Oracle Project Accounting/ContractsPresentationIntegration Overview

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What does OKE stand for?OKE is an acronym for Oracle Project Contracts

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OKE Project ScopeDefining, implementing, and training employees on standard processes and technology for integrated contract execution and management

Converting active contract dataConverting contract data related to active Construction projects from legacy system and Oracle Purchasing to OKE (8 Construction Projects)

Scanning those contracts and related documents and saving them to Documentum

ContractExecutionBusinessDocumentManagementContractChangeManagementRequisition/PurchaseOrderProjectCloseoutReporting and AnalysisProcesses:Technology:

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What is OKE?A repository for contract financials and reporting informationA structure for executing and managing contracts and their related documents (e.g. letters of intent, business documents, and change orders)A tool to link to contracts and business documents in Documentum

A tool for contract creation--you cannot print out your final contract from OKEGenerating additional workIntuitive--it will take some practice to get used to its functionality

OKE is...OKE is not...

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BenefitsConsistent contract processes and technologyAutomated reminders to facilitate contract complianceSingle data entry point for contract informationOne version of the truthReal-time access to comprehensive contract data in a single contract repositoryEnhanced reporting capabilitiesCompliance with Sarbanes-Oxley ActIntensive use of Oracle Workflow for approval authorizationsHow will you benefit from OKE?

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BackgroundSystems view

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High-level Execution/Management ProcessBusinessDocumentManagementChangeManagementProjectCloseoutReporting and AnalysisContractExecutionRequisition/PurchaseOrderContract ExecutionEnter letter of intent and contract information in OKEUtilize approval workflowsAccess contract documents via DocumentumBusiness Document ManagementSend and receive business documentsEnter business document information in OKEAccess business documents in DocumentumRequisition/Purchase OrderInitiate requisitions via OKEImport and autocreate requisitions into POs in Oracle PurchasingChange ManagementEnter trends, internal contract adjustments, and change ordersProject CloseoutClosing contracts and the projectReporting and AnalysisInquire on contract dataRun contract reports

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Integration Points of OKE with Other SystemsOracle ProjectContractsOracle ProjectAccountingDocumentumOraclePurchasingTrendsRequisitionsDocument ImagesCommitmentsOracleAccountsPayableActuals

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What is a Project?A Project is a body of work to which costs are charged and trackedA Project can be made up of one or many tasks, which identify the specific breakdown of the project workThe hierarchy of tasks is called the Work Breakdown Structure (WBS)Project

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What is a Project Template?A Project Template is a pre-defined WBS structure that can be copied and modified to create new projectsMirant has various groups of templates/projects

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Template Example - Construction00Indirect Accounts01Sitework & Demolition02ConcreteConstruction

TemplateTasks0200000Boilerhouse HRSG Slabs000Home Office Administrative Charges010Site Prep, Grading & Improvement020Powerhouse Concrete0203000Turbine / Generator Equipment Foundation0204000Misc. Powerhouse Equipment FoundationsSub-TasksLowestLevelSub-Tasksfor 020

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What is a Parent Project?Organization of multiple sub-projects under a primary projectAllows inquiry across sub-projects

BusinessDevParent (Master)Sub-ProjectsBusiness Development Tasks TasksFinanceOps & MaintEquipmentConstructionFinance Tasks Operations & Maintenance Tasks Equipment TasksConstruction Tasks(Cost Codes)

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Changes in Project Accounting Example - Contract to POOracle Project ContractsContractDeliverables Tracking SystemBudget$ X$ X$ X$ X$40MCommitments$ X$ X$ X$ X$35M

Actuals$ X$ X$ X$ X$0MForecast toComplete$ X$ X$ X$ X$0M

Forecast atCompletion$ X$ X$ X$ X$35M

VarianceRequisitionPOBoard ApprovedProject BudgetProject Status Inquiry (PSI) in Project Accounting$ X$ X$ X$ X$5M

Oracle PurchasingCommitmentsOracle Project AccountingBDConstructionFinanceO&MEquipment$40M$35M$0M$0M$35M$5MParentProjectMirant agrees to buy engineered equipment from a vendor for $35M.(Updated Weekly)(Updated Nightly)(Updated Nightly)

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Changes in Project Accounting Example - InvoicePOOracle PurchasingInvoiceOracle PayablesActualsOracle Project AccountingProject Status Inquiry (PSI) in Project AccountingVendor sends Mirant a progress billing for $10M.Budget$ X$ X$ X$ X$40MCommitments$ X$ X$ X$ X$25M

Actuals$ X$ X$ X$ X$10MForecast toComplete$ X$ X$ X$ X$0M

Forecast atCompletion$ X$ X$ X$ X$35M

Variance$ X$ X$ X$ X$5M

BDConstructionFinanceO&MEquipment$40M$25M$10M$0M$35M$5MParentProjectBoard ApprovedProject Budget(Updated Weekly)(Updated Nightly)(Updated Nightly)

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Changes in Project Accounting Example - TrendOracle Project ContractsForecast to CompleteOracle Project AccountingProject Status Inquiry (PSI) in Project AccountingMirant realizes the equipment may cost $40M instead of $35M.Budget$ X$ X$ X$ X$40MCommitments$ X$ X$ X$ X$25M

Actuals$ X$ X$ X$ X$10MForecast toComplete$ X$ X$ X$ X$5M

Forecast atCompletion$ X$ X$ X$ X$40M

Variance$ X$ X$ X$ X$0M

BDConstructionFinanceO&MEquipment$40M$25M$10M$5M$40M$0MParentProjectBoard ApprovedProject Budget(Updated Weekly)(Updated Nightly)(Updated Nightly)TrendDeliverables Tracking System

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Changes in Project Accounting Example - Change OrderProject Status Inquiry (PSI) in Project AccountingMirant and Vendor agree the equipment will cost $39M.Budget$ X$ X$ X$ X$40MCommitments$ X$ X$ X$ X$29M

Actuals$ X$ X$ X$ X$10MForecast toComplete$ X$ X$ X$ X$0M

Forecast atCompletion$ X$ X$ X$ X$39M

Variance$ X$ X$ X$ X$1M

BDConstructionFinanceO&MEquipment$40M$29M$10M$0M$39M$1MParentProjectOracle Project ContractsChange OrderDeliverables Tracking SystemPOOraclePurchasingCommitmentsOracle ProjectAccountingBoard ApprovedProject Budget(Updated Weekly)(Updated Nightly)(Updated Nightly)Trend

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How many of you have waited on contracts because of Legal review?Have you heardWell, Richard does it this way, but Jack prefers to.?Has any one seen the Parent Guarantee for the project?How many times have you tracked down binders and sifted through tens of pages to find what you are looking for?Have you heard, Jeff Hill can get you that information.

Describe each of the 6 major components of OKE: Contract ExecutionBusiness Document ManagementPurchase OrderChange ManagementProject CloseoutReport and AnalysisMention that we will cover each one of these in-depth over the next 2 days.OKE is integrated with three other applicationsDocumentumOracle Project AccountingPurchasing

OKE integrates with Documentum to store Business Document images, contract images, and change ordersOKE integrates with Project Accounting to store contract/project financials. For example, when change orders are completed in OKE, the change in financials is reflected in Project Accounting.OKE integrates with Oracle Purchasing to requisitions items for contracts. You will no longer use Oracle Purchasing to requisition items. Instead, all requisitions are done in OKE and then imported by the Buyer from OKE to Purchasing.Coding is the writing of project and task or account distribution information on an invoice, purchase order, requisition, timesheet or expense report so the document and its accounting is entered correctly in the system.Creating a parent project and associating sub-projects with itAt the direction of a project manager, the Project Control Group (PCG) sets up a parent project like any other project, except enters Parent Project in the Type field (rather than Capital, Administrative, etc.).The PCG sets up the sub-projects to be associated with the parent project. The association to the parent project is made in the Classifications region of each sub-project by selecting Parent Project Number in the Category field and then selecting the project number of the parent project in the Class Code field.The PCG can associate a sub-project with a parent at any point during the project life-cycle. It is not necessary to make the association at the time the project is created. There may be special considerations with the integration between Oracle Project Accounting and Oracle Project Contracts.