Release 12 Oracle Projects Overview

David Lipinski Solution Architect

 Purpose: This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

Project Accounting to Project Management

Manage the Right Projects Manage Projects, Enable Collaboration Provide Enterprise Insight
Project Portfolio Analysis
May 2005

Manage Project Resources Manage Project Financials

Project Intelligence Resource Management Project Costing & Project Billing

Initial release - Jan 1992 May 2001 Oct 2002

Project Management & Collaboration

May 2003

Enterprise Project Management with Fp.M

Manage Full Lifecycle, For All Project Stakeholders
Project Selection & Initiation Project Reporting & Closeout
Exceptions KPIs Reports Accounting Closeout Objectives Scenarios Portfolios Project Approval

Project Planning Global Project Repository Workplans Resources Budget

Project Control
Updates Forecasts Changes Billings Capitalization

Project Execution
Progress Documents Issues Actuals

Oracle Projects Suite

Project Initiatives
Sales Delivery Research Construction Information Technology Product Development Marketing

Integration to E-Business Suite Portfolio Management Project Resource Management Management

Global Project Repository

Financials HR Supply Chain Sales Time & Labor Documents

Collaboration

Accounting & Operations

Project Intelligence
Personalized Role-Based Views

Integration to Desktop Tools

MS Project & Excel

Integrated Work, Resource, and Financials

Streamline Planning, Execution & Control
Workplan
Generate forecast based on workplan or scheduled team roles Analyze metrics, Comparing Actuals vs. Budget vs. Forecast

Financial Forecast

Performance

Rollup people resources to create team roles Generate budget based on workplan resources*

Resource Schedule

Generate budget based on team roles

Update forecast based on revised budget

Update forecast based on progress (ETC, % Complete)

Update forecast based on actuals Actuals can be used to determine progress

Workplan Progress Budget

Actuals

Standardize Project Creation Process

From Very Simple to Complex Projects Key Capabilities: Leverage project templates or past projects Assign resources (both labor & non-labor)
Resources

WBS Template

Deliverables Work Estimates

at the task level

Unlimited WBS Integration with Microsoft Project for Scheduling

and Progress Tracking/Updates

Create Workplan

Track Project Deliverables Use workflow to streamline approvals and phase

gate processes Email Notifications Audit History Alerts of Exceptions out of Threshold Configurable Process based on Type of Project,
Change, Task, etc.

Approve

Publish and Version Workplans

Status Reports

Project Creation in HTML

Forms/Old World Project Accounting/Finance has to create projects based on requests from Project Managers email, paper form requests, Excel spreadsheets, etc.

Time

Scope

Control

Resources

NEW World Project Managers create projects themselves PMs plan work, budget, resources Standardize business processes with templates Workflow enable project approval process

ute Exec

Get Projects into Oracle Earlier Gain Insight Faster!

Pl an

Project Creation in HTML

Allow Project Managers to Request & Plan Project

Work Breakdown Structure Maintenance

Financial Task Details in HTML

Workplan Tasks
Addl Task Details enabled with Project Management

Project Budgeting & Forecasting

Improve Forecast Accuracy and Efficiency
Generate budgets based on resource plan, workplan
Actual Costs Initial Budget schedule & commitments Automatically create forecasts, pull in Actuals-To-Date

Compare variances to prior forecasts Create ETC based on: - Earned value - Percent complete - Future budget amounts - Future resource schedule - Open Commitments - Open Change Orders Adjust in summary or detail, Task or Resources Edit in Excel Create and compare what if scenarios Route for Approval via Workflow

Forecast

Workplan
[Link]

Resources Adjust via Excel or Web

Changes

Forecast (EAC) = Actuals + Estimate to Complete (ETC)

Forecast Entry
Flexible Planning Levels & Entry Methods

Forecast Edit in Excel

Bi-Directional, for Easy Updates

Project Performance Reporting

Accurately Assess Project Health and Drilldown to Root Causes Define, view and investigate exceptions to
Program

performance; drill down to details Exceptions flagged based on Business-Defined

Thresholds

Review project performance via multiple reports

Project Project

Tasks

Tasks

Tasks

Tasks

Report at Any Level

By Tasks of WBS By Resource Hierarchy By Period and Trend, Graphs By Currency Earned Value

Rollup Program Information from Subprojects

Schedule: Dates, Effort/Cost, Resources Financials: Actual, Budget, Forecast, Billings &
Collections

Resource

Resource Resource

Transactions

Performance Reporting
PSI Next Generation! Self-Service Project Mgr Access

Performance Reporting
By WBS, Drilldown to Expenditures & Commitments

Performance Reporting
Flexible Resource Breakdown Structure Hierarchies

Performance Reporting
Periodic Data

Invoice Review
Drilldown, Approve Invoices Online!

Project Portfolio Analysis

Align Organizational Goals and Resources

Define Standard Objectives

Determine Project Costs and Requirements Plan Portfolio

Score and Rank All Projects

Balance Portfolio Monitor Portfolio Execute Portfolio Approve & Launch Portfolio

Portfolio Management

R12 Goals
The Global Business Release Think Globally to make the right decisions
I can make more informed decisions with a global view of customer / supplier / partner / operations

Work Globally to be more competitive

My business will be more competitive with better support for work that crosses applications, divisions, and regions

Manage Globally to lower cost and increase performance

R12 makes it easier and less expensive for me to implement, manage, and scale global applications

How Release 12 Projects Contributes

The Global Business Release WORK GLOBALLY
To Be More Competitive

THINK GLOBALLY
To Make the Right Decisions

MANAGE GLOBALLY
To Lower Cost & Increase Performance
XML Publisher Fusion Middleware BPEL

Subledger Accounting Multi-Org Access Control (MOAC) Standardized Data Model for MRC Supplier Cost Management Subcontractor Payment Management Uptake Revenue in a Foreign Currency

Portfolio Management Performance Management Program Management

Oracle Projects Specific

Release 12 Financial Initiatives (Projects Uptake)

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

Release 12 Projects Initiatives

Supplier Cost Management
Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Item Date

Subcontractor Payment Management Uptake Revenue in a Foreign Currency

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

Subledger Accounting
What is Subledger Accounting?
SLA is an intermediate step between subledger products and the Oracle General Ledger Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model

Subledger Accounting Upgrade / Setup

Release 11i
Accounting model and transaction model are tightly integrated
Subledger Products Projects General Ledger

Release 12.0
Accounting model is separated from the transaction model

Subledger Products Projects

Subledger Accounting PA Rules & journal entries AP Rules & journal entries AR Rules & journal entries General Ledger

Payables

Payables

Receivables

Receivables

Subledger Accounting Upgrade / Setup

Infrastructure to centralize accounting setup
Subledger Accounting is the engine used to store the rules for accounting transactions from various applications across the Oracle E-Business Suite

Infrastructure to standardize accounting policies

Business users can extend predefined accounting rules or create their own rules allowing organizations to react immediately to change.

Extensible list of sources to derive accounts

Projects will be seeding over 300 sources to help customers derive accounts and account descriptions

Subledger Accounting Upgrade / Setup

Upgrade process seeds SLA with rules to automatically accept the accounts that Projects sends (derived from AutoAccounting)

Existing Customers:
If the accounting provided in Release 11i is satisfactory, then it is recommended that customers leave their AutoAccounting and SLA setups untouched.

May utilize SLA setups if AutoAccounting did not fully meet their needs.

Subledger Accounting
Flow Comparison for Expenditures
Release 11i
Enter or import expenditures

Release 12
Enter or import expenditures

Distribute costs

Distribute costs

Interface Costs to GL Journal Import (Oracle GL)

Generate Cost Accounting Events Create Accounting Journal Import (Oracle GL)

Tieback Cost Distributions from GL

Subledger Accounting
Flow Comparison for Revenue
Release 11i
Generate Revenue for a Single/ Range of Projects

Release 12
Generate Revenue for a Single/ Range of Projects

Review Revenue Release Revenue Interface Revenue to GL Journal Import (Oracle GL)

Review Revenue Release Revenue Generate Revenue Accounting Events Create Accounting Journal Import (Oracle GL)

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

Multi-Org Access Control

Data Entry - Enter data for multiple operating units from a single responsibility Inquiry and Adjustments - Inquire and adjust data from multiple operating units from a single responsibility Processing and Reporting - Run concurrent programs and reports for multiple operating units from a single responsibility

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

Legal Entity Uptake

Provides a clear and consistent legal entity model. Strengthen the role of Legal Entity in Oracle Applications Separate Legal Structure and Operations Structure Projects Uptake -

Legal entity context derived from operating unit no change from 11i

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

Multiple Reporting Currency Migration

Oracle Projects has eliminated
Set of Books Currency Selection during the Inquiry MRC Columns in folders Switching currency for the Project Functional Amount Concurrent Programs for interfacing the MRC amounts to the Reporting Set of Books/Ledger

You can view the Multiple Reporting Currency (MRC) amounts in Projects by choosing the Alternate Ledger Currency from View Accounting Release 12 onwards, MRC amounts for new transactions in Projects will be displayed from Sub-Ledger Accounting Module
Key Benefits Consistent approach in Alternate Ledger Currency amount calculation MRC calculation centrally managed

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

Funds Management Uptake

Budgetary Control API (commonly known as GL Funds Check API) is enhanced to provide better integration with other sub-ledger applications : Projects Impact:
Uptake SLA for Encumbrance Accounting Uptake new budgetary control API Streamlined funds check data flow to minimize dependencies

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

TCA Uptake
TCA a.k.a Oracle Trading Community Architecture is a model that includes:
A global registry of organizations, people, addresses, and the relationships among them Public APIs for custom development Support for Integration with 3rd party content providers

Projects Impact:
Migrate for RA_Views to HZ_Tables

Release 12 Financial Initiatives

Subledger Accounting Uptake Multi-Org Access Control (MOAC) Legal Entity / Ledger Architecture Standard Data Model for Multiple Reporting Currencies MRC Migration Budget Controls and Public Sector Accounting Funds Management TCA Uptake eTax Uptake

eTax Uptake
eTax a.k.a E-Business Tax is a tax engine includes:
Central Repository which contains rules & definitions required to calculate tax Record Repository which is the actual transaction tax data required for auditing and reporting purposes Services such as tax content, tax determination & tax administration

Projects Impact:
Setup via eTax (at the project, expenditure type, & event level) Customer Invoicing Pass eTax tax code to AR on invoices/credit memos so that eTax can generate the appropriate tax lines. InterCompany Invoicing Tax line generation through eTax supported on Intercompany Invoicing. Integration with Payables and Receivables

E-Business Tax Integration

Release 12 Projects Initiatives

Supplier Cost Management
Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Item Date

Subcontractor Payment Management Uptake Revenue in a Foreign Currency

Supplier Cost Management

Since its inception, Oracle Payables modeled invoices with headers and distributions. Disadvantages
Line item info on the physical document is not available in the system. Calculation of item charges is cumbersome because the item itself is split across multiple distributions. Approval and payment processing requires accounting and tax creation.

In Release 12, Payables is introducing a new entity called Invoice Lines. Advantages
Line item info can be captured and accurately reflected in the system. Transaction processing is separate from accounting (SLA) and tax (eTax) processing. Variances will now be separate lines and distributions.

Oracle Payables Invoice Lines Entity

Invoice
Supplier: Advanced Networks Invoice Num: 11111 Date: 13-JUN-2001
Invoice Lines No Allocate Invoice Distributions Yes

Invoice Headers

Line # Item Qty Unit Price 1 Computer 1 $1000 2 Printer 1 $500 3 Tax (10%) $150 _______________________________ Total $1650

Oracle Payables Invoice Workbench

Supplier Cost Management Projects Uptake

Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Supplier Cost Adjustment Accounting Performed by Oracle Projects New Mass Adjust Concurrent Process New Aids for Reconciling Supplier Cost with Other Products Removal of Pre-approved Batch Entry for Expense Report Entry in Projects

New Supplier Cost Audit Report

Expenditure Inquiry Find Window

Expenditure Inquiry

New columns available: Document Type PO Number Doc Distribution Type PO Line Number Invoice Number PO Distribution Number Invoice Line Number PO Price Type Payment Number PO Receipt Number Invoice Distribution Line Number

Invoice Workbench

Release 12 Projects Initiatives

Supplier Cost Management
Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Date from Purchasing

Subcontractor Payment Management Uptake Revenue in a Foreign Currency

Subcontractor Payment Management

An integrated solution for services procurement used to model complex work contracts where advanced payment terms need to be considered during execution Commodities / Industries of Interest
Professional Services Engineering and Construction Aerospace and Defense Public Sector

Subcontractor Payment Mgmt

Business Flow
Supplier

Supplier Reports Progress Award Contract Submit SOV

Invoice

Request to Subcontract Work

Source

Author Contract

Certify Progress/ Stage of Completion

Apply Retainage Release Retainage Pay Advances Liquidate Advances

Subcontractor Payment Management Projects Impact

Commitment Reporting - Financing pay items, Retainage not shown as
commitments

- Unmatched prepayments are displayed as commitments Budgetary controls Retainage distributions are not funds checked against the project budget.

Release 12 Projects Initiatives

Supplier Cost Management
Improved Project Costing with Cash Basis Accounting Removal of Supplier Cost Adjustment Restrictions Mass Adjust Concurrent Processing Aids for Oracle Payables and Project Costing Reconciliation Flexible Derivation of Expenditure Date from Purchasing

Subcontractor Payment Management Uptake Revenue in a Foreign Currency

Revenue in a Foreign Currency

Support Revenue Revaluation in GL
Calculate revenue including unbilled receivables and unearned revenue in revenue transaction currency Interface project revenue to Subledger Accounting for posting to General Ledger in project functional currency and in revenue transaction currency

Revenue in Foreign Currency Setup Project Billing Currency

Invoice by Bill Transaction Currency Box Unchecked

Enable Multi Currency Billing <Enter Option to Select Box Checked slide note> Revenue Transaction Currency

Revenue in Foreign Currency Revenue Event Creation

Event Currency = Invoice Transaction Currency = 150,000 CAD in this example

For More Information

Metalink Information:
[Link]

Oracle Product Documentation:

[Link]

Projects Books republished! Oracle Projects Fundamentals (B25617-02) Oracle Projects Implementation Guide (B25623-02) Oracle Project Costing User Guide (B25618-02) Oracle Project Billing User Guide (B25619-02) Oracle Project Resource Management User Guide (B25620-02) Oracle Project Management User Guide (B25621-02) Oracle Project Portfolio Analysis User Guide (B25622-02) Oracle Project Contracts Implementation Guide (B25715-01) Oracle Project Contracts User's Guide (B25716-01) Oracle Projects APIs, Client Extensions, and Open Interfaces Reference (B25624-02) Projects Collateral & Whitepapers: [Link]

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