding
haof existing
-
M no
requests, and KPIs associated with the project.
To review existing projects:
1. Under the Review Projects task list, launch the Review Existing Projects task.
2. Review the Review Existing Projects form.

Comparing Project Scores
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You canm me allnfinancial
review s fe and subjective scores of projects within your entity. By comparing
o
project n tra based on a set of targets, you can use the scores to rank the projects for
ha performance
-
M no
approvals.
On the Compare Project Scores form, you can review financial and subjective project scoring.
To compare project scores:
1. Under the Review Projects task list, launch the Compare Project Scores task.
2. Review the Compare Project Scores form.

Reviewing Project Performance
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h a m tranReview task list provides the following review tasks:
The Performance
Mo• Project-Financial Performance
•
non
Departmental Financial Performance
• Review Impact on Financial Statements
The Project Financial Performance task summarizes the financial performance of each project
and of your organization as a whole. The form displays variances and graphs based on
financials that help you identify project issues and efficiencies.
To review project financial performance:
1. Under the Performance Review task list, launch the Project Financial Performance task.
2. Review the Project Financial Performance form.

Reviewing Departmental Financial Performance
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h a m tran financial performance:
To review departmental
Mo1. Under - Performance Review task list, launch the Departmental Financial
non
the
Performance task.
2. Review the Departmental Financial Performance form.
You can review current year financials, cash flow trends, net income trends, and headcount
trends at the departmental level by launching the Departmental Financial Performance task.

Reviewing the Impact on Financial Statements
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h a m tran on Financial Statements task displays a form that includes financial data
The Review Impact
o oton-the impact on cash flow and the impact on income statement based all your
Mpertaining
n
projects or on a specific project.
To review departmental financial performance:
1. Under the Performance Review task list, launch the Review Impact on Financial
Statements task.

Lesson Agenda
This lesson covers two sets of task lists:

• Finance Analysis
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h a m tranin this lesson is divided into two sections:
The tasks covered
- Projects tasks are, typically, performed by a project planner
Mo• Reviewing
•
non
Finance Analysis tasks are, typically, performed by a financial analyst or a budget
administrator

Project Financials Overview
Current Year Total Fund Requests Net Income

Financials s a
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Cash Flow Trend m ed e tHead hi Count
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h a m tran begins the project financial analysis by reviewing an overview of several
The finance manager
o financial
Mkey -measures:
• non
Current Year Financials
• Total Fund Requests
• Net Income and Cash Flow Trend
• Head Count Trend
After the financial measures are reviewed, the finance manager can perform a detailed
analysis of the entities in the organization and the project financials. The detailed analysis
shows the net revenue, total expenses, net income or loss, project cash flow, and ROI by
organization. Then, the finance manager makes funding decisions and submits the plan for
approval.

Finance Analysis Task List
The Finance Analysis task list includes the following tasks:

• Run Rollups
• Finance Overview
• Detailed Analysis
• Project Funding
• Submit Plan for Approval
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Running Rollups
1 2
3
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a m trRun
You launch the a n Rollups task to calculate and consolidate data using a business rule. Run
h -rule before reviewing financials to ensure that your data is updated.
Mtheo business
non

Viewing the Financial Overview
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a m overview
The financial
t r a n provides you with a high-level view of the financial performance of your
h
o on-You can review current year financials, total fund requests, net income and cash
Morganization.
n
flow trends, and headcount trends at the organization level.
To view the Financial Overview, launch the task under the Finance Analysis task list.
From the Financial Overview form, you can perform the following tasks:
• Allocate funds
• Change funding status
• Review project KPIs

Financial Overview: Allocating Funds
After planning expenses for a project, the finance manager can

allocate funds.
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h a m tran
After you request funding, the finance manager determines the funding required across
o and
Mprojects -determines how to secure the required funds. After the funding source has been
non
determined, the finance manager allocates the funds back to the projects.
The project can be assigned with the sources of funds, the project’s cost-of-capital details,
and the time line of funding. This determines the cost of-capital information and cash flow for
the project.
To allocate funds:
1. Launch the Financial Overview task.
2. In the Total Fund Request form, right-click and select Allocate Fund.
3. In the Allocate Fund runtime prompt, specify or select the values that are applicable for
your project:
- Funding Source Code: Identify the funding source.
- Funding Source Description: Describe the funding source.

- Funding Instrument Type: Select form the following funding types: Internal
Funding, External Funding Short Term, External Funding Long Term,
Subordinated Debt, 7 1/2% Senior Notes, Unspecified.
Note: You can customize this Smart List to suite your needs.
- Funding Amount: Enter the funding amount allocated to the project. Allocated
funding could be the equal to or less than the funding request from the project
manager.
- Funding Date: Specify the date that the funding was secured.
- Term (In Months): Enter the repayment term (in months) of the funding.
- Repayment Frequency: Select from the following payment terms: Quarterly,
Semiannually, or Yearly.
- Implicit Interest Rate: Enter interest rate.
4. Click OK.
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Financial Overview: Changing Funding Status
You can change the funding status for a project to one of the
following options:
• Approved
• Unapproved
• On-hold
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h a m tranis set to New when a request is made. Once the requests are submitted for
The funding status
o othe
Mapproval, -approving authority could change the status of individual requests before
n n
promoting the plan through the Approvals process.
Note: Allocating funds will automatically change the status to Approved.
To change project funding status:
2. In the Total Fund Request form, right-click and select Change Funding Status.
3. In the Change Funding Status runtime prompt, specify or select the values that are
- Enter Project: Select the project or projects.
- Enter Project Elements: Select the funding request.
- Enter Status: Select from the following options:
- Approved: Select if the funding request has approval to move forward.
- Unapproved: Select if the funding request was rejected or not approved.
- On-hold: Select if the funding is postponed or needs to be put on hold.
4. Click OK.

Financial Overview:
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You canm me thensproject’s
review
fe impact on cash flow and income statements by launching the
ha Project
- a
trFinancial
o
Review
M no n Statements task.
To review project financial statements:
2. In the Total Fund Request form, right-click and select Review Project Financial
Statements.

Financial Overview: Reviewing Project KPIs
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You canm me thenskey
review
feperformance indicators (KPIs) for projects. Some KPIs are yearly and
o haare based
some n - traon the life of the project. Review the project-level defaults for discount rate
M no
and tax rate that were defined in the entity and make necessary changes.
To review project KPIs:
2. In the Total Fund Request form, right-click and select Review Project KPIs.
3. Review the Review Project Metrics and KPIs form.

Performing Detailed Analysis
You launch the Detailed Analysis task to view a high-level

display of the financial performance of each entity within your

organization.
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a m tkey
The following
r a nfinancial measures are provided to help you analyze organizational
h
Mo non-
performance:
• Net Revenue
• Total Expenses
• Net Income/(Loss)
• Cash Flow
• ROI
To view the Detailed Analysis, launch the task under the Finance Analysis task list.
Analyzing the Impact on Income Statement
To display a detailed analysis of a project’s revenue and expenses by fiscal year, right-click
the lower portion of the form and select Impact on Income Statement.
You can view the project’s financials and resources on the Impact on Income Statement form.
Analyzing the Impact on Cash Flow
To display a detailed analysis of the amount of cash flow generated and used by a project,
right-click the lower portion of the form and select Impact on Cash Flow.
You can view the flow of cash in and out of a project on the Impact on Cash Flow form.

Reviewing Project Funding
You can view funding requests for a project and review the
funds allocated to a project.
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h a m tranfunding allocations and requests, launch the Project Funding task under the
To review project
o Analysis
MFinance - task list. The task opens the Project Funding form.
non
Funding Requests
The Funding Requests section of the form displays requests per project, the request type,
funding status, and the requested amount per year.
Allocated Funds
The Allocated Funds section displays the funding element allocated and interest expenses
per project or for all projects (total project).
Deallocating Funding
You can delete funding for a project that is no longer required or was added in error.
To deallocate a fund:
1. In the Project Funding form, right-click the Fund Allocation section and select Deallocate
Fund.
2. When prompted to delete, click OK.

Approving Projects
Changing the status of a project to Approved locks the project

but does not submit the planning unit for approval.

Change Project Status.
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Project m me nsfecan approve projects. Once a project is approved, it is locked for
administrators
o ha . For
editing. n - tra information on changing project status, see “Changing Project Status” in
more
M no
Lesson 3.
The next topic covers submitting the project for approval through the planning unit review
cycle.

Submitting Plans for Approval
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a have a n
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Once you all of the tasks for the project and you have reviewed the financial
h
o onand - requested funding, you can promote your plan to another user for approval.
Mstatements
n
Contracts are associated with planning units. You promote your project’s planning unit when it
is ready to be reviewed and approved.
Approval States
During the budget review process, a planning unit is always in one of the approval states
described in the following table:
• Not Started: The initial state of all planning units. The budget administrator initiates the
review process by using the Start action.
• 1st Pass: The first state for planning units. Planning units have no owner during this
state. Any user with data access can enter data and promote a planning unit.
• Under Review: The state of a promoted planning unit. A planning unit is reviewed by
someone in the organization. Only the current owner or the budget administrator can
modify data.

• Frozen: The state of a locked planning unit, which is read-only. The planning unit can
be unfrozen only by the user who froze the planning unit or owners above them in the
planning unit hierarchy.
• Distributed: The state of a planning unit that is under review by multiple users. The
reviewers are filtered by those permitted to perform distribute actions.
• Under Assistance: The state of a planning unit that is on hold while its owner requests
help from another user. Ownership returns to the current owner when the user providing
assistance changes the planning unit status to Return.
• Signed Off: The state of a planning unit that was signed off. Only the current owner or
the budget administrator can modify data. Ownership does not change when a planning
unit is signed off.
• Not Signed Off: The state of a rejected planning unit. The current owner or the budget
administrator can modify data.
• Approved: The state of an approved planning unit. A budget administrator becomes the
s a
owner of the planning unit, and is the only person who can modify data. After all
) h a
planning units are approved, the budget review process is completed.
ฺ c om ฺ
Note the following points about approval states:
r a cle uide
• If you have read access for a planning unit, you can view the
@ o data,t the
G approval state,
and the history, and you can read and enter annotations
d n
ria foruplanning
e units in all states
k a t
except for the Not Started state.
d ฺ za is S
• A planning unit may skip approval states.
m e For eexample,
th an administrator may approve a
o h am to us
started planning unit from any state.
• You can manage the approval m process e at a higher level with parent planning units.
a ( n s
Promote Action
k a ri lice
Za rabthat
Actions are the operations
d
le are available to change the status of a planning unit and direct
its movement
m ethroughs fethe budget review process.
m n
tra the Promote action, the validation rules defined for the planning unit are run.
When
o ha younselect
-
MIf the conditions
no in all associated data validation rules are met, the planning unit is promoted
to the next owner defined in the planning unit promotional path. If the data validation rule
results in a planning unit owner assignment, the planning unit is promoted to this owner, who
may be different than the owner defined in the planning unit promotional path.

Reviewing Projects
You use the Review Projects task list to review, approve, and
reject project proposals.
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h a m tran task list includes the following tasks:
The Review Projects
- Department Level Financial Statements
Mo• Calculate
•
non
Review Project Proposals
• Review Existing Projects
• Compare Project Scores
• Performance Review
- Project Financial Performance
- Departmental Financial Performance
- Review Impact on Financial Statements
• Approve Projects

The following list describes reviewer actions:
• Promote: Submits the plan data to a reviewer, runs validation rules for the planning unit,
and changes the status to Under Review. For planning units with a status of Under
Review, you cannot enter data for the planning unit unless you are the owner or the
budget administrator.
• Originate: Changes the ownership of selected planning units (including its
descendants) to the first owner defined for that planning unit in the planning unit
hierarchy. The planning unit first owner differs between the Distribute and Bottom Up
templates.
• Reject: Returns the planning unit to the previous owner for further adjustments before
being approved, and changes the status to Not Signed Off.
• Approve: Indicates that the planning unit passed through all required levels of review,
and changes the status to Approved. The budget administrator becomes the owner.
Only the last user in the promotional path and the administrator can select this status.
• Delegate: Passes ownership to a user who is not defined in the promotional path. When s a
) h a
that user is finished with the planning unit, he or she promotes it to return it back to the
c om ฺ
user who delegated it. This action is available only with the Bottom Up template.
ฺ
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• Take Ownership: Bypasses the current owner and enables you to edit data outside the
r
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promotional path. This action is available only to users who are above the planning unit
@
owner in the planning unit hierarchy. a r ia den
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• Freeze: Locks all related data in descendant planning units and makes it read-only. This
m ed e thi
action does not change ownership. Only the planning unit owner or administrator can
ham to us
select the Unfreeze action to release the planning unit.
o
i a (m nse
• Distribute, Distribute Children, or Distribute Owner: Passes planning unit ownership
k a r l i ce
to multiple users. Distribute actions depend on the current location of the budget in the
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planning unit hierarchy. These actions are available only for the Distribute template.
d
e sfe
• Need Assistance: Passes ownership to a user whom you contact for help with budget
m n
o ham n-tra
tasks. When the person is finished, he or she returns ownership back to the requestor.
The person is not necessarily included in the promotional path. This action is available
M no only for the Distribute template.
• Sign Off: Allows a reviewer to sign off a planning unit without promoting it to another
user, and changes the status to Signed Off.
• Reopen: Enables the administrator to return an approved planning unit to the last owner
and change its status back to Under Review. The history and annotations are retained
for the planning unit.
The options are determined by the current status of the planning unit.

Quiz
You can only base project scoring on financial measures.

a. True
b. False
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Answer:
MFinancial n Subjective measures.
noand

Quiz
You approve a project by setting its planning unit status to

Promote.
a. True
b. False
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Answer: b
o
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Quiz
Allocating funds will automatically change the funding status to

Approved.
a. True
b. False
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Answer: a
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Summary

• Identify financial analysis and project approval tasks

• Run business rules to calculate data
• Review project financials and perform detail analysis
• Review funding requests
• Review project proposals and scores
s a
• Review financial performance
) h a
• Submit and approve projects o m
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• Running Rollups
• Reviewing the Financial Overview
• Performing Detailed Analyses
• Reviewing and Approving Project Funding
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Analyzing the Workforce
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Objectives

• Describe the workforce tasks related to Project Financial

Planning
• Calculate data to update project workforce costs
• Review resources and assignments
• Review resource utilization
• Review labor requests s a
) h a
• Assign labor resources to projects o m
l e ฺc eฺ
• Request new hires c
ra Guid
o
@ ent
• Recalculate compensation costs r i a d
• Review total compensation and z a ka Stuheadcount
employee
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Analyzing the Workforce
Analyzing the workforce helps you to:

• Review the cost and utilization of all labor resources in an

entity
• Evaluate workforce requirements for all projects in an
entity
• Allocate resources to projects based on the skill set,
availability, and competency of the resource s a
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• Plan to hire an outside resource, if the skill set for a m)
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Through
h a m tran analysis, companies determine the employee resources needed to
workforce
o otheir - targets, assign existing employees to various positions, and plan for adding
n n
Machieve
new employees.

Driver-Based Planning for Workforce Costs
Driver-based planning incorporates key business assumptions

into planning models. You use drivers to calculate costs, such

as:
• Healthcare
• Taxes
• Bonuses
• Merit increases s a
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You can also plan for situations like: om
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h a m trangauge the various direct and indirect costs incurred by employees, such
Companies must
Mas n n- and taxes. Project Financial Planning calculates these expenses—both
ohealthocare
simple and complex—based on certain drivers.
You can model future headcount and related expenses, working with up-to-date information
about workforce expenses. By planning compensation expenses in direct correlation to
headcount, planners can effectively manage one of their largest variable expenses. You can
perform very detailed workforce planning that utilizes built-in functionality, such as planning
for transfers, leaves, departures, and so on. Or, you can plan at a higher level using
requisitions and standard rates for jobs.

Required Metadata and Data Overview
You import Workforce Planning data and metadata to manage

labor resources and requests related to the project.

The following table lists the header records and sample data for
the EmployeeMem.csv file:
Header Record Sample Data s a

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Employee Paul Kim
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Parent Existing Employeeso G
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Description (optional) PaulzKim a kar Stude
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customers update existing employee data (dimensions and data)
h a t r a
- financial plans, either Plan or Forecast. After you update the Employee
o preparing
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dimension and refresh the application, you can execute employee compensation
calculations to consolidate up-to-date employee compensation plans or forecasts.
Note: For information about Workforce Administration tasks, see the “About Workforce
Administration” section of the “Administration Tasks” lesson.
The following sections describe the Workforce Planning data and metadata that you can
update.
Smart Lists
Before loading Smart Lists and Smart List values, you must identify the associated product
field names and entry names. To load a Smart List, specify its product or member name in
the Smart List Name column of the data load file. To load Smart List values, enter the
corresponding entry name in the Entry Name column of the data load file.

You manage entries for the following Smart Lists:
• Grade
• ProjectManager
• SkillSet
Metadata
When you load metadata, you can add members to Employee dimension.
Consider the following when loading metadata:
• Ensure that the parent member exists in the application before loading children to it.
• All of the templates can be used for single currency Project Financial Planning
applications by removing the Currency dimension from the POV.
Under the Employee dimension, you add metadata for existing employees. The slide lists
the header records and sample data for this file. s a
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After you have finished loading metadata, you can verify that the members were added by
opening the Dimension Editor in your Project Financial Planning application. ฺ c om ฺ
Data r a cle uide
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You use the Workforce Assumptions Template to load data
a r ia detonWorkforce Planning,
related
such as Social Security tax rates, Medicare rates, and
ฺ z a kemployee
S tugrades. You load
m ed e this
Workforce Assumption data by using the ImportWFPAssumptions_1.csv data load file.
After loading the required metadata and
h a s
mdata foruWorkforce Planning, you can associate an
employee to a project. For more information
m o
o e ton data load file order, see “Data Load File
Order” in the “Administration
i a ( ns
Tasks” lesson.
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Analyzing Workforce: Task Overview
As a resource manager, you perform the following tasks in the

application to analyze your workforce:
Review
resource
requests
across
Roll up the data. Review the dashboard projects.
s a
and utilization.
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projects.
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headcount, and FTEs. h a m
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a m the
You perform
t r a n
following tasks under the Workforce Analysis task list:
h n-the data.
Mo1. Roll
noup
2. Review the resource manager dashboard and resource utilization.
3. Review resource requests across projects.
4. Staff the projects.
5. Create new-hire requests.
6. Review total compensation, headcount, and full-time equivalents (FTE).

Task Lists for Workforce Analysis and Planning
The task lists for analyzing and planning your workforce are
designed to support standard process flows.
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a r a n
m trequisitions,
When adding employees, assets, and equipment, you can think of the process
h
o way:on-
Mthis
• n
Add: Add to the system.
• Calculate: Run a rule to update costs.
• Review: Review the calculated data.
After loading existing employees from a source system, the Employee dimension and its
account properties are prepopulated in the Project Financial Planning application, and
accurate resource expenses can be reviewed and calculated.
Typically, you review the information on existing employees in their department or cost
center, verifying their salary, employee properties such as full time or part time, and other
compensation assumptions, such as bonuses and merit increases. Then, you can make
adjustments as new events occur (for example, employees are hired, transferred, retired,
and so on).
After verifying that the existing employee information for your entity is accurate, you can
plan for new hires. To add newly hired employees to a department, you use the Add TBH
Hourly or Add TBH Salary business rule.

Rolling Up Data
You roll up the workforce data to aggregate it.

Select values for the

runtime prompts.
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Click Launch to run
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Before m
a you
t r a n employee costs, you must calculate and update workforce costs by
analyze
h
o the -
non
Mrunning Rollup WFP Cube business rule.
To roll up data:
1. Under Workforce Analysis, select Roll Up Data.
2. Click Launch to open the business rule.
3. Select the values for the following runtime prompts: Entity, Project, Scenario, and
Version.
4. Click Launch calculate and aggregate workforce costs.

Reviewing the Resource Manager Dashboard
The Workforce Overview form provides an at-a-glance view of the

utilization, hiring plan, and staffing requirements for an entity.
Click to drill-down to view details

Select an entity. of the total headcount.
Select a year.
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You use
a m Resource
the
t r a n Manager Dashboard task to help you manage resources across the
h
o on- You use this information to see how the company is performing and to identify
Morganization.
n
potential issues. The dashboard provides a quick visualization of key elements with which
you can interact: utilization, hiring plans, and project staffing.
To review resource manager dashboards:
1. Under Workforce Analysis, select Review Resource Manager Dashboard.
2. In the Entity drop-down list, select an entity.
3. In the Year drop-down list, select a year.
4. Optional: Click the chart data to drill-down to details.
Note: Be sure to calculate or recalculate the data prior to launching this task to ensure that
you are viewing up-to-date information.

Utilization Trend Chart
The utilization trend is calculated by dividing total labor hours

by the working hours per month.
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The data for
t r a n is pulled from the Utilization account, which is dynamically calculated.
chart
h
o is for all- projects, for existing employees.
MData non

Hiring Plan Chart
The Hiring Plan chart information is based on project-related

jobs and total headcount for full-time employees.
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The data for
t r a n is a result of the Point of View defined in the form.
chart
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Project Staffing Request – FTE
Project labor requisitions may be viewed in this section.

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The data for
chart
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Project Staffing Request – Labor Hrs
The following chart displays project-related staffing requests.

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The data for
chart
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Reviewing Resource Utilization
Utilization is a metric used to compare employees’ actual time

spent performing tasks against their total time.
Double-click to view
an employee
assignment across
projects.
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monthly allocation
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Project where Wendy o r G u
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m trmanager,
As a resource
a a n you can periodically review the utilization of employees to ensure
h
o theyoare -working efficiently. If an employee is over- or under-allocated, you can review
Mthat n n
the assignments of the employee across all projects and take action.
To review resource utilization:
1. Under Workforce Analysis, select Review Utilization.
2. In the Entity drop-down list, select an entity.
3. Review the utilization of all employees.
4. If required, double-click an employee row.
In the Employee Assignment section of this master-detail form, review the list of projects
where the employee has been assigned.

Reviewing Resource Requests Across Projects
For each job, you can review requests by project.

Select an entity to review total

job requisitions for the entity.
s a
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Projects
Double-click a row to apply
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context.
requesting a
project r
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As a resource
a a n you can review consolidated job requests for all projects in an
m trmanager,
h
o You - review projects in detail and identify resource requests, requested hours,
Mentity. non
can
headcount, and FTE. By performing a detailed analysis, you can plan for efficient staffing
and opportunities to combine similar jobs.
To review resource requests across projects:
1. Under Workforce Analysis, select Review Resource Requests Across Projects.
2. In the Entity drop-down list, select an entity and click Go.
3. Double-click a row to apply context.
In the Requisitions by Project section, select a job and review the list of projects requesting
that particular job.

Staffing Projects
Review job requests for a project, and assign existing

employees to the project.

runtime prompts.
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Right-click and select
Assign Existing
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h a m trajobnrequests across all projects, you can select a project and review the job
After reviewing
o oforn-that project.
Mrequests
n
You fulfill resource requests across by assigning existing employees to project requests or
hiring additional resources. With the Staff Projects task, you can view resource requests at
the project and job level and determine whether a request can be met by an existing
employee. If an existing employee has the required skill set for the job, you can assign the
existing employee to the project.
By assigning an employee to a request, you set the request status to Approved.

To staff projects:
1. Under Workforce Analysis, select Staffing Projects.
2. In the Project drop-down list, select a project and click Go.
3. Review the job requests for the project.
4. Double-click a job to confirm that the employee with the skill set for the job is available.
5. In the Assign Existing Employees section, right-click the employee and select Assign
Existing Employee.
6. Select or enter the following runtime prompts: Project, Labor Requisition, Job, Existing
Employees, and Comments.
7. Click Launch to assign the employee to the project.
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Requesting New Hires
If there are no employees available with the required skill sets,

you can create a new-hire request.

runtime prompts.
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Right-click and select m ed e thi
Add To-be-hired. ha
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As the m
a t r a n you create requisitions for labor. The resource manager fulfills the
project owner,
h
o onby - assigning existing and available employees or by creating a new-hire
Mrequisitions
n
request.
To create new-hire requests:
1. Under Workforce Analysis, select Raise New Hire Requests.
2. In the Job drop-down list, select a job.
3. Review the projects that have an open requisition for the job.
4. In the Raise New Hire Requests section, right-click in the row and select Add To-be-
hired.
5. Enter values in the runtime prompts for adding a new hire and click Add.
Note the following:
• In the Number of Requisitions textbox, specify the number of resources needed for
each job.
• The Grade field generates the base salary amount. FTE must be less than or equal to 1.
• To-be-hired is often abbreviated as TBH.

Recalculating Compensation Costs
After entering any new-hire requests or making any changes to

employee data, recalculate total compensation.
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h a m tran compensation for all employees, both new and existing, in an
This task calculates
o on-
Morganization.
n
Note: This rule does not factor in merit increases in future years. You must run the
Calculate Future Years Compensation Expense rule in order to factor in merit increases.

Reviewing Total Compensation
You can review total compensation costs for the entity.

Select a currency.
Select an
entity.
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h a total
- an
m trcompensation:
To review
o
non Workforce Analysis, select Review Total Compensation.
M 1. Under
2. Review the salary and other compensation to ensure that the costs are within the plan.

Reviewing Employee Headcount and FTE
Review the regular headcount and FTE for the entity.

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h a m tran headcount and FTE:
To review employee
Mo• Under -
non Workforce Analysis, select Review Employee Headcount and FTE.

Quiz
One of the tasks in Workforce Analysis is to submit equipment

requests:
a. True
b. False
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Answer: b
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Quiz
Data is automatically rolled up when entered.

a. True
b. False
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Answer: b
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Quiz
Compensation is automatically calculated in all future years.

a. True
b. False
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Answer: b
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Summary

• Describe the workforce tasks related to Project Financial

Planning
• Calculate data to update project workforce costs
• Review resources and assignments
• Review resource utilization
• Review labor requests s a
) h a
• Assign labor resources to projects o m
l e ฺc eฺ
• Request new hires c
ra Guid
o
@ ent
• Recalculate compensation costs r i a d
• Review total compensation and z a ka Stuheadcount
employee
dฺ is
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• Rolling Up Data
• Viewing the Resource Manager Dashboard
• Reviewing Labor Requests
• Staffing Projects
• Reviewing Utilization
s a
• Creating New-Hire Requests
) h a
• Recalculating and Reviewing Total Compensationฺcom ฺ
• Reviewing Employee Headcount and FTEs r a cle uide
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Analyzing and Planning for Capital Assets
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Objectives

• Describe tasks that you perform in the application to analyze

and plan for capital assets
• Review equipment and utilization
• Review equipment requests and assign them to projects
• Request new equipment
• Review the impact of capital requests on financial s a
)h a
statements m
l e ฺco eฺ
• Review and update existing assets and expenses
o rac Guid
r i a @ ent
• Manage owned, leased, and construction-in-progress assets
a d
ak cost
• Calculate equipment costs andฺzreview Stu details
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Analyzing Capital Assets
Asset Managers perform the following tasks to analyze capital

assets:
• Review requirements for capital assets by entity
• Review the available capital assets and their associated
expenses
• Allocate assets to approved projects based on the
availability, requirements, and expenses s a
) h a
• Decide whether to purchase new assets or lease m
o
c theฺ
equipment on operational or capital lease, based c l eฺon e
organization's requirements o ra Guid
r i a @ ent
• Calculate expenses of new leasedka
a d request
assetstuand
them as needed, based on e the z
dฺ impact S
is to Cash Flow,
m se t h
Balance Sheet, and Profit
am anduLoss
o h to
( m e
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Capitalm
a t r n you manage, prioritize, and plan for capital expenses. You can
Planningahelps
h n-
o oequipment
Mcalculate
ProjectnFinancial
expenses for entities and track the utilization of assets across projects in
Planning.
By tracking assets in projects, you can get a comprehensive view of equipment, machinery,
and other asset requirements across entities and then make efficient capital purchase
decisions. You can plan for new tangible or intangible expenses and check the impact on
Profit and Loss, Cash Flow, and Balance Sheets. You can also review expenses and adjust
the timing and cost of capital spending. In addition, you can manage existing assets such as
transfers, retirements, and impairments.

Required Metadata and Data Overview
You import Capital Asset Planning data and metadata to

manage assets and requests related to the project.

The following table lists the header records and sample data for
the AssetMem.csv file:
s a
Header Record Sample Data
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ฺ c om ฺ
Asset Detail Laptop 1
r a cle uide
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Parent Total Major Assets
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ฺ z ak 1 Laptops S tu
Description (optional)
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recommends
fe customers update existing asset data (dimensions and data) before
o
preparing n tra plans, either Plan or Forecast. After you update the dimensions and
ha financial
-
M no
refresh the application, you can execute asset calculations and consolidate up-to-date
employee compensation plans or forecasts.
Note: The “Capital Asset Administration” section of the “Administration Tasks” lesson has
information about Capital Asset Administration tasks.
The following sections describe the Capital Asset data and metadata that you can update.
Smart Lists
Before loading Smart Lists and Smart List values, you must identify the associated product
field names and entry names. To load Smart Lists, specify their product or member name in
the Smart List Name column of the data load file. To load Smart List values, you enter the
corresponding entry name in the Entry Name column of the data load file.

You manage entries for the following Smart Lists:
• PhysicalLocation
Metadata
When you load metadata, you can add members to Asset Class and Asset Detail dimensions.
Consider the following when loading metadata:
• Ensure that the parent member exists in the application before loading children to it.
• All of the templates can be used for single currency Project Financial Planning
applications by removing the Currency dimension from the POV.
The Asset Class dimension details the different categories of assets that a company owns,
which are typically included in your financial statements. Asset Class is broken into:
• Tangible assets: Furniture and fixtures, machinery and equipment, computers, and so
on a
• Intangible assets: Leasehold improvements, software rights, goodwill, and so on h a s
)
ฺ c om ฺ
You use the standard equipment list in the Asset Class dimension when requesting equipment
r a cle uide
for a project. At the time of the request, you specify the type of equipment required; however,
o tG
you may be unaware whether it will be fulfilled by an existing asset or by new assets.
@
a r ia den
Standard equipment provides a concise list of material assets that are requested for use on a
ฺ z ak s Stu
project, while other types of assets are not included. Under the Asset Detail dimension, you
file. m ed e thi
add metadata for existing assets. The slide lists the header records and sample data for this
m us
htoasupport
The Asset Detail dimension is used
m o e tothe request of new asset purchases, either
New Leased or New Owned. i a ( Detail
Asset ns individually details each new request. When you
r c e
Z a ka lthe
request standard equipment,
e i
lrequest supports asset requisitions in the Asset Detail
dimension (for d
e f e r ab Recdetailed
example, Equip 1, 2, 3, and so on). The Asset Detail dimension also
m m ns
contains existing major equipment out as individual assets or groups of assets, where
ha n-tra
possible.
o
MTo support
no planning for new equipment or assets, as a starting point, Project Financial
Planning provides the following line items for entering requisitions:
• 50 equipment requisitions for requesting the use of standard equipment at the project
level
• 30 line items for planning for new leased assets
• 200 line items for planning for new owned assets
Administrators can add more line items based on implementation requirements
After you have finished loading metadata, you verify that the members were added by opening
the Dimension Editor in your Project Financial Planning application.
Data
You use the Capital Assumptions and Asset Depreciation and Amortization data templates to
load data related to Capital Asset Planning. Capital assumptions include data like
depreciation, amortization methods, and so on.
After loading the required metadata and data for Capital Asset Planning, you can associate an
asset to a project. For more information on data load file order, see “Data Load File Order” in
the “Administration Tasks” lesson.

Analyzing Capital Assets and Equipment
As a resource manager, you perform the following tasks to

analyze your capital assets and equipment:
Roll up the data. Review equipment Review equipment requests

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and utilization. across projects.
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You perform
t r a n
following Capital Asset analysis tasks:
h up-the data.
Mo1. Roll
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2. Review the resource manager dashboard.
3. Review resource utilization.
4. Review resource requests across projects.
5. Assign equipment to projects.
6. Create new equipment requests.
7. Review impact on financial statements.
Note: Oracle recommends that customers update existing asset data (dimensions and data)
before preparing financial plans, either Plan or Forecast. After you update the Asset Detail
dimension and refresh the application, you can execute the calculations and consolidate up-
to-date asset plans or forecasts.

Task Lists for Capital Asset Analysis and
Planning
The task lists for analyzing and planning your capital assets are
designed to support standard process flows.
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n works with asset managers to complete tasks in these areas.
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The project manager
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Reviewing Equipment
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You usem
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t r a n Overview task to see how assets are utilized, and quickly identify
h
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The top-left area shows the utilization percentage of equipment by month. Percentages
under 100 indicate a surplus, over 100 indicates a shortage.
• The bottom-left area displays the number of open requisitions by month.
• The top-right chart shows the proportion of capital expenses for the year by category.
You can drill down into each category for detailed information.
• The bottom-right chart shows the proportion of Capital Purchases and Equipment
Operating Expenses for the year. Drill down for more detail.
To view the equipment overview:
1. Launch the Equipment Overview task under the Capital Analysis task list.
2. Review the Equipment Overview form.

Reviewing Equipment Utilization
Select an
Select an asset class.
entity.
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You usem
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t r a n Equipment Utilization task to review how assets and equipment are
h
o byonentity - and asset class. You use the form to review an asset and its percentage of
Mutilizedn
usage across projects. The top area displays Equipment Utilization. The bottom area displays
Asset Usage Across Projects for the Asset Class and Entity dimensions selected in the top
form.
To review equipment utilization:
1. Launch the Review Equipment Utilization task under the Capital Analysis task list.
2. Review the Equipment Utilization form.

Asset Utilization Calculation Examples
Utilization = Asset Usage (or Asset Units) /

Asset Capacity
• 200 units of laptops (UOM = Each), and 180 have been
assigned to various projects, the utilization of laptops is
180 divided by 200, which equals 90%.
• 2 cranes (UOM = Hours) are used 100 hours on various
projects. Available hours per crane is 170. Utilization of a
cranes is (2 times 100) divided by (2 times 170), which) ha
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Asset Usage
a n Units are assets used across all projects. When calculating for
m ortraAsset
h
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Mutilization,
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If the Capacity Units of Measure is specified as Each, utilization is calculated by dividing
the number of units used across projects by the total number of available units (Asset
Capacity).
• If the Capacity Units of Measure is specified as Hours, the utilization is calculated by
dividing the Asset Usage by the Asset Capacity.
• If Asset Units or Asset Capacity is available, but not used by any project, the asset
utilization is 0 (zero).

Reviewing Equipment Requests Across Projects
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Reviewm
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t r a nrequirements for all projects for an entity. The top form displays total
h -
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Mequipment
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The bottom form displays equipment requisitions by project.
To review equipment requests across projects:
1. Launch the Review Equipment Requests Across Projects task under the Capital
Analysis task list.
2. Review the Equipment Requests Across Projects form.

Assigning Equipment to Projects
Click the tab to view

existing equipment
assigned to project.
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You usem
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t r a n Equipment to Projects task to view current equipment assignments, to
h
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Mchangenon
As an Asset Manager, you can verify equipment requests at the project level and change the
requisition status to approved, on hold, or unapproved (rejected). You fulfill the requisition by
assigning existing equipment to the project. By assigning equipment to a project request, you
change the status of that request to Approved.
To assign equipment to projects:
1. Launch the Assign Equipment to Projects task under the Capital Analysis task list.
2. Review the Assign Equipment to Projects form.
3. From the Equipment Detailed Requests by Projects tab, you can Change Requisition
Status using the shortcut menu.
4. From the Existing Equipment Availability form, you can assign existing equipment using
the shortcut menu.
Completed requisitions are not shown in the top section.

Requesting New Equipment
Select an asset class.
s a
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If you determine
a n an equipment request for a project cannot be fulfilled from the existing
h -
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Mequipment you can request a new tangible or leased asset. The equipment
n is marked to be filled by a new asset purchased in the future.
requisition
To raise a new equipment request:
1. Launch the Raise New Equipment Request task under the Capital Analysis task list.
2. Review the Equipment Requisitions and Raise New Equipment Request sections.
3. From the New Equipment Requests section, you can add a new asset, calculate an
asset, review calculated details, view the impact of the request on your financial
statements, and change the requisition status using the shortcut menu.
Note: There is a key difference in the concept of requesting new equipment versus requesting
a new hire. In planning your workforce, your new hire is not specific for a project; whereas,
with new equipment requests, it typically is for a project or will be shared across projects.

Recalculating Equipment Costs
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When you
a have n making changes or additions to equipment, run the Recalculate
m trafinished
h
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To recalculate equipment costs:
1. Launch the Recalculate Equipment Costs task under the Capital Analysis task list.
2. Launch the RollupCapexCube business rule.

Select entity.
Double-click a row to
update the data in the
bottom section of this
form.
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Click a tab to view the
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You canm me thensimpact
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fe of capital expenses and their related costs on the Profit and Loss,
o ha Sheet,
Balance n - traand Cash Flow statements. You can review the financial impact by
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department or across departments, for the same asset class, all asset classes, or one asset.
To review the impact of an equipment request on the financial statements:
1. Launch the Review Impact on Financial Statements task under the Capital Analysis task
list.
2. Complete the Review Impact on Financial Statements composite form.
3. From the Cash Flow Impact form, you can view asset details by using the shortcut
menu.
To view asset details:
1. Open the Review Impact on Financial Statements composite form.
2. In the Cash Flow Impact form, right-click and select Asset Details,
3. Review the 5.05 Capital Expenditure Summary - Line Item Details form.
- You can return to the previous form by using the shortcut menu.

Capital Planning
Detail Planning: Summary Planning:

• Labor • Requisitions
• Equipment • Standard rates for
• Materials equipment and billing
• Indirect costs
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h a m tran Planning, you can plan, in detail or in summary, for capital assets used in
In Project Financial
o projects
Myour -by planning for the Allocated Equipment Expenses of projects. In summary form,
non
you work with equipment requisitions, standard equipment and billing rates, and do not need
to load or reconcile specific asset information. You load and manage standard equipment and
billing rates.
You perform the following tasks when planning for capital assets for your projects:
• Review and update major existing assets
• Add new assets, if required
• Review construction in process assets
• Calculate asset related expenses
• Review asset-per-unit-cost detail

Reviewing Existing Assets
Click a tab to view the

other asset types.
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t r a n Existing Assets form to review and update assumptions for all existing
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review assumptions by asset type:
Major Existing Tangible
• Intangible
• Leased Assets
• All Other Minor Assets
You can update asset capacity, status, insurance rate assumptions, and so on. In addition,
you can transfer, retire, and impair assets.
To review major existing assets:
1. Launch the Review Existing Assets task under Existing Assets.
2. Review the Review Existing Assets form.

3. In the tabbed areas of the form, right-click for a shortcut menu to do the following:
- Calculate assets.
- Transfer assets.
- Retire assets.
- Review calculated details.
- Impair assets.
- Calculate intangibles.
- Calculate all leased assets.
- View the impact of an asset on your financial statements and view asset details.
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Reviewing and Updating Asset-Related Expenses
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mReview
You usem
a the
t r a n and Update Asset Related Expenses task to review and update asset-
h
o expenses- by entity, such as insurance, maintenance, and repairs. The expenses are
Mrelatednon
the calculated results from the assumptions entered by asset in the Review Existing Assets
form. Each expense line is calculated as Basic Cost multiplied by Percentage. For example,
Repairs & Maintenance is a Basic Cost, which is multiplied by Repairs & Maintenance %.
To review and update asset-related expenses:
1. Launch the “Review and Update Asset Related Expenses” task under Existing Assets.
2. Review the Manage Major Asset Expense form.
3. From the POV, select the Entity, Asset Class, and Asset Detail dimensions.
4. Review insurance, maintenance, repairs, and so on, and, if needed, update the
expenses.

Adding New Assets
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a m trAssets
Under the New a n task list, perform the following tasks:
h - reconcile new assets
Mo• Add
non
and
• Add and reconcile new leased assets
You add new tangible, intangible, or leased (equipment) assets at the entity level.
To add and reconcile new assets:
1. Launch the Add and Reconcile New Assets task under New Assets.
2. Review the Add and Reconcile New Assets form.
3. From the Add and Reconcile New Assets form, you can use the shortcut menu to add,
calculate, remove, reconcile, change the requisition status, and view the impact of
assets.

Adding New Leased Assets
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You canm meleased
add n s fe based on the following types of leases:
assets
o
• n traLease: Temporary short-term leases similar to a rental agreement. The
haOperating
-
M no lessor, who retains exposure to the risks and benefits of ownership, generally covers the
maintenance, insurance, and repair costs of the asset.
• Financed or Capitalized Lease: Long-term leases that last for almost the life of the
asset until it is considered worthless after the lease period. The lessee effectively
assumes all the risks and benefits of ownership, including maintenance, repairs,
insurance, and obsolescence. The lessor’s role is primarily to provide financing for the
asset. At termination, the asset is usually transferred to the lessee for a specified sum,
which is similar to buying an asset in installments over time.
Consider the following criteria that Project Financial Planning applies when classifying a lease
as Operating versus Financed:
• Transfer of ownership at the end of the lease term
• Purchase option at a certain date during the lease period at a bargain (much less than
the expected market value of the asset at that time)

• The lease term is for the major part of the asset’s useful life (at least 75% of the asset’s
useful life)
• The present value of the lease payments exceeds 90% of the initial value of the asset
Impact of leasing type on financial statements:
• Operating Lease: The lease payments are recorded as operating expense (rent
expense) on the Income Statement.
• Capitalized Lease:
- Records an asset and liability on the Balance Sheet to reflect the value of
equipment (the net present value of lease payments) and the obligation of the
lease payments respectively (debt)
- Depreciates the asset over its useful life, which reduces the asset on the Balance
Sheet and generates a depreciation expense on the Income Statement
- The interest associated with the lease must be listed as an expense on the Income
Statement (interest payment) s a
To add a new leased asset: ) h a
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Reviewing Construction-In-Progress Assets
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You canm me allnConstruction
review s fe in Progress (CIP) assets that are in progress in an entity. You
h a t r a
- these assets to existing assets after the capital project is approved. CIP assets
o reconcile
Mcan non
accumulate the costs of building an asset and are classified in the Balance Sheet as CIP until
the asset is placed in service.
To review and reconcile construction-in-progress (CIP) assets:
1. Launch the Review & Reconcile CIP Assets task under Construction In Progress Assets.
2. Review the Review Construction in Progress (CIP) Assets form.
3. You can use the shortcut menu to reconcile CIP assets.

Calculating Asset-Related Expenses
You use the Calculate Asset Related Expenses rule to

calculate expenses for assets at the entity level.
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To calculate asset-related expenses:
Mo1. Launch -the Calculate Asset Related Expenses task under Capital Planning.
non

Reviewing Asset Per Unit Cost Detail
The Review Asset Per Unit Cost Detail task enables you to
review the Per Unit Cost for each asset.
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Per Unitm mefor an
Cost n s fe is calculated as the Ownership Costs plus the Operating Costs.
asset
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Quiz
One of the tasks in Capital Analysis is to submit equipment

requests (if needed).

a. True
b. False
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Answer: a
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Quiz
You can use the Assign Equipment to Projects task to change

the status of the equipment.

a. True
b. False
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Answer: a
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Quiz
Which area (tab) is not part of reviewing the impact on financial

statements.
a. Profit and Loss Impact
b. Balance Sheet Summary
c. Cash Flow Impact
d. Retained Earnings Impact
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Answer: d
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Summary

• Describe tasks that you perform in the application to analyze

and plan for capital assets
• Review equipment and utilization
• Review equipment requests and assign them to projects
• Request new equipment
• Review the impact of capital requests on financial statements s a
)h a
• Review and update existing assets and expenses com
c
• Manage owned, leased, and construction-in-progress
a leฺ idassets
eฺ
@ or t Gu
• Calculate equipment costs and review en
riacostddetails
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• Rolling Up Data
• Equipment Overview
• Reviewing Equipment Utilization
• Reviewing Equipment Requests
• Assigning Equipment to Projects
s a
• Request New Equipment
) h a
• Recalculating and Reviewing Financials ฺ c om ฺ
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1 Project Financial Planning Overview

Lesson Agenda 2-20

Types of Capital Projects 3-5

4 Planning for Project Expenses

Calculating Overhead Expenses 4-21

5 Planning for Contract Project Revenues

6 Reviewing Project Financials

7 Managing Intercompany Projects

Performing Detailed Analysis 9-22

11 Analyzing and Planning for Capital Assets

Asset Utilization Calculation Examples 11-10

Project Financial Planning Overview

After completing this lesson, you should be able to:

• Describe Oracle Hyperion Planning (Planning) and its

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 2

Oracle Hyperion Planning:

• Streamlines data entry through web and Excel interfaces

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 3

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 4

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 5

• EPM System: Profitability and Cost Management,

Performance Scorecard, Strategic Finance, Financial

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 6

Reporting and Reporting Studio

Application Server Web Server Services

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 7

• Workspace for accessing the Planning web interface,

creating and deploying classic and Performance

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 8

• Application server for running applications

• Supported web servers for handling HTTP requests from

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 9

• Relational databases store data for Shared Services,

Performance Management Architect, Calculation Manager,

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 10

• Integration with Oracle and other systems

• Oracle Data Integrator and ERP Integrator for data and

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 11

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 12

Project Financial Planning features enable you to:

• Perform planning for Indirect, Capital, and Contract

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 13

• Rank and approve projects based on a project score using

financial measures and subjective measures (net present

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 14

Enter project details. Plan for expenses. Plan for revenue

M1.o Enter - details.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 15

Enter project details:

• Determine the project type: Capital, Indirect, or Contract.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 16

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 17

• Enter revenue drivers:

h a m us (Contract projects only).

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 18

Review the project financials:

• Calculate the financial statements.

Oracle Project Financial Planning 11.1.2: Create Projects 1 - 19

Review project funding: