Oracle Fusion Project Portfolio

Management
Budgets and Forecasts

Release 10

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Objectives

After completing this session, you should be able to:

 Understand which setup steps are associated with project budgets

and forecasts

 Create and manage financial plan types

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Session Agenda

 Overview of Project Budgets and Forecasts

 Key Concept – Financial Plan Types

 Student Activity

 Review and Discussion

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Project Budgets and Forecasts
Overview

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Define Project Control Configuration

Navigator > Tools > Setup and Administration > Implementation Projects tab > your implementation
project > Define Project Control Configuration>

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 Define Project Control Configuration
Set up Tasks

Task or Task List Description

Manage Financial Plan Types Specify options used to control planning scenarios for budget and forecast versions.

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Financial Plan Types
Key Concept

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 Financial Plan Types
Overview

Financial Plan Types

• Financial plan types provide default information and
planning options for creating different types of budgets or
forecasts.
• Create any number of financial plan types based on
company requirements.

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 Financial Plan Types
Plan Class

Plan Class Types

• Two Plan classes are available
– Budgets
– Forecasts
• Both classes share common attributes with exceptions in:
– Version Generation
– Forecast Approval

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 Financial Plan Types
Planning Amounts

Planning Amounts
For each financial plan type, select the planning amounts to
include in the financial plan versions.
• Cost only
• Revenue only
• Cost and revenue in the same plan version
• Cost and revenue in separate plan versions

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 Financial Plan Types
Budget Setup

Budget Options
• Designate as approved cost/revenue budget: Decide whether the
financial plan type is used for creating cost and revenue versions used for
plan comparison or project performance reporting.
• Use workflow for status changes: Enable use of workflows for budget
version approvals.
• Set as default financial plan type: Set if you anticipate that this will be
most commonly used when creating budgets.
• Enable planning in multiple transaction currencies: Decide whether
amounts will be entered in currencies other than the project currency. To
use transaction currencies, you must define currency settings.

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 Financial Plan Types
Forecast Setup

Forecast Options
• Designate as approved cost/revenue forecast: same as budgeting

• Use workflow for status changes: same as budgeting except forecasting

provides the additional Automatically approve forecasts option that
applies only to primary forecasts; when the first baseline version for the
approved budget is created the application creates the primary forecast
version and submits it for approval.

• Set as default financial plan type: same as budgeting

• Enable planning in multiple transaction currencies: same as budgeting

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 Financial Plan Types
Associating Sets with Financial Plan Types

Set Assignments
• Select the sets to assign to each financial plan type to determine
which project units can use a financial plan type.

• In the example here, since Financial Plan Type B is associated with

two project units (by the sets) users working on projects in either
Project Unit can access it. However, Financial Plan Type A is only
available to users working on projects in Project Unit 1.

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 Financial Plan Types
Planning Options

Plan Settings
• Amount Types: Decide whether to plan by quantities, amounts,
and rates. When selected, corresponding fields are editable on
the Edit Budget and Edit Forecast pages.
• Planning Level: Determine the level of the task structure at which
you want to enter budget or forecast amounts. Planning level
options allow you to capture budget and forecast amounts at
different levels of detail.
• Calendar Type: Plan by period (accounting or project accounting)
or plan duration of resource assignment.
• Period Profile: Display amounts planned by period into summary
groupings, where appropriate.

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 Financial Plan Types
Planning Options

Currency Settings
Currency Settings (Applicable when planning in multiple
currencies):
• Define the Transaction Currencies and the conversion attributes
for the Project Currency and Project Ledger Currency

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 Financial Plan Types
Planning Options

Rate Settings
Select the rate schedules to use for calculating cost and revenue for
planning purposes.
Determine whether to use actual or planning rates with the plan
type.

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 Financial Plan Types
Planning Options

Generation Options for Budgets

• Generation Source: Decide whether budget versions are generated based
on another financial plan or the project plan.

• Revenue Generation Method: Manually, Planning Rate or Contract

Revenue classification.

• Retain Manually Added Budget Lines: Decide whether lines added in the
budget are retained when an existing version is generated again.

• Retain Override Rates from Source: Decide whether to retain override

rates entered in the source plan and use them for generating amounts in
the target plan.

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 Financial Plan Types
Planning Options

Generation Options for Forecasts

• Forecast ETC Method: Remaining Plan, Plan to complete, CPI based, or manual
entry
• Carry forward unused amounts from past periods: If using the Remaining plan ETC
method, then you can control whether unused source plan amounts can carry over
from periods prior to the actual amounts through period.
• Actual Amounts Through Period: The period (current, prior, or last closed) through
which to obtain actual amounts when generating forecast amounts.
• Allow negative ETC calculation:
If actual amounts are greater than the plan, and you are using the Remaining plan
ETC method, this allows the calculation and display of negative ETC amounts.
• Open Commitments: Include commitments such as purchase orders, supplier
invoices, and other commitments, along with actual amounts, for calculating ETC
values

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 Financial Plan Types
Planning Options

Reporting Options
• Report Quantity Using (Revenue or Costs): If the financial plan type
supports planning for cost and revenue in separate plan versions,
decide whether cost or revenue quantity is used for reporting.
• Report Cost (Raw Cost or Burdened Cost): Decide whether to
calculate margins based on raw cost or burdened cost.
• Amount Scale (1,10,100,…,1000,000): Decide how you want whole
number amounts to display when project managers view budget and
forecast quantities and amounts. For example, select a rounding
factor of 100 and a value of 25,000 is displayed as 250.
• Currency Type: Decide whether you want amount to be displayed in
Project Currency or Project Ledger Currency.

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Job Roles and Duties
Overview

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Job Roles & Associated Duty Roles
Job Role Associated Duty Role
Project Application Administrator • Projects Administration Duty
•Project Control Administration Duty

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Duty Roles & Tasks
Duty Role Associated Tasks
Project Control Administration Duty • Create Period Profiles
• Create Spread Curves
• Create Financial Plan Types
• Create Project Plan Types

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Project Budgets and Forecasts
Student Activity

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Define Project Control Configuration
Activities
1. Creating a Financial Plan Type

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Review and Discussion

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Define Project Budgets and Forecasts Highlights

In this session, you should have learned how to:

 Understand which setup steps are associated with project budgets

and forecasts

 Create and manage financial plan types

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