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Oracle Project Implementation Strategies
Agenda
Oracle Project Presentation
Roles and Responsibilities (Identifications of Core Team)
Implementation Strategy (which Projects / Locations)
Training Strategy (Key User and End user)
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Overview of Oracle Project
The purpose of Oracle Projects is to track and controlwork (or activity) on a project.
You track activity on a project by comparing actual
activity with expected activity.
Record actual activity as actuals(transactions).
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
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How to Use Oracle Projects
The following is a typical process flow using Oracle
projects:
Create a project
Enter a budget
Collect actuals (transactions)
Process cost, revenue, and invoice transactions
Capitalize asset costs
Perform analysis/reporting
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Overview of Oracle Projects
You define a project and work breakdown structure
(WBS) to record work and process transactions asyou 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 billinginformation
Single- or multiple-organization usage
Function or project securitycontrols
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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 andDevelopment
Product/AssetDevelopment
Cost of product/assetdevelopment
Cost capitalization
Capital projects
Services
Customer billing
Professionalservices consulting
Construction/
engineering
Governmentcontractors
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.
Capital projects: Track product/asset development
activities and costs. Costs are capitalized as one or
more assets.
Contract projects: Track activities, cost, revenue,and billing for work performed for and reimbursed by
an internal or external customer.
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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 timeperiods?
Labor utilization
What types of skills are used on projects?What percent of employees are billable?
Can labor costs be recovered?
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Information in Oracle Projects
Funding
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 recoveredwith current bill rates or markups?
Are all costs allocated from service centers to served
organizations?
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Oracle Projects Central Repository
Oracle Projects is a central repository that provides aOracle Projects is a central repository that provides a
completely integrated cost management solution forcompletely integrated cost management solution for
all the projects and activities across your enterprise.all the projects and activities across your enterprise.
It has two main components:It has two main components:
Project CostingProject Costing
Project BillingProject Billing
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Oracle Projects Costing
Project Costing provides:
A central cost collections systemA central cost collections system
A bridge between project management andA bridge between project management andfinancial accountingfinancial accounting
A mechanism for providing timely, detailed costA mechanism for providing timely, detailed costinformation to project managers and financialinformation to project managers and financialaccountantsaccountants
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Oracle Projects Billing
Project Billing provides:
Simplified customer invoicing
Flexible revenue accrual
Profitability and performance measurements 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.
Project managers use Oracle Projects to
track detailed costs, manage within budget,
and stay on schedule while achieving project
objectives.
Transaction10 hours of labor onMonday, May 13, 2007 onproject XYZ, task 1
Company-Cost CenterAccount Amount
01-100-5153 $220
Financial analysts require the details to manage theoverall business. Oracle Projects translates projectdetails into financial transactions so the financialanalysts have the details they require.
Financial analysts require the details to manage theoverall business. Oracle Projects translates projectdetails into financial transactions so the financialanalysts have the details they require.
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Work Breakdown Structure
Your project, which consists of one or more tasks,
can be as simple or detailed as you want it to be.
You can define an unlimitedhierarchy of tasks,called a work breakdown structure (WBS), to
organize and monitor project activities.
Your project, which consists of one or more tasks,
can be as simple or detailed as you want it to be.
You can define an unlimitedhierarchy of tasks,called a work breakdown structure (WBS), to
organize and monitor project activities.
Task 2.1 Task 2.2
Task 2Task 2
Task 1.1 Task 1.2
Task 1Task 1
Project
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Types of Cost
You record transactions against a project to record
actualwork performed or cost incurred. For example:
Timecards
Expense reports
Usage logs
Posted supplier invoice (posted to GL)
You also record committedcosts. For example:
Requisitions Purchase orders
Pending supplier invoices (not posted to GL)
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Methods of Cost Entry
Oracle Projects lets you track and account for all
project costs in your company using the followingmethods:
Preapproved Expenditure Batch: Input charges directly
into Oracle Projects. Oracle Self-Service Time and Expenses: Input labor and
expense charges using Oracle Self-Service applications.
Oracle Purchasing and Oracle Payables: Import charges
from requisitions, purchase orders, and supplier
invoices.
Transaction Import: Import charges collected in external
systems.
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Methods of Cost Entry
Oracle Projects also provides a Project Allocation
feature that allows you to allocate costs from one ormore 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
Distribute costs using target percentages
Prorate costs based on actual or budgeted amounts
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 towork performed (also referred to as directcost).
Burden cost: The cost of running the business thatsupports the raw cost (also referred to as indirectcost).
Total Burdened Cost: Raw Cost + Burden Cost
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Capitalization of Project Costs
You can easily manage all project relatedconstruction-in-process (CIP) costs and expensesfor capital projects. Oracle Projects becomes theCIP subledger for project related CIP costs.
Work breakdown structures (WBS) provide anefficient mechanism for managing the project andtracking 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 breakdownstructure
Collect actual project costs
Capitalize the assets
Use the Oracle Assets Mass Additionsfunctionality to allow project information to flow
directly from Oracle Projects to Oracle Assets Easily adjust asset costs, even after
capitalization
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Revenue Accrual and Billing
Oracle Project Billing functionality provides the
flexibility to keep up with your changing businessneeds. You can automatically accrue revenueaccording 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 typeof project. You can also bill each project differently,even if the same client has multiple projects. You caneasily manage cash collection in Oracle Receivables.
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Billing Controls
You can control which transactions are billable forprojects and tasks.
Billablemeans that you can accrue revenue andbill your customers.
Nonbillablemeans that you cannot accrue revenue
or bill your customers.
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Oracle Projects Interfaces
Reference Employeesand Organizations Plan
ActualsTimecards
Import
AccountsPayablePurchasing
Oracle Projects
General Ledger Post Usage DistributionPost Labor Distribution
Post CashPost Cash
Usages
Supplier Invoices,Invoice Adjustments
Post Revenue
Invoices
Expense Reports
Post Actual Expense
Adjustments
Report Committed Costs
AccountsReceivable
Assets
Fixed AssetsOracleHuman
Resources
Payroll
Service
External
Transaction
Project
Management
ReferenceCustomers
OracleInventory
Issues and Receipts
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ThankThank You !You !
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