Oracle Project Implementation Strategies

Agenda

Oracle Project Presentation Roles and Responsibilities (Identifications of Core Team) Implementation Strategy (which Projects / Locations) Training Strategy (Key User and End user)

Overview of Oracle Project

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

You track activity on a project by comparing actual activity with expected activity. Record actual activity as actuals (transactions). Record expected activity in a budget.

Oracle Projects Features Oracle Projects has many features that address common business needs: Project-tracking tools Cost collection and calculation capabilities Allocations and allocation sets features Project asset creation functions Flexible revenue accrual and invoicing functions Online reporting and hard-copy reporting Full adjustment capabilities Oracle and non-Oracle applications integration
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How to Use Oracle Projects The following is a typical process flow using Oracle projects:

Create a project Enter a budget Collect actuals (transactions) Process cost, revenue, and invoice transactions Capitalize asset costs Perform analysis/reporting
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Overview of Oracle Projects You define a project and work breakdown structure (WBS) to record work and process transactions as you require. Project definitions can be simple or complex, depending on your requirements. Project definitions can include:
Classification information Work breakdown structures Charge controls Costing overrides Revenue and billing information Single- or multipleorganization usage Function or project security controls
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Project Definition A project is a unit of work made up of one or more tasks. For example, you can use projects to track:
Indirect Work
Indirect projects Research and Development

Product/Asset Development

Services

Cost of product/asset Customer billing development Professional services consulting Cost capitalization Capital projects Construction/ engineering Government contractors Contract projects

Project Classes
You can use three predefined project classes to track the following types of information: Indirect projects: Track overhead activities and costs. Capital projects: Track product/asset development activities and costs. Costs are capitalized as one or more assets. Contract projects: Track activities, cost, revenue, and billing for work performed for and reimbursed by an internal or external customer.

Information in Oracle Projects Costs

What

are the actual costs incurred? (labor, expenses, materials, and usages) What are the outstanding committed costs? What are the forecasted costs over future time periods?

Labor utilization
What

types of skills are used on projects? What percent of employees are billable? Can labor costs be recovered?
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Information in Oracle Projects Funding

How

have we allocated customer funding to projects? How much revenue have we accrued to date?

Customer invoice
Did

we invoice for the latest completed deliverable? What is the total project billing?

Asset utilization
Are

the costs of nonlabor company assets recovered with current bill rates or markups? Are all costs allocated from service centers to served organizations?
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Oracle Projects Central Repository

Oracle Projects is a central repository that provides a completely integrated cost management solution for all the projects and activities across your enterprise.

It has two main components: Project Costing Project Billing

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Oracle Projects Costing Project Costing provides: A central cost collections system A bridge between project management and financial accounting A mechanism for providing timely, detailed cost information to project managers and financial accountants

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Oracle Projects Billing Project Billing provides: Simplified customer invoicing Flexible revenue accrual Profitability and performance measurements Integration with Oracle Receivables

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Project-Tracking Tools Project managers use Oracle Projects to track detailed costs, manage within budget, and stay on schedule while achieving project objectives.
Transaction 10 hours of labor on Monday, May 13, 2007 on project XYZ, task 1
Company-Cost CenterAccount 01-100-5153 Amount $220

Financial analysts require the details to manage the overall business. Oracle Projects translates project details into financial transactions so the financial analysts have the details they require.
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Work Breakdown Structure

Your project, which consists of one or more tasks, can be as simple or detailed as you want it to be. You can define an unlimited hierarchy of tasks, called a work breakdown structure (WBS), to organize and monitor project activities.
Project

Task 1

Task 2

Task 1.1

Task 1.2

Task 2.1

Task 2.2

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Types of Cost
You record transactions against a project to record actual work performed or cost incurred. For example: Timecards Expense reports Usage logs Posted supplier invoice (posted to GL) You also record committed costs. For example: Requisitions Purchase orders Pending supplier invoices (not posted to GL)
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Methods of Cost Entry

Oracle Projects lets you track and account for all project costs in your company using the following methods: Preapproved Expenditure Batch: Input charges directly into Oracle Projects. Oracle Self-Service Time and Expenses: Input labor and expense charges using Oracle Self-Service applications. Oracle Purchasing and Oracle Payables: Import charges from requisitions, purchase orders, and supplier invoices. Transaction Import: Import charges collected in external systems.
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Methods of Cost Entry

Oracle Projects also provides a Project Allocation feature that allows you to allocate costs from one or more source projects, from GL accounts, or from a fixed amount to one or more target projects on a periodic basis. Your allocations can: Distribute costs to projects evenly Distribute costs using target percentages Prorate costs based on actual or budgeted amounts Calculate cost distribution using a custom formula

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Cost Calculations
Processed transactions can have the following costs:

Raw cost: The costs that are directly attributable to work performed (also referred to as direct cost). Burden cost: The cost of running the business that supports the raw cost (also referred to as indirect cost). Total Burdened Cost: Raw Cost + Burden Cost

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Capitalization of Project Costs You can easily manage all project related construction-in-process (CIP) costs and expenses for capital projects. Oracle Projects becomes the CIP subledger for project related CIP costs. Work breakdown structures (WBS) provide an efficient mechanism for managing the project and tracking asset costs as they accumulate over time.

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Capitalization of Project Costs With Oracle Projects, you can: Associate project assets with a work breakdown structure Collect actual project costs Capitalize the assets Use the Oracle Assets Mass Additions functionality to allow project information to flow directly from Oracle Projects to Oracle Assets Easily adjust asset costs, even after capitalization
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Revenue Accrual and Billing

Oracle Project Billing functionality provides the flexibility to keep up with your changing business needs. You can automatically accrue revenue according to your company policies. For example: Time and material bill rates Cost plus buildup Percent spent ratio Or any algorithm you define You can accrue revenue differently based on the type of project. You can also bill each project differently, even if the same client has multiple projects. You can easily manage cash collection in Oracle Receivables.
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Billing Controls You can control which transactions are billable for projects and tasks. Billable means that you can accrue revenue and bill your customers. Nonbillable means that you cannot accrue revenue or bill your customers.

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Oracle Projects Interfaces

Payroll Service
Timecards Reference Employees and Organizations

Oracle Human Resources

External Transaction

Project Management
Actuals

Fixed Assets

Assets

Import

Plan

Oracle Inventory
Usages Issues and Receipts

Oracle Projects
Reference Customers Invoices Adjustments
Post Cash

Report Committed Costs

Supplier Invoices, Invoice Adjustments Expense Reports

Accounts Receivable

Purchasing

Accounts Payable
Post Actual Expense

Post Revenue Post Labor Distribution

General Ledger

Post Usage Distribution

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Thank You !

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