Oracle Project Implementation Strategies
Agenda ■
Oracle Project Presentation
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Roles and Responsibilities (Identifications of Core Team)
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Implementation Strategy (which Projects / Locations)
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Training Strategy (Key User and End user)
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Overview of Oracle Project The purpose of Oracle Projects is to t o track and control work (or activity) on a project. ■
You track activity on a project by comparing actual activity with expected activity.
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Record actual activity as actuals (transactions).
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Record expected activity in a budget .
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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 4
How to Use Oracle Projects The following is a typical process flow using Oracle projects: ■
Create a project
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Enter a budget
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Collect actuals (transactions)
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Process cost, revenue, and invoice transactions
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Capitalize asset costs
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Perform analysis/reporting 5
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
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Project Classes You can use three predefined project classes to track the following types of information: ■
Indirect projects: Track overhead activities and costs.
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Capital projects: Track product/asset development activities and costs. Costs are capitalized as one or more assets.
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Contract projects: Track activities, cost, revenue, and billing for work performed for and reimbursed by an internal or external customer. 8
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?
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Labor utilization ► What
types of skills are used on projects?
► What
percent of employees are billable?
► Can
labor costs be recovered? 9
Information in Oracle Projects Funding
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► 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? 10
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
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Flexible revenue accrual
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Profitability and performance measurements
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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 Center—Account 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. 14
Work Breakdown Structure ■
Your project, which consists of one or more tasks, can be as simple or detailed as you want it to be.
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You can define an unlimited hierarchy of tasks, called a work breakdown structure (WBS), to organize and monitor project activities. Project
Task 1
Task 1.1
Task 1.2
Task 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
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Expense reports
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Usage logs
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Posted supplier invoice (posted to GL)
You also record committed costs. For example: ■
Requisitions
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Purchase orders
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Pending supplier invoices (not posted to GL) 16
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.
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Oracle Self-Service Time and Expenses: Input labor and expense charges using Oracle Self-Service applications.
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Oracle Purchasing and Oracle Payables: Import charges from requisitions, purchase orders, and supplier invoices.
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Transaction Import: Import charges collected in external systems. 17
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
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Distribute costs using target percentages
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Prorate costs based on actual or budgeted amounts
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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).
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Burden cost: The cost of running the business that supports the raw cost (also referred to as indirect cost).
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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 21
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. 22
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 Oracle Human Resources
Payroll Service
External Transaction
Project Management
Timecards
Actuals Reference Employees and Organizations
Import
Fixed Assets
Assets
Oracle Inventory
Plan
Usages
Oracle Projects
Issues and Receipts Reference Customers Invoices
Report Committed Costs
Expense Reports
Adjustments
Accounts Receivable
Post Post Cash
Supplier Invoices, Invoice Adjustments
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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