Erin Moss

Sue Callison
Sr. Sales
Consultants
Oracle Corporation

Capital
Projects:
Optimizing Asset
Development
and
Capitalization

Objective
To understand the Oracle capital projects
flow
from purchasing
to capitalization
to depreciation

Overview of Capital
Projects
Comprehensive online inquiry and reporting

Identify
business
terms
and rules

Collect costs

Define projects

Define
assets

Enter
Reqs/
POs in
PO

Interface
Enter
supplier
invoices

External
Trans.

Enter
project

Enter Time
Enter
budget

Baseline
budget

Place
Placeasset
asset
in
inservice
service

Import to
G/L

Trans.
Import
Upload

Enter
preapproved
expenditures

Adjustments

Generate
Generate
asset
asset
lines
lines
Review
Review
&&adjust
adjust
asset
asset
lines
lines

Interface
Distribute
costs

Interface
Interface
to
toOracle
Oracle
Assets
Assets

Purpose of Capital
Projects

Use capital projects to collect construction

in
process (CIP) and expensed costs for assets
you are
creating.
These costs can include:

Labor (Internal or Contract - AP/PO)

Equipment (AP/PO)
Inventory
Outside services (AP/PO)
Internal service-center recharges

Overview-Capital Projects
Use Oracle Projects to collect all costs
associated with a capital project. CIP costs
are:

Eligible for capitalization within a given

capital project.
Associated with the assets the project is
building.
Summarized and interfaced into Oracle
Assets, becoming depreciable fixed
assets when the assets are ready to be
placed in service
Adjusted within Oracle Projects before
and after asset costs are interfaced to

Define Capital Projects

Comprehensive online inquiry and reporting
Identify
business
terms
and rules

Collect costs

Define projects

Define
assets

Enter
Reqs/
POs in
PO

Interface
Enter
supplier
invoices

External
Trans.

Enter
project

Enter Time
Enter
budget

Baseline
budget

Place
Placeasset
asset
in
inservice
service

Import to
G/L

Trans.
Import
Upload

Enter
preapproved
expenditures

Adjustments

Generate
Generate
asset
asset
lines
lines
Review
Review
&&adjust
adjust
asset
asset
lines
lines

Interface
Distribute
costs

Interface
Interface
to
toOracle
Oracle
Assets
Assets

Define a Capital Project

Create a capital project for each asset
or group of
assets that is being constructed.
Project setup defines:
Which costs are capitalized
How costs are summarized to Oracle
Assets by expenditure groupings and
WBS
Which costs are assigned to which
assets

Define the Asset

The capital project definition (WBS) is used to
define the assets which will be built. Each
asset is defined with the following:

Asset Name

Asset Description
Asset Key on Project Assets (New in R11i)
Asset Category defaults rules by book

Cost Accounts
Depreciation Account
Depreciation Rules

Asset Grouping
When assigning assets to projects or tasks
you will
choose one of the following :
Specific Assets: Select this option to
associate assets with the project or task.
Common Costs: Select this option to
group projects or tasks that capture
costs you want to allocate to multiple
assets.
Option to send Supplier Invoice Details
to Oracle Assets (New in R11i)

Define the Assets

Project A

Task 2

Task 1

Task 3

Asset A

Common Cost

Task 2.1

Task 2.1.1

Task 2.1.2

Asset A

Asset B

Task 2.2

Asset C

Task 2.2.1

Task 2.2.2

Capital Project Cost

Collection
Comprehensive online inquiry and reporting

Identify
business
terms
and rules

Collect costs

Define projects

Define
assets

Enter
Reqs/
POs in
PO

Interface
Enter
supplier
invoices

External
Trans.

Enter
project

Enter Time
Enter
budget

Baseline
budget

Place
Placeasset
asset
in
inservice
service

Import to
G/L

Trans.
Import
Upload

Enter
preapproved
expenditures

Adjustments

Generate
Generate
asset
asset
lines
lines
Review
Review
&&adjust
adjust
asset
asset
lines
lines

Interface
Distribute
costs

Interface
Interface
to
toOracle
Oracle
Assets
Assets

Project Cost Collection

Expense

Accounts
Payable
Internet Expenses
Fixes Assets

Projects
Hours
Request

Internet
Procurement

Internet
Time

General
Ledger

Assets Placed in Service

Comprehensive online inquiry and reporting
Identify
business
terms
and rules

Collect costs

Define projects

Define
assets

Enter
Reqs/
POs in
PO

Interface
Enter
supplier
invoices

External
Trans.

Enter
project

Enter Time
Enter
budget

Baseline
budget

Place
Placeasset
asset
in
inservice
service

Import to
G/L

Trans.
Import
Upload

Enter
preapproved
expenditures

Adjustments

Generate
Generate
asset
asset
lines
lines
Review
Review
&&adjust
adjust
asset
asset
lines
lines

Interface
Distribute
costs

Interface
Interface
to
toOracle
Oracle
Assets
Assets

Place in Service
Oracle Projects begins the capitalization
process of the
CIP assets when the actual in service date
The placed in service date
is entered.
Can be before the project is complete
Can be a prior date
Can be before the asset is 100%
complete

Review and Assign Asset

Details
Asset transaction
details are assigned to
the assets as
defined in the project set up.
Review for accuracy
Split into multiple assets
Change the asset
Change the description
Assign common costs to asset
Asset Client Extension (New in R11i)
Override

Default Asset Assignment

Assign Common Costs to an Asset

Create Capital Assets

Define capital assets in Oracle Projects,
place the asset in service and send the
associated costs as assets lines to Oracle
Assets.
Create the capital transactions
Begin depreciation
Monitor the asset life
Transfer and/or retire

Accounts

Balance
Sheet

Process Flow
Projects
Subledger

CIP
(Eligible
for
capitalization)

Income
Statement

Expenses
(Not eligible
for
capitalization)

General Ledger
Balance Sheet
Assets
Billed A/R
X
Unbilled A/R
X
Fixed assets
X
CIP
X
Total Assets XX
Liabilities
X
Equity
X
Total L&E
XX

Income Statement
Revenue
XX
Expenses
Contract costs
X
Overhead
X
G&A
X
Total Expenses XX
Net Profit/Loss XX

Fixed Assets
Subledger
Capitalized
Capitalized
asset
asset
amount
amount

Depreciation
Depreciation
amount
amount

Legend
Legend
Periodic
Event driven

Adjustments
You can adjust capital project expenditure
items associated with an asset that has
been placed in service
Split

or transfer costs
Recalculation of burden
Capitalization
Amortized adjustments
Reverse Capitalization
Abandoning a CIP asset

Oracle Projects Complete

Solution

Streamlines
Complete
Project
Customers
People
Lifecycle
Contract
Opportunity Management
Management
Resource
Management

Project
Billing

Intelligence
Projects

Project
Accounting
Project
Administration

Money

Project
Management

Project
Collaboration

Knowledge
Intelligence

Based on a
Common
Repository for
Projects
Customers
People
Documents
Financials

Oracle Projects Complete

Solution

FullyCustomers
integrated with e-Business
People
Contract
Suite
Opportunity Management

Marketing
Lead Generation
iStore
Opportunity Management
Account Management
Collaboration
Customer Intelligence

Management

Project
Billing

Resource
Management

Projects
Intelligence

Recruiting
Contingent Labor
Skills Management &
Professional
Development
Employment Events
Compensation
Benefits
HR Intelligence

Project
Management

Accounting
Travel Management
Project
Billing & Collections
Purchasing & Payables Accounting
Project
Assets
Collaboration
Project
Property Management
Administration
Cash Management & Treasury
Financial Intelligence

Document Repository
Content Management
Publish & Subscribe
Search Engine
Professional
Communities

Knowledge

Money

Intelligence