Oracle R12 Project

 Introduction:

    Oracle Project Costing and Billing provides an integrated cost management solution for all projects and activities within an enterprise. With Project Costing you can manage costs across currency and organizational boundaries Where as using Oracle Project Billing provides you with the ability to simplify your client invoicing, improve your cash flow, and measure the performance and profitability of your contract projects.

Overview:

1. Create Contract Project type, project template
2. Create Agreement against the customer
3. Define Bill rate schedule
4. Enter time and expenses against the project
5. Generate Revenue and Invoices
6. Transfer to Receivables
7. Transfer to General Ledger

Integration of Oracle Projects with other Oracle Modules:

Key Concepts:

Project: (PA_PROJECTS_ALL)

    A unit of work that requires resources to produce measurable results. A project can be broken down        into one or more tasks.

Task: (PA_TASKS)

    A subdivision of project work. Each project can have a set of top tasks and a hierarchy of subtasks        below each top task. 

Project/Task organization:

    The Organization that owns the project or task. This can be any organization in the list of values for         the project setup. The Project/Task Organization LOV contains organizations of the Project/Task          organization Type in the Organization Hierarchy and Version below the Start Organization. You             specify your Start Organization and Version in the Implementation Options window.

Agreement: (PA_AGREEMENTS_ALL)
    A contract with a customer that serves as the basis for work authorization. An agreement may represent a legally binding contract, such as a purchase order, or a verbal authorization. An agreement sets the terms of payment for invoices generated against the agreement, and affects whether there are limits to the amount of revenue you can accrue or bill against the agreement. An agreement can fund the work of one or more projects.
Project Template: (PA_PROJECTS_ALL)

    A standard template you create for use in creating other projects. You set up project templates that have features common in the projects you want to create.

Invoice format: 

    The columns, text, and layout of invoice lines on an invoice.

Expenditure type: (PA_EXPENDITURE_TYPES)

     An implementation-defined classification of cost that you assign to each expenditure item. Expenditure types are grouped into cost groups (expenditure categories) and revenue groups (revenue categories)

Expenditure category: (PA_EXPENDITURE_CATEGORIES)

    An implementation- defined grouping of expenditure types by type of cost. For example, an expenditure category with a name such as Labor refers to the cost of labor.

Auto Accounting: 

    In Oracle Projects, a feature that automatically determines the account coding for an accounting transaction based on the project, task, employee, and expenditure information.

Auto Accounting Lookup Set: 

    An implementation-defined list of intermediate values and corresponding Accounting Flexfield segment values. Auto Accounting lookup sets are used to translate intermediate values such as organization names into account codes.

Auto Accounting parameter: 

    A variable that is passed into Auto Accounting. Auto Accounting parameters are used by  Auto Accounting to determine account coding. Example Auto Accounting parameters available. for an expenditure item are the expenditure type and project organization. Auto Accounting parameters are predefined by Oracle Projects.

Auto Accounting Rule:

    An implementation-defined formula for deriving Accounting Flexfield segment values. Auto Accounting rules may use a combination of Auto Accounting parameters, Auto Accounting lookup sets, SQL statements, and constants to determine segment values.

Bill rate schedule: (PA_BILL_RATES_ALL)

    A set of standard bill rates that maintains the rates and percentage markups over cost that you charge clients for your labor and non-labor expenditures.

Revenue category: 

    A revenue category describes a source of your organization's revenue. For example, a revenue category with a name such as Labor refers to labor revenue.

First bill offset days: 

    The number of days that elapse between a project start date and the date that the project’s first invoice is issued.

Setup Overview

Setting up is the process where the Oracle Applications Modules will be configured to meet the

requirements of an organization based on their requirements.

Following are the steps involved in the setting up Oracle Projects Billing Module. However before configuring the Project Billing ensure whether the following Prerequisites are complied with:

Pre-requisites:

•     Ensure that required organizations are setup
•     Create an Project Super User responsibility for the Operating Unit (OU)
•     Attach relevant Profile options (e.g. Set of Books) to the responsibility
•     Perform the setups in the same order as suggested below

Project Billing Setup:

Setups

Billing Implementation Options:

Navigate to the Implementation Options Screen.

NAVIGATION : PROJECTS -> Setup -> System -> Implementation Options

Operating Unit:

    It’s a new feature in R12. You can define your Implementation options based on your Operating

    Units. It means that from a single responsibility you can Define/Query Multiple Operating Unit based

    Implementation Options Set Ups. The same feature was not available in previous releases.

     

Ledger:

    In R10.5.10 the same information was defined under Set of Books Tab. In R12 the name has been 

    changed to Ledger. If you are implementing Oracle Projects for a single organization, then you must 

    specify a set of books to tell Oracle Projects which set of general ledger books to use. If your 

    implementation of Oracle Projects is for multiple organizations, Set of Books is a display-only field. 

    Its value defaults from the Legal Entity for the operating unit.

Summarization Period Type:

    summarization period type is used when updating project summary amounts.

Calendar Name:

    When you implement Oracle Projects, you can select the calendar used to maintain PA periods.

PA Period Type:

    Specify a Period Type, which is used to copy Project Accounting Periods from the calendar 

    associated with the GL Set of Books.

Maintain Common PA and GL Periods:

    When this option is enabled, the system automatically maintains PA period statuses as you maintain 

    the GL period statuses.

Default Asset Book:

    Optionally, select a default asset book from the list of values. The value that you select for this

    field will be the default value for all project assets that you create. You can override the default value 

    at the asset level.

Default Reporting Organization Hierarchy:

    You specify an organization hierarchy and version to indicate which organization hierarchy you want 

    Oracle Projects to use as the default reporting organization hierarchy.

Define Work Type (PA_WORK_TYPES_B, PA_WORK_TYPES_V)

Work types are an implementation-defined classification of work performed. Work types are used to classify both actual and forecast amounts. Examples are Billable, Non-Billable, Training, and Personal. Work types are grouped together by Utilization Categories.

NAVIGATION : PROJECTS ->Setup -> Utilization ->Work Types

• Enter Work Type name in the Name field.
• Enable the Billable Check Box if you want the work type to be billable
• Enter Description if required
• Enter the Effective start and end dates for the work type.
• Click on Utilization Tab and select the utilization category from list of values
• Enter the Weighting Percentage as 100.
• Select the utilization category from list of values under the Organization Region.
• Enter the Weighting Percentage as 100

Define Expenditure Types (PA_EXPENDITURE_TYPES)

An expenditure type is a classification of cost that you assign to each expenditure item you enter in Oracle Projects.

NAVIGATION : PROJECTS ->Setup -> Expenditure -> Expenditure Types

1. Name: Enter a unique name for the expenditure type
2. Expenditure Category and Revenue Category : Enter the expenditure category and revenue category you want to associate with this expenditure type.
3. Unit of Measure: Enter the unit of Measure you want Oracle Projects to use when calculating the cost for this expenditure type. You must enter Hours for labor expenditure types.
4. Tax Classification Code: This is a new feature in R12. You need to click Tax Classification Code and select the tax classification code for customer invoice lines for this expenditure type and operating unit. Oracle Projects uses this code as the default tax classification code based on the Application Tax Options hierarchy that you define in Oracle E-Business Tax for Oracle Projects and the specified operating unit.
5. Rate Required : If this expenditure type requires a cost rate, check the Rate required check box, then choose Cost Rate to navigate to the Expenditure Cost Rates window and enter a cost rate and its effective date(s).
6. Description and Dates: In the Description, Dates region, enter a description for the expenditure type. You can optionally enter effective dates for the expenditure type. 
7. Expenditure Type Classes: In the Expenditure Type Classes region, enter the Expenditure Type Class or classes you want Oracle Projects to associate with This expenditure type, to determine how to process the expenditure item.