Upgrade to R12 Now –The International and Multi-National Arena

Presented by:Marsha Edgell, BizTech

Thomas Simkiss, BizTech

Upgrade to R12 Now – OAUG eLearning Sessions

Presentation Date Presenter CompanyUpgrade to R12 Now – A

Financials Overview Jul 19, 2012 Lee Briggs

Upgrade to R12 Now – A Deep Dive into General

LedgerJul 26, 2012 Mohan Iyer

Upgrade to R12 Now – The International and Multi-

National ArenaAug 2, 2012

Marsha Edgell/Thomas

SimkissUpgrade to R12 Now – Improvements in Cost

ManagementAug 9, 2012 Douglas Volz

Upgrade to R12 Now –Manufacturing and Order

ProcessingAug 15, 2012 Bob Bullman

Upgrade to R12 Now – Realizing Enterprise Value

with Projects R12Aug 23, 2012 Mike Lennon

Upgrade to R12 Now – Round Table Discussion Aug 30, 2012 Thomas Simkiss

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Thomas Simkiss – COOOracle Applications Practice Lead

• Professional Summary – Senior functional and technical consultant – 15 + years combined industry and consulting experience– Roles in over two dozen packaged software implementations,

experience with business process redesign and SOX compliance reviews.

– Thomas is a CPA in NJ, and a member of the PA, NJ, and American Bar Association.

• Qualification Summary– Specific areas of Oracle knowledge include releases 10.7 through

12.1.3 in Financials, Manufacturing, Project Costing and Billing, Discoverer, and Reports Developer, and OBIEE RPD development and deployment.

– UPK 3.1 through 11.xMobile: 215-990-9001Email: TSimkiss@BizTech.comWebsite: www.BizTech.com

Prior Experience:

Project Experience:

Lee Briggs, BizTech

• Director, Financials Management Practice• 12 Years of experience as an Oracle Application

implementation consultant• Over 38 Full Cycle implementations• Coordinator of the ADI SIG• Oracle Certified Specialist in General Ledger and Payables• Prior Presentations at Collaborate

– XML Publisher – Taking Reports from Drab to Fab! Collaborate 08 & 09

– FSGs in Release 12: Since ADI Is Not Supported, How Do I Use BI Publisher? Collaborate 10

– Desktop Integrators – You Mean I Can Load Data Straight From a Spreadsheet? Collaborate 11

– Inter and Intra Accounting in R12 – A Deep Dive Collaborate 12

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• Subject matter expert in financial business process - with 25+ years of IT experience in design, development, implementation and process improvement

• Author of “Oracle E-Business Suite Financials R12: A Functionality Guide”,

• Experience of multiple full life cycle implementations• Project Management experience of leading at least 12+

projects to successful completion • Strong experience in conducting workshops on business

processes

• Experience (partial list)

408 859 4484mohan@fscpsolutions.com www.fscpsolutions.com

Marsha EdgellOracle Applications Specialist

• Professional Summary – Senior functional consultant – 20 + years combined industry and consulting experience– Roles in over thirty packaged software implementations– Extensive experience with on-shore / off-shore resource

management, coordination and hiring• Qualification Summary

– Specific areas of Oracle knowledge include releases 10.7 through 12.1.3 in Financials

– PMP Certified– Director of Global IT Operations in a multi-national organization

Mobile:Email: Website: www.BizTech.com

Prior Experience:

Renal Treatment Centers

Project Experience:

Douglas Volz

• Professional Summary – Helping people use Oracle since 1990 for Cost Accounting

and related Financials, Manufacturing and EAM modules. – 30+ years industry, design and consulting experience,

specializing in the design, implementation and project delivery for Cost Management business solutions

– Specific areas of expertise include profit in inventory, inter-company, A/P accruals, multi-org inventory reporting, WIP analysis, inventory reconciliation and margin analysis

– Presenter at Collaborate (OAUG) and UKOUG since 1996– Multi-national experience in twelve countries

• Qualification Summary– Former co-designer for Oracle Cost Management– Lead the OAUG Cost Management Special Interest Group– Prior Accounting and Cost Management industry experience

Sample Project Experience:

+1 510 755 7050doug@volzconsulting.com www.volzconsulting.com

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Bob BullmanOracle Applications Practice Director

Professional Summary:– Professional Supply Chain Consultant (15+ years implementing Oracle Applications)– Held multiple management positions at Oracle with in the Application’s group – Advanced Planning and Distribution optimization expert– R12 Solution Architect ( Manufacturing, Order Management, and Service )– Techno-Functional consultantQualification Summary:– APICS Certified at the Fellow level – Prior certification in Oracle Manufacturing and Supply Chain modules– Bachelors Degree in FinanceProject Experience:– Full suite R12 Financials, Order Management, and Manufacturing, including VAT taxation – Implemented many other R12 and 11i installs, as well as prior version of Oracle including CRM (E-Bus only)– Presented at many different types user groups and professional organizations (APICS, OAUG) – Designed and coded many extensions to the E-Business suite, as well as performed numerous data

conversions.

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Mike Lennon, BizTech

• Managing Partner & Projects Practice Lead

• 15+ Years of experience as an Oracle Application Implementation Consultant

• Over 50 Full Cycle implementations• Prior OAUG Presentations:

– Using HR & Projects – Capture Resource Time & Expense (CWK Flow)

– Implementing FA Book Security– Transforming E-Business Strategy into

Practice – Deploying WorkFlow. – Financial Processing and Reporting

Made Easy with ADI.

• Newborn (Griffin) & Golf

Plan| The Right Strategy Building a Business Case To Upgrade

R12 Upgrade Key Questions …

• Would you like to reduce reliance on IT staff for report creation?• Are you satisfied with the number of days it takes to close at period end?• Do you have a large number of sets of books? • Do you want to improve reconciliation and reporting at period end?• Would you like to increase the efficiency of your tax and payment

processing?• Are you required to maintain multiple accounting representations?• Would you like auditable and transparent accounting entries accessible with

full drilldown?• Would you like to gain efficiency with processing and reporting across

operating units?• Would you like to implement shared service centers?

“Ability to issue one payment instruction to the bank for payments of invoices in multiple operating units was viewed as a huge benefit from the user community.”

“We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets.”

Why Upgrade to R12Straight Talk from Customers

“The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring.”

“Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. The users are very excited and the benefits of MOAC were readily visible to them.”

“Banks, taxes, payments, and accounting – everything that becomes centralized will bring tremendous efficiencies to our organization.”

“The functionality offered with Advanced Global Intercompany System (AGIS), specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area.”

“Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting.”

Plan| The Right Strategy Why Upgrade to R12?

Continued Release and Innovation

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EBSR12

EBS R12.1

EBS 12.1.2

EBS12.1.3

2004 2007 2009 2010 2011

Released

Financials,Technology

Procurement, HCM, Service, SCM, Projects, Financials, Technology, MDM

Functional Innovation

Major Release

Minor Release

EBS11i10

Focus on Opportunities to Achieve Rapid Return

Invest in Ways to Standardize and Simplify with a Global Business Platform

E-Business Suite Release 12.1

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WHAT’S NEW IN 12– Ledgers and Ledger Sets– Rules-based Accounting Engine– Unified Bank Account Model– Centralized Payments– Global Tax Engine– Global Intercompany System

RESULTS– Faster, simpler period end processing– Easily meet local accounting requirements– Streamline intercompany trading and

reconciliation– Adapt quickly to regulatory changes– More productive shared service centers

Legal Entity

Operating Units

UNIFIED BANK ACCOUNT MODEL

ONE GLOBAL TAX ENGINE

• Centrally managed rules

• Consistent tax services

Tax Determination Process

Regime Applicable Taxes

Tax Status, Rate

Taxable Basis

Tax Calculation

CENTRALIZED PAYMENTS ENGINE

Payments Engine

Funds Capture and Disbursement

Greater Control, Increased Flexibility

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A Deep Dive into General Ledger

• “Legal Entity”• Chart of Account qualifiers• Data Access Sets• Ledger Sets• Sub-ledger Accounting (SLA)• Report Manager• Web ADI• Consolidation - Chart of Accounts Mapping

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Legal Entities

What A Legal Entity isan association, corporation, partnership, proprietorship, trust, or individual that has legal standing in the eyes of law

A legal entity has a legal capacity tointo agreements or contracts, assume obligations, incur and pay debts

Why Model the legal structure independently of operational structure and accounting structure

Allow mapping of legal entities to

Accounting Structure – Ledger and balancing segment values

Organizational Structure – Operating Units

Identify legal entity on transactions to enable compliance and support

Legal Reporting – with a plethora of BI Publisher reports

Calculation of Taxes – in the new rules based tax engine (EBTax)

Intercompany – using the Advanced Global Intercompany System

Where A Legal Entity is required in E-Business Suite tax to manage

• A legal entity is created – the first step - in the new Accounting Setup Wizard; and will be part of the Accounting structure

• The legal entity will be associated with the ledger

• Bank Accounts (owns bank accounts)

• Advanced Global Intercompany System (owns transactions)

• E-Business Tax (owns tax registrations/regimes)

Accounting Flexfield Qualifiers

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Chart of Account – New Qualifiers

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• Secondary tracking segment– Allows to manage Cumulative Translation Adjustment, Retained

Earnings and Gain/Loss accounts for a combination of the balancing and a secondary segment

• Intercompany– Allows for automatically balancing transactions between

balancing segment values, both intra- and inter-company (across legal entities)

• Management segment (R12)– Allows securing data for reporting by values in a specific

segment (qualified as Management Segment)

Ledger and Data Access Sets

• Ledger Sets– Can be used to group ledgers into a single bucket– Ledgers MUST have

• Same Chart of Accounts• Same Calendar and period type combination

– Processes that can be performed in unison on a ledger set

• Open/Close periods• Revaluation and Translation• Recurring Journals• Inquiry and Reporting

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Web ADI

• A new framework has been created to enable integration with data creation

• This new framework allows data integration with any Oracle product

• Only few products have pre-delivered solutions (FA, GL, HR, etc..)

• You can create one for AP or SLA or any other product

• The Web ADI is faster and only allows data entry – no reporting

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Report Manager• Replaces the capability to generate FSG

reports in Desktop ADI • Has additional functionality than what was

available in Desktop ADI• Report Manager

– can store reports output in the database as a static source– allows access security to be managed within the reports

repository– allows access to reports via a menu “function”– allows similar reports to be stored with a “period”

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International and Multinational Enhancements

• Subledger Accounting• Secondary Ledgers • Advanced Global Intercompany• Global Financials• eBusiness Tax• Payments

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Subledger Accounting

• Rules based accounting engine allows for multiple representations of the same transaction– Payables invoice in Europe accounted in

• US GAAP• French Statutory Chart of Accounts• IFRS

• Secondary ledgers support currency and historical reporting needs

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Advanced Global Intercompany

• Streamline Intercompany trading, billing, and payments across ledgers and currencies

• Allows compliance with local regulations– Treat intercompany transactions as “arms length”

with AR and AP Invoices • Purge rejected transactions. Preserve

database space

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Financials for EMEA

• Payables Turnover Report • Supplier Statements • Receivables Aggregate VAT Statement • Customer Statements • Regional Cash Desk Report • Account Analysis Report • Account Analysis Detailed Reporting• Enhanced Statutory Report Extracts for Italy

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Financials for India

• Enhanced Tax Support– Fringe Benefit Tax Support– Inclusive Tax Support– Tax Information on Purchase Order Workflow Notification

for India – Reassessing Service Tax on Receipt of Foreign Payments for

India – Display of Value Added Tax (VAT) Invoice Number in

Receivables Transaction Workbench for India

• Retroactive Pricing Support• Payables Invoices Support for India• Advanced Pricing Support for India 28

eBusiness Tax

• Financials for EMEA• Financials for India• Taxes in Payables may be changed from

Exclusive to Inclusive on the fly – Greater support for VAT recovery

• Golden Tax Adaptor Enhancements for Mainland China

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Payments

• Banks are owned by Legal Entities– Payments across operating units supported via MOAC

• Single Euro Payments Area (SEPA) Support

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R12 Cost Management Enhancements

• MOAC – Multi-Org Access Control• Subledger Accounting – OPM & Discrete Costing• COGS Recognition• “As Of Dates” for Inventory Reporting• Re-Designed A/P Accruals

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R12 Multi-Org Access Control

• Mostly affects “operating unit” level functions

• Allows you to access information across multiple operating units without changing responsibilities

• Set up a security profile listing the operating units to access

• Run Security List Maintenance concurrent program

• Assign the security profile using the MO: Security Profile

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• Flexible variance account recognition for:⁻ Invoice price and purchase variances⁻ Average cost adjustment⁻ Standard cost adjustment⁻ Manufacturing variances⁻ Account aliases⁻ Freight charges⁻ Most other inventory, manufacturing and related

account entries

Oracle Discrete Costing and SLA

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COGS Recognition

• In R12 customer shipment entries go to deferred COGS• Revenue and COGS are explicitly matched• AR: “Autoinvoice” & “Revenue Recognition Master Program”

⁻ CST: “Inventory Cost Processor” or “Record Order Management”

⁻ CST: “Collect Revenue Recognition Information”⁻ CST: Then “Generate COGS Recognition Events”

• New Accounting Entries to clear deferred COGS• Use the COGS Revenue and COGS Matching Report

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COGS Recognition – Accounting Entries

“True” COGS

1. Customer Shipment 10102. COGS Recognition

Deferred COGSInventory

1010

• New Accounting Entries to clear deferred COGS

• Use the COGS Revenue Matching Report

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Inventory Value Reports “As Of Date”• Four major reasons for month-end inventory-out-of-balances

⁻ Sharing system accounts leading to poor or no ability to reconcile⁻ Using the same offset account as valuation on miscellaneous inventory transactions⁻ Manual journal entries⁻ Having poor month-end cut-off

• Proper System Setup Fixes the first three (setups and G/L security rules)• Now Inventory Value Reports have an “As Of Date” so you get accurate

month-end valuation reporting

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A/P Accruals• Perpetual A/P Accruals are Completely Rewritten

⁻ Monthly load into summary tables⁻ Excellent detail and summary reporting

(same report/two templates)⁻ A/P Accrual write-offs go to your G/L⁻ Works right out of the box!

• Period End Accruals: ⁻ Calculate Accrual Balances at PO Distribution Level⁻ Period-end accrual entries stored in a separate accounting table and automatically

reversed in the new month⁻ Uninvoiced Receipts Report and Period-End Accruals use same underlying code / same

results

• Challenges with R12 Perpetual A/P Accruals• Only shows your net position, only remaining balances

⁻ Must reconcile month-by-month, cannot go back⁻ Can be difficult to identify reconciliation issues

• Intercompany A/P Accruals are now on the Miscellaneous A/P Accrual Reconciliation Report

R12 Manufacturing and OM

• Engineering (same approvals)• Capacity• Mfg. Scheduling• PO Receiving• Bills and Routings

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Update Material Control in Common Bills

• While retaining a common BOM relationship, users can update the following attributes at the org level:– Operation Sequence– WIP Supply Type– Sub-Inventory– Locator– Include in cost roll-up

• Benefits:Facilitates standardization by deploying common bills while enabling typical organization overrides

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Inventory

• Material Status– Used for Lot control before QA Approval is

complete you can not reserve a lot.• Defining Picking Rules

– Used to only be one for shipping and Discrete Job picking.

– Now you can have many!• OPM Inventory Convergence

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• Material Status control restricts the movement and usage of portions of on-hand inventory.

• Using material status control enables you to control whether you can pick or ship an internal order or sales order, or issue material for a work order. You can also specify whether material needs to be quarantined until you inspect it.

• In addition, you can determine whether products with a particular status can be reserved, included in available to promise calculations, or netted in production planning.

• You assign material statuses at four levels: subinventory, locator, lot, and serial.

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Material Status

• You can create picking rules that enable you to sort picks based on criteria that you define for sales orders, process manufacturing batches, or work in process jobs.

• Oracle Inventory reviews the picking criteria order and the options for each criterion.

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Enhanced Picking Rules

Purchasing/MRP

• Auto-Approval Tolerances for Change Orders• This one is long overdue, still creates new revision.• Changing dates when not using iSupplier can be very time

consuming and most often didn’t require approval.• Buyer Work Center

• HTML PO Summary and change without so many levels.• Easier user interface with all a buyer needs in one html form –

Auto-create PO, create and query PO’s and blankets • Rescheduling of PO from ASCP

– Works well for Planner/Buyer role (i.e. the planner for an item is the buyer too)

• PI Publisher used for PO layout.

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Supplier Management

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Order Management

• Adaptable User Interface• Item Order-ability• Enhanced Inventory Reservations

(Reservations Against WIP)

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Adaptable User Interface

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Item Order-ability• Businesses need to be able to order specific products depending on specific

customers. Instead of being able to view and select all items for all customers in the sales orders window, you can now restrict the item list based on customer and other related criteria.

• If the value of the profile option OM: Use Materialized View for Items LOV (Honours Item Orderability Rules) is set to No, then the Ordered Items LOV lists all the items of the item validation organization of the current operating unit. This doesn't consider the defined item orderability rules, however if there is a defined rule that prevents the item from being ordered, then an error message is displayed during the saving of the order. You will not be able to save the order.

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Installed-Base

• Entirely new HTML user interface...dramatically improved functionality“11.5.10 to be virtually unusable in it’s former state”

• Increased integration across Service Contracts, OM and Field Service allowing easy instance creation, update and transfer

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Oracle Projects 12.1.1New and Enhanced Functionality

• Enhanced Reporting Options and Capabilities• Validate Project & Assignment Dates• Improved Workplan Usability • Enhanced Budget and Forecast Usability• Subcontractor Payment Controls• Stronger Resource Planning Capabilities• Greater Control on Services Spend• Streamlining Cost Adjustment Processing• Adjusting to Contract Changes• Reimbursable Agreement Processing

Project Managers Reporting PackReporting Capabilities

Capabilities: – Access information in disconnected mode– Pre-seeded with several useful reports that can be

customized– Configure the report layout and data– Schedule the creation and distribution of reports– Choose from various types of report output options

Key Benefits:– Allow managers to stay “in the know while the go”– Simple interface to create and modify reports means less

specialized skills required

WHAT’S NEW IN 12.1 Many to Many relationship

between HR Assignment and Purchase Order

Project Distribution based on Timecard Entries

RESULTS Lower costs overall in services spending Helps enforce policy compliance Enhance cash flow by reducing time delays

in transaction processing

Integrated Services ProcurementGreater Control over Services Spend

Enhanced Usability to Plan & Control Planning

• Generate forecast using planned values – In the Generation Options page, select “Copy ETC

from Plan” – You can only enable the new option when

• Plan Type is “Cost Only”

• Time Phasing is enabled in the ‘Plan Settings’ page

• Task Level Selection is enabled on the Edit Planning Options page

• Either “Financial Plan” or “Work plan Resource” is selected as the ETC Source in the Edit Planning Options page

• Change Document and Open Commitment are not enabled in the Generation Options page

• Reduced the number of steps to complete tasks

• Improved overall look & feel

Improved Usability• Uptake of Fusion technology• Increased personalization capabilities

UI ImprovementsBetter User Experience

• New Favorites Menu

• New Navigator Menu

• New Home Page

• Cross Project Work Lists

• New Hover and Pop-up Windows

UI ImprovementsSample of hover over pop-up

» Hover your cursor on Project Number in the project list table to view project details

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Make Better Decisions with Greater InsightProject Analytics

WHAT – Complete solution for project

business lifecycle reporting

– Role-based best practices provide relevant and actionable insight

HOW – Actionable insight for improving

project portfolio performance

– Track project/program performance and control project costs

– Complete insight into project revenue, billing and profitability

RESULTS– Improve cash flow – Optimize resource utilization– Accelerate deliveries– Lower operational costs– Improve margins– Reduce project and financial risk

ANALYSIS & METRICS BENEFITSFunding and Budgets

• More timely, informed decisions at all levels of the Project organization

• Control Project costs before they impact Project profitability

• Maximize cash flow with better insight into payables, commitments and billings

• Control the risk of overall project portfolio

• Control the budgets and Improve the profitability

• Identify at-risk projects and initiate corrective actions

• Empower project team with the ability to manage projects better

Project Cost

Project Revenue and Billing

Project Profitability

• Agreement Amount• Baseline Amount• Allocated Amount• Original Cost Budget • Current Cost Budget

• Original Revenue Budget • Current Revenue Budget• Forecast Cost Budget• Forecast Revenue Budget• ITD, QTD, YTD Metrics

• Burdened Cost• Burden Cost• Raw Cost• Equipment Cost• Equipment Efforts

• People Cost• People Efforts• Billable Cost• Non-Billable Cost• ITD, QTD, YTD Metrics

• Revenue Amount• Revenue Quantity• Unbilled Receivables• Unearned Revenue• Invoiced Amount

• # of Approved Invoices• Retention Billed• Retention Withheld• Write-off Amount• ITD, QTD, YTD Metrics

• Margin• Margin-ITD• Margin Percent• Margin Percent -ITD• Forecast Margin

• Margin Change • Cost Variance• Forecast Cost Variance• ETC Burdened Cost• ETC Revenue

Oracle Project Analytics Better Manage Projects and Improve Profitability

Project Analytics – Key Objectives and Questions by Role

Project Executives

Actionable Insight for Improving Project Portfolio Performance

• What are my top 10 profitable projects?

• What are At-Risk projects?• Which organization is doing better?

• What is the overall health of my project portfolio?

• How is my cash flow? How do I Improve?

• Where do I invest more?

Project andProgram Managers

Track Project / Program Performance and Control Project Costs

• What is the overall health of my project/program?

• What is my cost variance? Where I am spending more?

• How do I optimize the project resources

• How well am I meeting the project goals and stakeholder expectations?

ProjectAccountants

Complete Insight into Project Revenue, Billing and Profitability• What is the total agreed amount from

the contract for a project?• How much of the funding amount has

been billed?• What is the current and expected

profitability based on the current status

• How much backlog was lost and which projects were responsible for this?

• How do current billings compare with billings from the previous period?

• How many invoices pending for approval?

Role-Based Best Practices Provide Relevant and Actionable Insight for Everyone

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Contact InformationThomas Simkiss, JD, CPATsimkiss@BizTech.com

Lee BriggsLbriggs@BizTech.com

Bob BullmanBbullman@BizTech.com

Mike Lennon, CPAMlennon@BizTech.com

Mohan Iyermohan@fscpsolutions.com

Marsha EdgellMedgell@BizTech.com

Douglas Volzdoug@volzconsulting.com 58