Project Financial Planning

Ian Boyling, ERP Director and Lead

Consultant

Prōject (EU) Ltd

iboyling@project.eu.com

Agenda

• Introduction to Prōject and Ian Boyling

• Project Financial Planning – Options

Project Costing – Budgets and Forecasts

Project Management - Financial Plans

• Financial Planning within Oracle Project Management - Overview

• Financial Plans

Plan Types

Create and Maintain

• Performance Reporting

• Other Project Management touch points

• Oracle Financials and Projects

Consultant

• Global implementation

experience

• Cross Industry Experience

• Oracle Certified Professional

for 12 years

• Fin Mgt and Projects (1st

globally) Implementation

Specialist

• UKOUG Fin SIG Deputy Chair

Introduction to Prōject and Ian Boyling

• Worlds first specialised partner

for Projects

• Financial Mgt Specialist

• Only Oracle Gold partner in

EMEA to have achieved the

OBIEE and BI Apps specialism

• Prōject were a UKOUG

“Partner of the Year” award

winner for Oracle E-Business

Suite, Projects and Business

Intelligence and Pub Sec 2012

Project Financial Planning - Options

• Project Costing – Budgets and Forecasts

Core Forms

Limited in Functionality

In System Queries limited

• Project Management - Financial Plans

HTML Pages

Extensive functionality and planning options

Additional comparative analysis with PJT

Managing budgets and forecasts

Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

• Entering and Maintaining Budgets and Forecasts

Budgeting and forecasting

Create budgets and forecasts to manage the

financial performance of a project.

Model financial

impact of planning

alternatives.

Compare budget and

forecast amounts to

actuals.

Plan types and plan versions

Version 1 Version 2

Plan Type 2

Plan Type 1

Version 1 Version 2

Create multiple working and baseline versions for each

plan type.

Project

Budget and forecast security

Responsibility-Based

Security

Role-Based

Security

Organization

Authority

Oracle Projects Security Mechanisms

Budgets and Forecasts

Budgetary controls and budget integration

Budgetary Controls

Monitor and control

expense commitment

transactions for projects

based on a project cost

budget.

Budget Integration

Integrate project budgets

with budgets in Oracle

General Ledger.

Optionally, implement and use budgetary controls

and budget integration features.

Submitting budgets and forecasts and creating baselines

Enter Budget/Forecast

Submit Budget/Forecast

Rework Budget/Forecast

Create Baseline

Flow for submitting budgets and forecasts and

creating baselines

Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

• Entering and Maintaining Budgets and Forecasts

Budget process flow

Implement

Change

Document

Financial Impact

Create

Initial

Budget

Baseline

Update

Budget

Create

Initial

Budget

Create

Project

Adjust and

Recalculate

Create

Revised

Budget

Baseline

Create

Initial

Forecast

7

1 2 4 5

6

8

Copy

Amounts

Generate

Direct

Edit

Budget Creation Options 3

Forecast process flow

Copy

Amounts

Generate

Forecast Creation Options

Direct

Edit

3

1 2 5 Create

Initial

Budget

Baseline

Create

Initial

Forecast

(Automatic)

Update

Forecast

Approve

Forecast

Adjust and

Recalculate

6

Estimate to Complete (ETC) Sources

Average

Of Actual

Amounts

Incurred

Workplan

/Staffing

Plan

Financial

Plan

Change

Documents

Billing

Events

Open

Commitment

4

Work

Quantity

Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

• Entering and Maintaining Budgets and Forecasts

Plan types and plan versions

Plan Type

Plan Type

Plan Type

Plan Versions

Plan Versions

Plan Versions

Original

Baseline

Working

Working

Current

Working

Version

Baseline

#2

Current

Baseline

Plan Versions

You can have multiple plan types and plan versions for a project.

Add plan types

You can add multiple plan types.

Approved

Revenue Budget

Forecast

Revenue Budget

Approved Cost

Budget

Forecast Cost

Budget

Plan Types

Planning options: plan settings

4. Generation Options

1. Plan Settings

2. Currency Settings

3. Rate Schedules

Flow for defining planning

options

5. Microsoft Excel Options

Planning options: plan settings

Uncategorized, Project Level:

Project 100,000.00

Categorized, Project Level:

Labor 50,000.00

Supplies 25,000.00

Equipment 25,000.00

No resource list Use resource list

You can choose to create categorized or

uncategorized budgets and forecasts.

Planning options: planning levels for budgets and forecasts

Project

Top Task 1 Top Task 2

Task 1.1 Task 1.2 Task 2.1 Task 2.2

Task 2.1.1 Task 2.1.2

Define the level of detail at which you enter plan

amounts. For example, you can choose to enter

amounts at the top task level.

Maintaining plan versions

Create budget plan version

Maintain Budget

Versions Page

Working Version

Submit, rework, and perform

maintenance activities

Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

• Entering and Maintaining Budgets and Forecasts

Generating budgets

New Budget

Version

PRC: Generate Financial

Plan Amounts

Run the concurrent program, PRC: Generate Financial Plan Amounts,

to generate new budget versions.

Define budget

generation planning

options

Budget sources

Budget Sources

Staffing Plan

Workplan

Financial Plan

Optional: Open Commitments

Optional: Change Documents

Optional: Billing Events

Oracle Projects generates budgets from the source

you specify in the planning options.

Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

• Entering and Maintaining Budgets and Forecasts

Generating forecasts

You can use information from workplans and actual

amounts to generate a forecast.

Project forecast PRC: Generate Financial

Plan Amounts

Forecast

generation

sources

Generating forecast costs

Oracle Projects calculates ETC quantity and cost based on the following

criteria:

Staffing Plan Workplan resources

and financial plan

Average of actual

transactions

Additional forecast generation sources

Additional sources you can use to generate forecast amounts.

Open Commitments Billing Events

Change Documents

Generating forecast revenue

Oracle Projects calculates forecast revenue based on the revenue accrual

method associated with the project, such as:

Cost-Based Event-Based Work-Based

Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

• Entering and Maintaining Budgets and Forecasts

Entering amounts and editing plan versions

Examples of tasks you can perform while editing a plan version.

Enter and edit plan

amounts.

Copy amounts from

another plan version

Edit the planning

options

Edit plan amounts in the

Edit Plan pages

Download plan version to

Microsoft Excel

Adjust amounts by a

percentage

Integration with Microsoft Excel

Oracle

WebADI

Oracle

Projects

Microsoft Excel

You can perform budgeting and forecasting activities in

Microsoft Excel, and upload the data to Oracle Projects.

Copying budgets and forecasts

Copy

Copy existing budgets and forecasts when you create a

project by copying a project template or project.

Project or project

template with

budget/forecast

New project with

budget/forecast

Copying budget and forecast amounts within a project

Copy

For example, copy a plan version from another plan

version within the same project.

Version 1 Version 2

Implementing budgeting and forecasting

Agenda

• Budgeting and Forecasting Setup

• Extensions and Workflow

Budgeting and forecasting implementation steps

Budgeting and Forecasting Implementation Steps (Page 1 of 2)

No Implement integration with Microsoft Excel

No Create additional spread curves

No Create additional period profiles

No Define budget change reasons

Define financial plan types

Steps for Implementing Budgeting and

Forecasting

Required?

Yes

Budgeting and forecasting implementation steps

Steps for Implementing Budgeting and Forecasting Required?

Define additional budget types No

Define additional budget entry methods No

Implement budgetary controls No

Implement budget integration No

Implement client extensions for budgeting and

forecasting

No

Implement workflow for budgeting and forecasting No

Budgeting and Forecasting Implementation Steps (Page 2 of 2)

Implementation steps related to budgeting and forecasting

Related steps for implementing budgeting and forecasting

Related Steps for Implementing Budgeting and

Forecasting

Required?

Define planning resources No

Define resource breakdown structures No

Define planning rate schedules No

Project performance reporting

Project performance reporting summarization

Summarization is a two-step process.

Oracle Projects

Transaction Data

Base Summary

Of Reporting Data

Summary Data by Organization

Summary Data by Project

Reporting by project

Financial Performance

Cost

Effort

Revenue

Earned Value

Billability

Billing and Collections

Example of the performance areas you can see on the overview page

layout for each project type.

Reporting by task

Project

Task 1 Task 2

Example of viewing financial information such as actual cost and actual

revenue at the task level of a financial structure. These amounts are

rolled up to the project level.

Financial Structure

Actual Cost

Actual Revenue

Task 3

Reporting by resource

0 - RBS Version

1. Consulting East

1.2 Amy Marlin 1.1 Consultant

Cost Effort Profitability

Example of viewing cost, profitability, and effort for resource Amy Marlin

from a resource breakdown structure.

Periodic view

Cost Revenue Margin

April 2007

Cost Revenue Margin

May 2007

You can use the Periodic View page to compare project performance

reporting information for a specific calendar and currency across several

months, quarters, or years.

(USD)

(USD)

To-date view

Prior Period

Period-To-Date

Quarter-To-Date

Year-To-Date

Inception-To-Date

Example of the available to-date views in which you can view financial

information for a project through a particular point in time.

Other PJT Touch Points

• Performance Reporting / Exception Reporting

• Status Reporting

• Expenditure Inquiry

• Project Lists

• Work Plans vs Financial Plans

• Deliverables

• Change Control

• Project Resource Management

• ........and of course, Business Intelligence possibilities

• Endeca – Project Extensions

Endeca

• Manage Potential Schedule

Delays

• Warn Project Managers of late tasks

before they affect project deadlines

and budgets

• Provide visibility to act on tasks

behind schedule to keep project on

track

• Reduce Project Administration

Costs

• Identify tasks impacted by schedule

and resource changes

• Quickly and consistently update

impacted tasks

• Focus Project Managers on

Delivery

• Quickly identify and act on projects

where costs are at risk of exceeding

planned amounts

• Alert users to project schedules

requiring remedial or preventive

actions

Endeca

Mancini should have used Oracle Project Management!

Useful Links

Prōject Web Site

Chart of Accounts Oracle Scene Article

Oracle Projects Specialism

Oracle Financial Management Specialism

EBS Blogs from Prōject

Oracle E-Business Suite Training Courses and Events from Prōject

Oracle Projects Training from Prōject