PPM Enterprise Structures
PPM Enterprise Structures
AP journals
Project POs
Purchasing (SCM) Payables (ERP) General Ledger (ERP)
RM journals
for revenue,
Project Project Asset contract assets,
receipts and Project cost journals and liabilities
AP invoices
issues & revenue
Inventory (SCM) journals
Project Management
Assets (ERP) HCM
(ERP)
CIP
Additions
Project
AR invoices Grants
Enterprise Contracts (CX) Receivable
Project journals
contract data
Receivables (ERP)
OTL
Billing data
Revenue
contract data Revenue Management JVM
(ERP)
Native integration
Segment separator
Recognizable Segment names should be easy to understand by end users. Segments should avoid inconsistent use of existing terminology
where possible. Length should be only as large as is absolutely necessary.
Unique Segments should be unique (e.g. different segments broadly containing the same data promotes data redundancy). This will
simplify hierarchy maintenance.
Relevant Segments should help end users in managing their business processes. The value added by each segment must be articulated. Each
dimension should be important for managing the business - both now and in the future.
Viable Segments must be able to be populated, now or in the near future. Performance constraints must be considered. System
modifications must be reviewed relative to changes to sub-ledgers and benefits must outweigh efforts.
Manageable Values of this segments must be easy to maintain and accurately populated to reduce misstatements (e.g., cross validation rules
can easily be maintained).
Reliable Segment values should have high accuracy and reliability to be recorded in the General Ledger.
Selection criteria provides a consistent methodology to the design of the chart of accounts structure.
• Standardize
Minimize the number of segments and field length of individual child values.
Design a global COA assuming an eventual enterprise-wide implementation.
Use smart numbering conventions and ranges, e.g. 4XXXX – Revenue, 5XXXX – Expense, and optimal segment size
Include some summary level management reporting dimensions that can vary by industry.
Include a ‘spare’ segment to support future business expansion. The implementer can specify a default value so that users
need not manually populate it each time.
• Simplify
Examine current consolidation practices and simplify the reporting process.
Utilize standard application functionality (reporting currency, ledger sets, allocation, account monitor).
Refer to Cloud documentation chapter on Chart of Accounts on Implementing Enterprise Structures and General Ledger for further details.
• For certain institutions (e.g. government, higher-ed, or healthcare) where projects are planned, funded, approved, managed
and reported on an annual basis.
• For organizations where the number of projects is small, but projects are large in value and act more like programs.
• Where reconciliation of financial detail to the General Ledger balance is required by project.
• Financial reporting is required by project, such as profit & loss statement or balance sheet on a project-by-project basis.
• Finance stakeholders require a one-stop-shop for all reporting (SmartView or Essbase) by project.
• Where the growth of new project numbers is small and manageable by setting up a project number in the COA values set for
each new project.
• As Ledgers are defined for financial implementations, best practices should be followed, such as defining one primary ledger
per country.
• The 4 Cs (COA, Currency, Calendar and Convention) to define a unique ledger still apply.
• The business unit determines the primary ledger for Project Management.
• Each project is associated with one business unit and hence one ledger only.
• A project transaction can be incurred in one business unit and ledger. But a project can be enabled for cross-charge and accept
transactions from multiple BUs.
• If there is a requirement to report project financial information in multiple currencies, define Reporting Currency ledger(s) at
Subledger conversion level. This allows inquiry and reporting of project costs and revenue in the currencies of the Reporting
Currency ledgers.
• A business unit is an Oracle Cloud enterprise structure that administers and secures subledger transactions such as projects,
contracts, project cost and revenue transactions.
• Business unit is a subset of an enterprise and is defined centrally, typically by Financials and HCM implementations. The business
unit determines the primary ledger where project transactions such as cost and revenue will be accounted.
• Business units are responsible for performing business functions such as Project Accounting or Customer Contract Management.
• To use a business unit for Project Financial Management applications, enable Project Accounting business function for the
business unit.
PRODUCT BUSINESS
FUNCTIONAL AREA DEPENDENCIES
FAMILY FUNCTION
• Projects and project transactions (project-related requisitions, purchase orders, supplier invoices, miscellaneous transactions,
burden transactions, etc. ) are owned and partitioned by business unit.
• Setups that control the behavior of projects and project transactions are often defined at the business unit level.
• Not all business functions can be implemented in independent business units.
Business Functions
US Corp US Corp Customer Billing and Revenue
(Primary Procurement Receiving Payables Invoicing Project Accounting
BU Contract Billing Management
Ledger)
• Accounting Periods are defined and maintained in GL and use the same calendar as
General Ledger, Accounts Payable and other Financials applications.
• You can control the Accounting periods independently in Project Financial Management.
When closing a period, Projects runs a set of validations and provides reports and
dashboards for handling period-end exceptions.
• You can define different Project Accounting periods, e.g. weekly, which are typical for
consulting, construction or retail companies and use them for project forecasts, financial
plans and performance reporting.
• By default, the same Accounting Periods and Project Accounting Periods are used in
Projects. This simplifies calendar maintenance as accounting periods are maintained
centrally and streamlines period close in Projects.
• Similar to other Financials applications, data security in Project Financial Management is defined by business unit.
• Projects and project transactions (costs, revenue, financial plans, contracts, etc.) are secured by business unit.
• In addition to data security by business unit, additional security rules can be applied by project organization or project team
members. This depends on the application page and user's application role.
• Project Management provides several seeded roles that control access to select configurations tasks, work areas and
transactions.
• Project Application Administrator – Accesses all Project Management setup tasks for ongoing management of setup
and reference data. Also uses the Application Composer to extend the application.
• Project Manager - Assign the project manager role so that the user can access and manage projects and budgets
• Project Administrator – Secure access to project financial management using either BU or project organization
• Grants Administrator - Assign the grants administrator role so that the user can access and manage the awards in a
business unit
• Project Billing Specialist - Assign the project billing specialist role so that the user can access and manage the project
contracts, revenue and billing transactions in a business unit
• You assign Project Management roles to data access to control access to specific business units and ledgers.
Project Management applications allow you to secure access to data in one of the following ways:
• Manage Data Access for Users
• Explicit using Data Assignment Model Access - Data security is explicitly assigned to users through the Manage Data
Access for Users page.
• User role assignment is done separately using the Security Console. For example, a user with Project Accountant job role
can be assigned access to costing data in the US business unit
• Implicit using Product-Specific Access - Data security is determined by product-specific logic.
• For Project Financial Management application, the Project Manager role on the project determines the access to the
project.
• For Grants Management application, the role on the award determines the access of a principal investigator to the
award.
• Manage Projects in Organization Hierarchy
• Not part of seeded role but can be used to extend the access to projects that belong to organizations in a hierarchy.
• For example, Consulting West consists of organizations, Consulting SW and Consulting NW.
• A user assigned as administrator to Consulting West organization node is automatically able to access projects in
Consulting West, Consulting SW and Consulting NW.
• Project Unit defines rules and options to create and manage nonfinancial
aspects of projects, such as project definition, scheduling and reporting.
• Associating with more than one Business Unit allows sharing common
Project Unit Options, such as Reference Set, project numbering and
commitment tracking (requisitions, purchase orders, etc.) to be included in
project performance data summarization.
Future Corp
Requisitioning Future Corp Canada With all business units associated
Canada Business Unit
Canada BU
(Client BU) (Primary Ledger) with one global Project Unit, all
projects will share common
options, such as Reference Set,
default Project Numbering,
Commitment Tracking
Future Corp US Summarization, or Planning
Business Unit Future Corp Inc BU
(Primary Ledger) Amount Allocation
Future Corp
Requisitioning Future Corp India Multiple Project Units
India Business Unit
India BU
(Client BU) (Primary Ledger)
With different business units
associated with different
Project Units, you can assign
different project unit options
Business Unit Future Corp Inc BU Future Corp US (Reference Sets,
(Primary Ledger) Commitment Tracking
Summarization, or Planning
US Amount Allocation) to
different projects.
Future Corp
Business Unit
Manufacturing BU
Project Organizations
• A Project Organization is an HCM Department which can be classified to own projects
or tasks and incur project expenses.
• If trees are used, different trees can be used for owning projects/tasks and owning
expenditures. But the simplest setup is to use the same tree for both.
• Pay special attention to Project Organization definition with HCM Departments when
OTL, Procurement or Expenses are implemented.
• Project Organizations can be used to control access to projects for the Project
Administrator role.
Align Project Organizations with Departments and Company COA segment values
• When you define Departments, you have an option to assign a default GL Company or default GL Cost Center which can
be utilized in SLA rules.
• If there is a requirement to derive Company value for the COA for accounting with HCM Departments that are also
Project (Owning) Organizations:
• Configure Subledger Accounting Rules to derive Company COA for project transactions
• If there is a requirement to derive Cost Center value for the COA for accounting with HCM Departments that are also
Project (Expenditure) Organizations:
• Define Cost Center values for COA
• Define HCM Departments that are used as Project Expenditure Organizations
• Configure Subledger Accounting Rules to derive Cost Center COA for project transactions
• Global departments can be used across multiple companies and business units.
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Oracle Fusion Cloud Project Management - Contents
• As legal entities are defined for Project Management implementations, best practices should be followed, such as defining
legal entities as they exist in the real world and associating them with their Balancing Segment Values (BSVs).
• Project legal entities are primarily used for Intercompany or Inter-Project Billing.
• Each project is assigned to a legal entity. This is a receiver of goods and services from another entity (provider).
• When project expenditures are charged to a project, a provider legal entity is derived from an associated Company or
Balancing Segment Value (BSV) on the corresponding accounting entries.
• When a provider legal entity and a receiver legal entity are different, Intercompany Project Billing is initiated if the
intercompany relationship between the two entities requires it. The provider will setup an intercompany contract, which is
associated with the provider Legal Entity.
This diagram illustrates an example of project organization and legal entity configurations where:
• In the Spanish enterprise, projects are owned, and project costs are incurred by the same entity.
Spain
This diagram illustrates an example of project organization and legal entity configurations where:
• In the US enterprise, projects and project costs may contain lines whose accounting entries derive different balancing segment
values, and multiple legal entities, resulting in intercompany accounting entries being generated.
United States
Future Corp US
Primary Ledger
Project US-20550 Inventory Costs • Corp COA
Future Corp Inc Company 110 • Corp
Company 101 Supplier Costs (Future Corp Digital Inc) Calendar
• USD
Accounting
Currency
Cross-Charge Transactions within the same Business Unit or across Business Units
• Enable cross-charging for any business unit.
• Borrowed and Lent transactions do not create additional costs to a project; only an optional accounting entry to reflect a
cross-charge between a providing and receiving entity.
Less is More
• The general recommendation is to favor fewer, simpler enterprise structures since this minimizes setup
and future maintenance.
• Define no more than one primary ledger per country rather than separate primary ledgers per legal
entity.
• Define no more than one business unit per country rather than separate BUs per legal entity.
• Define one global Project Unit. Define multiple Project Units and assign them to their respective
business units only if you have more granular requirements for segregating and reporting on project
data
• Define Project Organizations and make sure to classify them as Project Owning Organizations and
Project Expenditure Organizations
• Assign individual projects to ‘real world’ Legal Entities who own project contracts, budgets, costs and
revenues.
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