Oracle Projects

ORGANIZATIONS
You set up organizations to represents your enterprise structure in Oracle HRMS. Once you
define your basic enterprise structure, you create the additional organizations and locations to
represent internal division or departments, and external organization for reporting or third-
party payments.

Project Organization’s classifications;

• Project Task owning organization—Applicable project classes

• Project Expenditure/Event organization—Default OU and Calendar
• Project Invoice collection organization

Project / Task Owning Organization:

Project/Task Owning Organizations can own projects and/or tasks in the operating unit. To
own projects and tasks in an operating unit, an organization must have the following
characteristics:

The Project/Task Owning Organization Classification must be enabled.

The organization must belong to the Project/Task Owning Organization Hierarchy Branch
assigned to the operating unit.

Expenditure/Event Organizations:

Expenditure/Event Organizations can own project events, incur expenditures, and hold
budget for projects in the processing operating unit. To have these capabilities in the
operating unit, an organization must have the following characteristics:

The Project Expenditure/Event Organization classification must be enabled.

The organization must belong to the Expenditure/Event Organization Hierarchy Branch

assigned to the operating unit.

Project Invoice Collection Organizations:

If your business decentralizes its invoice collection within an operating unit, you must enable
the Project Invoice Collection Organizations classification for each organization in which you
want to process invoices.

Oracle Receivables uses transaction types to determine whether a transaction generates an

open receivable balance and whether it posts to Oracle General Ledger. Each operating unit
in Oracle Projects has at least two default transaction types to process invoices in Oracle
Receivables.

If your business decentralizes invoice collection, you must run the IMP: Create Invoice
Organization Transaction Types process before you can successfully run the Interface

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Invoices to Oracle Receivables process. The IMP: Create Invoice Organization Transaction
Types process creates a transaction type for each of the Project Invoice Collection
Organizations that has the following characteristics:

The organization has the Project Invoice Collection Organization classification enabled.

The organization belongs to the Project/Task Owning Organization Hierarchy Branch

assigned to the operating unit.

Oracle Projects uses the default transaction type if it cannot find a rollup project invoice
collection organization for the invoice.

Organization Hierarchy
You create organization hierarchy to show reporting lines and other hierarchical
relationships. If you want to include organizations from single Business Group, use the
Organization Hierarchy Window, alternatively, use Global Organization Hierarchy Window
to include organizations from any Business Groups.

You must define top organization in the hierarchy, and at least one organization subordinate
to it

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 SYSTEM
Implementation Options
After you implement other Oracle Applications to work with Oracle Projects, you can define
Oracle Projects implementation options. The Implementation Options control how Oracle
Projects interfaces data to other Oracle Applications, as well as other fundamental operating
settings.

The implementation options also control cross-charging capability across operating units.
Expenditures can be charged to a project in a different operating unit from the expenditure
operating unit, as long as the two operating units are associated with a ledger, HR business
group, and PA period type, and the Cross Charge option Allow Cross Charges to All
Operating Units within Legal Entity is enabled for that responsibility.

The Oracle Projects Implementation Options window contains the Operating Unit field which
is mandatory. If the user has access to only one operating unit, that operating unit will appear
in this field as the default value. If the user has access to multiple operating units, the list of
values displayed in the Operating Unit field is based on the operating units associated with
the MO: Security Profile.

Pre-requisites;

• Ledger
• Business group
• Organization hierarchy

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Ledger If you are implementing Oracle Projects, then you must specify a ledger to tell Oracle
Projects which ledger to use. Oracle General Ledger, Oracle Receivables, Oracle Payables,
Oracle Purchasing, and Oracle Assets must also use this ledger. Specify the ledger you
defined when you implemented Oracle General Ledger for Oracle Projects.

If your implementation of Oracle Projects is for multiple organizations, then Ledger is a

display-only field. The Ledger is derived from the ledger associated with the operating unit
defined in the Define Organization window in Oracle HRMS.

Business Group Business Group is a display-only field. The value in this field depends on
the value of the HR: Cross Business Group profile option.

If the value of the HR: Cross Business Group profile option is No, the business group field
displays the business group assigned to the user responsibility using the HR: Security Profile
option.

If the value of the HR: Cross Business Group profile option is Yes, the business group field
displays the value All.

Summarization Period Type Specify a summarization period type, which is used when
updating project summary amounts.

Oracle Projects maintains summary amounts as follows:

Period-to-Date Amounts (PTD)

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Prior Period Amounts (PP)

Year-to-Date Amounts (YTD)

Project or Inception-to-Date Amounts (ITD)

You specify whether to maintain the summary period-to-date values (Period-to-Date and
Prior Period) by PA Period or GL Period.

Calendar Name When you implement Oracle Projects, you can select the calendar used to
maintain PA periods.

The default value of this option is the calendar assigned to your ledger. You can change the
calendar setting during implementation only. You cannot change this value after you copy
your PA periods from General Ledger to Oracle Projects.

Note: If your PA and GL periods are identical and you intend to enable the Maintain
Common PA and GL Periods implementation option, you must define your PA periods in the
calendar assigned to your ledger.

PA Period Type Specify a Period Type, which is used to copy Project Accounting Periods
from the calendar associated with the ledger. If you copy PA Periods from GL, Oracle
Projects copies all of the periods of this Period Type to set up the PA Periods.

In a multiple organization environment, the PA Period Type is specified for each operating
unit.

Defaults Asset Book Optionally, select a default asset book from the list of values. The value
that you select for this field will be the default value for all project assets that you create. You
can override the default value at the asset level.

Maintain Common PA and GL Periods When this option is enabled, the system
automatically maintains PA period statuses as you maintain the GL period statuses.

To use this option, the following conditions must be met:

PA periods and GL periods must be defined in the same calendar.

The PA period type must be the same as the period type defined for the Oracle General
Ledger.

Each of the PA periods and GL periods must have the same status.

Important: After you enable this option, you cannot disable it.

Default Reporting Organization You specify an organization hierarchy and version to

indicate which organization hierarchy you want Oracle Projects to use as the default reporting
organization hierarchy. For more information on how Oracle Projects uses organizations, see:
Organizations in Oracle Projects, Oracle Projects Fundamentals.

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You specify a start organization to indicate which branch of your organization hierarchy you
want Oracle Projects to recognize as the top of your hierarchy for reporting purposes. If you
want to use your entire organization hierarchy, your top organization (generally the business
group) is the start organization.

For example, if you define your organization hierarchy with four divisions under the top
organization, you can specify one division as the start organization. Oracle Projects
consequently recognizes only that division and its subordinate organizations as its default
reporting hierarchy.

Version Oracle Human Resources allows you to create multiple versions of an organization
hierarchy. When you assign an organization hierarchy in an Oracle Projects implementation,
you also assign the version.

The following organization hierarchy versions are assigned in Oracle Projects:

A Project/Task Owning Organization Hierarchy Version is assigned to each operating unit.

An Expenditure/Event Organization Hierarchy Version is assigned to each operating unit.

A Default Reporting Organization Hierarchy Version is assigned to each operating unit. This
hierarchy version can be overridden at reporting time.

A Project Burdening Hierarchy Version is assigned to each business group.

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The currency implementation options control the default values for the currency attributes
that are used to calculate currency exchange rates.

When you are setting up your system, Oracle Projects does not require you to enter the
currency implementation options. However, if you enter transactions in foreign currencies,
the system needs these values to provide default values. If the required values are missing,
anyone attempting to enter foreign currency transactions receives an error message.

The Exchange Rate Date Type and Exchange Rate Type you enter in this window determine
the exchange rate Oracle Projects uses to convert foreign currency transactions to the
functional currency.

Functional Currency This display-only field shows the functional currency of your
company's ledgers.

In a multiple organization environment, the functional currency is the currency of the ledger
assigned to the operating unit(s) associated with your login responsibility.

Costing Exchange Rate Date Type Specify a default exchange rate date type for converting
foreign currency transactions from the transaction currency to the functional and project
currencies.

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You select from the following exchange rate date types:

PA Period Ending Date If you select this option, Oracle Projects use the PA period ending
date for each transaction as the default exchange rate date when calculating the exchange rate

If the PA period that includes the expenditure item date has an open status, the exchange rate
date is the end date of that PA period. Otherwise, the exchange rate date is the end date of the
next open PA period.

If you choose this option, the exchange rate is calculated as part of the cost distribution
process, and no default date is displayed during expenditure entry.

Expenditure Item Date If you select this option, Oracle Projects uses the transaction date as
the default exchange rate date when calculating the functional and project currency exchange
rates.

If you choose this option, the default date is displayed during expenditure entry.

Note: For expense reports, Oracle Projects supports only one set of functional currency
attributes for the entire expense report. Therefore, for either option, the functional currency
exchange rate date calculation is based on the expenditure ending date, not the expenditure
item date.

Overriding Functional and Project Exchange Rate Dates

When you enter a project, you can optionally enter a default project exchange rate date at the
project and/or lowest task level that overrides the Exchange Rate Date Type implementation
option.

When you enter transactions, you can override both the functional and project currency
exchange rate dates. For more information about overriding the exchange rate date, see:
Currency Conversion Attributes for Entered Transaction, Oracle Project Costing User Guide
and Currency Conversion Attributes for Imported Transactions, Oracle Projects APIs, Client
Extensions, and Open Interfaces Reference.

Important: If you change the Exchange Rate Date Type implementation option after you have
processed foreign currency transactions, you lose some of the audit trail of historic rate date
types. The currency amount and rate date are stored for each transaction, but the rate date
type is stored only at the implementation option level. The system does not store the method
of determining the rate date for a transaction.

Exchange Rate Type Specify a default exchange rate type to be used for conversion of
transactions from the transaction currency to the functional and project currencies. The
Exchange Rate Type field is a mandatory field.

Select the exchange rate type from a list of valid conversion rate types. Conversion Rate
Types are entered in Oracle General Ledger.

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Project Numbering You specify whether you want Oracle Projects to number projects
automatically, or whether you plan to enter project numbers manually.

If you want Oracle Projects to number each project automatically upon creation, then specify
a starting project number. Automatic project numbers are numeric; they do not contain letters
or special characters and are sequentially numbered.

If you want to choose your own project numbers, or if want your project numbers to include
both alphabetic and numeric characters, choose the manual project numbering method.
Manual project numbers can be either alphanumeric or numeric.

Note: Project templates are always numbered manually. The Project Numbering
implementation option does not affect how project templates are numbered.

Project / Task Owning Organization You assign a project/task owning organization

hierarchy to the operating unit to control which organizations can own projects and tasks. To
own projects and/or tasks in the operating unit, an organization must have all of the following
characteristics:

• The organization must belong to the project/task organization hierarchy assigned to

the operating unit.

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 • The organization must have the project/task owning organization classification
enabled.
• The project type class must be permitted to use the organization to create projects.
This permission is determined when you define the organization.
• The organization must be active as of the system date.

Candidate score weightings Candidate score weightings enable you to define the level of
importance of the availability, competencies, and job level of the resource when matched to
the specifications of a requirement.

Users define these weighting values at the requirement level. Default values are displayed for
a requirement if they have been defined for the project or project template. Default values for
project template are entered in the implementation options.

You can enter default values for the following weightings:

Competence Match Weightings

Availability Match Weightings

Job Level Match Weightings

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Advertisements Under Advertisement Action Set, enter the default advertisement rule.

Full Time Equivalent Hours The Full Time Equivalent specifies how many hours are
equivalent to a day of work, and how many hours in a week are equivalent a week of work.

Full Time Equivalent is used to convert detailed schedule hours to a higher level of labor
units in days or weeks, for management reporting. It is used in Oracle Project Resource
Management for Discoverer reports and in the Oracle Project Intelligence reporting solution.

Different operating units can have a different definition of a working day. For example, a
working day can be 8 hours in one operating unit, and 7 hours in another one.

Expenditure Cycle Start Day You specify an Expenditure Cycle Start Day to indicate the day
your seven-day expenditure week begins. If you specify Monday as the expenditure cycle
start day, the week ending date on all expenditures, including timecards and expense reports,
is the following Sunday. You can choose any day of the week as your expenditure cycle start
day.

Enable Overtime Calculation You specify whether you want to use the Overtime Calculation
program to calculate and charge overtime hours automatically.

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You may need to customize the Overtime Calculation program if your business wants to use
automatic overtime calculation.

Import Contingent worker timecards with Purchase Order Integration Enable this option if
you want to import contingent worker labor costs from timecards. When you select this
option, contingent workers can select a purchase order when they enter timecards. Specifying
a contingent worker purchase order on a timecard allows the labor cost to be imported via the
timecard, and prevents interface of labor costs to Oracle Projects from supplier invoices that
are associated with the purchase order.

Important: Changing the setting of this option after you enter contingent worker timecards, or
after you match an invoice to a contingent worker purchase order and interface it to Oracle
Projects, can cause data errors. These data errors can include double accounting of costs and
failure to interface costs to Oracle Projects.

Default Supplier Cost Credit Account Define a default supplier cost credit account. Oracle
Projects credits the specified account when you adjust supplier cost and expense report
expenditure items in Oracle Projects. See also: Accounting for Costs and Generate Cost
Accounting Events, Oracle Projects Fundamentals.

If you allow adjustments to supplier cost expenditure or expense report expenditure items in
Oracle Projects, then you must either specify a default supplier cost credit account in Oracle
Projects, or set up a rule to derive the account in Oracle Sub-ledger Accounting.

Interface Cost to GL If you want to send employee labor costs, contingent worker labor
costs, usage costs, inventory costs, WIP costs, miscellaneous costs, and burden costs to
Oracle General Ledger, then you must enable the corresponding interface cost option. When
you enable an interface cost option, Oracle Projects generates accounting events for that type
of cost, and creates accounting for the accounting events in Oracle Sub-ledger Accounting.
Oracle Sub-ledger Accounting is an intermediate step in the cost accounting flow between
Oracle Projects and Oracle General Ledger. Oracle Sub-ledger Accounting transfers the
accounting entries to Oracle General Ledger.

Therefore, if you do not enable an interface cost option, then Oracle Projects does not
generate cost accounting events for transactions of that type of cost. As a result, you cannot
create accounting in Oracle Sub-ledger Accounting and transfer the costs to Oracle General
Ledger.

Expenditure/Event Organization Hierarchy You assign an expenditure/event organization

hierarchy to the operating unit to control which organizations have the following capabilities:

Incur expenditures

Own project events

Be assigned to a resource list as a resource

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To incur expenditures, own events, or be assigned to a resource list, an organization must
have the following characteristics:

The organization must be in the expenditure/event organization hierarchy assigned to the

operating unit.

The organization must have the project expenditure/event organization classification enabled.

The organization must be active as of the system date.

Interface Revenue to GL If you want to send revenue to Oracle General Ledger, then you
must enable the interface revenue option. When you enable the interface revenue option,
Oracle Projects generates revenue accounting events and creates accounting for the
accounting events in Oracle Sub-ledger Accounting. Oracle Sub-ledger Accounting is an
intermediate step in the revenue accounting flow between Oracle Projects and Oracle General
Ledger. Oracle Sub-ledger Accounting transfers the accounting entries to Oracle General
Ledger.

Therefore, if you do not enable the interface revenue option, then Oracle Projects does not
generate revenue accounting events. As a result, you cannot create the accounting and
transfer the revenue to Oracle General Ledger.

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Invoice Numbering Invoice Numbering Method

You specify whether you want Oracle Projects to number invoices automatically, or whether
you plan to enter invoice numbers manually.

Invoice Numbering Type Like manual project numbers, manual invoice numbers may be
either alphanumeric or numeric. If you select Manual invoice numbering, you indicate
whether you will use alphanumeric or numeric invoice numbers. If you select Automatic
invoice numbering, Oracle Projects uses numeric numbering.

Next Number If you want Oracle Projects to automatically number each invoice, you specify
a starting invoice number.

Note: In a multiple organization installation, invoice numbers are unique within an operating
unit, not across operating units (unlike project numbers). If automatic invoice numbering
method is selected, the next invoice number is operating unit-specific.

Centralized Invoice Processing You specify whether you want invoice processing to be
centralized, or if you want Oracle Projects to process your invoices at the project invoice
collection organization level.

By default, the Centralized Invoice Processing check box is enabled.

If you want all of the project invoices for the operating unit to be processed using the Oracle
Projects seeded transaction types, leave the check box enabled.

With decentralized invoicing, you allow organizations to process their own invoice
collections. See: Implementing Decentralized Invoice Processing.

Invoice Batch Source You need to specify an invoice batch source in Oracle Projects before
you can interface invoices to Oracle Receivables.

Oracle Projects provides a predefined batch source name PROJECTS INVOICES. You must
select this batch.

Sales Credit Type You use the Sales Credit Type to interface sales credit information to
Oracle Receivables for project invoices.

Select the Sales Credit Type to specify the type of credit you want to allocate to salespersons
in Oracle Receivables for project invoices. If there is no credit receiver defined at the project
level and Allow Sales Credit is enabled for the Invoice Batch Source, your project invoices
will interface to receivables with the selected Sales Credit Type with the project manager as
the default credit receiver. See also, Salespersons and Credit Types.

Customer Relationships You can control the ability to view and select related customers of
the project customer for bill and ship to purposes at the operating unit level. The choices are:

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Yes: You can choose a Bill To and Ship To customer based on the project customer or a
related customer defined in Oracle Receivables.

No: You can choose a Bill to and Ship to customer of the project customer only.

All: You can choose a Bill To and Ship To customer from any customer defined in Oracle
Receivables.

The default value is No. You can change the option any time, but the change impacts only
future customers and invoices.

Enable Multi-Currency Billing Check this box if you want to enter agreements, rate
schedules, and add billing assignments to the project type in any currency.

Require Rate and Discount Reason Oracle Projects allows you to enter a reason for the rate
or discount override to the standard bill rate schedules. Check this box if you want to require
users to enter the rate and discount override reason.

Allow Bill Rate Override Check this box if you want to be able to override bill rates for all
the projects in the operating unit.

Allow Bill Rate Discount Override Check this box if you want to be able to override the bill
rate discount for all the projects in the operating unit. If this functionality is enabled, Oracle
Projects allows you to override the project or task level discount percentages at the following
levels:

Employee

Job

Non-Labor Resource

Requirement

Assignment

Share Bill Rate Schedules across Operating Units Check this box if you want to share bill
rate schedules across operating units. This functionality allows an operating unit to share rate
schedules from other operating units.

Allow Funding Across Operating Units Check this box if you want to fund projects across
operating units. If you enable this functionality, the list of values for project number includes
active projects that are associated with the agreement of the customer and that have:

Multi-currency billing enabled at the project level Multi-currency billing disabled at project
level and functional currency same as the agreement currency or

Multi-currency billing enabled with funding currency selected as the invoice processing
currency, and existing funding in a currency same as the agreement currency.

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Account for Unbilled Retention To generate a different account for unbilled retention using
the defined Unbilled Retention Account AutoAccounting rules, you must check this box. The
unbilled retention is an asset account, separate from the unbilled receivable account, and
tracks the total amount of withheld retention that has not been billed. If this feature is not
enabled, Oracle Projects uses the Unbilled Receivable Account AutoAccounting rules when
interfacing project invoices and retention invoices to Oracle Receivables.

Note: Only those projects created after Account for Unbilled Retention check box is enabled
will derive the Unbilled Retention account using the Unbilled Retention Account function
transaction when interfacing project invoices and retention invoices to Oracle Receivables.

Funding Revaluation Includes Gains and Losses

Check this box if you want the funding revaluation process to include gains and losses. If you
enable this functionality, you must implement the realized gain and loss function transactions
and set up the AutoAccounting rules to reclassify the realized currency gain and loss accounts
based on the new event type classifications.

If you do not enable this functionality, the revaluation process includes only the backlog
amount for revaluation.

Note: This option cannot be unchecked at this level if any of the project type level or project
level Funding Revaluation includes Gains and Losses option is enabled.

Require Credit Memo Reason Enable this option if you require a user to select a credit memo
reason when releasing cancelled invoices, write-offs, and credit memos.

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Transfer Price Currency Conversion

Exchange Rate Date Type Choose Expenditure Item Date or PA Date.

Exchange Rate Type Specify the rate type that the system will use as the default for transfer
price conversions.

Cross Charges within Operating Unit

Select a method for processing cross charges within the operating unit.

None if you select none the system will not process intra-operating unit transactions for cross
charge.

Borrowed and Lent The system creates borrowed and lent accounting entries only. The
system does not generate invoices for transactions processed by borrowed and lent
accounting.

Allow Cross Charges to All Operating Units within Legal Entity

To allow cross charges to all operating units within a legal entity:

Select the Allow Cross Charges to all Operating Units within Legal Entity check box.

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Choose a default processing method for cross charge transactions across operating units
within the legal entity.

None if you select none the system will not process inter-operating unit transactions for cross
charge.

Borrowed and Lent The system creates borrowed and lent accounting entries only.

Oracle Projects uses the organization defined at Default Legal Context of the operating unit
as the legal entity for cross charge processing.

Provider for Internal Billing

If the current operating unit is a provider organization for internal billing, select the Provider
for Internal Billing check box and complete the additional fields in this region.

Supplier Name and Number

Enter the name and number of the supplier associated with the current operating unit.

Invoice Numbering

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Manual: To specify invoice numbers, select Manual, and then select Alphanumeric or
Numeric numbering.

Automatic: To have the system generate the invoice numbers, select Automatic, and then
enter a starting number to use for internal invoices.

Invoice Batch Source

For Invoice Batch Source, select PA Internal Invoices.

Reclassify Costs for Cross Charged Transactions

Cost Accrual Projects Indicate how you want to reclassify cross charged costs for cost
accrual projects (Raw or Burdened). Select None if you do not want to reclassify raw or
burdened costs.

Non Cost Accrual Projects Indicate how you want to reclassify cross charged costs for and
non-cost accrual projects (Raw or Burdened). Select None if you do not want to reclassify
raw or burdened costs.

Receiver for Internal Billing

If the current operating unit is a receiver organization for internal billing, select the Receiver
for Internal Billing check box and enter the customer name and number to be associated with
the current operating unit.

If you want to identify the project as a cost accrual project, use the Cost Accrual
Identification extension. See: Cost Accrual Identification Extension, Oracle Projects APIs,
Client Extensions, and Open Interfaces Reference.

Defining Forecasting Implementation Options

To define implementation options for organization forecasting, perform the following steps:

1. Log in using the Applications Project Resource Management Super User

responsibility.
2. Navigate to the Organization Forecast Options tabbed region in the Forecasting
Implementation Options window.
3. Select whether to report forecast amounts by PA or GL period.
4. Specify a starting period to define the first period of your forecasts.

A starting period can be the current period or any future period. You must
periodically update the starting date in order to reflect the appropriate forecast periods
on your forecast entry and view pages.

5. Specify the number of periods to include in forecasts.

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 This parameter indicates the number of periods to include in the forecast beginning
with the specified starting period. Together, the starting period and number of periods
option control the display of forecast periods on forecast entry and view pages.

6. Specify the project template to use for creating organization projects.

7. Specify an amount rollup option.

When you select Weighted Numbers the system factors (discounts) like revenue,
internal revenue, cost and internal costs by project probability percentages When you
select Full Numbers, the system does not factor the forecast amounts.

8. Save your work.

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Defining GL and PA Periods
Project accounting periods (PA periods) track Oracle Projects data on a periodic basis. Your
PA periods may be more frequent than your GL accounting periods. You can use PA periods
for budget and forecast, for accounting cost and revenue. You set a current PA reporting
period for Oracle Projects to summarize project amounts and to track project status. See:
Setting the PA Reporting Period.

PA Periods and GL Periods Compared

If you want to report project information more frequently than your GL periods allow, you
can define PA periods that are shorter than your GL periods. For example, you can define
weekly PA periods and monthly GL periods. You can also create PA periods that match
existing Oracle General Ledger accounting periods (GL periods).

For more information about financial and reporting periods, see Financial Accounting and
Date Processing, Oracle Projects Fundamentals.

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PA Period Effective Dates

You assign effective dates to each PA period. The effective dates signal the beginning and
end of the PA period.

Note: After a transaction is posted to a PA period from any operating unit, the General
Ledger Accounting Calendar window will not allow changes to the period date range.

PA Period Open/Closed Status

You specify a status for each PA period. The status must be of one of those described in the
following table:

Entry Interface Reopen

Status Description
Allowed Transactions Period

Never New periods that are in the future, No No n/a

Opened and in which you do not want to
allow entry.

Future Future periods in which you allow Yes Yes n/a

entry and interface of transactions.

Open Current periods. Yes Yes n/a

Pending Use for correcting unprocessed items. No Yes n/a

Close You can set a period to this status
without checking for unprocessed
items.

Closed You cannot close a period if No No Yes

unprocessed items exist. A closed
period can be reopened at any time.

Permanently You cannot permanently close a No No No

Closed period if unprocessed items exist.
Once a period is permanently closed,
you cannot reopen it.

At least one PA period must be specified as Open or Future in order for Oracle Projects
processes to process transactions. The PA Period with a status of Open or Future that includes
a project transaction date is the PA Period for the transaction. However, if the transaction
date falls in a period that is not Open or Future, Oracle Projects will find the next Open or

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Future PA Period and use it as the PA Period for the transaction. Oracle Projects will reject
the transaction if it cannot find a PA Period for the transaction.

Defining Future PA Periods for Period-Phased Budgeting and Forecasting

If you plan to use period-phased budgeting and forecasting, you must define the future PA
and GL periods in which you want to budget or forecast. The periods must first be defined in
Oracle General Ledger in the calendar associated with your ledger and then copied using the
Maintain PA Period Statuses window.

Prerequisites:

Define PA periods in Oracle General Ledger in the calendar associated with your ledger. PA
periods are copied from GL calendar when you select the Copy From GL button in the PA
Periods window. See: Period Types and Adding Periods to a Calendar, Oracle General
Ledger Implementation Guide.

Set up implementation options. See: Implementation Options.

To define PA periods:

Suggestion: Define your PA periods for a full year when you implement Oracle Projects.
Keep the number of Future or Open periods to a minimum to improve system performance on
costing and revenue accrual

1. Navigate to the Maintain PA Period Statuses window.

2. Choose Copy from GL to copy a set of PA Periods from a GL Calendar according to
the PA period type indicated in the Oracle Projects Implementation Options.

To change the status of a PA period:

1. Navigate to the Maintain PA Period Statuses window.

2. Query the PA period for which you want to change the status.
3. Enter or select the new status.
4. Save.

Setting the PA Reporting Period

You must specify a current PA Reporting Period for Oracle Projects to summarize project
amounts and to track project status.

To set the PA Reporting Period:

1. Navigate to the Maintain PA Period Statuses (PA Periods) window.

2. Choose Set Reporting Period.
3. In the Next box, enter or select the PA period you want to set as the new current PA
reporting period.

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 4. Choose OK.

Setting the PA Reporting Period to an Earlier Period:

When you attempt to set the PA Reporting Period to an earlier period than the current PA
Reporting Period, the system checks to see if any projects have been accumulated in a PA
period later than the new PA Reporting Period, if this is the case, a message is displayed
indicating that if you change the PA Reporting Period you must run the Refresh Project
Summary Amounts process. You have the option to cancel the change or proceed with the
change.

Note: Setting the PA reporting to a prior period may result in a large volume of additional
processing if the change requires you to refresh the project summary amounts for most of
your projects.

To see which projects would be affected by a PA Reporting Period change, you can run the
Summarization Period Exceptions Report. See: Summarization Period Exceptions, Oracle
Projects Fundamentals.

If you proceed with the change to an earlier PA Reporting Period when projects have been
accumulated in a later PA period, you need to run the PRC: Refresh Project Summary
Amounts process before viewing information in the Project Status Inquiry (PSI) window.
See: Refresh Project Summary Amounts, Oracle Projects Fundamentals.

PA Periods in a Multi-Organization Environment

In a multi-organization environment, each operating unit maintains its own PA period status.
You use the Maintain PA Periods Status window to maintain the period status and the current
reporting period.

Note: In a single organization environment, all projects in your implementation of Oracle

Projects share the same PA Reporting Period.

Setup Requirements for the Availability Calculation

The availability calculation looks for defined GL Periods and PA Periods, as well as defined
Forecasting Options.

Defining GL Periods and PA Periods for Availability Purposes

In order for the availability of a resource to be calculated, you must have both GL Periods
and PA Periods defined for the availability duration. Because the availability of a resource is
recalculated every time an assignment is added, this can be a moving target.

Therefore, a suggested formula for determining how far in advance to set up these periods is
to double the value you have entered for the PA: Availability Duration profile option. For
example, if you have defined this profile option with a value of 2 (for 2 years), then define
GL and PA Periods for 4 years out.

26
If you have resources that have a start date prior to the system date, the system calculates
resource availability one year prior to the current system date. This availability is used solely
for timeline displays for the prior year. These displays are useful if you are converting and
tracking assignments that started in the previous year. GL Periods and PA Periods must be
established for the prior year. If these periods are not defined, then any resource with an HR
assignment start date earlier than the current system date will not be considered a valid
resource.

Defining Forecast Options for Scheduling Purposes

The forecast options must be defined for each operating unit. These forecast options define
your preferences on handling resource utilization and financial forecasting. Some of this
information is also used for calculating resource availability. For more information, see:
Forecasting Implementation Options.

Other Sources:

Period Types, Oracle General Ledger Implementation Guide

Adding Periods to a Calendar, Oracle General Ledger Implementation Guide

27
Setting the GL Period Status
When enhanced period processing features are enabled, you must maintain the status of your
GL periods for project transaction processing in Oracle Projects. A GL period can have one
of the following statuses:

Never Opened: The initial status of a GL period, you can enter only forecast and budget items
in Oracle Projects. You cannot enter or import actual cost transactions in Oracle Projects.

Future: You can enter and import transactions in Oracle Projects and generate accounting
events for the transactions.

Open: You can enter and import transactions in Oracle Projects and generate accounting
events for the transactions.

Closed: You cannot enter or import transactions.

To update the status of a GL period:

1. Navigate to the GL Periods for Projects window.

2. Select a period and click in the Period Status column to display a list of period
statuses.
3. Select a status from the list.
4. Save your work.

28
Defining Statuses and Status Profile Options
A status is the state of an object. Objects can have only one status at a time.

Status Types in Oracle Projects

When you implement Oracle Projects, your system includes predefined statuses. For some
status types, you can define additional statuses to meet your business needs.

Statuses include the status types shown in the following table:

Status Type Description

Project Status Used to control processing at the various stages of a project.

Task Status Used to control processing at the various stages of a task.

Progress Status Used to control processing for projects and tasks as progress is made
towards their completion.

Requirement Used to control processing for requirements as they are opened, filled, or
Status canceled.

Assignment Used to control processing for work assignments as resources are assigned
Status to them or they are canceled.

Candidate Status Used to control processing for job candidates as they are considered for a
work requirement.

Assignment Used by workflow processes to control processing for assignment

Approval Status approval requests.

Control Item The owner of an issue or change document owners can periodically update
Progress the progress towards resolving the issue while the issue is in Draft,
Working, Submitted, Approved, or Rejected status.

Control Item Control Item Statuses determine the visibility of an issue or change
Status document, and whether you can update the issue or change. You cannot
add control item statuses or make changes to the existing control item
statuses.

For additional information, see: Predefined Assignment Approval Statuses.

29
You can modify the default status controls for each existing user status. You can also create
new user statuses based on the available system statuses to meet your business needs and
create workflow processes that support those needs.

However, for each existing user status, you must define the next allowable statuses. Defining
the next allowable statuses determines the process flow for your objects. For example, you
can specify that an assignment with the user status of Provisional can have its status changed
to the user statuses of either Confirmed or Canceled. This example shows that you have just
determined two possible process flows of a requirement:

Provisional -> Confirmed

Provisional -> Canceled

Project Statuses

The project status can be used to control what processing is allowed at various stages of a
project. Every project must have a valid status.

Oracle Projects predefines the following project statuses:

Unapproved
Submitted
Approved
Rejected
Pending Close
Closed

Note: If your system was upgraded from Release 10 to the current release, you will also see
the predefined project status Active, which was defined in prior releases of Oracle Projects.

Defining statuses and status options

To define a status:

1. Navigate to the Statuses window.

2. Select the Status Type that you want to define (such as Project).
3. Enter a unique Status name.
4. Select a System Status to map to the status. Every status must map to a predefined
system status.
5. Enter a Description for the status.
6. Enter Effective Dates for the status.
7. If you want this status to be eligible for use as the starting status for the kind of object
it is associated with (such as a project, task, assignment, or candidate), check the
Starting Status box.
8. Status Controls The Status Controls region contains a list of actions that are allowed
or restricted for each status.

30
 When you create a new status, the system status you have selected for the status
determines which actions are allowed for the object to which the status is assigned. If
you want to change the status controls from the default settings, you can select or
clear Allow box.

The Default check box is display-only, and contains the original setting of the Allow
check box.

For some system statuses, there are Allow check boxes that cannot be changed. For
example, if a project status maps to the Closed System Status, the project status
cannot allow Create New Transactions.

9. Next Allowable Statuses Use this region to define the next allowable statuses for
each status.

Four radio buttons control the next allowable statuses you can enter:

o All The current status can be changed to any status. This is the default value.
o None if you select none radio button, the current status cannot be changed.
o System Status The Next Allowable Statuses are all system statuses.
o Status The Next Allowable Statuses are all user-defined statuses.

If you choose System Status or Status, you can then enter as many next
allowable statuses as you want.

10. Workflow: If you want to initiate workflow when an object is updated to this status,
select the Workflow tab. Check the Enable Workflow check box and enter the
following fields:
o Item Type Enter the name of the Workflow Item Type to be used for this
status.
o Process Enter the name of the workflow process to submit for this status.
o Success Status Enter the status to assign to the object upon successful
completion of workflow.
o Failure Status Enter the status to assign to the object if workflow fails. (This
can be the same as the current status.)

For more information about workflow in Oracle Projects, see: Integrating with
Oracle Workflow, Oracle Projects Implementation Guide.

11. Save your work.

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32
Cycle
One of the factors that impact invoice generation is how often and on what dates a project is
billed. A project's billing schedule is determined by the company rules, the agreement entered
between your company and the customer, and the project type.

You must define billing cycles that fulfil your business needs, and assign a billing cycle to
each project. The billing processes derive the next billing date based on the billing cycle
definition.

You can define and maintain as many billing cycles as you need. A billing cycle code can
optionally call a customized client extension to derive the next billing date.

33
Units of Measure

34
 PROJECT LOOKUPS
Use the Oracle Projects Lookups window to review and maintain lookups that you use in
Projects.

In some fields in Projects windows, you are required to enter a value from a predefined list of
values. Sometimes the values on the list are items you have defined in a setup window such
as Credit Types. Other predefined sets of values are lookups, which you can view, and in
some cases, update, in the Oracle Projects Lookups window.

Each lookup category is identified by its lookup type. For example, UNIT is a lookup type for
which Currency and Hours are allowable codes.

The Access Level region in the Lookups window indicates at what level each lookup type is
maintained. For example, you can only create new lookup names to add to the list of
predefined lookups for an extensible lookup type, whereas you can both add new lookup
names and change the attributes of predefined lookups for a lookup type with an access level
of User.

You cannot change lookup code value after you save a lookup code. You can remove an
obsolete lookup in the following ways: disable the code, enter an end date, or change the
meaning and description to match a replacement code.

Caution: If you remove or make obsolete a lookup that is in use, processing errors can result.

If you use Multiple Language Support (MLS), you can define lookups in each of your
installed languages. Select Translations from the toolbar or menu to enter the lookup name
and description in other languages. When a user selects lookups from a list of values, the
lookups on the list will appear in the user's language. For more information about MLS, see
"Internationalization Support" in Oracle Applications Concepts and "Administering
Internationalization" in Oracle Applications System Administrator's Guide - Configuration.

Roles
Project roles are part of the project-based security feature those are used to control user’s
access to project level information. Project roles serve two purposes

1. You use roles when you define project based security

35
2. In project resource management, you use roles to define default information about
team member role on a project

36
Role List
You use role lists to categorize your roles into logical grouping. Role list enables enhanced
control and ease of use when you assign team members to a project.

Classifications
You define classifications to group your projects according to categories you define. It
includes class category and class code. Class category is broad subject within which you can
classify projects. The code is specific value of the category.

It can be used for reporting purpose and Auto accounting

You can specify classifications at the project level only

37
Service Type
A service type is custom reporting attribute that you assign to each financial task to represent
activities that you want to track for financial purpose. It can be also used for AutoAccounting
purpose.

Project
Project type Project top task Project sub task
template

Customer Relationship
It is used for the reporting purpose & Search Criteria.

The oracle has provided Pre-defined –

Primary – L&T is constructing metro rail for TS.

Secondary – L&T is constructing 11 Floors Building.

o Oracle purchasing – 7 Floors

o TCS Purchasing -3 Floors
o NTT Data purchasing – 1 Floor

38
In this case Oracle is Primary and remaining two (TCS and NTT Data) are secondary.

Non-Paying:

TCS asked L&T to construct a building for Old age home. Here TCS is paying money to
L&T. Old age Home is not paying money to L&T.

According to above scenario, L&T has 2 customers. 1. TCS (primary, contribution is 100%)
2. Old age Home (secondary, contribution is 0%)

In Real Time will Define Relationship like-

Central (Ex - Railway Track)

State (Ex – Metro Rail in TS)

Public Sector (Qtrs for IOC)

Private Sector (TCS)

Individual (Ex- Constructing House for Anil Ambani)

I can pull out the reports based on customer relationships. How many projects I am doing for
central govt, how much revenue is generated. How much profit I am getting….etc

39
Contact type
L&T is constructing a metro rail project for Andhra Pradesh State.

To get the amount, L&T meet one contact person on behalf of AP.

If L&T wants to go for Quality check, to whom L&T can contact.

For shipping purpose, to whom L&T can contact…..etc

This kind of contact information we will provide in Customer Contact Types.

In real time we won’t use customer contact types.

Probability Lists
Define probability lists if you want to use the probability feature in Oracle Projects.

When you define a potential project, you can enter pipeline information such as the
probability percentage of winning the project, the project value, and the expected approval
date. This information is used for calculations such as determining the weighted (discounted)
value of all projects in your pipeline. If a project has no defined probability percentage, then
it is assumed to be 100% for all calculations performed on the project.

You have control over how percentage values are used on a project through the creation of
Probability Lists. The probability list is a list of percentages with descriptions. For example,
you can create a list called Quarters with the following percentages:

40
 25% Talks Initiated
50% Negotiation
75% Contract Proposed
100% Approved

You can attach this list to any project type. When you create a project associated with the
project type, these are the values available for selection in the Probability field.

If you use Oracle Sales Online, the win probability value is based on the value of the sales
opportunity in Sales Online which is associated with your pipeline project. To share win
probability values between Oracle Sales Online and Oracle Projects, you must map the
probability values using the Probability Mapping page.

To define probability lists:

1. Navigate to the Probability Lists window.

2. Enter a unique name for the probability list.
3. Enter a description for the probability list.
4. Enter effective start and end dates for the probability list. These dates determine
whether you can use the list on projects.
5. Enter the probability values: percentage, description, and effective dates. These
effective dates determine when the percentages are displayed in the probability list of
values.

Note: You can change the probability list name at any time. You can change the percentages
only if they are not currently assigned to any project.

41
Project Priority
It is useful for reporting purpose.

It is useful to define priorities for a project.

While defining a project, we have to give priority for a project.

There are few types of priorities.

o High priority
o Medium priority
o Low priority

If you set project priorities, if we want we can see only high priority projects or only low
priority projects or medium priority projects.

42
 BUDGETS
Budget Types
Budget types identify the different kinds of budgets that you enter for your projects. Every
project budget that you enter is classified by a budget type.

Each budget type is defined as either a cost budget type or a revenue budget type. For budgets
using cost budget types, you can enter quantities, raw cost, and burdened costs. For budget
using revenue budget types, you can enter quantities and revenue amounts.

You can use any budget type for project status tracking.

Oracle Projects predefines four budget types:

Approved Cost Budget

Approved Revenue Budget

Forecast Cost Budget

Forecast Revenue Budget

You can define additional budget types during implementation. For example, your company
may want to create a separate budget from the Approved Cost Budget to track "what if"
scenarios for future project alternatives.

Budget change reason

If we want to make any changes for existing budget, we go for change reasons.

For increase in scope or decrease in scope of the project, we go for change reasons.

43
Budget Entry Method
Budget entry methods specify and control how you can enter a budget, including these
options:

• what level in the work breakdown structure that you enter the budget
• what time period you use for budgeting, if any
• whether you enter budget amounts by categories (resources)
• what budget amounts you enter for the budget

Budget entry methods simplify budget entry by leading you through the budget entry
windows to enter the data that you need.

Budget entry methods also provide a way to enforce consistent budget entry across similar
projects, which facilities cross-project reporting.

You select a budget entry method when you create a draft for a project. You also specify the
default budget entry method for each project type.

44
Resource List
You can define the resource list as a hierarchy of resources up to two levels. The top level is
restricted to resource type such as organization, expenditure category and revenue category.
You use the following resource types to define second level of the hierarchy;

• Employee
• Job
• Expenditure type
• Event type
• Organization
• Expenditure category
• Revenue category
• Supplier

Note: There are used within the Business Group

45
46
 EXPENDITURE
Expenditure Category
An expenditure category describes the source of your organization's costs. For example, an
expenditure category with a name such as Labor refers to the cost of labor. An expenditure
category with a name such as Supplier refers to the cost incurred on supplier invoices.

You use expenditure categories when you define organization overrides, for budgeting, and
for transaction controls. In addition, you can use expenditure categories in your
AutoAccounting rules and in your reporting. Expenditure categories are used for grouping
expenditure types for costing.

Revenue Category
A revenue category describes a source of your organization's revenue. For example, a
revenue category with a name such as Labor refers to labor revenue.

Revenue categories are used for grouping expenditure types and event types for revenue and
billing. You can use revenue categories for budgeting, for reporting purposes, and in your
AutoAccounting rules.

47
Expenditure Type
When you define an expenditure type, you assign it a unit, an expenditure category, a revenue
category, and one or more expenditure type classes.

You also specify whether an expenditure type requires a cost rate. An expenditure type with
the following attributes requires a cost rate:

A unit other than dollars

A non-labor expenditure type class

For supplier invoice expenditure types, if you specify that a rate is required, Oracle Projects
requires you to enter a quantity in Oracle Payables for invoice distributions using that
expenditure type. When you interface the invoice distribution to Oracle Projects, Oracle
Projects copies the quantity and amount to the expenditure item and calculates the rate. If you
define a supplier invoice expenditure type with the Rate required option disabled, then the
quantity of the expenditure item is set to the amount you enter in Oracle Payables.

Multiple Expenditure Type Classes per Expenditure Type

You can assign multiple expenditure type classes to an expenditure type. For example,
expenditure with the expenditure type Materials can have the expenditure type class Supplier
Invoice if it originated in Oracle Payables, and the expenditure type class Inventory if it
originated in Oracle Inventory.

You can’t disable rate required after enable and save

48
Expenditure Type Class
An expenditure type class tells Oracle Projects how to process an expenditure item. Oracle
Projects predefines all expenditure type classes.

Oracle Projects uses the following expenditure type classes to process labor costs for
interfacing to Oracle General Ledger:

Straight Time Straight Time is the default expenditure type class associated with the PTE
Time transaction source.

Overtime Overtime premium on a project

Oracle Projects uses the following expenditure type classes to process non-labor project
costs:

Expense Reports Oracle Projects expense reports are interfaced to Oracle Payables for
employee reimbursement. Expense Reports is the default expenditure type class associated
with the PTE Expense transaction source.

Usages Asset usage costs are interfaced to Oracle General Ledger.

Supplier Invoices Oracle Payables supplier invoices are interfaced from Oracle Payables to
Oracle Projects.

49
Miscellaneous Transaction Miscellaneous Transactions are used to track miscellaneous
project costs. This expenditure type class is similar to usages. The difference is that, for
miscellaneous transactions expenditure items, you are not required to specify a non-labor
resource or a non-labor resource organization, as you are for usage expenditure items.
Miscellaneous transactions may be used for the following costs:

Fixed assets depreciation

Allocations

Interest charges

Burden Transaction Burden transactions track burden costs that are calculated in an external
system or calculated as separate, summarized transactions. These costs are created as a
separate expenditure item that has a burdened cost amount, but has a quantity and raw cost
value of zero. Burden transactions are interfaced to Oracle General Ledger. As with any other
transaction in Oracle Projects, you can adjust and capitalize burden transactions, or accrue
revenue or generate invoices for these transactions. See: Accounting for Total Burdened
Costs.

Burden transactions that are not system-generated can be adjusted. See: Adjusting Burden
Transactions.

Work in Process This expenditure type class is used for Project Manufacturing WIP
transactions that are interfaced from Manufacturing to Oracle Projects. You can also use this
expenditure type class when you import other manufacturing costs via Transaction Import or
when you enter transactions via pre-approved batch entry.

Inventory This expenditure type class is used for the following transactions:

Project Manufacturing transactions that are interfaced from Manufacturing or Inventory to

Oracle Projects.

Oracle Inventory has Issues and Receipts that are interfaced from Oracle Inventory to Oracle
Projects in a manufacturing or non-manufacturing installation.

You can also use this expenditure type class when you import other manufacturing costs via
Transaction Import or when you enter transactions via pre-approved batch entry.

The expenditure type class determines how an expenditure item is processed. For example, if
you assign the Straight Time expenditure type class to an expenditure type, Oracle Projects
uses labor distribution to calculate the cost of an expenditure item with that expenditure type
and expenditure type class. If you assign the Expense Reports expenditure type class to an
expenditure type, Oracle Projects uses expense report distribution to calculate the cost of an
expenditure item with that expenditure type and expenditure type class, and interfaces it to
Oracle Payables for payment.

50
Non-Labour Resource
You specify a name and a description of an asset, or pool of assets, to define a non-labor
resource. For example, you can define a non-labor resource with a name such as Earth Mover
to represent one earth mover your business owns. You can also define a non-labor resource
with a name such as PC to represent multiple personal computers your business owns.

Every usage item you charge to a project must specify the non-labor resource utilized and the
non-labor resource organization that owns the resource. You must define a non-labor
resource for each usage expenditure type.

When defining your non-labor resources, you can choose only expenditure types with the
Usage expenditure type class.

You can use the non-labor resource organization in your AutoAccounting rules for usage cost
and revenue.

Prerequisites;

Define organizations

Define expenditure types

51
Transaction Source
Transaction sources identify the source of external transactions you import into Oracle
Projects using Transaction Import. For example, you can define the transaction source Payroll
to identify expenditure items imported from an external payroll system.

Transaction Sources for PTE

Oracle Projects predefines two Oracle Personal Time and Expense (PTE) transaction sources:

PTE EXPENSE for expense reports

PTE TIME for timecards (expenditure type class of Straight Time)

Oracle Projects uses these transaction sources to import expenditures from Oracle Personal
Time and Expense.

Transaction Sources for Manufacturing and Inventory Costs

Oracle Projects predefines three transaction sources for Oracle Manufacturing and Oracle
Inventory costs:

Inventory for manufacturing material costs:

Inventory Misc for inventory issues and receipts entered in the Miscellaneous Transactions
window in Oracle Inventory

52
Work in Process for manufacturing resource costs:

Oracle Projects uses these transaction sources to import expenditures from Oracle Inventory
and Oracle Manufacturing.

If you import transactions from another manufacturing system, you must define your own
transaction source.

Transaction Source Options

Transaction Import processes transactions based on the options that you select for their
transaction sources.

Default Expenditure Type Class:

Oracle Projects uses the default expenditure type class that you assign to a transaction source
if an expenditure type class is not specified in the interface table. Oracle Projects provides
this option to facilitate the migration of data from earlier releases of Oracle Projects.

Cost:

When a transaction source is specified as having cost transactions, this means that the raw
cost amount of the transactions has already been calculated and will not be modified after
being imported into Oracle Projects. None of the Oracle Projects processes will calculate raw
cost amounts for these transactions. See: Loading Items as Cost or Un-cost.

The designation of a transaction as cost does not affect burdening, accounting, or interfacing
to GL or AP. These processes are still performed on the transaction as they would be if it
were imported as a non-cost transaction.

Cost Burdened:

If you enable this option, all transactions originating from this transaction source must have
burdened costs. If the transaction does not have a burdened cost amount, the burdened cost
amount will default to the transaction's raw cost amount.

GL Accounted:

Select this option to indicate whether transactions imported from this transaction source have
already been accounted for in GL. Oracle Projects expects that the external system has
already posted the raw and burdened costs to the appropriate debit and credit accounts. None
of the Oracle Projects processes will transfer these costs to GL or AP. See: Loading Items as
Accounted or Unaccounted.

This option is enabled for manufacturing or inventory transactions with a transaction source
of Inventory, Inventory Misc, or Work In Process.

Allow Duplicate References:

53
Enable this option to allow multiple transactions with this transaction source to use the same
original system reference. If you enable this option, you cannot uniquely identify the item by
transaction source and original system reference.

Modify Interface:

If Transaction Import rejects transactions from a particular transaction source, this option
allows users to modify the rejected transactions in the Review Transactions window in Oracle
Projects after the import process is completed.

Allow Adjustments:

If you enable this option, you can adjust imported transactions in Oracle Projects after you
load them via Transaction Import. Adjustments that you can allow include any change that
could result in a new GL account or cost amounts for an item, such as:

Transferring an item to another project or task:

Splitting an item into two or more items (not allowed for burden transaction items)

Recalculating costs (raw and burden)

Reclassifying an item as billable or non-billable (or capitalizable or non-capitalizable)

Note: Raw cost values for transactions that were already cost when loaded into Oracle
Projects will not be changed if you mark the item for cost recalculation.

If you do not allow users to adjust imported transactions in Oracle Projects, you must adjust
the transaction in the originating external system and import the adjustment into Oracle
Projects.

Purge able:

If you select this option for a transaction source, items successfully imported from this
transaction source are automatically purged from the interface table when the import process
completes.

MRC Amounts from External System (only in MRC environments)

If you have implemented Multiple Reporting Currencies, this option appears only in the
Transaction Sources window for your primary set of books. Checking this option indicates
that transaction amounts in your primary currency and each associated reporting currency are
provided by an external system. Otherwise, Oracle Projects calculates reporting currency
amounts based on the rates stored in the GL_DAILY_RATES table. If you enable this option,
you must populate the PA_MC_TXN_INTERFACE_ALL table with the currency conversion
rates and converted amounts for all transactions originating from that transaction source.

54
55
Rate Schedules
Oracle Projects determines rates from a combination of rate schedules and rate overrides, and
uses the rates to calculate cost, revenue, and bill amounts. How Oracle Projects determines
rates depends upon whether the rate is for costing, billing, or work-plan and financial
planning purposes.

Rate Schedule Types Use to Determine...

Employee Cost Rates - Labor
Bill Rates - Labor
Planning Rates - Labor

Job Cost Rates - Labor

Bill Rates - Labor
Planning Rates - Labor

Non-Labor Bill Rates - Non-Labor

Planning Rates - Non-Labor

Resource Class Planning Rates - Labor

Planning Rates - Non-Labor

You can use rate schedules for the following purposes:

Costing: Use rate schedules to define cost rates for labor expenditure items. You can
maintain hourly cost rates by job or by employee.

Note: You do not use rate schedules to define cost rates for non-labor expenditure items.
Instead, you can assign cost rates directly to non-labor expenditure types.

56
Billing: You can use rate schedules to determine revenue and bill amounts for billable
expenditure items for contract projects when the revenue accrual method or the invoice
method is Work (As-Work-Occurs). You can use employee, job, and non-labor bill rate
schedules for this purpose.

You can also associate bill rate schedules with transfer price rules to determine the transfer
price amount of cross charged expenditure items during Borrowed and Lent or Intercompany
Billing cross charge processing. For information on transfer price rules, see: Defining
Transfer Price Rules, Oracle Projects Implementation Guide.

Planning: Use rate schedules to provide rates for work-plan and financial planning. You can
use the same rate schedules that are used to calculate actual costs and revenue, or you can use
a set of planning rate schedules to define rates for planning.

You can specify a set of planning rate schedules when you enable planning rates for a work-
plan structure or when you define planning options for a financial structure, budget version,
or forecast version. You can also specify employee, job, non-labor, and resource class rate
schedules for this purpose.

Determining Non-Labor Cost Rates

Oracle Projects uses cost rates to calculate the raw cost for non-labor expenditure items those
require a cost rate. You specify whether a rate is required for each expenditure type when you
define non-labor expenditure types during implementation. Oracle Projects determines a cost
rate for each non-labor expenditure item and uses the rate to calculate the raw cost during
cost distribution processing, unless you import the raw cost for these expenditure items.

The following table shows the order of precedence for how Oracle Projects determines the
cost rate for non-labor expenditure items.

Precedence Type of Override or Rate Source

1 Non-Labor Cost Rate Override (Usages Only)
2 Non-Labor Expenditure Cost Rate

For expenditure items associated with an expenditure type class of Usage, Oracle Projects
first establishes whether a non-labor cost rate override applies to the combination of non-
labor resource and non-labor resource owning organization for the expenditure item. Each
usage cost rate override applies only to a specific non-labor resource owned by a specific
non-labor resource owning organization. If an override is present, then Oracle Projects uses
the effective dates for the override to determine whether the override is active on the
expenditure item date.

For all other non-labor expenditure items that require a cost rate, and for Usage expenditure
items not associated with a non-labor cost rate override, Oracle Projects uses the non-labor
expenditure cost rate associated with the expenditure type. It searches for a non-labor
expenditure cost rate with an effective date range that is active on the expenditure item date.

57
The cost distribution process returns an exception if Oracle Projects cannot determine a non-
labor cost rate for an expenditure item.

58
59
 COSTING
Labour
Labor Cost Multipliers

A labor cost multiplier is a value by which Oracle Projects multiplies an employee's labor
cost rate to calculate the employee's overtime premium cost rate:

Labor Cost Rate * Labor Cost Multiplier = Overtime Premium Labor Cost Rate

Oracle Projects then multiplies this overtime premium labor cost rate by the number of
overtime hours an employee works to calculate the overtime premium for that employee:

Overtime Premium Labor Cost Rate * OT Hours = Overtime Premium

You define a labor cost multiplier for each kind of overtime your business uses such as
double time, or time and a half.

For example, if you pay an employee double time for all overtime hours, you define a labor
cost multiplier of 1.0. You multiply the employee's labor cost rate by 1.0 to calculate the
employee's overtime premium labor cost rate.

If you pay an employee time and a half for all overtime hours, you define a labor cost
multiplier of 0.5 to calculate the employee's overtime premium labor cost rate.

An employee's total labor cost is the overtime premium plus the total number of hours that
employee worked multiplied by the employee's labor cost rate:

Overtime Premium + (Total Hours x Labor Cost Rate) = Total Labor Cost

Defining Labor Cost Multipliers

To define a labor cost multiplier:

1. In the Labor Cost Multipliers window, enter a unique Name for the labor cost
multiplier you are defining. Enter a numeric value for the labor cost multiplier.

Save your work.

Labor Cost Multiplier Name Multiplier

Double Time 1.0

Time and Half 0.5

Uncompensated OT -1.0

60
Labor Costing Rules

A labor costing rule determines how an employee is paid. For example, you can define a
labor costing rule for pay types such as exempt, non-exempt, uncompensated, compensated,
or hourly.

When an employee charges time to a project, Oracle Projects process the labor hours
according to the employee's labor costing rule. For example, if an employee's labor costing
rule is Hourly, the employee is eligible for overtime pay; if the employee's labor costing rule
is Exempt, the employee is not eligible for overtime pay.

You can also use labor costing rules when defining AutoAccounting.

Defining Labor Costing Rules

Prerequisite:

Define an expenditure type with the expenditure types class Overtime. See:
Expenditure Types.

To define a labor costing rule:

1. In the Labor Costing Rules window, enter a unique rule name and select a costing
method

Costing methods determine how labor costs are calculated. The available options are:

Rates When you select Rates, Oracle Projects calculates the labor costs for entered
hours using hourly cost rates.

61
 Extension When you select Extension, labor costs are calculated by the labor costing
extension. When using this option you are not required to maintain hourly cost rates
in Oracle Projects.

2. If overtime hours are created by the overtime calculation extension, you can select
Overtime Trans Defaults and specify a default project and task by operating unit for
system generated expenditure items.
3. Enter the Effective Dates during which the labor costing rule is valid.
4. If your employees enter overtime hours manually, use the Overtime Cost Multipliers
region to assign cost multipliers to overtime expenditure types. When a costing
method of Rates is selected and a transaction is charged to an expenditure type that
has an assigned multiplier, the multiplier is applied as labor costs are calculated.

Note: If the transaction is charged to an overtime task and a cost multiplier is

assigned to the task, the task multiplier takes precedence over the expenditure type
multiplier.

If overtime hours are derived using the overtime calculation extension, you can use
the Overtime Cost Multipliers region to default expenditure types for system
generated expenditure items.

5. Save your work.

Note: You must define the labor costing rules listed in the Fremont example below to use the
sample Overtime Calculation extension provided by Oracle Projects.

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Costing Rules and Rate Schedules

To calculate labor costs, you must assign a costing rule to each expenditure organization. If a
costing rule has a costing method of Rates, you must also assign a cost rate schedule to each
organization using the costing rule.

Use the Organization Labor Costing Rules window to:

Assign costing rules and rate schedules, if appropriate, to operating units, parent
organizations, or specific expenditure organizations. The costing rule and rate
schedules assigned to an organization apply to all employees in the organization.
Specify currency rate attributes to be used during calculation of labor costs if the
currency of the cost rate schedule is different from the currency of the operating unit
in which the timecard is entered.
Define default overtime projects and tasks for organizations using the overtime
calculation extension to generate overtime transactions.

When you assign a costing rule and a rate schedule to an organization, Oracle Project applies
the following rules in the order presented to determine the costing rule for each transaction:

If an assignment exists for the transaction expenditure organization, then the

corresponding costing rule and rate schedule are used to calculate labor costs.

63
 If an assignment does not exist for the expenditure organization, Oracle Projects uses
the Expenditure Organization Hierarchy and searches for an assignment for the parent
organization owning the expenditure organization. If an organization has multiple
parents and a rule is assigned to each, the rule assigned to the lowest level parent
organization is applied.
If an assignment does not exist for a parent organization, Oracle Projects searches for
an assignment for the expenditure operating unit.

Assigning Costing Rules and Rate Schedules

Prerequisites:

Rate Schedule Definition

To assign costing rules and rate schedules:

1. In the Organization Labor Costing Rules window, select an Operating Unit,

Organization or both.

Note: If you do not select an operating unit, Oracle Projects displays all organizations
that are part of any Expenditure/Event Organization Hierarchy. If you select an
operating unit, Oracle Projects displays only those organizations that are in the
Expenditure/Event Organization Hierarchy for the selected operating unit. An
organization does not have to be classified as Project Expenditure/ Event
Organization to appear on the list.

If you assign an organization labor costing rule to an organization that is not classified
as a Project Expenditure/ Event Organization, the rule applies to organizations that
are below it in the hierarchy, unless you assign a rule to an organization at a lower
level in the hierarchy.

For example, a hierarchy has three organizations: Organization 1, Organization 11,

and Organization 111. Organization 1 is the parent of Organization 11. Organization
11 is the parent of Organization 111. Organization 111 is the only Project
Expenditure/Event Organization. If you assign organization labor costing rules only
to Organization 1 and Organization 11, then the rule that you assign to Organization
11 takes precedence for Organization 111.

2. Select a labor costing rule. If the labor costing rule has a costing method of Rates,
select the cost rate schedule that defines the hourly cost rates for employees in the
selected organization.
3. Enter a default job rate schedule to be used when forecasting costs for unstaffed
positions.
4. Enter the Effective Dates during which the assignment of the costing rule and rate
schedule are valid for the organization.

64
 5. If you use the overtime calculation extension, optionally enter a default project and
task for system generated transactions.
6. If your cost rate schedule currency is different from your operating unit currency,
enter the currency conversion attributes in the Currency Conversion Attributes region.
If you do not specify currency attributes, the rate attributes defined in the
Implementation Options window are applied.

Labor Costing Overrides

For individual employees, you can enter labor costing overrides. You can:

Override the assigned costing rule.

Override the assigned cost rate schedule.
Enter an overriding cost rate.

To override labor costing:

1. In the Labor Costing Overrides window, enter either the Employee Name or
Employee Number for the operating unit under question. Then select Find.

The current overrides for the selected employee are displayed.

2. Specify whether you wish to override the assigned rate schedule or enter an
overriding cost rate by choosing an override type:

Schedule Enter the overriding rate schedule in the Cost Rate Schedule field.

Rate Enter an overriding rate. Optionally, select a new currency code and define
currency conversion attributes.

65
 3. Enter the Effective Dates during which the labor costing override is valid for this
employee.
4. Save your work.

Labor Costing Extension

Use labor costing extensions to implement unique costing methods for labor transactions. The
standard method calculates raw cost using the number of hours multiplied by the employee's
hourly cost rate.

For more information, see: Labor Costing Extensions, Oracle Projects APIs, Client
Extensions, and Open Interfaces Reference.

Labor Transaction Extension

Use labor transaction extensions to create additional transactions for labor items charged to
projects.

For more information, see: Labor Transaction Extensions, Oracle Projects APIs, Client
Extensions, and Open Interfaces Reference.

66
Burden
Cost Bases and Cost Base Types

Cost bases refer to the bases of raw costs used for applying burden costs. You assign cost
bases to burden structures, and then specify the types of raw costs that are included in the cost
base along with the types of burden costs that are applied to the cost base.

You can also use cost bases as groupings of expenditure types for use in billing extension
calculations. These cost bases are not used for burdening, and are defined with a cost base
type other than Burden Cost. When you assign these cost bases with a type other than Burden
Cost to a burden structure, you can specify expenditure types for the cost base, but you
cannot specify burden cost codes for the cost base since the cost base is not used for
burdening.

Cost base types refer to the use of cost bases. Oracle Projects predefines the cost base types
Burden Cost and Other. Cost bases with the type Burden Cost are used in burden
calculations. Cost bases with the a type other than Burden Cost are not included in burden
calculations; these cost bases are used for grouping expenditure types for different purposes,
such as for billing extension calculations.

To define cost bases and cost base types:

1. In the Cost Bases window, enter a unique name for the cost base.

In the Report Order field, specify the order in which this cost base should appear for
reporting purposes.

In the Type field, specify the type of this cost base.

Enter Effective Dates for the cost base.

Enter a description of the cost base.

2. If you want to define a cost base type, choose Cost Base Type to display the Cost
Base Type Lookups window. Enter the following information for the cost base:
o Code
o Meaning
o Description
o Tag Value (optional -- tag value is not used by Oracle Projects)
o Effective dates

Check the Enabled check box to enable the cost base.

3. Save your work.

67
Burden Cost Codes

Burden cost codes represent the types of costs that you want to allocate to raw costs. You can
use burden cost codes for internal costing, revenue generation, and billing. You can also use
burden cost codes to report and account for on burden cost recovery components in Oracle
Projects.

Prerequisites:

Define an Expenditure Type for burden cost codes that will be processed as separate,
summarized burden transactions. See: Expenditure Types.

To define a burden cost code:

1. In the Burden Cost Codes window, enter the Burden Cost Code and a Description.
2. Optionally assign an expenditure type to the burden cost code for creating separate
burden transactions.

The expenditure type you enter must have the Burden Transactions expenditure type
class assigned to it. (Only expenditure types with the Burden Transactions
expenditure type class assigned to them are displayed in the list of values for this
field).

3. Save your work.

68
Burden Structures

Burden structures group cost bases for a given use, and specify what types of raw costs are
included in each cost base, and what burden costs are applied to the raw costs in each cost
base. Your company may define many different burden structures; for example, you may
define one for internal costing, one for revenue generation, and one for billing.

Prerequisites:

Define Expenditure Types. See: Expenditure Types.

Define Cost Bases. See: Cost Bases and Cost Base Types.
Define Burden Cost Codes. See: Burden Cost Codes.

To define a burden structure:

1. Navigate to the Burden Structures window.

2. Header Information

Enter a unique name and description for the burden structure.

Select Additive if you want to apply each burden cost code assigned to a cost base
using the same precedence when calculating burden costs. Additive schedules
automatically provide a default value of 1 to each burden cost code in the structure.
Select Precedence if you want to specify the order in which each burden cost code in a
cost base should be applied to raw costs.

Select Allowed, if users can use this burden structure when defining a burden
schedule override for a project or task. Select Default if you want this burden
structure to appear as the default structure for burden schedule overrides for projects
and tasks. You can only select one default structure for burden schedule overrides.

3. Cost Base Assignment

Enter the names of the cost bases included in this burden structure.

If you need to define additional cost bases, choose the Cost Bases button.

Suggestion: After you enter a cost base, we recommend that you enter all of the
associated expenditure types and burden cost codes for the cost base before you enter
the next cost base.

4. Burden Cost Codes

69
 Enter the burden cost codes associated with a particular cost base. If you are using a
precedence based structure, enter the precedence in which you want to apply each
burden cost code to raw costs within the cost base.

If you need to define a new burden cost code, choose the New Burden Cost Codes
button.

5. Expenditure Types

Enter the expenditure types associated with a particular cost base. Expenditure types
represent the types of raw costs within a cost base.

Each expenditure type can belong to only one cost base having a type of Burden Cost
within each burden structure so that transactions of that expenditure type are not
burdened more than once.

If you do not assign an expenditure type to a cost base, transactions using that
expenditure type are not burdened. The burdened cost for these transactions equals the
raw cost of the transaction.

6. Save your work.

Copying Burden Structures

When you copy a burden structure, Oracle Projects copies the following assignments from
the existing (From) structure to the new (To) structure:

Cost base assignments

Burden cost codes
Expenditure types

Note: To copy an existing burden structure to a new burden structure, you must first
enter header information for the new burden structure.

To copy a burden structure:

1. In the Burden Structures window, review the copy from structure to ensure that it
contains the information you want to copy to the new structure.
2. Clear the window and create the To structure, entering header information only.
3. Save your work.
4. Choose the Copy Structure button. The To field automatically defaults to the current
copy to structure.
5. Enter the name of the burden structure you want to copy from.

Choose OK.

70
Burden Schedules

Use the Burden Schedules window to define firm and provisional burden schedules. When
you create a schedule, you associate a burden structure to the schedule. You can create an
unlimited number of schedules; for example, you may define unique schedules for the
different purposes of internal costing, revenue, and invoicing.

For Single Business Group Access, you must set up and compile burden schedules for each
business group. The schedule name must be unique within each business group. For Cross
Business Group Access, you can share burden schedules across business groups. The
schedule name must be unique across the system.

Burden schedules are shared among operating units defined by the burdening hierarchy. If
organization burden multipliers are not explicitly defined in the Define Burden Schedule
window, they will default from the next higher level organization in the hierarchy.

You assign burden schedules to project types, projects, or tasks; project type assignments
provide default schedules to a project. Whenever special multipliers are negotiated for a
project, you can create project or task burden schedule overrides with the negotiated burden
multipliers.

Prerequisites:

Define business groups.

Define burden schedule hierarchy.
Define Implementation Options.

71
 Define burden structures.

To define a burden schedule:

1. In the Burden Schedules window, enter the name and description of the burden
schedule you are defining.

Enter the default burden structure for this schedule, which is automatically used
whenever you create a new revision. You can see the structure of a particular revision
when you review revision details. You can change the default structure of the
schedule at any time. Oracle Projects uses the new default structure for any new
revisions that you create. You can update the default structure to create revisions that
use a different burden structure for a given burden schedule.

2. Choose the burdening hierarchy for this schedule.

The burden hierarchy you enter for the burden schedule is the default hierarchy for the
latest version. The burden hierarchy information is displayed in the Burden Schedule
Version Details window and can be overridden at this level.

3. Choose the Type of schedule, either Firm or Provisional.

4. In the Versions region, define revisions. You may have many different revisions of a
particular schedule; for example, you may have a schedule revision for each quarter in
your fiscal year. You also create schedule revisions when you want to use a new
burden structure, enter new burden multipliers, or apply actual rates to provisional
multipliers.

You can set the burden schedule version start date and end date to be any calendar
date. The start date and end date need not be associated with the general ledger
period.

Whenever you create a new schedule revision, Oracle Projects automatically closes
the previous open revision. The end date defaults to the date preceding the start date
of the new revision.

Enable the Hold check box if you want to hold this schedule revision from compiling.

Choose the Details button to review the details of a particular revision.

Choose Actual if you want to apply actual multipliers to provisional revisions. See:
Applying Actual.

5. In the Multipliers region, enter multipliers for a schedule revision. You also use this
region to compile burden multipliers.

72
 Choose Copy to copy multipliers from one schedule revision to a new revision. See:
Copying Multipliers.

6. Save your work.

After you have completed entry of all multipliers, choose Compile to compile new
multipliers. When you compile a schedule, Oracle Projects automatically submits the
Compile Rate Schedule Revision process. You can also use the Compile All Burden Schedule
Revisions process to compile multiple schedules at one time.

Copying Multipliers

If you have a responsibility with the Project Burden Schedule Copy function associated to it,
you can copy multipliers across schedules and schedule revisions. Otherwise, you can only
copy multipliers between revisions that use the same burden structure.

Note: You must create and save the Copy To revision before you can copy multipliers to the
new revision.

Applying Actual

You apply actual by creating an actual schedule revision which replaces one or more
provisional revisions. When you apply actual multipliers, the multipliers are applied
retroactively to all transactions that were processed using the provisional revision being
replaced. After you apply actual multipliers, you must process existing items to recalculate
cost, revenue, or invoice amounts.

To apply actual:

1. In the Burden Schedules window, review the provisional schedule revisions that you
want to replace with actual multipliers. Enter an End Date for any open provisional
revisions if they do not already have an End Date.
2. Choose the Actual button to navigate to the Apply Actual window.
3. Create an actual revision by entering a revision name in the Actual Revisions field.
4. Select the specific provisional revisions that you want to replace with the actual
revision.

The effective dates of the actual revision defaults from the earliest provisional
revision and the latest provisional revision respectively.

5. Choose OK to return to the Burden Schedules window. Notice that Oracle Projects
creates a new revision for the actual revision you specified.
6. Enter actual burden multipliers in the Multipliers region. When you are finished
entering actual multipliers, save your changes.
7. Remove the hold placed on the actual revision.
8. Save your work.

73
 9. Choose the Compile button to complete the task.

Changing Burden Schedules

You can correct burden multipliers within a schedule revision, or you can create new
schedule revisions to correct multipliers. After you create a burden schedule revision, or
update your current schedule, you need to compile the multipliers.

Note: If you change any of the attributes of the burden hierarchy for a burden schedule
version, you must recompile the schedule.

To correct burden multipliers:

If you need to correct a multiplier within a particular burden schedule revision, you just
change the multiplier for the organization and burden cost code. You can correct multipliers
for any schedule type.

1. Correct the burden schedule revision by changing multipliers, adding new multipliers,
or deleting existing multipliers in the Multipliers region.
2. Choose Compile to compile the new multipliers for the revision.

When you compile the schedule revision, Oracle Projects marks all items that were processed
using the burden schedule revision. You must reprocess these items by running the
appropriate cost, revenue, and invoice processes.

To create a new revision:

If you do not want to apply corrected multipliers retroactively, but want the new multipliers
to affect all expenditure items in the future, create a new schedule revision. You use start and
end dates to indicate the time period of the revision.

1. Create a new revision (or copy it from existing revision). Based on the start date of
new revision, the old revision is automatically closed with an end date as the date
preceding the new revision start date.
2. Enter organizations and multipliers in the Multipliers region.
3. Choose Compile to compile the new schedule revision.

When you compile the schedule revision, Oracle Projects marks all items that were processed
using the burden schedule and have an expenditure item date that falls in the new revision's
date range. You must then reprocess these items by running the appropriate cost, revenue,
and invoice processes.

74
View Burdened Costs Window

Use this window to view the total burdened cost for particular project transaction criteria.
You can also use this window to test your burden structure and burden schedule
implementation.

To use this window, enter values in the first six fields of this window. Then choose Burden to
obtain values for total burdened amounts in the Costing, Revenue, and Invoice fields. If the
revenue and invoice totals are blank, the project is either an indirect or capital project or the
criteria does not use a burden schedule for revenue accrual and invoicing.

To see the burden cost components that make up the total amounts, select the Costing,
Revenue, or Invoice check boxes in the Details region. You can also view additional
information about the burden schedule and burden cost code used to calculate the total
burdened amount, such as the input multiplier and the compiled multiplier.

75
Cross charge
Defining Transfer Price Rules

Define transfer price rules at the business group level to determine how Oracle Projects
calculates the transfer price for cross charged transactions.

Each rule consists of attributes that you can define:

Rule name, type, description, and effective dates

Basis and calculation method
Rate (percentage) at which to apply the rule

Changes to transfer price rules affect only future transactions. To change a previously
processed transaction, adjust the transaction manually from the Expenditure Items window.

Before you define a transfer price rule, you must define the bill rate or burden schedule that
you want to use in the rule (if applicable). See: Rate Schedule Definition and Burdening.

To define a transfer price rule:

1. Navigate to the Transfer Price Rules window.

2. Enter a unique name for the rule, select a type (Labor or Non-Labor), and specify a
description and the effective dates.

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 Note: Transfer price rule names must be unique within a business group if you are
using Single Business Group Access. For Cross Business Group Access, transfer price
rule names must be unique across the system.

3. For the [ ] field (descriptive flexfield), enter the information specified by your system
administrator.
4. For Basis, select Raw Cost, Burdened Cost, or Revenue.
5. Select one of the calculation methods described in the following table to use to
determine the transfer price:

Method Description

Basis Use the transfer price with no further adjustments.

Burden Specify the name of an existing burden schedule to apply to the basis.
Schedule See: Burden Schedules.

Bill Rate For Operating Unit, specify the name of the operating unit that owns
Schedule the bill rate schedule that you want to use. See Rate Schedule
Definition.
For Schedule, specify a bill rate schedule to apply to the basis. The
window will display the schedule's currency code.

6. For Apply, enter a percentage (zero or any positive number).

The percentage is the amount of a markup or discount to the transfer price amount
calculated by the rule. Numbers less than 100 indicate a discount, and numbers
greater than 100 indicate a markup. For example, to give a 20% discount on a bill
rate, enter 80.

Save your work

77
Defining Transfer Price Schedules

A transfer price schedule is a list of transfer price rules. The schedule specifies which rules
determine the transfer price amount for transactions charged from a provider organization to
a receiver organization.

When defining transfer price schedule lines, you can use the amount type classification to
assign different rules for revenue sharing and cost reimbursement agreements. As cross
charge transactions are processed, the work type attribute classifies each transaction as cost or
revenue, and therefore, determines the schedule line used when the transfer price is
calculated. See Work Types, Oracle Projects Fundamentals.

You can define different schedules to use different rules for various projects and tasks
between the same pairs of provider and receiver organizations. For example, you can define
one schedule that contains all the rules for capital projects and another for contract projects.

Changes to a transfer price schedule affect only future transactions. To change a previously
processed transaction, use the Expenditure Items window to adjust the transaction manually.

Before you define transfer price schedule, you must define:

Organizations

Transfer price rules (see: Defining Transfer Price Rules)

78
To define a new transfer price schedule:

1. Navigate to the Transfer Price Schedules window.

2. Enter a unique name for the schedule and specify a description and the effective dates.

The schedule is effective during the dates you specify. You will be able to use this
schedule for projects and tasks within the effective date range only.

3. For the [ ] field (descriptive flexfield), enter the information specified by your system
administrator.
4. In the Schedule Lines region, specify the provider and receiver organizations and the
transfer price rules that you want to associate with those organizations. For the
provider organization, Oracle Projects uses the Expenditure/Event organization
hierarchy assigned to the operating unit in the Expenditure/Costing tab of the
Implementation Options window to extract transfer price calculation information. For
the receiver organization, Oracle Projects uses the Project/Task Owning hierarchy
assigned to the operating unit in the Project Setup tab of the Implementation Options
window to extract transfer price calculation information.
5. Enter the schedule lines, as shown below:
6. Save your work.

Other Sources:

Oracle Financials Implementation Guide

Oracle HRMS Implementation Guide

79
Line Num Enter a number greater than zero to specify the display order for the
lines.

Provider Choose any organization, parent organization from organization

hierarchy assigned to the operating unit in the Expenditures tab of the
Implementation Options window, or business group

(Optional) Choose any organization, parent organization, operating unit, or

Receiver business group. If you leave this field blank, this transfer price
schedule applies to any receiver organization receiving transactions
from the specified provider organization.

Labor Rule, For Labor Rule, choose a valid transfer type rule with the type Labor
Non Labor for this provider and receiver organization pair.
Rule For Non Labor Rule, choose a rule with the type Non Labor.
You must specify at least one transfer price rule (labor, non-labor, or
both) for each schedule line.

Apply % (One Apply % field applies to labor rules, the other to non-labor
rules.) Enter a percentage (zero or any positive number). The
percentage is a markup or discount to the transfer price amount
calculated by the rule. Numbers less than 100 indicate a discount, and
numbers greater than 100 indicate a markup. For example, to give a
20% discount on a bill rate, enter 80.

Transfer Select one of the following:

Price Amount
Type Cost Transfer: The schedule line is applied to transactions when the
assigned work type has the amount type Cost

Revenue Transfer: The schedule line is applied to transactions when

the assigned work type has the amount type Revenue.

Cost and Revenue: The schedule line applies to all cross charge
transactions.

Effective Enter effective dates for this schedule line. The schedule line will be
Dates applied to transactions within the effective date range only.

Default Choose one schedule line to be a default for this schedule. The rule
associated with this line is used to derive the transfer price if none of
the other lines match your transaction.

Note: The system does not require that a transfer price schedule line
be identified as the default line. However, the system does issue an

80
 error message if it cannot determine a rule to apply to a transaction.

Descriptive Enter the information specified by your system administrator.

flexfield

Defining Provider and Receiver Controls

This section describes how to define provider and receiver controls to:

Control the ability to allow cross charges to other operating units within and across
legal entities by an individual receiver operating unit
Override the default processing method for cross charges to receiver operating units
within a legal entity
Allow cross charges to operating units outside the legal entity
Use internal billing

To define provider controls:

1. Navigate to the Provider/Receiver Controls window.

2. Select the Provider Controls tab.

81
 The Allow Cross Charge To All Operating Units within Legal Entity and Default
Processing Method options display the implementation options you selected. You can
change these options only from the Implementation Options window.

3. Enter the name of the operating unit that can receive cross charges from the current
operating unit.

The operating unit can belong to a different legal entity than the current legal entity
displayed at the top of the window. Once you enter an operating unit, Oracle Projects
displays the name of the corresponding legal entity.

4. Select Allow Cross Charge to allow cross charges to this operating unit.

This value overrides the Allow Cross Charges To All Operating Units Within Legal
Entity option. Changes to the Allow Cross Charge check box affect future cross
charges to this receiver operating unit.

5. For Processing Method, select the cross charge processing method that you want to
use for transactions charged to this receiver operating unit.

You can choose Intercompany Billing only, if you have identified the operating unit
as a receiver for internal billing. If you change the processing method to or from
Intercompany Billing, you must mark any unprocessed transactions for cross charge
reprocessing (do so in the Expenditure Items window). If you do not mark these
items, they may fail processing for intercompany billing. You can choose Borrowed
and Lent only if the receiver operating unit and provider operating unit are in the
same legal entity.

6. (Intercompany billing only) Enter the name of the intercompany billing project
created to generate intercompany Receivables invoices for this provider operating
unit.

Oracle Projects validates that the customer associated with the receiver operating unit
is the same as the customer for the intercompany billing project.

You cannot change the intercompany billing project once you have created any billing
transactions by running the Generate Intercompany Invoices process.

7. (Intercompany billing only) Enter an invoice grouping method.

o Receiver Project Oracle Projects generates a separate invoice for each

project that receives cross charges from the current operating unit.
o Receiver Operating Unit Oracle Projects generates a single invoice for
all projects in the receiver operating unit that receive cross charges
from the current operating unit.

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 8. For [ ] (descriptive flexfield), enter the information specified by your system
administrator.
9. Save your work.

To define Intercompany receiver controls:

1. Navigate to the Provider/Receiver Controls window.

2. Select the Receiver Controls tab and then enter the Provider lines, as shown below:

Operating Enter the name of the operating unit that provides internal invoices to
Unit the current operating unit. You can choose among the operating units
identified as providers for internal billing (in the Internal Billing tab of
the Implementation Options window).

Legal Entity, After you enter an operating unit, Oracle Projects displays the name of
Supplier the corresponding legal entity and supplier.

Supplier Site Enter a supplier site to use for this operating unit.

Expenditure Enter an expenditure type. Oracle Projects uses the expenditure type
Type to create distribution lines for internal Payables invoices. You can
choose only those expenditure types with an expenditure type class of
Supplier Invoices.

83
 Expenditure Enter an organization to use as the expenditure organization for all
Org distribution lines of the internal Payables invoices from this provider
operating unit.

3. Save your work.

Note: You can override the expenditure type and expenditure organization assigned to
internal Payables invoices using a client extension. See Internal Payables Invoice Attributes
Override Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.

Other Sources:

Defining Legal Entities Using Legal Entity Configuration, Oracle Financials Implementation
Guide

Using Account Setup Manager, Oracle Financials Implementation Guide

84
 CAPITALIZATION
Define Standard Unit Costs for Asset Cost Allocations
You can set up a capital project to automatically allocate unassigned and common costs to
multiple assets by selecting an asset cost allocation method for the project. To allocate costs
using the Standard Unit Cost method, you must define a standard unit cost for each asset
book and asset category combination for which you want to allocate costs. When you choose
this method of cost allocation, Oracle Projects multiplies the standard unit cost times the units
installed for each asset to determine the proration basis for allocating costs.

For more information on asset cost allocation methods, see: Allocating Asset Costs.

To define standard unit costs for asset cost allocations:

1. Navigate to the Project Assets Standard Unit Cost window

2. Select an asset book from the list of values.

3. Select a major asset category and a minor asset category from the list of values.

Note: You can choose the Combinations button on the Asset Category window to
execute a query of all major and minor asset category combinations.

4. Enter a standard unit cost for the selected asset book, and major and minor asset
category.
5. Save your work.

85
Burden Cost Codes

Burden cost codes represent the types of costs that you want to allocate to raw costs. You can
use burden cost codes for internal costing, revenue generation, and billing. You can also use
burden cost codes to report and account for on burden cost recovery components in Oracle
Projects.

Prerequisites:

Define an Expenditure Type for burden cost codes that will be processed as separate,
summarized burden transactions. See: Expenditure Types.

To define a burden cost code:

1. In the Burden Cost Codes window, enter the Burden Cost Code and a Description.
2. Optionally assign an expenditure type to the burden cost code for creating separate
burden transactions.

The expenditure type you enter must have the Burden Transactions expenditure type
class assigned to it. (Only expenditure types with the Burden Transactions
expenditure type class assigned to them are displayed in the list of values for this
field).

Save your work.

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Burden Schedules

Use the Burden Schedules window to define firm and provisional burden schedules. When
you create a schedule, you associate a burden structure to the schedule. You can create an
unlimited number of schedules; for example, you may define unique schedules for the
different purposes of internal costing, revenue, and invoicing.

For Single Business Group Access, you must set up and compile burden schedules for each
business group. The schedule name must be unique within each business group. For Cross
Business Group Access, you can share burden schedules across business groups. The
schedule name must be unique across the system.

Burden schedules are shared among operating units defined by the burdening hierarchy. If
organization burden multipliers are not explicitly defined in the Define Burden Schedule
window, they will default from the next higher level organization in the hierarchy.

You assign burden schedules to project types, projects, or tasks; project type assignments
provide default schedules to a project. Whenever special multipliers are negotiated for a
project, you can create project or task burden schedule overrides with the negotiated burden
multipliers.

Prerequisites:

Define business groups.

Define burden schedule hierarchy.
Define Implementation Options.
Define burden structures.

To define a burden schedule:

1. In the Burden Schedules window, enter the name and description of the burden
schedule you are defining.

Enter the default burden structure for this schedule, which is automatically used
whenever you create a new revision. You can see the structure of a particular revision
when you review revision details. You can change the default structure of the

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 schedule at any time. Oracle Projects uses the new default structure for any new
revisions that you create. You can update the default structure to create revisions that
use a different burden structure for a given burden schedule.

2. Choose the burdening hierarchy for this schedule.

The burden hierarchy you enter for the burden schedule is the default hierarchy for the
latest version. The burden hierarchy information is displayed in the Burden Schedule
Version Details window and can be overridden at this level.

3. Choose the Type of schedule, either Firm or Provisional.

4. In the Versions region, define revisions. You may have many different revisions of a
particular schedule; for example, you may have a schedule revision for each quarter in
your fiscal year. You also create schedule revisions when you want to use a new
burden structure, enter new burden multipliers, or apply actual rates to provisional
multipliers.

You can set the burden schedule version start date and end date to be any calendar
date. The start date and end date need not be associated with the general ledger
period.

Whenever you create a new schedule revision, Oracle Projects automatically closes
the previous open revision. The end date defaults to the date preceding the start date
of the new revision.

Enable the Hold check box if you want to hold this schedule revision from compiling.

Choose the Details button to review the details of a particular revision.

Choose Actual if you want to apply actual multipliers to provisional revisions. See:
Applying Actual.

5. In the Multipliers region, enter multipliers for a schedule revision. You also use this
region to compile burden multipliers.

Choose Copy to copy multipliers from one schedule revision to a new revision. See:
Copying Multipliers.

6. Save your work.

After you have completed entry of all multipliers, choose Compile to compile new
multipliers. When you compile a schedule, Oracle Projects automatically submits the
Compile Rate Schedule Revision process. You can also use the Compile All Burden Schedule
Revisions process to compile multiple schedules at one time.

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Copying Multipliers

If you have a responsibility with the Project Burden Schedule Copy function associated to it,
you can copy multipliers across schedules and schedule revisions. Otherwise, you can only
copy multipliers between revisions that use the same burden structure.

Note: You must create and save the Copy To revision before you can copy multipliers to the
new revision.

Applying Actual

You apply actual by creating an actual schedule revision which replaces one or more
provisional revisions. When you apply actual multipliers, the multipliers are applied
retroactively to all transactions that were processed using the provisional revision being
replaced. After you apply actual multipliers, you must process existing items to recalculate
cost, revenue, or invoice amounts.

To apply actual:

1. In the Burden Schedules window, review the provisional schedule revisions that you
want to replace with actual multipliers. Enter an End Date for any open provisional
revisions if they do not already have an End Date.
2. Choose the Actual button to navigate to the Apply Actual window.
3. Create an actual revision by entering a revision name in the Actual Revisions field.
4. Select the specific provisional revisions that you want to replace with the actual
revision.

The effective dates of the actual revision defaults from the earliest provisional
revision and the latest provisional revision respectively.

5. Choose OK to return to the Burden Schedules window. Notice that Oracle Projects
creates a new revision for the actual revision you specified.
6. Enter actual burden multipliers in the Multipliers region. When you are finished
entering actual multipliers, save your changes.
7. Remove the hold placed on the actual revision.
8. Save your work.
9. Choose the Compile button to complete the task.

Changing Burden Schedules

You can correct burden multipliers within a schedule revision, or you can create new
schedule revisions to correct multipliers. After you create a burden schedule revision, or
update your current schedule, you need to compile the multipliers.

Note: If you change any of the attributes of the burden hierarchy for a burden schedule
version, you must recompile the schedule.

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To correct burden multipliers:

If you need to correct a multiplier within a particular burden schedule revision, you just,
change the multiplier for the organization and burden cost code. You can correct multipliers
for any schedule type.

1. Correct the burden schedule revision by changing multipliers, adding new multipliers,
or deleting existing multipliers in the Multipliers region.
2. Choose Compile to compile the new multipliers for the revision.

When you compile the schedule revision, Oracle Projects marks all items that were processed
using the burden schedule revision. You must reprocess these items by running the
appropriate cost, revenue, and invoice processes.

To create a new revision:

If you do not want to apply corrected multipliers retroactively, but want the new multipliers
to affect all expenditure items in the future, create a new schedule revision. You use start and
end dates to indicate the time period of the revision.

1. Create a new revision (or copy it from existing revision). Based on the start date of
new revision, the old revision is automatically closed with an end date as the date
preceding the new revision start date.
2. Enter organizations and multipliers in the Multipliers region.
3. Choose Compile to compile the new schedule revision.

When you compile the schedule revision, Oracle Projects marks all items that were processed
using the burden schedule and have an expenditure item date that falls in the new revision's
date range. You must then reprocess these items by running the appropriate cost, revenue,
and invoice processes.

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91
 BILLING
Payment Terms
Receivables lets you define standard payment terms for your customers to specify the due
date and discount date for their open items. Payment terms can include a discount percent for
early payment and you can assign multiple discounts to each payment term line. For example,
the payment term '2% 10, Net 30' indicates that a customer is allowed a two percent discount
if payment is received within 10 days; after 10 days, the entire balance is due within 30 days
of the transaction date with no applicable discount.

You can define balance forward payment terms to bill customers periodically (daily, weekly,
or monthly) at the account or site level using balance forward billing. The balance forward
bill for a billing period shows the previous balance carried over from the last billing period,
payment received, current charges and activities, and current total outstanding balance. See:
Balance Forward Billing.

You can also create split payment terms for invoice installments that have different due dates.

You can use payment terms to determine the amount of each installment. Receivables let you
either distribute tax and freight charges across all installments, or allocate all freight and tax
amounts in the first installment of a split term invoice. You can use prepayment payment
terms to indicate which business transactions require prepayment for goods and services.
Receivables displays the active payment terms you define as list of values choices in the
Customers, Customer Profile Classes, and Transactions windows.

Note: If you have Multi Lingual Support (MLS), you can define payment terms in each of
your installed languages. To enter translations, select Translations from the View menu or
click on the globe icon. For more information, see: Oracle Applications Concepts or the
Oracle Applications User Guide.

Default Payment Terms Hierarchy

Receivables use the following hierarchy to determine the default payment term for your
transactions, stopping when one is found:

1. Bill-to site
2. Customer Address
3. Customer
4. Transaction Type

To define a payment term:

1. Navigate to the Payment Terms window.

2. Enter the Name of this payment term.
3. Select the Prepayment check box if you are defining a prepayment payment term.

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 Receivables feeder systems, such as Oracle Order Management, can optionally
implement business processes around prepayment payment terms to indicate that a
particular business transaction requires the capture of funds before the delivery of a
product or service.

See: Managing Prepayment Receipts.

4. To associate a credit check with this payment term, check the Credit Check box.
Oracle Order Management uses this information to determine when to place an order
on hold.

In Oracle Order Management, if the profile for an address does not have credit
checking limits defined in a particular currency but the customer does, then the order
passes credit check. If the address does not have limits in the currency and neither
does the customer, then the order is compared to the customer limit in that currency.

5. If you do not want to let your customers take discounts for partial payments on items
associated with this payment term, then uncheck both the Allow Discount on Partial
Payments check box as well as the check box for the Discount on Partial Payment
system option.
6. Enter the Installment Option for items assigned to this payment term. This indicates
how Receivables will allocate the freight and tax charged to transactions using this
payment term. Choose 'Include tax and freight in first installment' to include all tax
and freight charges in the first installment. Choose 'Allocate tax and freight' to
distribute tax and freight charges across all installments.
7. Enter the Base Amount for this payment term. The default is 100, but you can change
it. The base amount is the denominator for the ratio Receivables uses to determine the
amount due for installments of invoices to which you assign this payment term. The
sum of the relative amounts for all of the payment schedules that you define for these
payment terms must be equal to the value that you specify as a base amount. See:
Payment Terms Field Reference.
8. If you want to use this payment term for balance forward billing, select an appropriate
balance forward billing cycle from the Billing Cycle LOV. See:
o Balance Forward Billing.
o Balance Forward Billing Cycles.
o Setting Up Balance Forward Billing.

Note: You cannot update the billing cycle, once a balance forward billing payment term is
attached to a profile.

Because balance forward bills cannot be split across installments, in the case of a balance
forward payment term:

o Any value entered in Base Amount defaults to 100.

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 o Installment Options becomes disabled and any data entered before selecting a
cycle defaults to include tax and freight in first installment.
o You can populate only one row in the Payment Schedule section and the
Sequence Number and Relative Amount values for the row default
respectively to 1 and 100.
o Date Due becomes disabled. However, you can populate Days, Day of Month,
and Months Ahead.

Note: You cannot change existing payment terms from regular payment terms to balance
forward billing payment terms and vice versa.

9. If you want transactions assigned to this payment term to be printed before the due
date, enter a number of Print Lead Days. Receivables will print this transaction x
number of days before the due date, where x is the number of days you enter here.
10. Enter the Discount Basis you want Receivables to use when calculating discounts for
your invoices. Choose one of the following discount methods:

Invoice Amount Choose this option to calculate the discount amount based on the
sum of the tax, freight charges, and line amounts of your invoices.

Lines Only Choose this option to calculate the discount amount based on only the
line amounts of your invoices.

Lines, Freight Items and Tax Choose this option to calculate the discount amount
based on the amount of line items, freight, and tax of your invoices, but not freight
and charges at the invoice header level.

Lines and Tax, not Freight Items and Tax Choose this option to calculate the
discount amount based on the line items and their tax amounts, but not the freight
items and their tax lines, of your invoices.

11. Enter a range of Effective Dates for this payment term. If you do not enter an end
date, this payment term will be active indefinitely.
12. Enter a line number for the installment term that you are defining in the 'Seq' field.
Enter a higher number for each installment term with a later due date. For example, if
you create terms with 50% due in 15 days and 50% in 30 days, enter '1' in this field
for the first line and '2' for the second line.
13. Enter the Relative Amount for this payment term. This is the numerator of the ratio
that Receivables uses to determine the amount due for this installment of these
payment terms. The sum of the relative amounts for all of the payment schedules that
you define for each payment term must be equal to the base amount for this term.
14. Enter the number of Days after the invoice date that payment is due for this
installment term (optional). For split payment terms, this number indicates the number
of days after the invoice date that an installment is due.

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 15. Enter the Date on which payment is due for this installment term (optional). If you do
not complete this field, enter a value for either Due Days or both Day of Month and
Months Ahead.
16. If you are defining payment terms, enter the Day of Month that payment is due for
this installment term. For example, if payment is due on the fifteenth of each month,
enter '15.'
17. If you are defining payment terms and you entered a value for Day of Month, enter
the Months Ahead to which this installment term of the payment terms refer, For
example, if you entered '15' for Day of Month and you enter '2' here, an invoice dated
in May will have a due date of July 15.

Save your work. To assign discounts to each payment schedule line of your payment term

Defining Agreement Types

Agreement types categorize the various kinds of agreements you negotiate with clients. For
example, you can define one agreement type for all verbal agreements and another for all

95
agreements using purchase orders. You might also define additional agreement types to
distinguish internal agreements from those with your external customers.

If you define an agreement type and limit revenue and or invoice, any project funded by that
agreement type stops accruing revenue and generating invoices when it reaches the revenue
and or invoice limit. If you define an agreement type and do not limit revenue and invoice,
any project funded by that agreement type issues a warning when the revenue and invoice
limit is exceeded, but does not stop accruing revenue or generating invoices. This is referred
to as a hard limit or a soft limit.

Prerequisites:

Define Payment Terms.

To define an agreement type:

1. In the Agreement Types window, enter a Name and Description of the agreement type
you want to define.

If you want payment terms to default when you enter an agreement with this
agreement type, enter the Default Terms.

Enable the Default Revenue/Invoice Limit option if you want the Hard Limit option
of the Agreements widow to be enabled by default when you enter an agreement with
this agreement type.

2. Save your work.

Credit type
We use Credit types in AR. In real time, nobody uses Credit Types.

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Event Type
Unlike labor costs or other billable expenses, a bonus your business receives for completing a
project ahead of schedule is not attributable to any expenditure item.

In these cases, you use an event, rather than an expenditure item, to account for a bonus or
other sum of money. An event is an entry assigned to a top task or project that generates
revenue and/or billing activity, but is not directly related to any expenditure items.

You classify events by event type. When you define an event type, you assign it one of the
predefined classifications. When you enter an event, its event type classification determines
how the event affects revenue and billing for a particular project.

You can define as many event types as you need, but you cannot create additional
classifications.

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Concepts in Billing Extension Definitions
When you enter billing extension definitions, you specify parameters that specify how your
billing extension is processed in Oracle Projects. This section explains some of these
parameters.

Calling Process

You specify if the billing extension is called by the revenue generation program, the invoice
generation program, or both programs.

When you call billing extensions during revenue generation, you can create events with a
revenue amount, or with a revenue amount and a bill amount, as long as the revenue amount
is nonzero.

When you call billing extensions during invoice generation, you can create events with a bill
amount, or with a revenue amount and a bill amount, as long as the bill amount is nonzero.

The following table shows examples of events with various revenue and bill amounts that you
can create in the Generate Draft Revenue calling process.

Billing Revenue Bill

Event Comments
Extension Amount Amount

1 1 100 100 Bill amount is processed after the related

revenue is distributed

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2 2 100 - Revenue event only

The following table shows examples of events that you can create in the Generate Draft
Invoice calling process.

Billing Revenue Bill

Event Comments
Extension Amount Amount

3 1 100 100 Revenue amount is processed after the

related invoice is released

4 2 - 100 Invoice event only

If you create an event with revenue and bill amounts, the revenue amount and the bill amount
do not have to be the same. You can create positive or negative event amounts with billing
extensions.

You can create a billing extension that is called by both revenue generation and invoice
generation. You would do this if your billing calculation is similar for both the revenue and
bill amounts, with the exception that the event revenue amount is based on the accrued
revenue, and the event bill amount is based on the amount invoiced. You can write your
procedure to have the same logic for the calculation but to use the appropriate input of either
accrued revenue or amount invoiced into your calculation. With this approach of writing one
procedure and one billing extension, you can avoid duplication of your logic. In addition,
your project users only need to assign one billing extension to their projects, instead of two
billing extensions - one for revenue accrual and one for invoicing.

Calling Place: Revenue

Revenue Generation Program:

The revenue generation program calls client extensions during the following three processing
steps:

Revenue Deletion Processing

Revenue Adjustment Processing
Revenue Regular Processing

Revenue Deletion Processing:

During revenue deletion, calls are made to the following billing extensions, in the order
shown below:

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 PRE Billing Extension
DEL Billing Extension

Standard revenue processing is then performed, followed by the following billing extension
call:

POST Billing Extension

Revenue Adjustment Processing:

During revenue adjustment, calls are made to the following billing extensions, in the order
shown below:

PRE Billing Extension

Standard adjustment revenue processing is then performed, followed by the following billing
extension calls:

ADJ Billing Extension

POST Billing Extension

Regular Revenue Processing:

PRE Billing Extension

Regular revenue processing is then performed, followed by the following billing extension
call:

REG Billing Extension

Automatic revenue event processing is then performed, followed by the following billing
extension call:

POST-REG Billing Extension

Automatic revenue event processing is performed again, followed by the following billing
extension call:

POST Billing Extension

Calling Place: Invoice

Invoice Generation Program:

The invoice generation program calls client extensions during the following three processing
steps:

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 Invoice Deletion Processing (when using the delete & regenerate option only)
Invoice Cancellation Processing (when using the cancel option only)
Invoice Write-Off Processing (when using the write-off option only)
Invoice/Credit Memo (Regular) Processing

Invoice Deletion Processing:

During invoice deletion, when the delete and regenerate option is used, calls are made to the
following billing extensions in the order shown:

Call PRE Billing Extension

Call DEL Billing Extension

Standard delete invoice processing is then performed, followed by the following billing
extension call:

Call POST Billing Extension

Invoice Cancellation Processing:

During invoice cancellation, when the cancel option is used, calls are made to the following
billing extensions in the order shown below:

PRE Billing Extension

Standard delete invoice processing is then performed, followed by the following billing
extension calls:

CANCEL Billing Extension

POST Billing Extension
Approval/Release Billing Extension

Invoice/Credit Memo (Regular) Processing:

During invoice and credit memo (regular) processing, calls are made to the following billing
extensions in the order shown below:

PRE Billing Extension

Standard credit memo processing is then performed, followed by the following billing
extension calls:

ADJ Billing Extension

POST Billing Extension
PRE Billing Extension

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Regular invoice processing is then performed, followed by the following billing extension
call:

REG Billing Extension

Automatic invoice event processing is then performed, followed by the following billing
extension calls:

POST-REG Billing Extension

Approval/Release Billing Extension
POST Billing Extension
Validate Approval/Release Processing

Standard write-off invoice processing is then performed.

Extension Call Types

There are several predefined places within the revenue generation and invoice generation
programs where your billing extension can be called when processing a project:

Pre-Processing
Delete Processing
Cancel Invoice Processing
Write-Off in Invoice Processing
Adjustment Processing
Regular Processing
Post-Regular Processing
Post-Processing

The following list describes each of the calling places.

Pre-Processing Pre-processing billing extensions are called before any revenue accrual or
invoice calculations for a project. The Generate Draft Revenue and
Generate Draft Invoices processes do not allow you to create automatic
events in this calling place. An example of a preprocessing billing extension
is to place all unbilled, unpaid supplier invoice items on hold, so that they
are not billed; and to release the billing hold on any unbilled, paid supplier
invoice transactions that are on hold. You can then bill the paid supplier
invoice items during standard invoice processing.

Delete Delete processing billing extensions are called after revenue is billed and
Processing before any revenue accrual or invoice calculations for a project; this is only
applicable to invoicing billing extensions The Generate Draft Invoices
process does not allow you to create automatic events in this calling place.

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Cancel Invoice Cancel invoice processing billing extensions are called after the invoice
Processing cancellation for a project. This is only applicable to invoice billing
extensions. The Generate Draft Invoices process does not allow you to
create automatic events in this calling place.

Write-Off in Write-off invoice processing billing extensions are called after the invoice
Invoice write-off processing for a project. This is only applicable to invoice billing
Processing extensions. The Generate Draft Invoices process does not allow you to
create automatic events in this calling place.

Adjustment Adjustment processing creates crediting revenue and invoices that credit
existing revenue or invoices. Oracle Projects creates crediting revenues and
invoices due to changes in revenue or invoice amounts or in the revenue
general ledger account. These credits are created for one or more individual
transactions which have previously been processed and included on a draft
revenue or invoice; these changes in amounts or accounts result from
adjustment actions on the individual transactions.
You can create automatic events in this step. If you transfer these events to
Oracle Receivables for Auto-Invoicing, link the automatic event invoice
lines to their corresponding events in the original invoice. Oracle Projects
calls a billing extension in this step after all of the crediting revenue and
invoices are created.

Regular Regular processing creates non-crediting revenue and invoices. Oracle

Projects creates revenue and invoices based on individual transactions and
events that have not previously been processed for revenue accrual and
invoicing.
You can create automatic events in this step. Oracle Projects calls a billing
extension in this step after all non-crediting revenues and invoices are
created.

Post-Regular Post-regular processing billing extensions create events based on all prior
revenue generated in order to base the calculation on the total revenue
accrued, including other automatic events. An example of a post-regular
processing billing extension is cost accrual based on the revenue generated.
See: Revenue-Based Cost Accrual, Oracle Project Billing User Guide.

Post-Processing Post-processing billing extensions are called after all of the adjustment,
regular, and post-regular processing is complete. The Generate Draft
Revenue and Generate Draft Invoices processes do not allow you to create
automatic events in this calling place. All of the revenue and invoice
processing is complete before this step is executed. An example of a post-
processing billing extension is to notify a project manager when an invoice

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 greater than $25,000 is created.

The following table shows an example of the different automatic events created by using
different calling places for a billing extension based on a percentage of the amount invoiced.

Automatic Event Automatic Event

Invoice Invoice Invoice
Period Amount (Regular and Amount (Regular
Number Credited Amount
Adjustment) Only)

1 1 1000 100 100

2 2 1 -500 -50

3 1500 150 100

Summary: 2000 200 200

The billing extension called only during regular processing accounted for the total amount
invoiced, including the credited amount during regular processing as illustrated by the event
created for invoice number three.

Transaction Independent

Once you determine the inputs to your calculations, you can determine if your billing
extension calculation is solely dependent on other transactions being processed, or if your
calculation can be executed without any other transactions being processed. Transactions
refer to expenditure items and events.

Transaction independent billing extensions are executed for each project with an active
billing assignment, even if there are no transactions to process. This type of billing extension
relies on an input other than billable transactions on a project. If this input changes, the
calculated billing amount changes, which you want to record. For example, the cost-to-cost
revenue accrual method, which relies on the budgeted cost and revenue, amounts. If the cost
budget or revenue budget change the revenue amount changes. You want to record this
revenue amount change even if no other transactions are processed in revenue generation.
This category includes the class of billing extensions that calculate revenue and invoice
amounts based on values independent of the amounts included on draft revenue and invoices.

Note: If you design a billing extension to be transaction independent, it will be executed in

every run of the revenue or invoice processes.

Transaction dependent billing extensions are executed only if there are other transactions
processed. An example of this type of billing extension is surcharge in which you calculate a

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percentage of the amount billed. You do not want to bill surcharge if no other transactions are
billed.

Transaction dependent billing extensions are called only if billable expenditure items and
events exist that needs to be processed. For example, there may be new transactions that are
set to Non-Billable, which are not going to generate any revenue or bill amount and will not
cause the billing extension to be called. This category includes billing extensions that
calculate revenue and invoice amounts based on (i) a function of the revenue and invoice
amounts included on draft revenue and invoices, or (ii) the attributes of a group of
transactions included on draft invoices.

The following table shows an example of transaction dependent and transaction independent
billing extensions. Billing extension 1, which is transaction dependent, calculates 10% of the
invoice amount. Billing extension 2, which is transaction independent, bills $100 per period
regardless of amount invoiced in that period.

Automatic Event Automatic Event

Invoice Invoice Invoice Amount Amount
Period
Number Credited Amount (Transaction (Transaction
Dependent) Independent)

1 1 1000 100 100

2 2 1 -500 -50

3 1500 150 100

3 4 - - 100

Summary: 2000 200 300

Relationship between Calling Place and Transaction Independent

The parameters for calling place and transaction independent are related.

You should call any transaction dependent billing extension in both regular and adjustment
processing. This will ensure that all adjustments, including those that do not result in a new
non-crediting amount, are properly accounted for. For example, you may have a non-billable
adjustment which reverses amounts, but does not process any new non-crediting amounts.

You only need to call your transaction independent billing extension once during processing
for a project, which can be done during regular processing. You typically do not call
transaction independent billing extensions during adjustment processing.

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The table below summarizes how you should set up the calling place and transaction
independent parameters in your billing extension definition, based on the type of billing
extension calculation.

Billing Extension Calculation Regular Adjustment Transaction Independent

Based solely on transactions Yes Yes No

Based on inputs other than transactions Yes No Yes

There are exceptions to the general rule shown in the above table. You may define a billing
extension as transaction dependent, but to be called only during regular processing. For
example, you want to charge interest on outstanding invoices, but only want to include the
interest on an invoice that has other transactions included on it. The interest calculation itself
is a transaction independent calculation, but you define it as transaction dependent so that it is
calculated only when other transactions are processed for an invoice. You do not want to
create invoices with only an interest amount.

Project-Specific

You need to determine if your billing extension implements a company policy across projects
or if it is applicable only to specific projects for which it is negotiated.

Project-specific billing extensions are those methods which are applicable only to specific
projects for which they are negotiated. Project users assign these billing extensions to projects
and top tasks; you cannot assign these billing extensions to project types.

Non-project-specific billing extensions are those methods which implement company policy
across projects. You assign these billing extensions to project types; the billing extension
applies to all projects of that project type. Project users cannot assign these billing extensions
to projects.

Suggestion: You can include conditional logic in your procedure to allow exceptions to
project type rules.

Event Attributes

When designing billing extensions, you can specify the attributes of automatic events that are
created by billing extensions. You can use the following default values or override the
defaults for any of these attributes.

Event Attribute Comments

Event Description Default value is event description on billing extension.

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Event Type Defaults value is event type on billing extension. Event type
classification must be Automatic.

Event Organization Default value is managing organization of project or task to which the
event is assigned.

Completion Date Accrue through date for events created during revenue generation, bill
through date for events created during invoice generation.

Revenue Amount For billing extensions called in revenue generation, must specify
revenue amount.
For billing extensions called in invoice generation, can optionally
specify revenue amount; revenue amount is not processed until invoice
on which the event is billed is released.

Bill Amount For billing extensions called in invoice generation, must specify bill
amount.
For billing extensions called in revenue generation, can optionally
specify bill amount; bill amount is not processed until revenue for the
event is accrued.

Descriptive Can pass any value as long as the value is valid with the descriptive flex
Flexfield Segments fields you have defined for events.

Audit Columns in For values used in billing extension calculations. NOTE: not displayed
Events to the user, but available in the table.

Budget Attributes

When you design billing extensions, you can specify the attributes of budgets that are used by
billing extensions. You can use the following default values or override the default values for
any of these attributes.

Budget Attribute Comments

Cost Budget Type Code Default value is approved cost budget.

Revenue Budget Type Code Default value is approved revenue budget.

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Invoice Formats
An invoice format determines how Oracle Projects creates an invoice line. You can define
different formats for labor, non-labor, retention, and retention billing invoice line items, and
specify if you want to use the format for customer invoices, intercompany invoices, or both,
how you want to summarize expenditure items, and the fields you want an invoice line to
display. You can also include free-form text on an invoice line.

You can use customer invoice formats only for regular contract projects, and intercompany
invoice formats only for invoices generated by intercompany billing projects. You can also
share invoice formats between customer and intercompany invoices.

The grouping option specifies which expenditure items you want to summarize in an invoice
line, and whether an invoice line item is labor, non-labor, or retention. Which grouping
options you can select depends on the purpose of the invoice format.

The choice of fields you can display in an invoice line depends on the purpose of the invoice
format and which grouping option you choose.

To define an invoice format:

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 1. In the Invoice Formats window, specify an invoice format name, format type, use, and
a grouping option. You must also specify a From effective date.
2. Specify start and end positions for each field you want to include in the invoice line
and any text that you want to display in the line.
3. Save your work.

Name Enter a unique, descriptive name for this invoice format.

Format Type Select a format type. The format type controls the invoice formats you see for
labor, non-labor, retention and retention billing when you enter invoice formats using the
Projects window.

Effective From Enter the date range during which you want the invoice format to be
effective.

Use For Select an option to indicate if you want to use this invoice format for customer
invoices, intercompany invoices, or both.

Grouping Enter a grouping option for this invoice format. You can choose any grouping
option available for this type of invoice. A grouping option specifies what fields are primary
grouping of items into invoice lines, and is based on the funding level of the project. A
project budgeted at the top task will have a top task grouping rule.

Invoice Format Details Enter the items you want to appear in the invoice line description:

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Start and End Specifies where you want this field to appear on the invoice line. Enter
numbers between 1 and 240.

Field Name Enter the name of the field that you want to appear on the invoice line. You can
choose any invoice line field available for grouping option or the invoice format. However, if
you are defining an invoice format that supports both customer and intercompany invoices,
you can select only those fields that are shared by the two formats. Enter Text if you want to
enter literal text in this position.

When you group invoice lines by expenditure category or expenditure type and choose to
display units on the invoice, the system groups invoice transactions based on a combination
of the expenditure category or expenditure type, and the transaction unit of measure.
Therefore, if more than one unit of measure is associated with the transactions that relate to
an expenditure category or expenditure type, then the system displays separate invoice lines
for each combination of expenditure category or expenditure type, and unit of measure.

When you select Organization as Field, the invoice line displays Override to Organization in
the invoice line description. If no override organization is defined, the invoice line displays
Non Labor Resource Organization as text, which is defined only for usages.

If the process is unable to retrieve any value for invoice line description, No Description is
displayed as the invoice line text.

Note: If you select Bill Rate or Bill Rate Prorated, select the bill transaction currency, as the
bill rate is displayed in the bill transaction currency.

Text Enter the literal text that you want Oracle Projects to display as the value for this field.
Oracle Projects skips this field unless you have entered Text in the previous field.

Right Justify Select if you want this field value to appear right justified between the specified
start and end positions.

Oracle Projects enables this option for all numeric field values. Otherwise, Oracle Projects
disables it.

Invoice Formats for Intercompany Billing

If you are using intercompany billing, define an invoice format for summarizing cross-charge
transactions. Depending on the requirements of the receiver operating units, you may need to
define several invoice formats.

Formats defined for use by intercompany invoices cannot have a type of Retention.

Although one invoice format can support both customer and intercompany invoices, the list
of values in the Field Name area will only include those values that are shared by the two
formats.

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Entering Agreements
You can enter an agreement representing a purchase order, retainer letter, or any other
funding agreement you make with a customer in any currency regardless of your project
functional currency. When you record an agreement, you can specify payment terms for
invoices against the agreement, and whether there are limits to the amount of revenue you can
accrue and bill against the agreement. See also Agreement Templates and Quick
Agreement/Funding Projects.

If it is required by your business, you can apply advance receipts to an agreement.

From the Agreements window, you can open the Funding window to allocate funds to one or
more projects (or to top tasks within a project), and to see how much unused funding remains
for an agreement. Each agreement that funds a project can be entered in a different currency.

For any agreement, you can review the revenue and billing activity associated with the
agreement, such as the amount of revenue accrued, the amount invoiced, and the amount of
funding that is allocated and has a baseline.

All revenue and invoices in Oracle Projects are recorded against an agreement, and all items
that accrue revenue against an agreement subsequently bill against the same agreement.

To enter an agreement:

1. Navigate to the Agreement window.

2. Enter the Customer who is providing the agreement funding.
3. Enter the name of the operating unit to which the agreement belongs.
4. Enter a Number to identify this agreement, such as the customer's purchase order
number.
5. The agreement number must be unique for this customer and agreement type,
although two customers can each have an agreement with an identical agreement
number.

Attention: You cannot change this number once you create an invoice against this
agreement and interface the invoice to Oracle Receivables.

6. Enter an agreement Type.

7. Choose the currency code of the agreement from the list of values. The list of values
is restricted to the currencies defined in Oracle General Ledger.

Note: The currency field can only be updated if the Multi Currency Billing
implementation option is enabled at the operating unit and the funds have not been
allocated.

8. Enter the Amount of this agreement.

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 9. Enter the payment terms (defined in Oracle Receivables) for any invoices funded by
this agreement.
10. Choose the Revenue Hard Limit or/and Invoice Hard Limit check box to impose a
hard limit on revenue accrual and invoice generation for projects funded by this
agreement. Otherwise, Oracle Projects imposes a soft limit.

A hard limit prevents revenue accrual and invoice generation beyond the amount
allocated to a project or task by this agreement. A soft limit issues a warning when
revenue accrual and invoice generation exceed the amount allocated to a project or
task.

11. If advance receipts application is required by your business, enable Advance

Required.
12. Enter a start date and an expiration date for the agreement. You can leave the
expiration date blank if you do not want the agreement to expire. If you generate draft
revenue or an invoice for projects funded by this agreement after the agreement
expiration date, Oracle Projects creates distribution warnings for revenue and
invoices.
13. Optionally enter a Description of this agreement.
14. Enter the administrator of the agreement.

Note: An agreement administrator can be a future-dated employee. However, this is not

recommended or likely, because agreement owners are almost always current employees.

15. Enter the name of the organization that owns the agreement.

Note: You can choose any project owning organization (in the project owning organization
hierarchy assigned to the operating unit) as the organization that owns the agreement.

16. Enter a Creation Date.

17. If you want to control the order in which the Agreement funding is consumed, then
enter a Billing Sequence Number.
18. Optionally enter Customer Order Number and Line of Accounting.
19. Save your work.

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113
 UTILIZATION
Defining Utilization Categories
Utilization categories are classifications of work types for reporting purposes. Work types are
summarized into utilization categories and can carry different weighting percentages, to
provide two distinct views of the work that resources and their organizations have performed
or will perform:

Resource Utilization View: This view is for resources and their managers.

Organization Utilization View: This view is for business managers, their organizations, and
related resources.

You can use each utilization category for one or both of the utilization views.

To Define Utilization Categories:

1. Navigate to the Utilization Category page.

2. Enter a Utilization Category code.
3. Enter the following fields:

Field Description

Description (Optional) A long description for the utilization category.

Reporting Determines the display order for the categories in windows and
Order reports.

Effective Dates The beginning and ending date for which the category is effective.

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Work Type
You define work type to represent a classification work. You use work type for both actual
and schedule work

You can use work types to classify for the following purposes;

• Billability of expenditure item

• Classifying the cross charge amount into cost and revenue for cross charged work
• Assigning attribute to utilization report

Work types are assigned to project type, template, project, financial task, team role, project
requirement and assignment, and expenditure item when you enter transaction

It is Pre-requisite for team roles, project requirements and assignments.

Project Project top Project sub Project Expenditure

Project type
template task task lowest task item

Profile options for work type;

PA: Transaction billability derived from work type

Specify whether Oracle Project determines the billability of transaction based on

assigned work type

PA: Require work type entry for expenditure

Specify whether work type is required for all expenditure items

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 PROJECT TYPE
A project type is a primary classification for the projects your business manages. A project
type provides controls on how Oracle Projects processes the projects, along with defaults for
project setup. You can use the project type for reporting and for Auto-Accounting. You must
set up at least one project type to create projects in Oracle Projects. The project type provides
the following information:

General information, including the class of project of Indirect, Capital, or Contract, and the
default service type to use when creating tasks

Starting status of a project

Costing information for burdening cost

Burden cost accounting parameters

Budget controls for defaults and entry of budgets

Asset capitalization information (for capital project types)

Billing information, including defaults for billing cycle, billing schedules, and invoice
formats (for contract project types)

Distribution rules allowed for the project type (for contract project types)

Billing assignments (for contract project types)

Workflow parameters

Default Starting Project Status

You must enter a Default Starting Project Status for each project type you create. The Default
Starting Project Status is used as follows:

When a project template is created, the Default Starting Project Status for the template's
project type is used as the project template's status.

When a project is created by copying an existing project or project template, the project status
of the new project is the same as the current status of the existing project or project template,
unless that project status is not a valid starting status. If the project status of the existing
project or project template is not a valid starting status, then the new project is created with a
status equal to the Default Starting Project Status of the project's Project Type.

Project Types in a Multi-Organization Environment

In a multi-organization environment, you must set up project types for each operating unit. It
is possible to have the same project type names in multiple operating units. However, each
project type has their own attributes to control project processing by operating unit.

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Administrative Use this box to identify administrative indirect project on which you can
create administrative assignments in Oracle Project Resource Management

Unassigned time Enable this option if you want to track available resource time in utilization
reporting

Intercompany billing Choose this box if you want to use this project type for intercompany
billing projects

Organization planning You must define a unique project type to identify the organization
projects that are used in organization forecasting. Define the project type for organization
forecasting projects with a class of indirect and then enable the organization planning check
box

Sponsored Enable this check box if you want to fund projects with awards in Oracle Grants
Accounting

Contingent worker enabled Enable this check box to include all purchase orders associated
with contingent worker enabled projects available for selection when a contingent worker
enters a timecard. If you do not enable this, only purchase orders associated with the projects
that the contingent worker entered on the timecard, are available for selection

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Burdened Indicates to whether burden costs charged to projects using this project type for
internal costing purposes.

Schedule The burden schedule use as the default cost burden schedule. You enter schedule
only if the project type is burdened, this field is required

Allow schedule override Indicate whether you can override default burden cost rate schedule
when entering and maintaining a projects and tasks. Deselect the check box if you want to
ensure that all projects of a project type use the same schedule for internal costing. Check the
box to allow to updates to the cost burden schedule on the project and tasks. You can enter
this only if you enable this Burdened check box

Burden cost on same expenditure item Select if you want to store burden amount in the same
expenditure item

Account for burden cost components; Select this option if you want to store burden amount in
the same expenditure item, and additionally to show the burden cost on separate, summarized
expenditure on a separate project. Select a project and task (optional) that accounts for the
expenditure item

Note; This option works best for indirect projects. With other project type it may post
duplicates

Burden cost as separate expenditure item Select this option if you want account for burden
amounts as separate expenditure item

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Enable accounting for total burdened cost Select if you want to generate accounting for the
total burdened cost

You can use the project status enquiry Burdening Commitment Extension to override the
setup for displaying burden cost of commitments

Budget Option

Resource list for status reporting Enter a default resource list to use for summarizing project
amounts for status reporting. You must enter a value to ensure that you can view information
in the project status window and project status reports, even when you have not base lined a
budget for the project. You typically, select the same resource list as one of the resource lists
you use for budgeting. When create new template from scratch, Oracle Projects
automatically, creates a resource list assignment using this resource list

Classifications

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Classifications are used to categorize the projects based on your business requirement.
Classification can also be useful for

1. Reporting purpose
2. Auto accounting purpose
When we use classifications for auto accounting purpose, always we enable
mandatory checkbox in classifications window.
When we use classifications for auto accounting purpose, we can’t use more than
one classification for auto accounting purpose.
I am running the report based on the implementation. At the time of project
creation, we have specify class codes, while specifying class codes if the user miss
one class code the report will come in incorrupt manner. So it’s mandatory to
specify class codes. If that is the case, at the project type level, we can specify as
mandatory. If I specify as mandatory, until unless I will give that particular class
code, I can’t approve the project.
If you get any error at the time of approving the project like classifications are
missing, go to project & click on classifications & click on show exceptions.
When you click on show exceptions, it shows what are the classifications missing
for this project the we will give the classifications & approve the project.

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Budgetary controls

You can use it to set up budgetary controls and budget integration for the project type

Allow override at project level Check this check box if you want to allow users to modify the
default budgetary control setting that you enter for the project type

The budgetary control settings for the project type are used when a project template or project
is created. If this check box is not checked, the user can’t change the values at the project
template or project level

Budget type

Budgetary control; Select cost budget type (Budgetary control can be enabled for only cost
budget)

Bottom up budget integration; Select a budget type to be integrated. You can choose any
active budget type

Control Flag Check this check box to enable budgetary control for the corresponding budget
type. (Budgetary controls can be enabled for only one budget type per project type)

Balance Type This field is used to define top-down and bottom-up budget integration

Top-down: Select Budget

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Bottom-up: Select Encumbrance

No integration (Leave field blank)

Non-Project Budget This field is used to define top-down and bottom-up budget integration

Top-down: Select General Ledger budget from the list of values. The list of values displays
budgets with a status of open or current

Bottom-up: Select General Ledger funding budget from the list of values

No integration (Leave field blank)

Levels Select a default control level for each budget level

Project

Tasks

Resource group: Select default from resource list if you have defined default control level for
your resource list

Resources: Select default from resource list if you have defined default control level for your
resource list

Time phase The system uses these values to calculate available funds

Amount type: Select an amount type to determine the beginning budget period

Boundary code: Select a boundary code to determine the ending budget period

Starting Project status

Enter a starting project status for each project type you create. The starting project status used
as default when;

• A project template is created

• A project is created by copying an existing project or template. The project status of
the new project is the same as the current status of the existing project or project
template, unless that starting project status is invalid for the project type. In that case,
the starting project status set in the starting project status field for the project type

Use work-flow for project status changes Select to initiate work-flow all work-flow eligible
project statuses in projects with this project type

Use work-flow for budget status changes Select to initiate work-flow all work-flow eligible
project budgets in projects with this project type

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Capital Project

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Cost type For the project type, specify whether to capitalize cost at their burdened or raw cost
amounts

Require complete asset definition Specifies whether an asset definition in Oracle Projects
must be completed before you can interface cost to Oracle Assets. If you select this option,
you do not need to enter information for the imported asset line in Prepare Mass Addition
window in Oracle Assets. The asset interface process places asset lines with complete
definition directly into the Post Queue in Oracle Assets.

Override asset assignment This field interacts with the assignment status of the asset to either
call or disregard the asset assignment client extension, as shown in the following table;

Is override asset Asset assignment of asset Does the system call the
assignment selected? line is… client extension?
No Unassigned Yes
No Assigned No
Yes Unassigned Yes
Yes Assigned Yes

You can set up asset assignment extension to assign any unassigned asset lines that result
from the generate asset lines process or (as described above) to override the current asset
assignment for specified lines

Asset cost allocation method You can select one of several predefined allocation methods to
automatically distribute indirect and common cost across multiple assets

Event processing method You can specify a capital event processing method to control how
assets and costs grouped overtime. You can choose to use either periodic or manual events

Grouping method Specify how to summarize asset lines. You can choose from the following
options;

• All (highest level of summarization)

• CIP grouped by client extension
• Expenditure category
• Expenditure category, non-labour resource
• Expenditure type
• Expenditure type, non-labour resource

Group supplier invoices Select to consolidate the expenditure item on a supplier invoice into
one asset line according to the method specified in grouping method field. Deselect to
interface the lines to Oracle Assets as separate mass addition lines;

As new mass addition: Interface each expenditure item on a supplier invoice line to Oracle
Asset as separate mass addition line. Each line has status NEW

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As merged mass addition: Interface each supplier invoice to Oracle Asset as a separate Mass
Addition line with the status MERGED

Note: After lines are interfaced to Oracle Assets, you can use the Prepare Mass Addition
window in Oracle Assets to split, merge, or unmerge the lines manually

Capitalized interest default schedule Use this field to specify a default interest rate schedule
for capitalized interest

Capitalized Interest allow override Select this check box to allow override of the default
capitalized interest rate schedule at project level

Contract Project

Funding Level The level at which you allow funding for contract projects of this project
type, you can choose from the values of Project, Top Task, or Both.

Billing Job Group Enter a default job group for billing purposes. The job group you enter
serves as the default Billing Job Group when you define a contract project with this project
type.

Date-Effective Funds Consumption Select this option to instruct the system to use the
agreement billing sequence and effective dates when it processes expenditure items and
events. When you enable this option, Oracle Project Billing bills Expenditure items and
events are billed against the agreement with the lowest sequence and expiration date that has
funding available greater than or equal to the amount of the expenditure item or event. If you
enable this option, then you do not specify contribution percentages for the customers.

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You can modify this field at any time. The check box is disabled if Intercompany Billing is
selected.

AR Receipt Notification Select this check box to receive workflow notifications on payment
receipts applied in Oracle Receivables to invoices for projects created from this project type
that are enabled for supplier payment control. For more information, see Send AR
Notification Workflow, Oracle Projects Implementation Guide. See also, Revenue and
Billing Information.

Automatic Release of Pay When Paid Invoices Select this check box to ensure that the
Release Pay When Paid Holds concurrent program considers all supplier invoices linked to
customer invoices of all projects created from this project type. For more information, see
Release Pay When Paid Holds.

Leave this check box deselected, if you would like to manually review and release pay when
paid holds on supplier invoices for projects created from this project type. For example, if
you receive 90% of the payment due on a customer invoice from a customer with a good
payment record, you, as the project manager, can review the linked supplier invoices on the
Supplier Summary page for your project and manually release all linked supplier invoices for
payment. For more information on releasing holds, see Payment Control.

Bill Rate Schedules

Labor Select Bill Rate Schedule or Burden Schedule for labor billing.

When calculating labor revenue and invoicing, the system looks first for the employee-based
bill rate schedule. If no employee-based rate is specified, or if none is available, the system
uses the job-based bill rate.

Employee: Select the employee-based bill rate schedule to be used to calculate labor revenue
and invoicing.

Job: Select the job-based bill rate schedule to be used to calculate labor revenue and
invoicing.

Non-Labor Select Bill Rate Schedule or Burden Schedule for non-labor billing.

Organization: Select the default organization that owns the labor and non-labor bill rate
schedules.

Schedule: The default burden schedule for non-labor revenue and invoicing.

The list of values for labor and non-labor schedules are restricted as follows:

If the operating unit does not have multi-currency enabled, then only schedules with the same
currency as the project functional currency are listed.

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If the operating unit does not allow rate schedules to be shared across operating units, then
schedules from other operating units are not included.

If the operating unit of the organization allows rate schedules to be shared across operating
units, schedules from other operating units that do not allow other operating units to use the
schedule, are excluded.

Invoice Formats

Labor Select the default labor invoice format.

Non-Labor Select the default non-labor invoice format.

Billing cycle Default billing cycle for the project

First Bill Offset Days The default number of days that elapse between the project start date
and the date of the project's first invoice.

Funding

Baseline Funding without Budget Check this box if you want to automatically create a
revenue budget when you baseline your funding.

Revaluate Funding Check this box if you want to revaluate funding for the project type. This
option cannot be unchecked if the Revaluate Funding option is enabled at the Project level.

Funding Revaluation includes Gains and Losses This option can be enabled only if the
Funding Revaluation includes Gains and Losses option is enabled in the Implementation
Options window and Revaluate Funding is enabled for the project type. Check this box if you
want funding revaluation to include gains and losses. If you enable this functionality you
should define the project revenue realized gains and losses event types for account
reclassifications.

If this functionality is not enabled, the revaluation process only considers the funding backlog
amount.

Realized Gains and Losses Event Types If the Funding Revaluation Includes Gains and
Losses functionality is enabled at the Project Types level, define new gains and losses event
types. These event types record the realized gains and losses events while processing funding
revaluation.

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Name Select billing extensions to be used in revenue accrual or invoicing, or both.

Amount and Percentage Enter an amount or percentage to be used in the billing extension
calculation.

Active You can deselect active check box to disable billing assignment.

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Name You select the distribution rules that can be allowed for any project of this project
type. You can choose any predefined distribution rule:

Cost/Cost Accrue revenue and bill using the ratio of actual cost to budgeted cost (percent
spent)

Cost/Event Accrue revenue using the ratio of actual cost to budgeted cost (percent spent),
bill based on events

Cost/Work Accrue revenue using the ratio of actual cost to budgeted cost (percent spent),
bill as work occurs

Event/Event Accrue revenue and bill based on events

Event/Work Accrue revenue based on events, bill as work occurs

Work/Event Accrue revenue as work occurs, bill based on events

Work/Work Accrue revenue and bill as work occurs

Default Check the box if you want to use the distribution rule as the default value for projects
of this project type. You can only have one default distribution rule for each project type.

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Project Types in a Multi-Organization Environment

In a multi-organization environment, you must set up project types for each operating unit. It
is possible to have the same project type names in multiple operating units. However, each
project type has its own attributes to control project processing by operating unit.

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 PROJECT TEMPLATE
You can easily enter a project in one simple flow by copying a project template or another
project, and changing specific values using the Quick Entry feature. You can create new
projects quickly and accurately by copying them from project templates that you define.
Project templates predefine the most commonly used options for projects that you typically
create.

You can set up any kind of project as a template, and define different combinations of default
project options for each template. You can create a template for use across the company or
many templates for each office in your company. You can use Quick Entry to enter key
values that change for each new project. A project template includes the following elements:

Basic project information

Work breakdown structure (WBS)

Agreement and funding (optional)

Project and task options, including key members, classifications, transaction controls, and
any other project and task options (optional)

Budgets (optional)

Quick Entry fields which specify fields to enter for the new project when creating it from a
template

Project Option controls which list the project options to display for new projects created from
a template

Note: In a multi-organization environment, project templates belong to only one operating

unit. Project templates can only be maintained and copied within an operating unit. However,
project template numbers are unique across operating units. A project template number
cannot duplicate any project or project template number within the Oracle Projects
installation.

Project Template Design Considerations

Before you define project templates for your company, consider the following ideas.

You must create at least one project template for every project type class that your company
uses. All projects originate from a template. You cannot change the project type class when
you copy a project from a template.

Suggestion: Oracle Projects allows you to change a project's project type, as long as the new
type belongs to the project class assigned to the project (See: Changing the Project Type of a
Project.) However, you may find it most efficient to create a project template for each project

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type that your company uses, so that you can set up the appropriate parameters for each
project type in each template.

Use a numbering and/or naming convention for your templates so it is easy to identify the
purpose and definition of each one.

Note: Project templates are always numbered manually. The Project Numbering
implementation option, which determines whether projects are numbered automatically or
manually, does not affect numbering of project templates.

Define typical work-plan structures and task durations for common projects. Consider the
task numbering, task names, task duration, service types, and managing organizations. See:
Project Structures

If you are going to associate the project template with an agreement template, you must enter
a customer in the customer project option.

If you do not want the task organizations to change when you copy the project template, set
the project organization to an organization that is not used as a task organization. See: Project
and Task Organizations

Use Quick Entry fields for Team Members and Classifications when these values usually,
change for each new project

If you want to maintain team members and classifications in your templates, you must define
enough templates for each combination of team member and classification, and for the rest of
the project template definition. Consider the amount of maintenance required for each
template before you create them

Determine the appropriate project and task options for each template to simplify project entry
and maintenance

If your organization uses user-defined attributes, determine whether the template should
allow them to be displayed for projects and tasks. See: Enabling User-Defined Attributes in
Project Templates.

Determine who can create templates in your company. Any active template can be used
throughout the company

Suggestion: If your company does not want to use predefined templates, you can set up one
template for each project type that everyone can use. You should enable all project and task
options that are appropriate to the project type for this skeleton template. Do not define
default values, other than the minimum required fields. See: Specifying Project and Task
Options for a Template.

Basic Project Information: Use this region to enter basic project information such as name,
description, and dates.

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Project Organization

The managing (owning) organization of a project: Use the organization for reporting and
AutoAccounting purposes. You can choose any organization that has the following
characteristics:

The organization belongs to the project/task organization hierarchy assigned to the operating
unit.

The organization has the project/task owning organization classification enabled.

The project type class is permitted to use the organization to create projects. This permission
is determined when you define the organization.

The organization is active as of the system date.

See: Organizations.

Changing the Owning Organization

When you attempt to change the organization on a project or task, or create a project
template, the system calls the Verify Organization Change Extension.

You can override the default logic in the extension in one of the following ways:

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Have your System Administrator assign the function Projects: Org Update: Override
Standard Checks to your responsibility. See: Function Security: The Building Block of
Oracle Projects Security.

Modify the logic in the Verify Organization Change extension. See: Client Extensions,
Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.

If the change is allowed, Oracle Projects displays a dialog box when you save or exit the
record. The dialog box asks if you want to mark existing expenditure items on the project. If
you select yes the current date is used as the effective date of the change.

Note: If your user responsibility excludes the function Expenditure Inquiry: Adjustments:
Recalculate Cost and Revenue, Oracle Projects does not display the dialog box and does not
mark the items for recalculation.

If you need to change the owning organization for existing expenditure items on a project,
you can use the Mass Update Batches window. See: Mass Update Batches.

Changing the Owning Organization on Multiple Projects and Tasks

If you need to change the owning organization on multiple projects and tasks, you can use the
Mass Update Batches window to create a batch of projects and tasks to update.

Structures Use this setup option to perform the following tasks for a project template or
project:

Enable a work-plan structure and a financial structure, and define their integration

Enable program management

Enable deliverables

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Tasks Use this option to create and update tasks and task details for the financial structure.
Tasks are elements of the project that are contained in the project structures. For information
about project structures, see: Project Structures.

As you create tasks, Oracle Projects defaults values from the project or the parent task to the
new task. A top task accepts default values from its owning project. In addition, a new
subtask accepts default values from its owning parent task.

If you modify project attributes, Oracle Projects does not change the default task information
for existing tasks. In addition, if you modify task attributes, Oracle Projects does not change
the default task information for lowest tasks. However, new top or lowest tasks you
subsequently create inherit the new default information.

The following task details default from the project to any new top or child tasks:

Organization

Start date

Finish date

Service type

For top tasks, this defaults from project type

For sub tasks, this defaults from the parent task

Task manager

No default for top tasks

Work Site

For top tasks, this defaults to the customer work site if only one customer

For sub tasks, this defaults from the parent task

Cost burden schedule

Capitalizable indicator (for capital projects only)

For top tasks, this defaults to capitalizable

For sub tasks, this defaults from the parent task

Billable indicator (for contract projects only)

For top tasks, this defaults to billable

For sub tasks, this defaults from the parent task

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Billing schedules and discounts (for contract projects only)

Task Number It is unique identification number of the task within the project. You can enter
a numeric or alphanumeric value.

For audit trail purposes, you cannot modify a task number after you create customer invoices
for the project, or charge expenditure items, requisitions, purchase orders, or supplier
invoices to the project.

Suggestion: Oracle Projects sorts your project structure by the task number within a structure
level, so ensure that your numbering methods reflect an organized project structure. See:
Defining Your Financial Structure

Task Name It is a short, descriptive name of the task. You can use the same task name many
times within a project.

Task Long Name It is a long descriptive name for the task. It can be up to 240 characters
long. The default value is the task short name (Task Name).

This is a required field. The Task Long Name does not have to be unique within the project.

Task Status You use the Task Status to indicate the status of individual tasks and to control
system processing for tasks based on their status. Every task must have a valid status. The
system statuses are:

Not Started

In Progress

Completed

On Hold

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Cancelled

You can change task status for published tasks manually when you update tasks or create
progress. Tasks that are marked 100% complete are automatically updated to Completed
status. Similarly, if a task's status is changed to Completed, it is automatically marked 100%
complete.

The system changes a task's status automatically if the status of a parent or child task is
changed. For example, if all the child tasks of a task are set to Completed, the task's status is
automatically set to Completed. If a task's status is changed to On Hold or Cancelled, all of
the task's subtasks are also changed to match the parent task's status.

Work Quantity

You can use work quantity to plan and measure task progress in quantitative terms rather than
in terms of completed effort, such as number of items manufactured or number of processes
performed. Oracle Projects can divide the actual value by the planned value to derive the task
physical percent complete for the task.

For example, a construction company could have a task for the installation of windows on a
new building. The task is complete when 50 windows are installed. When progress is taken
on the task and 25 windows have installed, the task is 50% complete. This allows companies
to track progress according to quantitative values. See: Managing Progress.

You can enter work quantity either as an incremental value (the amount of work complete for
a task since the last time progress was recorded for the task) or a cumulative value (the total
amount of work complete for the task since the task began). This option is set at the task type
level and can be overridden at the task level. Select Progress Options for Tasks.

You can define work quantity for lowest-level tasks only if the following are true:

The task type associated with the task has work quantity enabled

Work quantity is enabled at the work-plan level for the project

While defining work quantity for a task, Oracle Projects allows you to specify a Unit of
Measure and Work Item. If you enable work quantity planning for a task, you can also
measure progress using work quantity.

For information on defining work items, see: Defining Work Items, Oracle Projects
Implementation Guide.

Task Type

Task types assign default attributes to tasks and control how Oracle Projects processes tasks.
Task types specify basic task attributes. For example:

The task type determines the initial status of a task.

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The task type determines whether to associate Task Execution Workflow with a task.

The task type also controls whether progress can be collected for a task, and how progress is
measured.

See:

Task Types, Oracle Projects Implementation Guide

Managing Progress

Task Execution Workflow, Oracle Projects Implementation Guide

Task Start and Finish Dates

Task start and finish dates must be within the corresponding project dates and within the date
of the parent task.

The start and finish dates at the task level are:

Actual date when work on the task started and finished. You can use these dates to drive
future timecard and earned value functionality.

Scheduled Schedule to start and finish dates for the task.

Estimated A resource's estimate of when work on the task will be started and finished.

Baseline The baselined schedule for the task

Transaction The transaction start and finish dates control the transactions that can be
charged to the task.

You cannot charge an expenditure item to a task if the expenditure item date falls outside the
task dates. The lowest level task must be equal to or greater than the maximum of all
expenditure item dates for that task. Default values for task start and finish dates are the
project transaction dates (top tasks) or the parent task's transaction dates (subtasks). When
you apply an end date to a top task with subtasks that do not have end dates, the system
applies that top task end date to those subtasks.

See: Overview of Expenditures and Controlling Expenditures.

See: Project Start and Finish Date.

Task Manager (Optional)

The responsible person to manage this task

Note: The task manager is used for reporting purposes only (see: Task-Revenue, Cost,
Budgets by Resources) and is not the same as the team member.

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Work plan information

Project and Task Information Entry

You specify project and task options to control how Oracle Projects processes your projects.
Project and Task options are available at various levels of your financial and workplan
structures. You can control which options are available for project entry based on the project
options that you define for your project templates.

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Use the Projects and Tasks windows to specify project and task options. Refer to the
following topic, Entering Project and Task Options, for information on the various options
and the levels at which you can enter project and task options.

Project Classifications

When specifying project classifications, you choose the class category for your project, then
select one or more class codes for the class category. For example, you can specify a class
category of Funding Source, and assign a class code of Federal to indicate project funding by
a federal agency. You define class categories and codes when you set up project
classifications.

You can specify classifications at the project level only.

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Name/Number Choose a project customer. You can choose any active customer in the Oracle
Receivables customer database.

Relationship This is the relationship between this customer and your project, such as Primary
or Non-Paying.

Contribution The percentage of this project's revenue and billing you expect this customer to
contribute. If you enter more than one customer for this project, the total customer
contributions towards revenue and billing must sum to 100% before you can accrue revenue
or bill invoices against this project.

If you enable Customer at Top Task option at the project level, the contribution is disabled
and the customer is billed 100% for the associated tasks.

Note: Oracle Projects supports only one percentage split between customers over the life of a
project. You cannot change an existing percentage split.

Bill to Name Enter the name of the customer who will receive the project invoices.
Depending on the Customer Relationships setting in the Implementation Options window,
you can choose the project customer, a related customer, or any customer defined in Oracle
Receivables. If the Customer Relationships option is set to No, the project customer is copied
to the Bill to Name field. See also: Implementing Oracle Project Foundation, Oracle Projects
Implementation Guide.

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Bill to Number You can enter either a Bill To Number or Bill To Name. When you enter a
value in one of these fields, the other field is populated automatically.

Billing Address The address where you want to send customer invoices. You can choose any
active billing address defined for the Bill To customer in Oracle Receivables.

Default Top Task Customer Check this box if you want the customer to be the default
customer for all the top tasks. The default customer at top task is used as the primary
customer when you copy a project.

You must enable this functionality for one of the customers if the Customer at Top Task
option is enabled at the project level.

Only one customer can be enabled to be the default customer at the top task. You can change
the default top task customer, but it will be applicable only for new tasks

Additional Information: You can override the default customer at the top task level, in the
Billing Information window.

Ship to Name Enter the name of the customer who will receive shipment of the items.
Depending on the Customer Relationships setting in the Implementation Options window,
you can choose the project customer, a related customer, or any customer defined in Oracle
Receivables. If the Customer Relationships option is set to No, the project customer is copied
to the Ship To Name field. See also: Implementing Oracle Project Foundation, Oracle
Projects Implementation Guide.

Ship to Number You can enter a Ship to Name or Ship To Number. When you enter a value
in one of these fields, the other field is populated automatically.

Shipping Address This is the address where work will be performed for this project. You can
choose any active Ship to address defined for the Ship To customer in the Oracle Receivables
database.

Inter-Project Billing

Bill another Project Select if you want to identify a project as a provider project for
purposes of inter-project billing. The check box is available only if the current operating unit
is a provider operating unit and the project customer is associated with a receiver operating
unit.

Receiver Project / Receiver Task Enter the numbers of the projects and tasks that will receive
the work performed on this project. Valid receiver projects and tasks belong to receiver
operating units that have identified the current operating unit as a provider operating unit.
You can change the receiver project and task information at any time before you create
billing transactions for this project.

Invoice Currency

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If you want to invoice the project customer in a currency different from the project currency,
you can enter the following invoice currency information (currency attributes):

Note: You can override these currency attributes in the Invoice Review windows before
releasing an invoice.

Allow Rate Type "User" Enable this option if you want to allow the rate type "User" for
invoicing this project customer.

Code The default invoice currency code for the customer.

Rate Date The default exchange rate date. If this field is left blank, the system will use the
Bill Through date for the exchange rate date.

Rate Type The default rate type.

Exchange Rate This is default currency exchange rate. You can enter a value only if the Rate
Type is User.

Contact Type A contact type, such as Billing or Shipping, to identify a contact. The billing
contacts are limited to the contacts defined for the Bill To customer and billing address. The
shipping contacts are limited to the contacts defined for the Ship To customer and shipping
address.

You can enter only one billing contact for each customer associated with this project. When
invoices are interfaced to Oracle Receivables, this billing contact is used as the billing contact
in Oracle Receivables.

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When a new project is created, the default value for the project currency code is copied from
the functional currency defined in the Implementation Options for the project-owning
operating unit. You can override the default currency code and enter default conversion
attributes for the project in the Costing tab of the Currency window.

Costing Currency Options

You can optionally define costing conversion attribute default values for the Project
Functional Currency and Project Currency.

These attributes are default values, and entry is optional. The attributes you select are
displayed as the defaults during expenditure entry, and are used as defaults for imported
transactions.

Project Currency

Select a project currency. You can select any active currency defined in Oracle General
Ledger.

Project Currency Attribute Hierarchy

During project and task setup, the values you enter are copied to all the underlying tasks in
the project work breakdown structure.

The hierarchy, Projects uses for the defaults is shown below:

Value entered for the task

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Value entered for the project

Value entered in the currency implementation options. See: Currency Implementation

Options, Oracle Projects Implementation Guide.

You can enter the following information in the Project Multinational Setup and Task
Multinational Setup windows:

Allow Charges from Other Operating Units Enable this check box to accept cross-charged
transactions from other operating units. At the project-level, this entry is the default value for
each new top-task that you create. At the task-level, this entry is the default value for each
new subtask that you create.

Process Cross Charges Optionally enable the Labor, Non-Labor, or both check boxes to
have Oracle Projects process labor and non-labor cross-charged transactions. If you do not
enable a check box, then Oracle Projects does not process cross-charged transactions for that
type of cost.

If you enable a check box, then you must specify a transfer price schedule for that selection.
You can optionally specify a fixed date to use to calculate the transfer price amount. Oracle
Projects uses this date only if the transfer price rule uses a calculation method based on a bill
rate or burden schedule. If you do not enter a date, then Oracle Projects uses the expenditure
item date.

At the project-level, this entry is the default value for each new top-task that you create. At
the task-level, this entry is the default value for each new subtask that you create. If you

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assign a transfer price schedule to a lowest-level task, then Oracle Projects uses that transfer
price schedule to process labor or non-labor cross-charged transactions. If you do not assign a
transfer price schedule at the lowest task level, then Oracle Projects uses the transfer price
schedule that you assign at the project-level.

Intercompany Tax Receiving Task (project-level only) Specify the task to use to collect
non-recoverable intercompany tax amounts as project costs.

You define budgetary controls in the Budget Integration window. Budgetary controls enable
you to use a project cost budget to monitor and control project-related commitment
transactions. You also use these controls to integrate project budgets with non-project
budgets.

Note: If the system does not permit you to update the control settings, verify that the project
type budgetary controls settings allow override. See: Project Type Budgetary Controls,
Oracle Projects Implementation Guide.

Attention: You cannot enable budgetary controls for a project budget after you create a
baseline version for the project budget, or if you have entered transactions against the project
budget.

You can enter the following information in the Budget Integration window:

Budget integration

Budget Type

For Budgetary Controls Select a project cost budget type. (Budgetary controls can be enabled
for cost budget types only.)

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For Bottom-Up Budget Integration Select a project budget type to be integrated. You can
select any active budget type.

Control Flag Check the Control Flag check box if you want to enable budgetary controls for
the budget type. (Budgetary controls can be enabled for only one budget type per project.)

Balance Type This field is used to define top-down and bottom-up budget integration.

For Bottom-Up Budget Integration Select Budget.

For Top-Down Budget Integration Select Encumbrance.

For No Integration (Independent Budgetary Controls) Leave field blank.

Non-Project Budget This field is used to define top-down and bottom-up budget integration.

For Bottom-Up Budget Integration Select a General Ledger budget from the list of values.
The list of values displays defined budgets with a status of open or current.

For Top-Down Budget Integration Select the General Ledger Funding Budget from the list of
values.

For No Integration (Independent Budgetary Controls) Leave field blank.

Levels

Select a default control level for each budget level. When a baseline is created for the project
budget, these control levels are used as default values for each budget level:

Project

Tasks

Resource Groups Select Default from Resource List if you have defined default control
levels for your resource list.

Resources Select Default from Resource List if you have defined default control levels for
your resource list.

Time Phase

The system uses these values to calculate available funds.

Amount Type Select an Amount Type to determine the beginning budget period.

Boundary Code Select a Boundary Code to determine the ending budget period.

For more information about defining control levels and time phases (also referred to as time
intervals) for budgetary controls, see: Budgetary Control Settings.

Other Sources:

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Implementing Budgetary Controls, Oracle Projects Implementation Guide

Implementing Budget Integration, Oracle Projects Implementation Guide

Additional Information

Use the Additional Information window to enter project-level values or default values,
including the following:

Project Customer Relationships and Contact Types, Oracle Projects Implementation Guide

Defining Nonscheduled Team Members:

Nonscheduled team members are people who have a role on a project team but whose time is
not specifically tracked. For example, you may have extended team members that support the
administrative aspects of the project and who perform tasks such as reviewing candidates and
providing backup support. You can also have client contacts as nonscheduled members.

Note: Team members are also referred to as key members.

You can use nonscheduled team members and their associated roles when you set up project-
based security in Oracle Projects. For more information on project-based security, see
Security in Oracle Projects.

You can designate nonscheduled team members at the project level only. Subject to the
functions that are associated with their login responsibility, a nonscheduled team member can
view and update all project information except labor cost details. To permit viewing of labor
cost details, team members must have function security that expressly allows query of labor
cost details.

Note: A user with cross-project update access does not need to be defined as a nonscheduled
team member in order to view or update project information, or to view labor cost details. A
user with cross-project view access does not need to be defined as a nonscheduled team
member in order to view project-level information.

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Effective Dates Oracle Projects uses effective dates to control nonscheduled team member
and nonscheduled team member role assignments. You can inactivate a nonscheduled team
member's role at any time by specifying an ending effective date. You can reactivate the
nonscheduled team member or redefine the nonscheduled team member with a new role by
reentering the nonscheduled team member with a beginning effective date that is after the
previous ending effective date. You can also associate a nonscheduled team member with
more than one role on a project. You do not need to define each person who is doing work on
the project as a nonscheduled team member--only those who need to maintain project data
and/or view project expenditures.

When you enter a nonscheduled team member, the system provides a default start date based
on the following precedence order. At each precedence level, if there is no value for the date,
the date at the next level is the default date:

Project Actual Start Date

Project Scheduled Start Date

Project Target Start Date

System date

Future-Dated Employees as Team Members You can enter a future-dated employee as a

nonscheduled team member. A future-dated employee is an employee who is starting
employment on a future date. For more information, see Defining People, Oracle Projects
Implementation Guide.

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Use the Additional Information window to enter project-level values or default values,

You can track sales opportunities for your pipeline projects by recording the probability of
winning each project, the expected approval date, and the value of the project.

You can define probability values based on how your company does business. For example,
you can define values such as:

100% Contract Processed

60% Expect to Win

0% Project on Hold

Pipeline Window

The Pipeline window contains the following fields, which are used to calculate the weighted
project value of jobs:

Probability The probability that the project will be approved. If a Probability List exists for
the associated Project Type, that probability list provides a list of values for this field.

Project Value This is the expected value of the project.

Expected Approval Date This is expected approval date for the project.

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Resource Information

If you use Oracle Projects Resource Management and need to fill project staffing
requirements, you can set up an automated search and nomination process to identify and
nominate resources as candidates for open requirements automatically. The setup in the
Candidate Score and Search Settings page includes definitions used in calculating the
candidate score and performing automated candidate searches.

Organization Overrides

You can reassign an employee's, or an entire organization's costs and revenue to a different
organization for a particular project. You can override all of the costs and revenue of an
employee or organization, or you can redirect costs and revenue to another organization only
for the expenditure categories you specify.

When you enter an organization distribution override, the new organization you enter
overrides the expenditure organization Oracle Projects uses in AutoAccounting and to
determine the organization to use for burdening.

For AutoAccounting processing, if an organization distribution override exists, the

destination organization of the override is substituted for the actual expenditure organization
of affected items.

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You can enter the following information in the Organization Overrides window:

Source Organization Enter the source organization whose costs and revenue you want to
assign to a different organization.

Employee Name/Number Enter the name and number of the employee for this project whose
costs and revenue you want to assign to a different organization.

Expenditure Category The expenditure category for the costs you want to assign to a
different organization.

Destination Organization The new organization to which you want to reassign costs and
revenue.

Reporting Information

This section describes how you enter reporting information for a project.

Resource List Assignments

You assign resource lists to a project to indicate which resource lists you want to use for
summarizing project actual amounts for project status tracking. When you open the Resource
List Assignments window for a project, Oracle Projects automatically displays the default
resource list assignment from the project type, and you can enter additional assignments if
necessary. Note that you can choose only one assignment as the drilldown default.

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You can enter the following information in the Default Resource List Assignment window:

Resource List Choose the resource list you want to assign to this project. The resource list
defaults from the project type.

Use Indicates the purpose or use of the resource list, such as Status Reporting. Oracle
Projects determines this value after you use a resource list in a budget.

Drilldown Default Choose this check box if you want to automatically drilldown by resource
list for project status tracking. If you enter additional assignments, only one assignment can
be the drilldown default.

You can use transaction controls to configure your projects and tasks to allow only charges
that you expect or plan. You can define what items are billable and non-billable on your
contract projects. You can define what items are capitalizable and non-capitalizable on your
capital projects.

You can configure transaction controls by the following:

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Expenditure Category

Expenditure Type

Non-Labor Resource

Employee

Scheduled Expenditure Only

Work-plan Resources Only

Person Type

Other Sources:

Budget Setup: Resources and Resource Lists, Oracle Projects Implementation Guide

Transaction Control Extensions, Oracle Projects APIs, Client Extensions, and Open
Interfaces Reference

Costing Burden Schedules

You must specify a cost burden schedule if you specify that a project type is burdened. The
costing burden schedule defaults from the project type.

To enter Costing Burden Schedules, you must select and expand Burden Multipliers from the
list of options in the Projects, Templates window.

You can enter the following information in the Costing Burden Schedules window:

Burden Schedule Enter the burden schedule you want to use for this project or task.

Burden Hierarchy Enter the burden hierarchy you want to default to each burden schedule
version.

Fixed Date Enter a fixed date for the burden schedule if you want all expenditure items to be
burdened with the multipliers in effect as of that date.

Other Sources:

Burden Schedules, Oracle Projects Implementation Guide

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You can override the standard burden schedule assigned to a project or task. When you enter
a schedule override, you essentially create a new schedule containing revisions of negotiated
multipliers for the project or task. Remember to compile your schedule before you use it for
processing purposes.

You can override cost burden schedules only if the project type for this project allows
overrides.

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You can define assets for capital projects to account for capital assets and retirement
adjustment assets. You define capital assets to account for assets that you plan to build or
place in service during the course of the project work. You define retirement adjustment
assets to account for costs and proceeds of sale associated with the retirement of group assets
in Oracle Assets.

In Oracle Projects, you can define all of the information that is required to classify capital and
retirement adjustment assets, and interface the assets, along with the associated costs and
proceeds of sale amounts, to Oracle Assets as asset lines. For information on the attributes
that you can define for an asset, see: Asset Attributes.

You can define assets for a capital project in the Assets window. To access the Assets
window from the Projects, Templates window, select and expand Asset Information from the
list of options.

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After you define a capital asset or a retirement adjustment asset for a capital project, you can
assign the asset to the project level, or to one or more tasks. You assign an asset to the project
or to a task to associate the asset with the underlying costs or proceeds of sale. You can
assign assets to top tasks and lowest tasks.

You must enter the Asset Name you want to assign to the project or task, and specify whether
you want to use a Grouping Level for Specific Assets or Common Costs. See: Assigning
Assets to Grouping Levels.

To enter asset assignments in the Asset Assignments window, you must select and expand
Asset Information from the list of options in the Projects, Templates window.

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To enter billing setup information in the Billing Setup window, you must select and expand
Billing Information from the list of options.

Use the Billing Assignments option to assign billing extensions to automatically create
revenue or billing events. You can assign billing extensions at the project or top task level
only.

To enter billing assignments, you must select and expand Billing Information from the list of
options in the Projects, Templates window. When you choose this option, you can enter the
following information in the Billing Assignments window:

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Name Enter the name of the billing extension you want to use.

Currency Enter any currency you have defined in the General Ledger

Amount Enter the amount.

Percent Enter the percent amount.

Active Choose whether to enable this extension.

Conversion Attributes Enter the currency conversion attributes for converting from the
event transaction currency to the project functional currency, project currency, and funding
currency. See: Conversion Attributes.

Credit Receivers

You can indicate which employees receive credit for a project. You can assign as many
employees as you want to a particular credit type. You can also assign one employee to as
many types of credit as you want.

Depending on your configuration of Oracle Projects, you can either interface sales credit
information to Oracle Receivables for project invoices, or use credit receivers in Oracle
Projects for reporting purposes. If you want Oracle Receivables to validate salesperson and
sales credit information you interface from Oracle Projects, you need to enable the Allow
Sales Credits option in the Oracle Receivables Transaction Sources window for the
predefined batch source of PROJECTS INVOICES. To verify that this option has been set
correctly, navigate to the Oracle Projects Implementation Options window and view the
options under Billing. PROJECTS INVOICES should appear in the Invoice Batch Source
field.

To enter credit receivers, you must select and expand Billing Information from the list of
options in the Projects, Templates window. When you enter credit receivers, you specify the
following:

Credit type Enter a credit type, such as Quota Credit. If your installation of Oracle Projects is
configured to interface sales credit information to Oracle Receivables, then the credit type is

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validated against sales credit types in Oracle Order Management. If Oracle Projects is not
configured to interface sales credit information, this field is validated against credit types in
Oracle Projects.

Employee The employee you enter must be defined as a salesperson in Oracle Receivables
under the category Employee to receive sales credit. For information about setting up
salespersons, for Oracle Projects see: Salespersons and Credit Types, Oracle Projects
Implementation Guide.

Credit % The amount of credit an employee receives for this credit type. The total percent
amount for this credit type assigned to all employees for this project or task must equal 100
percent if:

Allow Sales Credits option for the batch source Projects Invoices is checked in the Oracle
Receivables Transactions Sources window

Transfer to AR check box is checked in the Credit Receivers window

Interface to AR Choose whether you want to interface the sales credit information to Oracle
Receivables.

Effective From/To Enter the date range the credit receiver is effective.

Retention

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Standard Billing Schedules

You can set up a contract project to have revenue and invoicing calculated based on a bill rate
schedule or based on a burden schedule.

If you use a bill rate schedule, you can specify an employee-based schedule, a job-based
schedule, or both. When revenue and invoicing are calculated, the system first looks for an
employee-based bill rate schedule. If none is specified, or if no employee-based rate is
available for an employee, the job-based bill rate is used.

Default values for the schedules are copied from the project type.

You can select employee, job, non-labor rate schedules with the rate schedule currency
different from the project functional currency if Enable Multi Currency Billing is checked for
the project.

Note: If Oracle Project Resource Management is installed, you must specify a job-based bill
rate schedule. See: Oracle Project Resource Management User Guide.

When you update billing information for a project, you can copy the changes to some or all of
the project's tasks. You can choose from the following options:

Copy to all tasks without manual overrides Use this option to copy the project-level bill
rate schedule to all tasks except tasks where the original bill rate schedule has been
overridden.

For example: A project uses the non-labor bill rate schedule A. All tasks created under the
project inherit non-labor bill rate schedule A. You manually override the bill rate schedule
value for Task 2, to non-labor bill rate schedule B. Then you change the bill rate schedule for
the project to C and select Copy to all tasks without manual overrides. The new bill rate
schedule value (C) is copied all the project's tasks except Task 2.

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Copy to all tasks Use this option to copy the project-level bill rate schedule to all of the
project's tasks, including tasks where the original bill rate schedule has been overridden.

Note: Changes to billing schedules using public APIs are not considered manual overrides

Employee Bill Rates and Discount Overrides

You can override an employee's standard bill rate by rate or discount When there is an
override the new bill rate or discount rate of the employee takes precedence over the job bill
rate and discount override you define at the project level and task level.

Note: When you override an employee standard bill rate by a rate override, the new
employee bill rate becomes the employee bill rate for the project or lowest task. When you
override the employee standard bill rate by a discount override, the discount override is
applied to the standard employee bill rate at the task level.

To enter employee bill rate overrides, you must select and expand Bill Rates and Overrides
from the list of options in the Projects, Templates window.

Note: Discounts that you enter in the standard bill rate schedule for the project are not
applied to employee bill rate overrides.

When you override an employee's bill rate, the new employee bill rate takes precedence over
the following override you can define at the project level:

Job bill rate override

In addition, the new employee bill rate takes precedence over the following information you
can define at the task level:

Job bill rate override

Standard bill rate schedule

Labor multiplier

If Oracle Project Resource Management is used to schedule resources to projects, you can
specify bill rate overrides by scheduled assignments in Oracle Project Resource Management.

Based on the setting of the Assignment Precedes Task attribute for the project, the bill rate
defined for the assignment is used to determine the bill amount for the actual labor
transactions associated to the assignment

Assignment Precedes Task is enabled for a project: Assignment-level overrides take

precedence over task-level overrides and are used to derive bill amounts for the actual
transactions.

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Assignment Precedes Task is not enabled for a project: Task-level overrides take precedence
over any assignment-level overrides and are used to derive bill amounts for actual
transactions.

If overrides are not defined for either assignment or task, the standard rate schedules in the
project task definition are used for the bill amount derivation.

See: Assignment Precedes Task.

To enter employee bill rate overrides, you must select and expand Bill Rates and Discount
Overrides from the list of options in the Projects, Templates window. When you enter
employee bill rate overrides, you specify the following:

Employee Name/Number Enter the name or number of the employee whose bill rate you
want to override.

Note: You can enter bill rate and discount overrides for terminated employees. The profile
option PA: Display Terminated Employees: Number of Days determines how many days
after their termination employees can have bill rate and discount overrides entered.

Rate Currency The default rate currency is the project functional currency. You can enter a
currency that is different from the project functional currency if Enable Multi Currency
Billing is checked for the project.

Rate Enter the new bill rate you want to use.

Discount % Enter the discount percentage you want to apply to the standard employee bill
rate.

Note: You can choose either a rate override or a discount %.

Reason Enter the reason for the rate or discount percentage override. A reason is required
based on the Implementation Options setting.

Effective From/To Enter the date range the rate is effective.

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Job Bill Rate and Discount Overrides

You can override a job's standard bill rate for a project or lowest task by rate or discount.
When you override a job's standard bill rate by rate override, the new job bill rate becomes
the job's bill rate for this project or lowest task.

Note: Discounts that you enter in the standard bill rate schedule for the project/task are not
applied to job bill rate overrides.

When you override a job's bill rate, the new job bill rate takes precedence over standard bill
rates and labor multipliers you assign to this task. In addition the task override takes
precedence over any project job bill rate override.

Note: Discount overrides are applied to the standard job bill rate at the task level.

To enter job bill rate overrides, you must select and expand Bill Rates and Discount
Overrides from the list of options in the Projects, Templates window. When you enter job bill
rate overrides, you specify the following:

Job Name Enter the name of the job whose bill rate you want to override.

Rate Currency The default rate currency is the project functional currency. You can enter a
currency that is different from the project functional currency if Enable Multi Currency
Billing is checked for the project.

Rate Enter the new bill rate you want to use.

Discount % Enter the discount percentage you want to apply to the standard job bill rate.

Note: You can choose either a rate override or a discount %.

Reason Enter the reason for the rate or discount percentage override. A reason is required
based on the Implementation Options setting.

Effective From/To Enter the date range the rate is effective.

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Labor Multipliers

You use labor multipliers when you want to apply only one multiplier to raw labor cost for
billing purposes. If you need to apply many multipliers to the raw cost for billing, use burden
schedules or burden schedule overrides for revenue and invoicing to record the appropriate
multipliers. You can also use labor multipliers with standard burden schedules as explained
below.

Oracle Projects calculates the revenue or bill amounts (or both) for this task's labor items
using the following formula for items based on bill rate schedules:

Revenue or Bill Amounts = Labor Multiplier * Raw Cost

Oracle Projects calculates the revenue or bill amounts (or both) for this task's labor items
using the following formula for items based on burden schedules:

Revenue or Bill Amounts = Burdened Amount * (1 + Labor Multiplier)

If no override revenue or invoice burden schedules exist, Oracle Projects uses the multiplier
on top of the standard revenue and invoice burden schedule. The following table shows an
example of use of the labor multiplier:

Cost Amount

Labor Raw Cost 1,000

Standard Multiplier (1.5) 1,500 (from standard burden schedule)

Total Burdened Labor 2,500

Negotiated Multiplier (1.0) 2,500 (from labor multiplier)

Final Burdened Labor 5,000

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To enter labor multipliers, you must select and expand Bill Rates and Overrides from the list
of options in the Projects, Templates window. You specify the following information for this
option:

Multiplier Enter the labor multiplier you want to use for this project or lowest task.

Effective From/To Enter the date range the labor multiplier is effective.

Job Assignment Overrides

You can override both an employee's job assignment and an employee's billing title for a
project or lowest level task.

When you override an employee's job assignment, the new job assignment determines bill
rates for the employee's billing on this project or lowest task (if this task uses job bill rates).
You can choose any active job in the Oracle Applications database.

When you override an employee's primary billing title, the new billing title appears on future
invoices for this employee's billing (if this project's labor invoice format displays an
employee billing title).

Any job assignment override you enter for this project or lowest task takes precedence over
any project job assignment override.

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To override job assignments, you must select and expand Bill Rates and Overrides from the
list of options in the Projects, Templates window. You specify the following information for
this option:

Employee Name/Number Enter the employee whose job or billing title you want to override.

Job Override Enter the employee's new job assignment.

Billing Title Override You can enter the employee's new billing title.

Effective From/To Enter the date range this override is effective.

Other Sources:

Job Titles, Oracle Projects Implementation Guide

Job Billing Title Overrides

You can override a job's billing title for a project or lowest task. When you override a job's
billing title, the new job billing title appears on future invoices for this job's billing on the
project or lowest task (if this project's labor invoice format displays a job billing title).

For example, you may staff a "Senior Developer" requirement on a job with a person whose
job title is "Senior Engineer". The Job Billing Title Override enables you to display the title
"Senior Developer" on the invoice. See also, Invoice Formats, Oracle Projects
Implementation Guide.

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 To override job billing titles, you must select and expand Bill Rates and Overrides from the
list of options in the Projects, Templates window. You specify the following information for
this option:

Job Enter the job whose billing title you want to override.

Billing Title Override You can enter the job's new billing title.

Effective From/To Enter the date range this override is effective.

Non-Labor Bill Rate and Discount Overrides

You can override a non-labor standard bill rate for non-labor expenditure types and non-labor
resources.

When you override a usage expenditure type, the override applies to all non-labor resources
within that usage expenditure type.

When you override a non-labor resource within a usage expenditure type, the override applies
to that particular non-labor resource only, and does not apply to other non-labor resources
within that usage expenditure type.

Any non-labor bill rate override you enter takes precedence over non-labor bill rates or
markups from your task's standard non-labor bill rate schedules.

Any non-labor bill rate override you enter for this task takes precedence over any project
non-labor bill rate override.

Note: Discount override is first applied to the standard non-labor bill rates at the task level. If
there are no bill rates defined at the task level, the discount override is applied at the project
level standard non-labor bill rate.

Suggestion: When you define bill rate overrides for expenditure types that relate to inventory
items, it is recommended that you use cost markups instead of rates. When you specify a bill
rate for an expenditure type that relates to inventory items, the base unit of measure for the

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inventory transactions reported under the expenditure type must be the same as the unit of
measure for the expenditure type. If the base unit of measure for an inventory transaction
differs from the unit of measure for the expenditure type, then the override is not applied to
that transaction.

To override non-labor bill rates, you must select and expand Bill Rates and Discount
Overrides from the list of options in the Projects, Templates window. You specify the
following information for this option:

Expenditure Type Enter the expenditure type.

Non-Labor Resource Enter the non-labor resource whose bill rate you want to override.

Rate Currency The default rate currency is the project functional currency. You can enter a
currency that is different from the project functional currency if Enable Multi Currency
Billing is checked for the project.

Note: A rate currency cannot be selected when a bill rate is a markup. The currency is
determined from the option selected under Bill Transaction Currency for cost based revenue.

Rate Enter the new rate you want to use.

Markup % Enter the percentage of markup for this rate.

Discount % Enter the discount percentage you want to apply to the standard non-labor bill
rate.

Note: You can choose either a rate override, discount %, or a markup%.

Reason Enter the reason for the rate or discount percentage override. A reason is required
based on the Implementation Options setting.

Effective From/To Enter the date range this override is effective.

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Defining Quick Entry Fields

As part of a project template definition setup, you can choose which Quick Entry fields you
want to define. Oracle Projects prompts you to enter information in these Quick Entry fields
when you create either a new project or a new template from an existing template. Choose
Quick Entry fields for project information you want to enter (instead of accepting the
template default) each time you create a project. Quick Entry fields appear in the Quick Entry
window. For each Quick Entry field, you can specify the following:

Order Enter a number to indicate the sequence in which you want the Quick Entry fields to
appear.

Field name Choose the fields you want to appear in the Quick Entry window when you
create a new project.

Specification You enter a specification for the following field names:

Team Member: Select the project role to use when creating the team member

Classification: Select the class category to use when creating the classification

Customer Name: Select the customer relationship to use when creating the project customer

Prompt You can enter a field name that is different from the predefined field name to display
when you use Quick Entry.

Required Choose whether you want to require entry for the Quick Entry field

Oracle Projects automatically includes Project Name and Project Number as required Quick
Entry fields if you use manual project numbering.

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To define Quick Entry fields:

Enter or find your template in the Projects, Templates window, and choose Setup Quick
Entry. Enter or modify your Quick Entry fields.

If you modify the Quick Entry fields for an existing template, Oracle Projects uses your
updated Quick Entry fields for new projects you create from the template or from projects
originally created from that template.

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 AUTO ACCOUNTING
Oracle Projects creates many different accounting transactions throughout its business cycle.
You can use AutoAccounting to specify how to determine the correct account for each
transaction.

Examples of accounting practices you can implement using AutoAccounting include:

“Charge central headquarters with all advertising costs regardless of which region those
advertisements benefit”

“Credit payroll costs to the payroll liability account belonging to the division for which an
employee works”

“Assign revenue from subcontractors to the company and cost center managing the project”

Oracle Projects generates accounting events and creates accounting for the accounting events
in Oracle Subledger Accounting. Oracle Projects predefines setup in Oracle Subledger
Accounting, so that create accounting process accepts default accounts from AutoAccounting
without change. If you define your own detailed accounting rules in Oracle Subledger
Accounting, then Oracle Subledger Accounting overwrites default accounts, or individual
segments of accounts, that Oracle Projects derives using AutoAccounting.

Oracle Projects interfaces the accounting that AutoAccounting creates for billing to Oracle
Receivables along with the associated customer invoice. In turn, Oracle Receivables creates
accounting for the invoices in Oracle Subledger Accounting.

Overview of AutoAccounting

When you implement AutoAccounting, you define the rules governing which general ledger
accounts Oracle Projects uses under which circumstances. Oracle Projects uses the rules you
define whenever it performs an accounting transaction.

How AutoAccounting works

For each accounting transaction, you define rules to determine the appropriate account to
charge. Each accounting transaction is identified by an AutoAccounting function.
AutoAccounting functions are components of programs that you submit to generate
accounting entries.

AutoAccounting Functions

The following table lists each AutoAccounting function for costing and the associated
business activities.

Depending upon your implementation of Oracle Projects, you probably need to implement
most, or all, AutoAccounting functions.

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AUTOACCOUNTING
BUSINESS ACTIVITY
FUNCTION
Revenue and Billing
Event Revenue Account Determines revenue account for revenue events
Expense Report Revenue Determines revenue account for expense report items
Account
Labor Revenue Account Determines revenue account for labor items
Labor Revenue Borrowed Determines labor revenue borrowed account, which is the
Account credit side of the borrowed and lent transaction
Labor Revenue Lent Account Determines labor revenue lent account, which is the debit
side of the borrowed and lent transaction
Revenue and Invoice Determines accounts to track revenue and receivables
Accounts
Supplier Invoice Revenue Determines revenue account for supplier invoice items
Account
Usage Revenue Account Determines revenue account for usage items
Usage Revenue Borrowed Determines usage revenue borrowed account, which is the
Account credit side of the borrowed and lent transaction
Usage Revenue Lent Account Determines usage revenue lent account, which is the debit
side of the borrowed and lent transaction
Costing
Expense Report Cost Determined cost account for expense report items.
Account
Expense Report Liability Determines liability account for expense report costs
Account
Labor Cost Account Determines cost account for all labor items, including
straight time and overtime
Labor Cost Clearing Account Determines clearing account for labor costs
Supplier Invoice Cost Determines cost account for adjusted supplier invoice items.
Account
Total Burdened Cost Credit Determines credit account for total burdened costs for all
items on burdened projects
Total Burdened Cost Debit Determines debit account for total burdened costs for all
items on burdened projects
Usage Cost Account Determines cost account for usage items
Usage Cost Clearing Account Determines clearing account for usage costs

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Defining a Lookup Set
To define a lookup set, you specify pairs of values. For each intermediate value, you specify
a corresponding account segment value. One or more related pairs of intermediate values and
segment values form a lookup set.

For example, if the phrase "World Headquarters" corresponds to a Company segment value
of 01, use World Headquarters as the intermediate value and 01 as the segment value.

Or, suppose your business has five major regions (Northeast, South, Middle States,
Southwest, and West), and you have a Region segment in your Accounting Flex-field. You
probably need to create a lookup set that maps region names to the corresponding region
code:

Name: Region Code

Description: Map region names to the corresponding Accounting Flex-field region segment
code

Segment Value Lookups

The lookup set would contain the segment value lookups shown in the following table:

Intermediate Value Segment Value

Northeast 01

South 02

Middle States 03

Southwest 04

West 05

You may need several lookup sets to map organizations to cost centers, expenditure types to
account codes, event types to account codes, or for other situations where the segment value
depends upon a particular predefined parameter.

You can use a lookup set more than once; several AutoAccounting rules can use the same
lookup set.

You define and modify lookup sets using the AutoAccounting Lookup Sets window.

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Use this form to define, view, and maintain AutoAccounting lookup sets.

Name Enter a unique, descriptive name for this lookup set.

Segment Value Lookup Region

Use this zone to specify an intermediate value, and then map that intermediate value to a
specific segment value of your Accounting Flex-field.

AutoAccounting matches an intermediate value derived from an AutoAccounting rule with

an intermediate value in the lookup set and determines the corresponding segment value you
specify to derive an account code from your chart of accounts.

Intermediate value Enter the intermediate value that you want to map to an Accounting Flex-
field segment value.

Ensure that you have entered a valid intermediate value. Valid intermediate values are those
that match intermediate values that may be derived from AutoAccounting rules. Specify the
values in the base language and ensure that the case and spelling match exactly. (For more
information about the base language, see: Multilingual Support in Oracle Projects, Oracle
Projects Fundamentals.) For example, if you are mapping organization intermediate values to
cost center segment values, you cannot enter 'RISK ANALYSIS' for an organization with the
name of 'Risk Analysis'.

If AutoAccounting does not find a matching intermediate value in the lookup set,
AutoAccounting provides an error message (Incomplete AutoAccounting Rules) notifying
you that it could not build an Accounting Flex-field combination. You must correct your
AutoAccounting setup and resubmit the process that triggered the AutoAccounting error.

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Segment Value Enter the Accounting Flex-field segment value that you want to map to with
this intermediate value.

Ensure that you have entered a valid segment value. Valid segment values are those that are
defined for your Accounting Flex-field segments. Values must match exactly numerically.

If AutoAccounting does not find a matching segment value in the lookup set,
AutoAccounting provides an error message (Invalid Accounting Flex-field) notifying you
that it could not build a valid Accounting Flex-field combination. You must correct your
AutoAccounting setup and resubmit the process that triggered the AutoAccounting error.

Defining AutoAccounting Rules

Each AutoAccounting rule you define supplies one Accounting Flex-field segment value at a
time. Thus, you need to specify one AutoAccounting rule for each segment in your
Accounting Flex-field for each AutoAccounting transaction you want to use.

Some of the AutoAccounting rules you define can be quite simple, such as always supplying
a constant company code or natural account. Others can draw upon context information
(parameters), such as the revenue category for a particular posting or the organization that
owns a particular asset. You can even use multiple parameters to provide a segment value.

You can reuse the same AutoAccounting rules for many different functions and their
transactions.

You define rules based on project information that you enter. You can use these
AutoAccounting parameters as input values to your rules.

Note: AutoAccounting does not use Flex-field security rules when determining a valid
account combination. You must define your AutoAccounting rules to determine the
appropriate account based on the rules required by your company.

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AutoAccounting Parameters

AutoAccounting allows you to use the AutoAccounting parameters as inputs for your
AutoAccounting rules. The following table lists these parameters.

Note: Not all of the parameters in the table are available for all functions. The Customer ID
and the Customer Name parameters are available for cross charge functions only. Submit the
AutoAccounting Functions Listing for a complete listing of all of the parameters available for
each function.

AutoAccounting
Meaning
Parameter

Class Code AutoAccounting class code on the project.

Note: Since you can define many project classification categories, the
Class Code parameter always corresponds to the one classification
category that you specified as the AutoAccounting classification
category.

Labor Costing Rule Labor Costing rule of the employee who incurs the expenditure

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Customer ID Internal ID of the internal customer you define for the receiver
operating unit

Customer Name Internal customer you define for the receiver operating unit

Employee Number Employee number of the employee who incurs the expenditure

Event Num Event number of the event

Event Organization Organization for the event

Event Organization Internal identifier of the organization for the Event

ID

Event Type The classification of the event

Expenditure Expenditure category of the expenditure item

Category

Expenditure Item ID Internal identifier that identifies each expenditure item

Expenditure Operating unit that incurs the expenditure

Operating Unit

Expenditure Internal identifier of the operating unit that incurs the expenditure
Operating Unit ID

Expenditure Organization that incurs the expenditure

Organization

Expenditure Internal identifier of the organization that incurs the expenditure

Organization ID

Expenditure Type Expenditure type of the expenditure item

Labor Cost Labor cost multiplier of the task charged

Multiplier

Non-Labor Resource Non-labor resource utilized for the expenditure

Non-Labor Resource Non-labor resource-owning organization

Org.

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Non-Labor Resource Internal identifier of the non-labor resource-owning organization
Org. ID

Person ID Internal identifier of the person who incurs the expenditure

Person Type Identifies whether a person is an employee or a contingent worker

Additional Information: If transactions have no Person Type

parameter, use a SQL statement to derive your AutoAccounting rules.

Project ID Internal identifier of the project being charged

Project Number The number of the project being charged

Project Operating Project-managing operating unit

Unit

Project Operating Internal identifier of the project-managing operating unit

Unit ID

Project Organization Project-managing organization

Project Organization Internal identifier of the project-managing organization

ID

Project Type Project type of the project charged

Provider Organization incurring the cross-charged transaction

Organization

Provider Internal identifier of the organization incurring the cross-charged

Organization ID transaction

Receiver Organization whose project receives the cross-charged transaction

Organization

Receiver Internal identifier of the organization whose project receives the cross-
Organization ID charged transaction

Revenue Category Revenue category of the expenditure item

Task ID Internal identifier of the task charged

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Task Number Task number of task charged

Task Organization Task-managing organization

Task Organization Internal identifier of the task-managing organization

ID

Task Service Type Service type of the task charged

Top Task ID Internal identifier of the highest level parent task of the task charged

Top Task Number Task number of the highest level parent task of the task charged

Supplier Type Supplier type of the supplier on the invoice

Assigning Rules to Transactions

When you are assigning rules to an AutoAccounting function, you may want to assign
different rules to different conditions. For example, you may want to account for indirect
projects using one set of rules, and use two different sets of rules for billable items and non-
billable items on contract projects.

To make it easy to do this, Oracle Projects provides function transactions to each function,
which identifies commonly used conditions in which you may want to assign different rules.

The following table lists examples of function transactions under the Labor Cost Account
function:

Function Transactions Meaning

Indirect, Private Labor All items on indirect, private projects

Indirect, Public Labor All items on indirect, public projects

Indirect, All All labor items on indirect projects

Capital, Private, Capital Capitalizable labor items on capital, private projects

Capital, Private, Non-Capital Non-capitalizable labor items on capital, private projects

Capital, All All labor items on capital projects

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Contract, All All labor items on a contract project

You can assign rules to function transactions for each AutoAccounting function.

You complete the following steps to assign AutoAccounting rules to AutoAccounting

functions and transactions:

Enable each transaction you want to use

For each transaction you enable, you specify an AutoAccounting rule for each segment of
your Accounting Flex-field

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 ACCOUNT GENERATORS
The Account Generator uses Oracle Workflow to derive account code combinations. Oracle
Payables and Oracle Purchasing use the Account Generator to determine the account code
combinations for requisitions, purchase orders, and supplier invoices based on the project
information you enter.

You define functions and processes to derive the Accounting Flexfield combinations. You
can optionally customize the Account Generator for each set of books that you have defined.

Each Account Generator workflow is called an item type. Oracle Projects provides the
following Account Generator item type:

Project Supplier Invoice Account Generation

The Project Supplier Invoice Charge Account item type contains the following workflow
processes:

Generate Default Account

Generate Account Using FlexBuilder Rules

Sample Process for Account Generation

In many Account Generator settings, you can choose to user either the default Account
Generator process or a customized version of the default Account Generator process for each
Accounting Flexfield structure and set of books. When you implement the Account Generator
to integrate Oracle Projects with Oracle Payables, you must customize the default Account
Generator process. If you do not customize the process, it generates an error.

Prerequisites:

Before using the Account Generator on a production database in Oracle Projects to generate
the supplier invoice charge account, you must:

Define your Accounting Flexfield structure for each set of books.

Define flexfield segment values and validation rules.

For each set of books, customize the default Account Generator process, test your
customizations, and choose the process for a flexfield structure, if necessary.

How the Account Generator Compares to AutoAccounting

You can implement the Account Generator to create the same accounting transactions that are
created using your AutoAccounting implementation. This section compares the Account
Generator to AutoAccounting to help you understand and implement the Account Generator
based on your knowledge of AutoAccounting.

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A function in AutoAccounting is equivalent to an item type in Workflow.

A parameter in AutoAccounting is equivalent to an attribute in Workflow.

The definition and assignment of rules to segments in AutoAccounting are equivalent to a

process in Workflow.

See Also:

Converting from FlexBuilder (Oracle Applications Flexfields Guide)

Assigning a Constant to a Segment

This section describes the steps required to assign a constant to a segment using the Account
Generator.

Account Generator Functionality Similar Functionality in AutoAccounting

Assign a constant to a segment Assign a constant AutoAccounting rule to a
segment

To assign a constant value to a segment, you perform the following steps:

1. Drag and drop the Assign Value to Segment function from the Standard Flexfield item type
to your account generation process.

2. Connect this function to prior and subsequent steps.

3. Select Properties for this function.

4. In the Comment field, you can optionally specify a comment to describe the action being
performed in this step.

5. Select the Attribute Values tab and enter the values for the four attributes.

6. For the Value attribute, select Constant as the Value Type. Enter the constant under Value.

This function is used in Node 2 of the sample Account Generator process for Oracle Projects.
See: Customization Example.

For detailed information about this function, see Account Generator (Oracle Applications
Flexfields Guide).

Assigning an Attribute Parameter to a Segment

This section describes the steps required to assign an attribute parameter to a segment using
the Account Generator.

Account Generator Functionality Similar Functionality in AutoAccounting

Assign an attribute parameter to a segment Assign an AutoAccounting rule that uses a
parameter, which becomes the segment value

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 (a lookup set is not used)

To assign an attribute to a segment, you perform the following steps:

1. Drag and drop the Assign Value to Segment function from the Standard Flexfield item type
to your account generation process.

2. Connect this function to prior and subsequent steps.

3. Select Properties for this function.

4. In the Comment field, you can optionally specify a comment to describe the action being
performed in this step.

5. Select the Attribute Values tab.

6. For the Value attribute, select Item Attribute as the Value Type. Then select the attribute
whose value will be assigned to the segment.

For detailed information about this function, see Account Generator (Oracle Applications
Flexfields Guide).

Assigning a Lookup Set Value to a Segment

Account Generator Functionality Similar Functionality in AutoAccounting

Assign a lookup set value to a segment Assign an AutoAccounting rule that passes a
parameter to a lookup set to determine the
segment value

Deriving a Segment Value via SQL Statements or If Conditions

Account Generator Functionality Similar Functionality in AutoAccounting

Derive a segment value via SQL statements Use an AutoAccounting rule that derives the
or If conditions intermediate value or segment value via a
SQL statement.

You typically use SQL statements for if/then logic. With the Account Generator, you can do
this with either conditional nodes (used in Nodes 3, 4, 5, and 6 in the sample Account
Generator process for Oracle Projects) or SQL functions (used in Nodes 7 and 8 in the sample
Account Generator process for Oracle Projects). See: Customization Example.

SQL Functions

You must follow Workflow standards when writing SQL procedures for the Account
Generator. The values of any attributes required can be retrieved within the procedure code
using calls to the standard Workflow functions. The final value determined by the procedure
is copied into one of the attributes. This value can be then assigned to a segment.

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SQL functions are illustrated in Nodes 7 and 8 in the sample Account Generator process for
Oracle Projects. See: Customization Example.

See Also:

The Sample Process for Account Generation

Overview of AutoAccounting

Oracle Applications Flexfields Guide

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 Burdening (Cost plus Processing)

Burdening (also known as cost plus processing) is a method of calculating the burden costs
by applying one or more burden cost components to the raw cost amount of each individual
transaction. You can then review the raw and total burdened (raw cost + burden) cost of each
transaction. Oracle Projects displays the raw cost and burdened cost in windows and reports
that show the cost of each detail transaction. You can choose to account for the individual
burden cost components to either track the overhead absorption or to account for the total
burdened costs. You can write custom reports using standard views to report all burden cost
components for each detail transaction

Using burdening, you can perform internal costing, revenue accrual, and billing for any type
of burdened costs that your company applies to raw costs. Oracle Projects calculates costs
using the following formulas. (The formulas for cost also apply to revenue and billing
amounts.)

Total Burdened Cost = Raw Cost + Burden Cost

Burden Cost = Raw Cost X Multiplier

You use the multiplier to derive the total amount of the burden cost. For example, you may
burden the raw cost of labor using a multiplier of thirty percent to derive the fringe
component, and in turn, the total burdened cost of labor is computed as follows:

Labor (raw cost) 1,000

+ Fringe @ 30% (burden cost) 300
Total Burdened Cost 1,300

On a project for which costs are burdened, you can create some transactions that are burdened
and others that are not burdened. You define which projects should be burdened by setting
the Burden Cost indicator for each project type in the Project Types window. When you
specify that a project type is burdened, you must then specify the burden schedule to be used.
The burden schedule stores the rates and indicates which transactions are burdened, based on
cost bases defined in the burden structure. You specify which expenditure types are included
in each cost base.

With burdening, you can use an unlimited number of burden cost codes, easily revise burden
schedules, and retroactively adjust multipliers. You can define different multipliers for
costing, revenue accrual, and billing.

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Burden Structures

You define the cost buildup using a burden structure. A burden structure determines how cost
bases are grouped and establishes the method of applying burden costs to raw costs.
Expenditure types classify raw costs, and burden cost codes classify burden costs. The
relationship between expenditure types and burden cost codes within cost bases determines
what burden costs are applied to specific raw costs, and the order in which they are applied.

Note: To account for burden cost codes separately, you also define unique expenditure types
to link to burden cost codes. See: Storing and Viewing Burden Costs

Your company may have several different burden structures for unique business
requirements. For example, you may use a different structure for internal costing than you use
for government billing.

Note: If you change your burden structure and subsequently transfer an expenditure item
burdened with the old structure, then the reversed amount and the amount charged to the new
task each equals the original burdened amount.

Figure 1 - 21 illustrates the components of a burden structure.

A burden cost code represents the type of burden costs you want to apply to raw costs. For
each burden cost code in the burden structure, you specify what cost base it is applied to, the
expenditure type or types it is linked to, and the order in which it is applied to raw costs
within the cost base.

You burden a type of cost with burden costs to obtain a more accurate representation of your
company's operating costs. For example, each hour of employee time cost directly to a
project may be supported by burden costs for benefits and office space.

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You specify which costs are burdened through the definition of cost bases. A cost base is a
grouping of raw costs to which you apply burden costs. A cost base assignment consists of
expenditure types. You specify the types of transactions that constitute the cost base when
you assign expenditure types to the cost base. These expenditure types assignments represent
the raw costs to which you apply the burden costs of the cost base. If you exclude an
expenditure type from all cost bases in a structure, the expenditure items that use that
expenditure type will not be burdened (burden cost = 0, thus burdened cost = raw cost).
In Figure 1 - 21, the cost base of Labor is comprised of the following expenditure types:
Professional, Clerical, and Administrative.

Cost bases also consist of burden cost codes. While the expenditure types represent the raw
costs, the burden cost codes represent the burden costs that support the raw costs. Cost bases
may be different within the context of different burden structures. For example, you may use
a different definition of a labor cost base in a billing schedule than you would use in an
internal costing schedule.

In summary, cost bases are comprised of expenditure types and burden cost codes.
Expenditure types represent the raw costs, and burden cost codes represent the burden costs
that support the raw costs. Cost bases may be different within the context of different burden
structures. For example, you may use a different definition of a labor cost base in a billing
schedule than you would use in an internal costing schedule.

An expenditure type classifies each detailed transaction according to the type of raw cost
incurred.

A burden structure can be additive or precedence based. If you have multiple burden cost
codes, an additive burden structure applies each burden cost code to the raw costs in the
appropriate cost base. A precedence burden structure is cumulative and applies each cost
code to the running total of the raw costs, burdened with all previous cost codes. The table
below illustrates how different burden structures using the same cost codes result in different
total burdened costs.

Cost Type Additive Precedence

Cost Amount Formula Cost Amount Formula
Labor 100.00 (A) 100.00 (A)
Overhead @95% 95.00 (B) .95 X A 95.00 (B) .95 X A
Fringe @25% 25.00 (C) .25 X A 48.75 (C) .25 X (A + B)
G&A @15% 15.00 (D) .15 X A 36.56 (D) .15 X (A + B + C)
Total Burdened Cost 235.00 A + B + C + D 280.31 A+B+C+D

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Note: The order of the burden cost codes has no effect on the total burdened cost with either
additive or precedence burden structures.

Accounting for Burden Costs

You determine if you want to account for the burden costs. You can choose one of the
following accounting methods:

o Account for burden costs by burden cost component.

o Account for the total burdened costs.

o Perform no accounting -- calculate burden costs only for use in management

reporting with no accounting impact.

Oracle Projects supports all of these accounting methods for burden costs regardless of the
method that you choose to store the burden costs, either as a value on the expenditure item or
as separate, summarized expenditure items.

There are cases in which you may choose to use both of the methods of accounting for
burdened costs, based on different objectives. The sections below explain the objectives of
using each method of accounting.

See Also

Storing and Viewing Burden Costs

Example of Accounting for Total Burdened Costs

Table 1 - 47 shows an example of the accounting for the expenditure items used above
in Table 1 - 43. The example includes the accounting for both raw cost and total burdened
costs.

Accounting for Raw Cost

Transaction Item # Accounting Transactions Debit Credit

Labor Cost 1 Labor Expense 100

Payroll Clearing 100

Labor Cost 2 Labor Expense 200

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 Payroll Clearing 200

Expense 3 Computer Rental Expense 500

Payables Liability 500

Accounting for Total Burdened Costs

Transaction Item # Accounting Transactions Debit Credit

Labor 1 Project Cost Inventory 300

Labor Burdened Inventory Transfer 300

Labor 2 Project Cost Inventory 600

Labor Burdened Inventory Transfer 600

Expense 3 Project Cost Inventory 500

Computer Burdened Inventory Transfer 500

Note: The Computer Rental expense is included in the total burdened cost accounting, even
though it is not burdened. This is done to include the total project cost in the cost WIP
accounts.

Setting Up Accounting for Total Burdened Costs

To set up an Account for Total Burdened Costs configuration, you must perform the
following step:

o Define AutoAccounting rules for the Total Burdened Costs Debit and Total
Burdened Cost Credit AutoAccounting functions. These rules are used to
determine the debit and credit GL accounts that will be charged. You must

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 ensure that your AutoAccounting rules handle all transactions charged to
burdened projects, not just those transactions that are burdened.

Creating and Interfacing the Accounting for Total Burdened Costs

To create and interface the accounting for the total burdened costs, you
run the following processes:

o PRC: Distribute Total Burdened Costs. This process creates the total
burdened cost distribution lines for all transactions charged to burdened
projects, even if the transaction is not burdened, to account for the total project
costs in the cost WIP account.

o PRC: Interface Total Burdened Costs to General Ledger. This process

interfaces total burdened cost distribution lines to Oracle General Ledger.

o PRC: Tieback Total Burdened Costs from General Ledger. This process
ties back total burdened cost distribution lines from Oracle General Ledger.

You can also use the streamline processes to create distribution lines for burdened
costs.

See Also

Implementing AutoAccounting

Distribute Total Burdened Costs

Interface Total Burdened Costs to General Ledger

Tieback Total Burdened Costs from General Ledger

Accounting for Burden Costs by Burden Cost Component

You can account for the individual burden cost components when you want to track the
burdening in General Ledger.

Table 1 - 48 shows an example of the accounting for the expenditure items shown in Table 1
- 46. The example includes the accounting for both raw cost and burden costs by component.

Accounting for Raw Cost

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Transaction Item # Accounting Transactions Debit Credit

Labor Cost 1 Labor Expense 100

Payroll Clearing 100

Labor Cost 2 Labor Expense 200

Payroll Clearing 200

Expense 3 Computer Rental Expense 500

Payables Liability 500

Accounting for Summarized Burden Cost Components

Transaction Item # Accounting Transactions Debit Credit

Fringe 4 Project Fringe Expense 120

Fringe Absorption/Recovery 120

Overhead 5 Project Overhead Expense 300

Overhead Absorption/Recovery 300

G&A 6 Project G&A Expense 180

G&A Absorption/Recovery 180

Table 1 - 48. (Page 2 of 2) Accounting for Burden Costs by Burden Cost Component

Setting Up Accounting for Burden Costs by Burden Cost Component

To set up this configuration, you must perform the following steps:

1. Define AutoAccounting rules for the Burden Transaction Debit (Burden Cost
Account) and Burden Transaction Credit (Burden Cost Clearing Account)
AutoAccounting functions. These rules are used to determine the debit and credit GL

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 accounts to be charged. You use the expenditure type parameter to distinguish
between different types of burden cost components. You also have the
AutoAccounting Function Burden Cost Revenue Account to account for revenue.

2. If you have chosen to store burden costs as a summarized value on a separate

project and task (as defined by selecting the Burden Cost on the same expenditure
item indicator on the project type), you must perform the following additional steps:

▪ Define a project and appropriate tasks, which will be used as a storing

bucket for summarized, burden transactions used for accounting for the
individual burden costs. You typically would not do project reporting
from these collection projects. However, you may choose to perform
some analysis for burden absorption using these projects. After you
account for the burden costs to General Ledger, you can perform
additional analysis within General Ledger.

▪ Specify the above project and task on the project type. This project and
task are used for collecting the summarized burden transactions that
are used only for the burden accounting.

Creating and Interfacing the Accounting for Burden Costs by Burden Cost
Component

To create and interface the accounting for the burden transactions, you
run the following processes:

o PRC: Create and Distribute Summarized Burden Component Items. This

process summarizes the burden costs, creates the expenditure items for the
burden transactions, and runs the distribution process. The burden transactions
are created on different projects depending on the method you use to store
burden costs. If you store burden costs as separate, summarized burden
transactions, the burden transactions are created on the same project that
incurred the costs. If you choose to store burden costs as a value along with
raw cost on the expenditure item on the project that incurred the transactions,
the burden transactions are created on the collection project and task used for
collecting burden transactions intended for accounting by burden cost
components only.

o PRC: Interface Usage and Miscellaneous Costs to General Ledger. This

process interfaces the burden transactions to Oracle General Ledger. Based on
the expenditure type class you enter as a process parameter, this process will
interface only those transactions that match the parameter. If no parameter is
entered, then this process picks up all Burden Transactions, Miscellaneous

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 Transactions, Usage Transactions, Inventory Transactions and WIP
Transactions for processing.

o PRC: Tieback Usage and Miscellaneous Costs from General Ledger. This
process ties back all transactions processed in the PRC: Interface Usage and
Miscellaneous Costs process.

You can also use the streamline processes to create distribution lines for burdened
costs.

Accounting for Total Burdened Costs

You may choose to account for the total burdened costs of the items, without distinguishing
the amounts by burden cost components. This is typically done when you track the total
burdened costs in a cost asset or cost WIP (work in process) account. This method is also
sometimes referred to as project inventory. You may track cost WIP when you:

o capitalize total burdened costs

o Track the total burdened costs as project inventory (also known as cost WIP)
on contract projects and later calculate a cost accrual when you generate the
revenue.

Note: You must run the appropriate processes to create and interface total burdened costs
distribution lines if you are capitalizing burdened costs for capital projects or are using
burdened costs for the cost accrual calculation during revenue generation.

See Also

Capital Projects

Revenue-Based Cost Accrual

Storing Burden Costs with No Accounting Impact

You can choose to calculate the burden costs for project transactions for management
reporting without an accounting impact.

If you store burden costs as a value on the expenditure item, you have no extra setup to
perform and no accounting processes to run on the burden costs.

If you store the burden costs as separate, summarized expenditure items and perform the
accounting in Oracle Projects (rather than importing the accounting), you must set up

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AutoAccounting for those burden transaction expenditure items to post the debit and the
credit to the same GL account. Oracle Projects requires that you interface the cost distribution
lines of these expenditure items to Oracle General Ledger.

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 Cross Charge

Enterprises face complex accounting and operational project issues that result from
centralized project management through sharing of resources across organizations.

Oracle Projects provides the following cross charge features to address these issues:

• Borrowed and Lent Accounting: This feature creates accounting entries to pass
costs and revenue across organizations without generating internal invoices.
• Intercompany Billing Accounting: This feature creates internal
invoices and accounting entries to pass costs and share revenue across organizations.

In addition to these two features that enable you to charge costs across organizations, Oracle
Projects inter-project billing features enable you to charge costs between projects. For
detailed information on this feature, see Inter-Project Billing, Oracle Project Billing User
Guide.

Cross charge features depend on multiple organization support in Oracle Projects and other
Oracle Applications. In addition, these features support multinational projects, which also call
for other currency exchange management functionality. See: Providing Data Access Across
Business Groups, Oracle Projects Fundamentals.

Note: To use the intercompany billing feature (for cross charge) you must implement
both Oracle Project Costing and Oracle Project Billing.

Cross Charge Business Needs and Example

When projects share resources within an enterprise, it is common to see those resources
shared across organization and country boundaries. Further, project managers may also
divide the work into multiple projects for easier execution and management. The legal,
statutory, or managerial accounting requirements of such projects often present complex
operational control, billing, and accounting challenges.

Oracle Projects enables companies to meet these challenges by providing timely information
for effective project management. Project managers can easily view the current total costs of
the project, while customers receive bills as costs are incurred, regardless of who performs
the work or where it is performed.

Project Structures Example

To provide a better understanding of cross charge concepts and the difference between cross
charge and inter-project billing options, the scenarios shown in the following example
illustrate how projects can be structured.

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Note: The project in this example is a contract project and is used for illustrative purposes
only. You can apply most of the features described in this document to other types of
projects.

The following illustration shows Company ABC, an advertising company with the following
organization structure:

• Company ABC has two ledgers: US and Japan.

• The legal entity US is assigned to the US ledger and the legal entity Japan is assigned
to the Japanese ledger.
• The legal entity US is comprised of three operating units: Los Angeles, San Francisco
and New York
• The legal entity Japan is comprised of the Tokyo operating unit.
• The legal entity US and the Japanese ledger belong to the business group BGI.

Organization Structure of Company ABC

The Los Angeles operating unit, ABC's headquarters, receives a contract from a customer in
the United Kingdom (UK). The customer wants ABC to produce and air live shows in San
Francisco, New York, and Tokyo to launch its new line of high-end women's apparel. The
customer wants to be billed in British Pounds (GBP). ABC calls this project Project X and
will track it using Oracle Projects. ABC will plan and design the show using resources from
the Los Angeles operating unit. Employee EMPJP from its Japan subsidiary will act as an
internal consultant to add special features to suit the Japanese market. The San Francisco,
New York, and Tokyo operating units are each responsible for the successful execution of
these live shows with their local resources.

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Based on this scenario, each operating unit can incur costs against Project X. Consider the
following labor transaction, which is summarized in the table that follows.

• Employee EMPJP of Japan worked 10 hours meeting with the customer in Japan to
learn about the new product.
• Employee EMPJP's cost rate is 5,000 JPY per hour.
• Employee EMPJP's standard bill rate is USD 400 per hour.
• Employee EMPJP's internal bill rate, if applicable, is USD 200 per hour, or 50% of
the standard bill rate.

Note: Currency conversion rates: 1 USD = 100 JPY; 1 USD = .75 GBP

Sample Transaction Functional Currency Project Currency

Transaction Currency Amounts Amounts Amounts
(10 hours of labor)
Cost 50,000 JPY 50,000 JPY 500 USD
Revenue 4,000 USD 4,000 USD 4,000 USD
Invoice 3,000 GBP 4,000 USD 4,000 USD
Internal Billing 2,000 USD 200,000 JPY
Revenue

Project Structure: Distinct Projects by Provider Organization

The illustration Distinct Projects By Provider Organization shows the following structure:

• Company ABC divides Project X into four distinct contract projects: Project X-1,
Project X-2, Project X-3 and Project X-4.
• Each operating unit owns its respective project (Los Angeles owns X-1, San
Francisco owns X-2, New York owns X-3, and Tokyo owns X-4) and bills the project
customer directly.

Distinct Projects by Provider Organization

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Requirements:

• Oracle Project Costing

• Oracle Project Billing

Advantages: Simplicity, since the operating units create and process their projects
independently.

Disadvantages: The Company must divide the project work properly, and each resulting
project requires an agreement, funding, and a budget to generate customer invoices. In
addition, the customer may not want to receive separate invoices from different organizations
in your enterprise. Communication and control across the projects for collective status can be
difficult.

Project Structure: Single Project

The following illustration shows a structure where the Los Angeles operating unit (the project
owner or receiver organization) centrally manages Project X. All four operating units (the
provider organizations) incur project costs and charge them directly to Project X.

Single Project

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Requirements:

• Oracle Project Costing

• Oracle Project Billing
• Implementation of the cross charge feature
• Depending on the method you choose to process cross charge transactions (borrowed
and lent accounting or intercompany billing accounting), this solution may also
require intercompany billing for the automatic creation of internal invoices.

Advantages: Simple project creation and maintenance, since this solution requires a single
project. All of the expenditures against Project X cross charged or not, are available for
external customer billing and project tracking via Project Status Inquiry. The customer
receives timely, consolidated invoices from Los Angeles for all the work performed
regardless of which operating unit provides the resources.

Disadvantages: Requires additional initial overhead for implementing the cross charge
feature and creating intercompany billing projects to collect cross charge transactions within
each provider organization.

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Project Structure: Primary Project with Subcontracted Projects

The following illustration shows how Company ABC divides Project X into several related
contract projects. The Los Angeles operating unit owns the primary customer project, or
receiver project, and bills the external customer. The related projects, or provider projects, are
subcontracted to their respective internal organizations and internally bill the Los Angeles
organization to recoup their project costs.

Primary Project with Subcontracted Projects

Requirements:

• Oracle Project Costing

• Oracle Project Billing
• Implementation of inter-project billing features

Advantages: Flexibility in managing the provider projects. Each provider project is treated
and processed the same way as any external customer contract project.

Disadvantages: As with the distinct project structure, this solution requires additional
overhead in creating and managing three additional provider projects. The receiver project's

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status and external customer invoicing depend upon timely completion of the internal billing
from all provider projects.

Cross Charge Types

Oracle Projects provides three types of cross charge transactions as shown in the following
table. A transaction's cross charge type depends on whether the provider operating unit,
organization, and legal entity are different from those of the receiver.

Cross Charge Type Conditions

Intercompany Operating units and legal entities are

different
Inter-operating unit Operating units are different, but legal
entities are the same
Intra-operating unit Operating units and legal entities are the
same, but the organizations are different

Note: You can charge intercompany cross charge transactions only to indirect and contract
projects. You cannot charge intercompany cross charge transactions to capital projects.

Note: You cannot change the provider or receiver operating unit, but you can use the
Provider and Receiver Organizations Override client extension to override the default
provider organization and receiver organization. For more information on this client
extension, see: Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.

The following illustration shows the potential cross charge type relationships for the four
organizations shown in the illustration Organization Structure of Company ABC when they
charge costs to Project X in the Los Angeles operating unit.

Potential Cross Charge Types for Company ABC

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The following table summarizes the characteristics of the potential cross charge type
relationships shown in the illustration Potential Cross Charge Types for Company ABC.

Cost Expenditure Same Legal Same Business Cross-Charge Type

Transactions Organization Entity Group Relationship
from the Equals Project
following Organization
Provider
Operating Units
Los Angeles Yes Yes Yes Non Cross-Charged
Transactions
Los Angeles No Yes Yes Intra-Operating Unit
Transactions
San Francisco No Yes Yes Inter-Operating Unit
Transactions
New York No Yes Yes Inter-Operating Unit
Transactions
Tokyo No No No Yes Inter-Company

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 Transactions

Cross Charge Processing Methods

You can choose one of the following processing methods for cross charge transactions:

• Borrowed and Lent Accounting (inter-operating unit and intra-operating unit cross
charges)
• Intercompany Billing Accounting (intercompany and inter-operating unit cross
charges)
• No Cross Charge Process (intercompany, inter-operating unit, and intra-operating
unit cross charges)

Borrowed and Lent Accounting

When you use this method, Oracle Projects creates accounting entries to pass costs and
revenue across organizations without generating internal invoices. Oracle Projects determines
the appropriate cost or revenue amounts based on the transfer price rules of the provider and
receiver organizations.

Borrowed and lent accounting entries provide a financial view of an organization's

performance. This processing method is generally used to measure organizational financial
performance for management reporting purposes. For more information, see: Processing
Borrowed and Lent Accounting.

Intercompany Billing Accounting

Companies choose the intercompany billing method largely due to legal and statutory
requirements. When you use this method, Oracle Projects generates physical invoices and
corresponding accounting entries at legal transfer prices between the internal seller (provider)
and buyer (receiver) organizations when they cross a legal entity boundary or operating units.
For more information, see: Processing Intercompany Billing Accounting.

No Cross Charge Process

Companies generally process cross charges in Oracle Projects using the borrowed and lent or
intercompany billing method. However, companies may not need to process cross charge
transactions, if, for example, intercompany billing has been performed manually in General
Ledger or automatically by an external system. You can use cross charge controls to identify
which cross charge transactions will undergo cross charge processing. See: Cross Charge
Controls.

Cross Charge Controls

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Cross charge controls specify:

• Which projects and tasks in which operating units can receive transactions from a
provider operating unit
• How Oracle Projects processes these cross charged transactions

Cross-charge controls affect all cross charge transactions, regardless of how you enter them.
For maximum control, you can use a combination of cross charge and transaction controls to
ensure that only valid cross charges are charged to a specific project and task.

Cross charge controls are defined at the operating unit, project, and task levels. Oracle
Projects applies these controls based on a transaction's cross charge type and cross charge
processing method.

Intra-Operating Unit Cross Charge Controls

You can charge intra-operating unit cross charges (that is, charges within an operating unit)
to any project and task owned by your expenditure operating unit. You can modify the
transaction control extension to restrict intra-operating unit cross charge transactions.

Inter-Operating Unit Cross Charge Controls

Oracle Projects provides controls to identify:

• Which projects and tasks in a receiver operating unit can receive inter-operating unit
cross charges from a provider operating unit
• Which cross charge processing method to apply to these transactions?

Steps performed by the provider operating unit:

• Define cross charge implementation options: Specify whether to allow cross charge
and select a default processing method.
• Define internal billing implementation options: Specify whether the operating unit
is a provider for internal billing.
• Define provider controls: Select a processing method and specify the name of the
intercompany billing project.

Steps performed by the receiver operating unit:

• Define internal billing implementation options: Specify whether the operating unit
is a receiver for internal billing.
• Define receiver controls: Specify the name of each provider operating unit that can
charge transactions to the specified receiver operating unit.
• Enable cross charge for projects: In the Projects window (Cross Charge option),
select Allow Charges from other Operating Units.

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Intercompany Cross Charge Controls

Oracle Projects provides flexible controls to identify:

• Which projects and tasks in a receiver operating unit can receive intercompany cross
charges from a provider operating unit
• Which cross charge processing method to apply to these transactions.

Note: You can charge intercompany cross charge transactions only to indirect and contract
projects. You cannot charge intercompany cross charge transactions to capital projects.

Steps performed by the provider operating unit

• Define internal billing implementation options: Specify whether the operating unit
is a provider for internal billing.
• Define provider controls: Specify the name of each receiver operating unit that can
receive transactions from the specified provider operating unit. Also, select a
processing method and specify the name of the intercompany billing project.

Steps performed by the receiver operating unit

• Define internal billing implementation options: Specify whether the operating unit
is a receiver for internal billing.
• Define receiver controls: Specify the name of each provider operating unit that can
charge transactions to the specified receiver operating unit.
• Enable cross charge for projects: In the Projects window (Cross Charge option),
select Allow Charges from other Operating Units.

Note: If Cross Business Group Access is enabled, the provider and receiver operating
units can be in different business groups. See: Oracle HRMS Configuring, Reporting,
and System Administration Guide.

Cross Charge Processing Controls

Cross charge processing controls determine which cross charge method and transfer price
rule should be applied to the cross charged transaction. This section describes the cross
charge process controls.

Implementation Options

For each provider operating unit or receiver operating unit involved in the cross charge, the
Implementation Options window Cross Charge and Internal Billing tabs specify:

• The default transfer price conversion attributes

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 • The default cross charge methods for intra-operating unit and inter-operating unit
cross charges
• Attributes required as the provider of internal billing
• Attributes required as the receiver of internal billing

See: Define Cross Charge Implementation Options, and Defining Internal Billing Options in
the Oracle Projects Implementation Guide.

Provider and Receiver Controls Setup

For each provider operating unit or receiver operating unit involved in the cross charge, the
Provider/Receiver Controls window Provider Controls and Receiver Controls tabs specify:

• The cross charge method to use to process intercompany cross charges and to override
default cross charge method for inter-operating unit cross charges.
• Attributes required for the provider operating unit to process intercompany billing to
each receiver operating unit. This includes the Intercompany Billing Project and
Invoice Group.
• Attributes required for the receiver operating unit to process intercompany billing
from each provider operating unit. This includes the supplier site, expenditure type
and expenditure organization.

See: Defining Provider and Receiver Controls, Oracle Projects Implementation Guide.

Transfer Price Rules and Schedule Setup

Transfer price rules control the calculation of transfer prices for labor and non-labor cross
charged transactions. To drive transfer price calculation for cross charge transactions between
the provider and receiver, use the Transfer Price Schedule window to assign labor or non-
labor (or both) transfer price rules to the provider and receiver pair on a schedule line.
See: Transfer Pricing.

Multiple lines in a transfer price schedule could potentially apply to a cross charged
transaction.

Oracle Projects performs the following steps to identify the appropriate schedule line:

1. If a schedule line exists for the transaction expenditure organization (provider) and the
project/task owning organization (receiver), then the corresponding rule is used to
calculate the transfer price.
2. If a schedule line is not located, Oracle Projects checks for a line with the provider
organization and a receiver parent organization that is included in the
expenditure/event organization hierarchy associated with the operating unit on the
Expenditures/Costing tab of the Implementation Options form. When searching for

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 receiver organization parents, the Project/Task Owning Organization Hierarchy
defined in the Implementation Options of the receiver operating unit is used.
3. If the receiver organization has multiple intermediate parents and schedule lines are
defined for more than one of the parents, the schedule line defined for the lowest level
parent takes precedence over schedule lines defined for parents higher in the
organization hierarchy.
4. If a schedule line is not located, Oracle Projects checks for a line with a provider
parent organization and the receiver parent organization. When searching for provider
organization parents, the Expenditure/Event Organization Hierarchy defined in the
Implementation Options of the provider operating unit is used.
5. If the provider organization has multiple intermediate parents and schedule lines are
defined for more than one of the parents, the schedule line defined for the lowest level
parent takes precedence over schedule lines defined for parents higher in the
organization hierarchy.
6. If there is a schedule line with only the provider organization, and another schedule
line with both provider and receiver organizations, the schedule line with both the
provider and receiver organizations takes precedence.
7. If there is a schedule line with only provider organization, and another schedule line
with the provider organization and the receiver parent organization, then the schedule
line with the provider organization and the receiver parent organization takes
precedence.

Project and Task Setup

For each project or task, you can decide whether to process labor and non-labor cross charge
transactions, and which transfer price schedules are used for transfer price calculation. See:
Cross Charge, Oracle Projects Fundamentals.

Transaction Source Setup

To cause the cross charge processes to skip a transaction source, deselect the Process Cross
Charge option in the Transaction Sources window. See: Transaction Sources, Oracle
Projects Implementation Guide.

Expenditure Item Adjustments

You can mark an expenditure item to be skipped by the cross charge processes by
choosing Mark for No Cross Charge Processing from the Tools menu on the Expenditure
Items window.

Client Extensions

Oracle Projects provides following client extensions that you can use to implement your
business rules to control cross charge processing:

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 • Provider and Receiver Organizations Override Extension
• Cross Charge Processing Method Override Extension
• Transfer Price Determination Extension
• Transfer Price Override Extension
• Transfer Price Currency Conversion Override Extension

For more information, see: Oracle Projects APIs, Client Extensions, and Open Interfaces
Reference.

Related Topics

Oracle Financials Implementation Guide

Oracle HRMS Implementation Guide

Transfer Pricing

Legal transfer price refers to the legally accepted billing prices for internal sales. In Oracle
Projects, transfer price refers to the billing price that two organizations agree upon for cross
charge purposes.

Transfer Price Rules

You can define transfer price rules that determine the transfer price amount of cross charge
transactions that require borrowed and lent or intercompany billing processing. Oracle
Projects provides flexible transfer pricing rules for transfer price calculations. The
calculations are based on the:

• Transfer price basis. Base your transfer price on a cross charged transaction's raw
cost, burdened cost, or revenue.
• Cross-charge calculation method. You can optionally perform an additional
calculation and apply a markup or discount to the amount determined by the transfer
price basis. For the additional calculations, you can apply any burden schedule or
standard bill rate schedule in your business group.

Note: Using a standard bill rate schedule allows you to define the schedule in a single
operating unit and enforce it across all operating units in your business group.

You can configure transfer price amounts to be calculated based on revenue amounts for
cross-charged transactions independent of revenue generation. Oracle Projects determines the
revenue of the receiver project as part of transfer price calculation. You do not have to
generate the revenue in the receiver operating unit. In addition, the cost transaction does not
have to be billable. You can use the potential revenue amount as a basis and apply a transfer
price markup percentage even when the cost transaction is not billable from the perspective
of the receiver project.

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Oracle Projects automatically converts transfer price amounts to the functional currency of
the provider operating unit using the transfer price currency conversion attributes defined in
that operating unit. You can use the Transfer Price Currency Conversion Override Extension
to adjust these conversion attributes. For more information, see: Oracle Projects APIs, Client
Extensions, and Open Interfaces Reference.

Transfer Price Schedules

Once you define your transfer price rules, you create a transfer price schedule to associate
these rules to pairs of provider and receiver organizations. In the simplest transfer price
schedule, an enterprise would have a single transfer price rule that every organization
follows. Oracle Projects supports more complex schedules so your organizations can
negotiate their own transfer price rules. You can also define a schedule with one rule that
applies to cross charges to a particular organization and another rule for cross charges to all
other organizations. You can define one transfer price schedule consisting of different rules
for different organization pairs or multiple schedules consisting of different rules for the same
pair of organizations.

You can assign labor and non-labor transfer price schedules to both a project and its tasks. If
you assign a transfer price schedule to a lowest-level task, then Oracle Projects uses that
transfer price schedule to process labor or non-labor cross-charged transactions for that task.
If you do not assign a transfer price schedule at the lowest task level, then Oracle Projects
uses the transfer price schedule that you assign at the project-level.

Related Topics

Cross Charge, Oracle Projects Fundamentals

Defining Transfer Price Rules, Oracle Projects Implementation Guide

Defining Transfer Price Schedules, Oracle Projects Implementation Guide

Processing Flow for Cross Charge

This section describes the processing flow for cross charge transactions.

The following illustration shows the processing flows for cross charge transactions that
require either borrowed and lent or intercompany billing processing. For a description of
these flows, see: Borrowed and Lent Processing Flow, and Intercompany Billing Processing
Flow.

Overview of Cross Charge Processing Flow

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Related Topics

Creating Cross Charge Transactions

Borrowed and Lent Processing Flow

Borrowed and lent processing requires the following steps:

1. The provider operating unit enters or imports cross charge transactions.

2. The provider operating unit distributes the costs of the cross charges, which are
identified as cross charge transactions by the cost distribution processes. The cross
charge distribution process is independent of revenue generation. The process
distributes the costs even if revenue has not been generated.

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 The provider operating unit also imports project-related supplier costs from Oracle
Purchasing and Oracle Payables, and project-related expense report costs from Oracle
Payables.

3. The provider operating unit runs the process PRC: Distribute Borrowed and Lent
Amounts to determine the transfer price amount and generate the borrowed and lent
accounting entries.
4. The provider operating unit runs the process PRC: Generate Cross Charge Accounting
Events.
5. The provider operating unit runs the process PRC: Create Accounting to create
accounting entries for the cross charge accounting events in Oracle Subledger
Accounting. When you run the process in final mode, you can optionally choose to
transfer the accounting to Oracle General Ledger. If you select this option, the create
accounting process initiates Journal Import in Oracle General Ledger.
6. (Optional) You can require the receiver operating unit to run additional customized
processes to create additional accounting entries in Oracle Subledger Accounting and
transfer the accounting entries to Oracle General Ledger. For example, your
implementation team can develop customized processes to handle organizational
profit elimination to satisfy your company's accounting practices.
7. (Optional) The provider operating unit may adjust cross charge transactions or
perform steps resulting in the reprocessing of borrowed and lent transactions.
See: Adjusting Cross Charge Transactions.

Intercompany Billing Processing Flow

Intercompany billing processing requires the following steps:

1. The provider operating unit enters or imports cross charge transactions.

2. The provider operating unit distributes costs of the cross charges, which are identified
as cross charge transactions by the cost distribution processes. The distribution of the
costs is independent of revenue generation and are distributed even if revenue has not
been generated.

The provider operating unit also imports project-related supplier costs from Oracle
Purchasing and Oracle Payables and project-related expense report costs from Oracle
Payables.

3. The provider operating unit runs the process PRC: Generate Intercompany Invoices
for a Single Project, or the process PRC: Generate Intercompany Invoices for a Range
of Projects, to generate draft intercompany invoices with the associated intercompany
receivable and revenue accounts, and the transfer price.
4. The provider operating unit reviews, approves, and releases the intercompany
invoices.

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 5. The provider operating unit interfaces the approved intercompany invoices to Oracle
Receivables. You can include the following activities in this process:
o Accounting for invoice rounding
o Creation of receivable invoices including sales tax
6. The provider operating unit runs the process PRC: Tieback Invoices from
Receivables, which automatically creates corresponding intercompany invoice
supplier invoices ready to be interfaced to Oracle Payables in the receiver operating
unit.

Use Oracle Receivables to print the invoice as well as to create accounting for Oracle
Subledger Accounting.

7. If cost reclassification is enabled, the provider operating unit performs the following
processing steps:
a. Runs the process PRC: Generate Cross Charge Accounting Events to generate
accounting events for the provider cost reclassifications.
b. Runs the process PRC: Create Accounting to create accounting entries for the
provider cost reclassification accounting events in Oracle Subledger Accounting.
When you run the process in final mode, you can optionally choose to transfer
the accounting to Oracle General Ledger. If you select this option, the create
accounting process initiates Journal Import in Oracle General Ledger.
The receiver operating unit imports the intercompany supplier invoices into Oracle Payables.
This import process calculates recoverable and non-recoverable tax amounts. Upon review
and approval in Oracle Payables, the receiver operating unit runs the process Create
Accounting to create sub-ledger accounting entries for the supplier invoices in Oracle
Subledger Accounting. When you run the process in final mode, you can optionally choose to
transfer the accounting to Oracle General Ledger.
The receiver operating unit interfaces the supplier invoice to Oracle Projects, which pulls in
the non-recoverable tax amounts as additional project costs.
(Optional) You can require the receiver operating unit to run additional customized processes
to create additional accounting entries in Oracle Subledger Accounting and transfer the
accounting entries to Oracle General Ledger. For example, your implementation team can
develop customized processes to handle organizational profit elimination to satisfy your
company's accounting practices.
(Optional) The provider operating unit can adjust cross charge transactions or perform steps
resulting in the reprocessing of intercompany transactions. See Adjusting Cross Charge
Transactions.

Creating Cross Charge Transactions

To create cross charge transactions, you enter expenditures and distribute costs.

Enter Expenditures

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Enter or import the cross charge transactions as you would for any project transactions.
Oracle Projects enforces cross charge controls and transaction controls to ensure that you
charge valid transactions to a project or task. See Cross Charge Controls.

Distributing Costs

In addition to determining the raw and burden cost amounts and the accounting information
for project transactions, the cost distribution processes also determine the following
information for cross charge transactions:

• Provider and receiver operating units and organizations

• Cross-charge type indicates if a transaction is an intra-operating unit, inter-operating
unit, or intercompany cross charged transaction or not a cross charged transaction
• Cross-charge processing method, which indicates whether a transaction is subject to
cross charge processing and which processing method to use

Determining the cross charge type

Oracle Projects determines a transaction's cross charge type as follows:

• Default provider organization is the expenditure or non-labor resource organization

• Receiver organization defaults to the task organization
• Call the Provider and Receiver Organizations Override extension to determine
whether to override these values
• Cross charge type is based on the values above and logic in the following table:

Cross Charge Type Conditions

Intra-operating unit Provider operating unit equals receiver
operating unit
Provider organization does not equal receiver
organization

Inter-operating unit Provider operating unit does not equal

receiver operating unit
Provider legal entity equals receiver legal
entity

Intercompany Provider legal entity does not equal receiver

legal entity

Determining the cross charge processing method

A transaction can have one of the following cross charge processing methods:

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 • Borrowed and lent accounting
• Intercompany billing
• No cross charge processing

Oracle Projects determines the cross charge processing method for a transaction, based on
how you have implemented the following items:

• Transaction source options. If you enable the option Process Cross Charge for the
transactions source, Oracle Projects performs cross charge processing for transactions
originating from that transaction source.
• Project attributes for processing labor and non-labor cross charge
transactions. If you do not enable cross charge processing for cross charge labor
transactions at the project level, no labor transactions for that project will be subject to
cross charge processing. The same applies to non-labor transactions.
• Cross-charge options for provider operating unit
o Intra-operating unit transactions. Implementation options determine processing
method.
o Inter-operating unit transactions. If you have enabled users to charge to all
operating units within the legal entity, the implementation options determine the
default processing method.
• Provider and receiver controls
• Cross Charge Processing Method Override extension

Processing Borrowed and Lent Accounting

The borrowed and lent processing method creates accounting entries to pass costs or share
revenue (cost and revenue amounts are determined by the transfer price amount) between the
provider and receiver organizations within a legal entity.

If costs are being passed from the provider to the receiver, this processing method:

• Debits the cost from the receiver (or lent) organization

• Credits the cost account of the provider (or borrowed) organization

Similarly, if revenue is being shared, this method:

• Debits the revenue from the receiver organization

• Credits the revenue to the provider organization

You can view these accounting entries in the corresponding ledgers.

Oracle Projects provides AutoAccounting functions for borrowed and lent processing.

If you define your own detailed accounting rules in Oracle Subledger Accounting, then
Oracle Subledger Accounting overwrites default accounts, or individual segments of

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accounts, that Oracle Projects derives using AutoAccounting. See: Accounting for
Costs, Oracle Projects Implementation Guide.

Determining Accounts for Borrowed and Lent Transactions

An inter-operating unit cross charge transaction against a contract project results in the
borrowed and lent accounting entries shown in the following two tables.

The following table show the entries generated for the provider operating unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency

Cost Labor Expense Dr 500 USD 500 USD

Labor Clearing Cr 500 USD 500 USD
Borrowed and Lent Lent Dr 2,000 USD 2,000 USD
Borrowed Cr 2,000 USD 2,000 USD

The following table show the entries generated for the receiver operating unit

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Client Revenue UBR/UER Dr 4,000 USD 4,000 USD
Revenue Cr 4,000 USD 4,000 USD
Client Invoice Accounts Dr 3,000 GBP 4,000 USD
Receivable
UBR/UER Cr 3,000 GBP 4,000 USD

Intra-operating units cross charge transaction against a contract project results in the
borrowed and lent accounting entries shown in the following table for the receiver operating
unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Cost Labor Expense Dr 500 USD 500 USD
Labor Clearing Cr 500 USD 500 USD
Borrowed and Lent Dr 2,000 USD 2,000 USD
Lent
Borrowed Cr 2,000 USD 2,000 USD
Client Revenue UBR/UER Dr 4,000 USD 4,000 USD
Revenue Cr 4,000 USD 4,000 USD
Client Invoice Accounts Dr 3,000 GBP 4,000 USD
Receivable

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 UBR/UER Cr 3,000 GBP 4,000 USD

Note: Oracle Subledger Accounting uses intra-company balancing rules to create balancing
lines on journal entries between balancing segment values. You set up this functionality in
the Accounting Setup Manager in Oracle General Ledger.

Generating Accounting Transactions for Borrowed and Lent Accounting

Running the standard cost distribution processes in the provider operating unit identifies
which transactions require borrowed and lent processing. Oracle Projects provides a separate
process, PRC: Distribute Borrowed and Lent Amounts, to compute the transfer price of these
transactions and determine the default GL accounts for borrowed and lent accounting entries.

The provider operating unit runs this process to perform the following steps on cross charge
transactions identified for borrowed and lent processing:

1. Calculate the transfer price amount

2. Run AutoAccounting
3. Create cross charge distribution lines

Calculate the Transfer Price Amount

Distribute Borrowed and Lent Amounts calculates the transfer price amount of a given cross
charge transaction, as follows:

Note: If the process cannot determine a transfer price for the cross charge transaction, Oracle
Projects flags the transaction with an error and proceeds to the next item. The transfer price is
stored in the transaction and ledger currencies.

1. Call the Transfer Price Determination extension.

Oracle Projects calls the Transfer Price Determination extension at the beginning of
the process in case you want to bypass the standard transfer price calculation for
certain borrowed and lent transactions. If you implement this extension, Oracle
Projects calculates the transfer price amount based on the extension logic and
generates borrowed and lent accounting entries based on this amount. See: Transfer
Price Determination Extension, Oracle Projects APIs, Client Extensions, and Open
Interfaces Reference.

2. Identify the applicable transfer price schedule.

Oracle Projects identifies the labor or non-labor transfer price schedule that you
specified for the lowest-level task to which you charged the transaction. If you do not
assign a transfer price schedule at the lowest task level, then Oracle Projects uses the
transfer price schedule that you assign at the project-level.

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 Note: You can define transfer price overrides at the assignment level. For additional
information, see: Project Assignments, Oracle Projects Fundamentals and Defining
Work Types, Oracle Projects Implementation Guide.

3. Identify the applicable transfer price schedule line.

If the transfer price schedule identified by the Distribute Borrowed and Lent Amounts
process contains more than one line, Oracle Projects must determine which line to
apply. Oracle Projects first selects all schedule lines whose effective dates contain the
Expenditure Item Date of the cross charge transaction. Oracle Projects then selects the
appropriate line based on the provider and receiver organization, operating unit, legal
entity, or business group.

4. Calculate the transfer price amount.

The process then calculates the transfer price amount by applying the transfer price
rule and any additional percentage you have specified in the schedule line.

The actual transfer price calculation is carried out like this:

o Determine the transfer price basis (raw cost, burdened cost, or revenue)
identified in the transfer price rule.

Note: If you use cost amounts as your transfer price basis, Oracle Projects
verifies that you have performed the appropriate cost distribution programs. If
you have not run the prerequisite programs, then Oracle Projects marks the
transaction with an error.

o Apply a burden schedule or standard bill rate schedule to the basis, as indicated
in the transfer price rule. If the process identifies a rate in the specified bill rate
schedule, it applies the rate to the quantity of the transaction.
o Apply any additional percentage specified in the rule.
o Apply any additional percentage specified for labor or non-labor transactions in
the schedule line.
5. Call the Transfer Price Override extension.

You can use this extension to override the transfer price amount calculated by the
Distribute Borrowed and Lent Amounts process. See: Transfer Price Override
Extension, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.

6. Perform required currency conversions.

If the functional currency is different from the transfer price basis currency, the
process performs the required currency conversion to generate functional currency
amounts. The conversion uses the currency conversion attributes that are defined in

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 the provider operating unit's cross charge implementation options. You can override
these attributes using the Transfer Price Currency Conversion Override extension.

7. Call the Transfer Price Currency Conversion Override extension.

You can use this extension to override the default transfer price currency conversion
attributes defined in the cross charge implementation options. See: Transfer Price
Currency Conversion Override Extension, Oracle Projects APIs, Client Extensions,
and Open Interfaces Reference.

Run AutoAccounting

After the Distribute Borrowed and Lent Amounts process calculates the transfer price
amounts for each selected borrowed and lent transaction, it runs AutoAccounting to
determine the default account code for each distribution line that it will create. Oracle
Projects provides the functions Borrowed Account and Lent Account for borrowed and lent
transactions.

If you define your own detailed accounting rules in Oracle Subledger Accounting, then
Oracle Subledger Accounting overwrites default accounts, or individual segments of
accounts, that Oracle Projects derives using AutoAccounting.

Oracle Subledger Accounting uses intra-company balancing rules to create balancing lines on
journal entries between balancing segment values. You set up this functionality in the
Accounting Setup Manager in Oracle General Ledger. You must also enable the Balance
Cross-Entity Journal flag in the ledger definition to enable the application of the balancing
rules. You must also set up the accounts to ensure that Oracle Subledger Accounting
generates the balancing journal entries.

Create Cross Charge Distribution Lines

After the Distribute Borrowed and Lent Amounts process runs AutoAccounting, it creates
cross charge distribution lines. Next, you generate cross charge accounting events for the
cross charge distribution lines and create accounting for the accounting events in Oracle
Subledger Accounting.

The PA date for the distribution lines is determined based on the ending date of the earliest
open PA period on or after the expenditure item date.

You can use the View Accounting window to view cross charge distributions for a specific
item. (To do so, query an invoice transaction in the Expenditure Items window and choose
View Accounting from the Tools menu. See: Viewing Accounting Lines.) The following
transaction attributes support cross charge distributions:

• Provider organization and operating unit

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 • Receiver organization and operating unit
• Cross charge processing method and type

Note: Before you can view the accounting entries, you must create subledger accounting
entries for the accounting events associated with the cross charge distribution lines.

Processing Intercompany Billing Accounting

Determining Accounts for Intercompany Billing Accounting

Inter-company billing accounting entries is based on documents generated by the provider

and receiver organizations. The provider and receiver organizations can be in the same ledger
or in different ledgers with different charts of accounts. If Cross Business Group Access is
enabled, the provider and receiver organizations can also be in different business groups. You
can view intercompany billing accounting entries in the corresponding ledgers. As this
processing method may require input from multiple organizations and employees in your
organization, you should establish clear user procedures to ensure the successful completion
of the entire process flow. Failure to follow these procedures can result in out of balance
intercompany accounts.

Determining Accounts for Intercompany Receivables Invoices

Oracle Projects provides two AutoAccounting functions to determine the default revenue and
invoice accounts of a provider operating unit's intercompany Receivables invoice. See:
AutoAccounting Functions, Oracle Projects Implementation Guide.

• Intercompany Revenue. This function determines the default account that receives
the credit entry of an intercompany billing Receivables invoice.
• Intercompany Invoice Accounts. This function includes the function
transactions Intercompany Receivables and Intercompany Rounding.
o Intercompany Receivables determines the default account that receives default
debit entry of an intercompany billing Receivables invoice.
o Intercompany Rounding determines the default accounts for the pair of debit and
credit entries due to intercompany billing invoice currency rounding.

Determining Accounts for Intercompany Payables Invoices

You can modify the Supplier Invoice Charge Account Workflow process to determine the
default accounting entries for a receiver operating unit's intercompany Payables invoice. The
process usually debits an internal cost or construction-in-process account and credits the
intercompany payables account in the receiver operating unit. See Workflow: Project
Supplier Invoice Account Generation, Oracle Projects Implementation Guide.

Intercompany Billing Accounting Examples

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Intercompany cross charge transaction against an indirect project results in the intercompany
billing accounting entries shown in the following two tables.

The following table shows entries for the provider operating unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Cost Labor Expense Dr 50,000 JPY 50,000 JPY
Labor Clearing Cr 50,000 JPY 50,000 JPY
Intercompany Intercompany Dr 200,000 JPY 200,000 JPY
Accounts Accounts
Receivable - Receivable
Invoice
Intercompany Cr 200,000 JPY 200,000 JPY
Revenue

The following table shows entries for the receiver operating unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Intercompany Intercompany Dr 200,000 JPY 2,000 USD
Accounts Cost
Payable -Invoice
Intercompany Cr 200,000 JPY 2,000 USD
Accounts
Payable

Inter-company cross charge transaction against a contract project results in the intercompany
billing accounting entries shown in the following two tables.

The following table shows entries for the provider operating unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Cost Labor Expense Dr 50,000 JPY 50,000 JPY
Labor Clearing Cr 50,000 JPY 50,000 JPY
Intercompany Intercompany Dr 200,000 JPY 200,000 JPY
Accounts Accounts
Receivable – Receivable
Invoice
Intercompany Cr 200,000 JPY 200,000 JPY
Revenue

The following table shows entries for the receiver operating unit

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Process Accounting Debit (Dr) Transaction Functional
Credit (Cr) Currency Currency
Intercompany Intercompany Dr 200,000 JPY 2,000 USD
Accounts Cost
Payable -Invoice
Intercompany Cr 200,000 JPY 2,000 USD
Accounts
Payable
Client Revenue UBR/UER Dr 4,000 USD 4,000 USD
Revenue Cr 4,000 USD 4,000 USD
Client Invoice Accounts Dr 4,000 USD 4,000 USD
Receivable
UBR/UER Cr 4,000 USD 4,000 USD

Determining Accounts for Provider Cost Reclassification

Oracle Projects provides a pair of debit and credit AutoAccounting functions to support the
reclassification of cost in the provider operating unit upon generating intercompany invoices.
For example, a provider operating unit may need to reclassify project construction-in-process
costs against a contract project using cost accrual as intercompany costs upon billing the
receiver operating unit. Oracle Projects provides the following AutoAccounting functions for
this purpose:

• Provider Cost Re-class Dr. This function determines the default account that
receives the debit entry of the cost reclassification.
• Provider Cost Re-class Cr. This function determines the default account that
receives the credit entry of the cost reclassification.

If you define your own detailed accounting rules in Oracle Subledger Accounting, then
Oracle Subledger Accounting overwrites default accounts, or individual segments of
accounts, that Oracle Projects derives using AutoAccounting. See: Accounting for
Costs, Oracle Projects Implementation Guide.

A provider cost reclassification results in the intercompany billing accounting entries shown
in the following two tables.

The following table shows entries for the provider operating unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Cost Construction - Dr 50,000 JPY 50,000 JPY
In - Process
Labor Clearing Cr 50,000 JPY 50,000 JPY
Provider Cost Labor Expense Dr 50,000 JPY 50,000 JPY

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Reclassification
Construction - Cr 50,000 JPY 50,000 JPY
In - Process
Intercompany Intercompany Dr 200,000 JPY 200,000 JPY
Accounts Accounts
Receivable – Receivable
Invoice
Intercompany Cr 200,000 JPY 200,000 JPY
Revenue

The following table shows entries for the receiver operating unit.

Process Accounting Debit (Dr) Transaction Functional

Credit (Cr) Currency Currency
Intercompany Intercompany Dr 200,000 JPY 2,000 USD
Accounts Construction -
Payable -Invoice In - Process
Intercompany Cr 200,000 JPY 2,000 USD
Accounts
Payable
Client Revenue UBR/UER Dr 4,000 USD 4,000 USD
Revenue Cr 4,000 USD 4,000 USD
Cost Accrual Cost Accrual Dr 500 USD 500 USD
Construction - Cr 500 USD 500 USD
In - Process
Contra
Client Invoice Accounts Dr 3,000 GBP 4,000 USD
Receivable
UBR/UER Cr 3,000 GBP 4,000 USD
Close Project Cost Accrual Dr/Cr (see note) 1,500 USD 1,500 USD
Intercompany Cr 1,500 USD 1,500 USD
Construction -
In - Process

Note: The examples in the previous two tables show that the provider operating unit
originally posted a cross charge transaction to a construction-in-process account during the
cost distribution process. The intercompany billing process then transfers the construction-in-
process amount with a markup to the receiver operating unit.

After, you run the process, PRC: Tieback Invoices from Receivables, you run the process
PRC: Generate Cross Charge Accounting Events to generate accounting events for the
provider cost reclassification journal entries. Next, you run the process PRC: Create
Accounting to create accounting entries for the provider cost reclassification accounting

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events in Oracle Subledger Accounting. When you run the process in final mode, you can
optionally choose to transfer the accounting to Oracle General Ledger. If you select this
option, create accounting process initiates Journal Import in Oracle General Ledger.

Generating Intercompany Invoices

Running the standard cost distribution processes in the provider operating unit identifies
which transactions require intercompany billing processing. Oracle Projects provides separate
processes to compute the transfer price of the intercompany billing transactions and generate
draft intercompany invoices and (optionally) provider cost reclassification entries.

To use the intercompany billing processing method, you must perform several setup steps,
including creating an intercompany billing project. See: Setting Up for Cross Charge
Processing: Intercompany Billing, Oracle Projects Implementation Guide.

The Generate Intercompany Invoice processes (The PRC: Generate Intercompany Invoices
for a Single Project and PRC: Generate Intercompany Invoices for a Range of Projects) carry
out the following steps:

1. Create invoice details

2. Create invoices and invoice lines
3. (Optional) Generate provider cost reclassification entries

See: Generate Intercompany Invoices, Oracle Projects Fundamentals.

Calculate the Transfer Price Amount

The Generate Intercompany Invoices processes calculate the transfer price amount using the
same steps as described for the Distribute Borrowed and Lent Amounts process.

Run AutoAccounting

After the process calculates the transfer price amounts for each selected intercompany billing
transaction, it runs AutoAccounting to determine the default intercompany revenue account
for each cross charged transaction, using the Intercompany Revenue function.

If you define your own detailed accounting rules in Oracle Subledger Accounting, then
Oracle Subledger Accounting overwrites default accounts, or individual segments of
accounts, that Oracle Projects derives using AutoAccounting.

Determine Tax Classification Codes

The Generate Intercompany Invoices process uses the Application Tax Options hierarchy that
you define in Oracle E-Business Tax to derive the default tax classification code for each

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transaction. The process also determines the intercompany tax receiving task for the
transaction.

Create Intercompany Invoice Details

The process then creates intercompany invoice details for each transaction with the transfer
price amount, intercompany revenue account, and tax classification code.

Create Invoices and Invoice Lines

The Generate Intercompany Invoice process groups the invoice details of cross charged
transactions into invoices and invoice lines.

The Generate Intercompany Invoice process:

• Verifies intercompany billing projects

• Creates invoice
• Creates invoice lines

Verify intercompany billing projects

The process verifies that each specified intercompany billing project meets the following
criteria before generating an invoice and invoice lines:

• (Mass generation only) Billing cycle criteria have been met.

• Invoice details exist that have not yet been included in an invoice.
• The project customer, and customer bill and ship to sites must all be active.
Otherwise, Oracle Projects creates an invoice marked with generation error.
• The project customer must not be on credit hold. Otherwise, Oracle Projects creates
an invoice marked with generation error.
• The status of the intercompany billing project must not be Closed.

Create invoice

Depending on how the provider operating unit has implemented the provider controls, this
step creates:

• A consolidated intercompany invoice for all cross charged projects of a receiver

operating unit. In other words, one draft invoice for each intercompany billing project.
• One intercompany invoice for each cross charged project. In other words, multiple
invoices for an intercompany billing project when multiple cross charged projects
exist for a receiver operating unit. Oracle Projects orders such invoices by generating
status and the project number of the cross charged project.

The process uses the date of the invoice as the GL date.

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Create invoice lines

The process uses the following criteria to group invoice details to generate invoice lines:

• Cross-charged project
• Tax attributes
• Intercompany revenue account
• Invoice format components

Invoice lines are then created for the invoices based on the grouped invoice details.

Note: If an invoice line amount is zero due to offsetting invoice details, the process does not
create the invoice line and includes the invoice details for that line in an exception report.

Approving and Releasing Intercompany Invoices

Approving and releasing intercompany invoices consists of the following actions:

1. Review intercompany invoices in the Invoice Review window.

From this window, you can drill down from a draft intercompany invoice to draft
intercompany invoice lines to the underlying cross charged transactions.

2. Approve intercompany invoices as you would a customer invoice.

3. Release intercompany invoices as you would a customer invoice.

Note: Oracle Projects generates the invoice number for intercompany invoices and
customer invoices from different sequences because different batch sources are used
to interface these invoices to Oracle Receivables.

4. (Optional) Delete unapproved intercompany invoices as you would a customer

invoice.

Interfacing Intercompany Invoices to Receivables

The PRC: Interface Intercompany Invoices to Receivables process interfaces released

intercompany invoices to Oracle Receivables. You can run this process separately or as a
streamline process (choose the XIC: Interface Intercompany Invoices to AR parameter). The
streamline process includes the following processes:

1. Interface Intercompany Invoices to Receivables

2. Auto-Invoice
3. Tieback Invoices from Receivables

Interface Intercompany Invoices to Receivables

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This process interfaces intercompany invoices with active Bill To and Ship To address to the
Oracle Receivables interface table. It identifies the following debit accounts for intercompany
invoices:

• Intercompany Receivables
• Intercompany Rounding

Oracle Projects provides the AutoAccounting function Intercompany Invoice Accounts to

determine the default receivables and rounding accounts. The default intercompany revenue
account is already available on the invoice lines for intercompany invoices.

If you define your own detailed accounting rules in Oracle Subledger Accounting, then
Oracle Subledger Accounting overwrites default accounts, or individual segments of
accounts, that Oracle Projects derives using AutoAccounting.

Once in Oracle Receivables, intercompany invoices are identified with a batch source of PA
Internal Invoices and a transaction type of either Internal Invoice or Internal Credit Memo.
You can query receivables information by project-related query data. Project information in
Oracle Receivables is located in the Transaction Flexfield and Reference field. The fields in
Oracle Receivables which hold project-related data for intercompany invoices (reference field
of the PA Internal Invoices batch source) are shown in the following table:

Oracle Receivables Field Name Oracle Projects Data

Transaction Flexfield Value 1
Transaction Flexfield Value 2
Transaction Flexfield Value 3
Transaction Flexfield Value 4
Transaction Flexfield Value 5
Transaction Flexfield Value 6
Transaction Flexfield Value 7
Project number of the intercompany billing project
Draft invoice number from Oracle Projects
Receiving operating unit
Project manager
Project number of the cross charged project
Line number of the invoice line
Invoice type of the invoice

Line grouping rule and line ordering rule in Oracle Receivables for intercompany invoices
are as follows:

• Line grouping. Uses Transaction Flexfield Values 1 through 4.

• Line ordering. Uses Transaction Flexfield Values 5 through 7.

Decentralized invoice collections are not enabled for intercompany invoices.

Auto-Invoice

The Oracle Receivables Invoice Import process pulls invoices from the Oracle Receivables
interface tables. See: Oracle Receivables User Guide.

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Tieback Invoices from Receivables

The Tieback Invoices from Receivables process verifies the successful interface of
intercompany invoices to Oracle Receivables. Intercompany invoices successfully interfaced
to Oracle Receivables are also automatically interfaced to the Oracle Payables system of the
receiver operating unit. See: Tieback Invoices from Receivables, Oracle Projects
Fundamentals.

Generate Provider Cost Reclassification Entries

After you run process PRC, Tieback Invoices from Receivables, run the process PRC:
Generate Cross Charge Accounting Events to generate accounting events for the provider
cost reclassification journal entries.

Next, run the process PRC: Create Accounting to create accounting entries for the provider
cost reclassification accounting events in Oracle Subledger Accounting. When you run the
process in final mode, you can optionally choose to transfer the accounting to Oracle General
Ledger. If you select this option, create accounting process initiates Journal Import in Oracle
General Ledger. If you define your own detailed accounting rules in Oracle Subledger
Accounting, then Oracle Subledger Accounting overwrites default accounts, or individual
segments of accounts, that Oracle Projects derives using AutoAccounting.

You can review the entries from the View Accounting window. See Create Cross Charge
Distribution Lines for more information on using the View Accounting window.

Note: Before you can view the accounting entries, you must create sub-ledger accounting
entries for the accounting events associated with the provider cost reclassifications.

Interfacing Intercompany Invoices to Oracle Payables

Interfacing intercompany invoices to the invoice tables in Oracle Payables consists of the
following steps:

1. Interfacing intercompany invoices to the Payables interface table

2. Running the Open Interface Import process in Payables

Interface intercompany invoices to the Payables interface table

When the provider operating unit runs the Tieback Invoices from Receivables process, the
intercompany invoices are automatically copied into the interface table of the receiver
operating unit's Payables. Intercompany invoices interfaced to Payables are identified with
the following attributes:

• Source. All intercompany invoices have a source of Oracle Projects Intercompany.

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 • Supplier. The supplier is identified by the provider operating unit's internal billing
implementation options.
• Supplier Site. The supplier site is based on how the provider operating unit defines
the receiver controls for the receiver operating unit.
• Invoice Amount. The Payables invoice amount is the amount of the related
Receivables invoice, including taxes.

The interface process populates the project-related attributes for intercompany Payables
invoice distributions, as indicated below:

• Project Number. The number of the cross charged project indicated in the invoice
line.
• Task Number. The number of the task specified in the Intercompany Tax Receiving
Task field on the cross charged project.
• Expenditure Item Date. The invoice date of the intercompany Receivables invoice.
• Expenditure Type. The expenditure type specified by the receiver operating unit in
the Receiver Controls tab.
• Expenditure Organization. The expenditure organization specified by the receiver
operating unit in the Receiver Controls tab.

The Payables Open Interface process creates invoice distributions for the entire invoice.

Run the Open Interface Import process in Payables

The receiver operating unit runs the Open Interface Import process in Payables to create
intercompany Payables invoices. Payables Open Interface Import performs the following
steps:

• Convert amounts from the transaction currency to the functional currency of the
receiver operating unit based on the default conversion attributes defined in the
receiver operating unit's Payables system options. (The Receivables invoice amounts
are copied as the transaction currency amounts on the Payables invoice.)

You can customize the Payables Open Interface workflow process to override the
default currency conversion attributes for the invoice and distribution amounts.

• Derive the default intercompany Payables account from supplier information. You
can either associate supplier types for internal suppliers with intercompany cost
accounts or otherwise modify the Workflow-based account generation process to
determine the appropriate intercompany cost account. Payables Invoice Import
generates the following sample accounting entries:

DR Intercompany Cost

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 CR Intercompany Payables

If you define your own detailed accounting rules in Oracle Subledger Accounting,
then Oracle Subledger Accounting overwrites default accounts, or individual
segments of accounts, that Oracle Payables derives using the Account Generator.

• Generate recoverable and non-recoverable tax lines based on the tax classification
code associated with each invoice line and the percentage you specify for recoverable
tax amounts.

Interface Tax Lines from Oracle Payables to Oracle Projects

After the Payables Invoice Import process generates non-recoverable tax lines for the
intercompany invoice, you must run the Interface Supplier Costs process to interface these
non-recoverable tax lines to Oracle Projects as project costs.

Tax lines interfaced from Oracle Payables are not subject to any cross charge processing.

Adjusting Cross Charge Transactions

Due to data entry errors or changes in your organization or business rules, you may need to
adjust certain attributes of cross charged transactions. Doing so causes Oracle Projects to
reprocess the transactions or to skip the cross charge processes completely. You can adjust a
cross charged transaction by:

1. Marking transactions for cross charge reprocessing

2. Marking transactions to skip cross charge processing
3. Changing transfer price conversion attributes
4. Making the following miscellaneous adjustments
5. Changing transfer price base amounts
6. Changing the provider or receiver organization using the mass update feature
7. Recompiling burden schedules
8. Performing splits and transfers
9. Performing adjustments on the Receivables or Payables invoices

Marking transactions for cross charge reprocessing

You can mark one or more transactions for cross charge reprocessing in the Expenditure
Items window. For example, if you have changed cross charge setup data and want this new
information reflected in the affected transfer price amounts and accounting entries, select the
Reprocess Cross Charge option in the Reports menu of the Expenditure Items window.

Marking a transaction for cross charge reprocessing:

• Resets the cross charge type to Null

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 • Resets the cross charge processing method to Pending
• Resets the cross charge processing status to Never Processed
• Resets the transfer price amount in all currencies to Null
• Re-determines the cross charge type and processing method

The next time you run the cross charge processes, they will process these transactions as new
cross charged transactions.

You should mark affected transactions for cross charge reprocessing if you have changed any
of the following information:

• Provider or receiver organization. Modifying the Provider and Receiver

Organizations Override extension or changes in your organizational structure can
result in changes to the provider or receiver organization of a cross charged
transaction, which could affect the cross charge type, the processing method, or the
transfer price rules.
• Transfer price setup data. Any change to your transfer price rules could result in a
new transfer price amount determined for cross charged transactions that have already
been processed.
• Cross-charge setup data. Any change to your cross charge or internal billing
implementation options, provider and receiver controls, or cross charge project and
task information can affect how Oracle Projects processes cross charged transactions.
• Account codes. Changes to the provider reclassification accounting options can result
in changes to the provider cost reclassification accounts. Any changes to the
AutoAccounting setup for cross charge functions can also affect existing cross charge
accounting entries.
• Billable flag. For cross charged transactions processed by intercompany billing with
the provider cost reclassification feature enabled, changes to the Billable flag of a
transaction on a contract project can result in new provider cost reclassification
accounting entries.
• Tax classification codes. The Generate Intercompany Invoice processes determine
the appropriate tax classification code for each invoice line. If you modify the logic
used to derive the tax classification codes and have already released invoices, you
must mark the affected transactions for cross charge reprocessing. Oracle Projects
automatically creates a credit memo for the original invoice and a new invoice with
the new tax classification codes.

Marking transactions to skip cross charge processing

You can mark one or more transactions so that the cross charge processes skip the specified
transactions. To do this, choose Mark for No Cross Charge Processing in the Reports menu of
the Expenditure Items window.

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Marking a transaction as not requiring cross charge processing resets the cross charge
processing method to No Cross Charge Processing and the cross charge processing status to
Never Processed.

Changing transfer price conversion attributes

You can reconvert transfer price amounts from the transaction currency if you change the
transfer price exchange rate date type and exchange rate type, which govern how Oracle
Projects converts the transfer price amount from the transaction currency to the functional
currency. To do this, you choose the Change Transfer Price Currency Attributes option from
the Reports menu in the Expenditure Items window. A change in these conversion attributes
may result in a change to the transfer price amount in the functional currency.

Both provider and receiver operating units can change the transfer price conversion attributes.

Changing your transfer price currency conversion attributes:

• Replaces conversion attributes for the functional currency

• Resets existing transfer price amounts in the functional currency to Null
• Resets the cross charge processing status to Never processed

Making miscellaneous cross charge adjustments

You can perform the following adjustments to cross charged transactions. These adjustments
automatically mark the transaction for cross charge reprocessing.

• Changing transfer price base amounts. If you recalculate raw or burdened cost or
revenue amounts, the amount of the transfer price basis (and the final transfer price
amount) of a cross charged transaction may also change. The respective cost
distribution and revenue generation processes determine whether such recalculations
affect the transfer price amount of any cross charged transactions and automatically
mark the transactions for cross charge reprocessing.

The cost distribution and revenue generation processes automatically resets the cross
charge processing status to Never Processed and blanks out the transaction's transfer
price amount.

• Changing the provider or receiver organization using the mass update feature. If
you use the mass update feature to change the organization that owns a project or task,
Oracle Projects marks all transactions (with an expenditure date after the effective
date of the organization change) for cross charge reprocessing. A different project (or
receiver) organization could result in a change to the transaction's cross charge
processing method.

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 Oracle Projects automatically marks the affected items for cross charge
processing.

• Recompiling burden schedules. If the user changes and recompiles a burden

schedule that has been used for determining the transfer price of some items, the
recompile process will mark these items for cross charge reprocessing by resetting the
cross charge type to Null, the cross charge processing method to Pending, and the
cross charge processing status to Never Processed.
• Performing transfers and splits. Transferring or splitting a cross charged transaction
does not affect the cross charge processing method of the existing transactions. The
reversing and new transactions will undergo the cross charge processes as usual.

The Generate Intercompany Invoice processes group the invoice details for all
adjusting transactions by the invoice number and line number of the original
transactions for credit memo processing.

• Performing adjustments on the Receivables or Payables invoices. You can adjust

invoice level accounting information for Receivables and Payables invoices, as
described below:
o Intercompany Receivables account (for Receivables invoices). The Interface
Intercompany Invoices to Receivables process determines the intercompany
receivables account for each invoice. If you change the rules used to determine
this account, you must manually cancel the invoice from the Invoice Review
window. Oracle Projects automatically creates a credit memo with details
reversing each line in the original invoice. All items on the cancelled invoice are
eligible for intercompany rebilling. Once re-billed, the Interface Intercompany
Invoices to Receivables process will determine the account for the new invoice
using the modified rules.

You cannot cancel an invoice if payments have been applied against it in Oracle
Receivables or if an invoice has credit memos applied against it. You can cancel
an invoice only if it is released and has no payments, adjustments, or crediting
invoices applied against it. Once the cancellation is completed, you cannot
delete the credit memo created by the cancellation action. That is, you cannot
reverse an invoice cancellation.

o Intercompany cost account (for Payables invoices). In Oracle Payables, reverse

the invoice distribution with the incorrect intercompany cost account and create
a new line with the correct account information.

Processing Flow for Cross Charge Adjustments

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After you mark an adjustment to a cross charged transaction for reprocessing, Oracle Projects
processes these adjustments similarly to the original transactions. The processing flow for
adjustments is described in further detail on the following pages.

The cross charge processes perform the following common steps on adjustments marked for
cross charge reprocessing, regardless of whether the transactions require borrowed and lent or
intercompany billing processing:

• Recalculate the transfer price if no transfer price amount exists in the transaction
currency
• Reconvert the transfer price amount from the transaction currency to the functional
currency if an amount exists in the transaction currency but not the functional
currency

Processing Borrowed and Lent Adjustments

After the PRC: Distribute Borrowed and Lent Amounts process completes the common
processing steps for cross charge adjustments, it performs the steps for borrowed and lent
adjustments, as described below.

• Regenerate accounting entries. If any of the accounts have changed for which you
have already generated cross charge accounting events, the Distribute Borrowed and
Lent Amounts process reverses the original cross charge distributions and creates new
ones. The process also determines the PA dates for the reversing and new
distributions. If you have not yet generated cross charge accounting events for the
original accounting entries, and the accounts or amounts have changed, the process
replaces them with the new entries.
• Reverse existing distributions if processing method has changed. If the cross
charge processing method for the transaction changes from borrowed and lent to
intercompany billing or no cross charge processing, the process reverses existing
entries for which you have already generated cross charge accounting events.

Processing Intercompany Billing Accounting Adjustments

After the Generate Intercompany Invoice process completes the common processing steps for
cross charge adjustments, it performs the following steps:

1. Re-determine the intercompany revenue account and tax classification code.

The process determines the revenue account and tax classification code for the
adjusted transactions. If intercompany invoice details exist for the transaction, the
Generate Intercompany Invoice process compares the recalculated transfer price
amount with the existing transfer price amount. If the transfer price amounts are
different, you must reverse the existing invoice detail line and create a new one.

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 Similarly, if the process detects a difference in the new intercompany revenue account
or tax classification code and the existing values, then the process reverses the
existing invoice details and creates new invoice details.

2. Create a credit memo.

The Generate Intercompany Invoice process creates a credit memo, in which

reversing invoice details are grouped together by the invoice number and invoice line
number on which the original invoice details are billed.

3. Create new invoices.

The process groups invoice details for changed values of the transfer price, revenue
account, and tax classification code into the new invoice. You then interface the new
invoices to Oracle Receivables.

4. (Optional) Regenerate provider cost reclassification accounting entries.

After you run the process PRC: Tieback Invoices from Receivables, if any of the accounts
have changed from entries for which you have already generated accounting events, the
Generate Intercompany Invoice process reverses the original distributions and creates new
ones. The process also determines the PA dates for the reversing and new distributions. If you
have not yet generated accounting events for the original accounting entries, and the accounts
or amounts have changed, the process replaces them with the new entries.

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 CREATING A NEW PROJECT FROM A PROJECT TEMPLATE
OR EXISTING PROJECT
When you create a project from a template or another project, Oracle Projects copies the
project, its project structure, and all of the project and task options to the new project. You
can only copy from templates that are effective as of the current date. The following table
describes how project features are handled when you create a new project.

Project
Description
Feature

Agreements When you copy from a template with an agreement, funding, and baseline
revenue and cost budgets, Oracle Projects copies the agreement, funding, and
baseline revenue and cost budgets to the new project.

Attachments When you copy a project from an existing project that has attachments,
Oracle Projects copies the attachments to the new project. When you copy an
existing capital project with assets, attachments associated with the assets are
copied to the new capital project.

Budgets Budgets are copied.

Capital When you copy a capital project, Oracle Projects copies the asset assignments
Projects and most asset information to the new capital project. Oracle Projects does
not copy the following asset information: Asset Number, Employee Asset
Assigned to, and Actual Date Placed in Service. The Asset Location is copied
to the new project only if you are copying from a project template. The
Estimated In Service Date is shifted by the number of days between the start
date in the project template and the start date that you enter.

Customer If the Customer option is enabled at the top task level is enabled, then the
default top task customer is copied as the default primary customer.

Deliverables Deliverables are copied.

Task When you copy a project from a template or project that includes task
Assignments assignments, the task assignments are copied to the new project, but the
planning resources associated with the assignments are not copied. You can
associate new planning resources with the task assignments using the bottom-
up resource planning method.

Transactions Transactions charged to the source project are not copied to the new project.
This includes expenditure items, requisitions, purchase orders, supplier

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 invoices, and billing events (contract projects).

Work-plan When you create a project by copying another project that includes several
Versions versions of a work-plan, Oracle Projects copies all work-plan versions with a
status of Working to the new project. Work-plan versions with a status of
Submitted, Approved, Rejected, or Published are not copied to the new
project. In addition, Oracle Projects enables you to choose which working
work-plan versions to copy to the new project and identify a work-plan
version to be submitted for publication.

Note: If the source project has a work-plan structure that is fully or partially
shared with a financial structure, the system enables you to copy over only
one work-plan version. Projects with shared structures cannot have multiple
work-plan versions.

Before You Create a New Project

Set up your Project Templates.

Note: When you disable a setup option in a template, that setup option is also disabled for all
projects created using that template. For example, say you disable the Structures setup option
for a template you name Engineering-Project. When you create a project using the
Engineering-Project template and go to the Project Setup page for that project, you will find
that you do not have access to the Structures setup page for that project.

Project Status of a New Project

When you create a project from a template or another project, the status of the new project
you create is determined as follows:

If the status of the existing project or template is a valid starting status, then its project status
is copied to the new project.

If the status of the existing project or template is not a valid starting status, then the default
starting status for the project's project type is the starting status of the new project.

See: Project Types, Oracle Projects Implementation Guide.

Changing the Project Type of a Project

You can change the project type of a project if the following requirements are met:

The new project type belongs to the same project type class as the current project type.

The project does not have any cost distribution lines.

The project does not have any draft revenue or draft invoice items.

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If the new project type's cost burden schedule differs from that of the project type you are
changing from, the following update will take place:

Note: If any tasks exist with a cost burden schedule matching the cost burden schedule of the
project type before the change, those tasks will be updated to use the cost burden schedule of
the new project type.

Projects Entered in External Systems

When a project was originally entered in a system outside of Oracle Projects, two fields are
displayed to give you information about the project and its tasks:

Product Source: The name of the external system where the project or task was originally
entered.

Source Reference: The unique identifier of the project or task in the external system.

These fields are displayed in the following windows:

Projects

Tasks

Find Projects

Find Tasks

Project Status Inquiry

See: Implementing APIs for Oracle Projects Integration: Oracle Projects Implementation
Guide.

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 ENTERING PROJECT AND TASK OPTIONS
To enter a project or task option:

Project-level options: Navigate to the Projects Setup page, and select from the setup topics.

Task-level options: Navigate to the Task Details page.

Note: You can only enter or update information for projects and tasks for which you have
update security access.

Project and Task Options

The following set of tables indicates the responsibilities (self-service or applications) that
provide access to project and task options, and the level at which entry is allowed (project,
top task, middle task, and lowest task).

The following table shows options for project information.

Self- Top Middle Lowest

Project / Task Options Applications Project
Service Task Task Task

Basic Information yes yes yes no no no

Structures yes yes yes no no no

Classifications yes yes yes no no no

Organizations yes no yes no no no

Customers and Contacts yes yes yes no no no

(Billing Accounts)

Key Members (Team yes yes yes no no no

Members)

Attachments (Document yes yes yes yes yes yes

Management)

Additional Information yes yes yes no no no

Pipeline yes yes yes no no no

Page Layouts yes no yes no no no

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Item Associations yes no yes no no no

The following table shows options for resource information.

Self- Top Middle Lowest

Project / Task Options Applications Project
Service Task Task Task

Candidate Score and yes yes yes no no no

Search Settings

Sub-teams yes no yes no no no

Additional Staffing yes no yes no no no

Information

The following table shows options for work-plan information.

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

Work-plan yes yes yes no no no

Information

Work Breakdown yes no yes no no no

Structure

Progress yes no yes yes yes yes

The following table shows options for financial information.

Self- Top Middle Lowest

Project / Task Options Applications Project
Service Task Task Task

Tasks (financial tasks) no yes yes no no no

Currency no yes yes yes yes yes

(Note: Billing currency is at
project-level only, costing
currency is at all levels)

Cross Charge no yes yes yes - yes - yes

default default

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Budgetary Control no yes yes no no no

Organization Overrides no yes yes no no no

Resource List Assignments no yes yes no no no

Transaction Controls no yes yes no no yes

Billing Job Group no yes yes no no no

The following table shows options for burden multipliers (contract projects only).

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

Costing Burden no yes yes - yes - yes - yes

Schedule default default default

Burden Schedule no yes yes no no yes

Overrides

The following table shows options for asset information (capital projects only).

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

Assets no yes yes no no no

Asset Assignments no yes yes yes no yes

The following table shows options for capital information (capital projects only).

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

Capitalized Interest no yes yes yes yes yes

Asset Processing no yes yes no no no

The following table shows options for billing information (contract projects only).

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

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Billing Setup no yes yes no no no

Billing Setup for Top no yes no yes no no

Task

Billing Assignments no yes yes yes no no

Credit Receivers no yes yes no no no

Retention no yes yes no no no

The following table shows options for bill rates and discount overrides (contract projects
only).

Self- Top Middle Lowest

Project / Task Options Applications Project
Service Task Task Task

Standard Billing no yes yes - yes - yes - yes

Schedules default default default

Employee Bill Rate and no yes yes no no yes

Discount Overrides

Job Bill Rate and no yes yes no no yes

Discount Overrides

Labor Multipliers no yes yes no no yes

Job Assignment no yes yes no no yes

Overrides

Job Billing Title no yes yes no no yes

Overrides

Non-Labor Bill Rate no yes yes no no yes

and Discount Overrides

The following table shows options for financial planning (budgeting and forecasting).

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

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Plan Settings yes no yes no no no

Currency Settings yes no yes no no no

Rate Schedules yes no yes no no no

The following table shows options for reporting.

Project / Task Self- Top Middle Lowest

Applications Project
Options Service Task Task Task

Status Reports yes no yes no no no

The following table shows options for task information.

Self- Top Middle Lowest

Project / Task Options Applications Project
Service Task Task Task

Task Details no yes no yes yes yes

Task Details with Work- yes yes no yes yes yes

plan Attributes

Task Assignments yes no no no no yes

Task Dependencies yes no no yes yes yes

Task Mapping yes no no yes yes yes

Task Associations yes no no no no yes

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 PROCESS FLOW
Capital Project:

• Create a Project Type

• Create a Project Template
• Create a Project
• Define the assets & assign assets to tasks.
• Enter the expenditure against a project. If you enter your expenditure through invoice
then we need to run “PRC: interface Supplier Cost”. When you run this, expenditure
will come to PA. In projects, we can see expenditures in Expenditure Inquiry
Window.
• Run “PRC: Update Project Summary Amounts for a Single Project” to update the data
in the project.
• Open capitalization window to give the asset details.
• Generate asset lines.
• Run “PRC: Interface Assets to Oracle Assets” to send asset lines info to FA module.
• Open Prepare Mass Additions window. Change the status to POST. When you change
the status as POST, it will ask some mandatory information like Asset Category,
Asset Location, Expense Account, Date Placed in Service….etc. you need to give all
these details.
• Run “Post Mass Additions”.
• Run “PRC: Tieback Asset lines form Oracle Assets”

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Contract Project:

• Create a project type

• Create project template
• Create project
• Assign the customer to particular contract project
• Define agreement & funding
• Once you have funded the project then we have to define cost budget & revenue
budget.
• Once cost budget & revenue budget are baselined (approved), automatically
agreement funding amount will be baselined.
• Enter the time cost in OTL module & once it is approved then run “PRC: transaction
import” program from projects. So we can see time cards in expenditure inquiry
window.
• Run “PRC Distribute Labor Cost” to generate debit account & amount.
• Run “PRC: Generate Cost Accounting Events” to generate credit accounts.
• Run “PRC: Create Accounting” to transfer these accounting entries from Projects to
GL. when you run this program specify Process Category as Labor Cost
• Run “PRC: Generate Draft Revenue for a Single Project” to generate revenue. Once
revenue is generated, initially status will be unreleased then we have to release the
unreleased status then we have to release the revenue. For that you run “PRC:
Generate Revenue Accounting Events”.
• Transfer the revenue information from projects to GL, then we have to run “PRC:
Create Accounting” then specify Process Category as Revenue. Once you run “PRC:
Create Accounting”, system creates debit & credit accounting entries in projects
module then status will be changed to accepted. Initially it is unreleased, released &
accepted.
• When comes to invoice process, Run “PRC: Generate Draft Invoice for a Single
Project” to generate invoice. Then go to invoice review to change the invoice status
from unapproved to approved then approved to release. While releasing the invoice,
we have to specify invoice no. once invoice has been released then we have run
“PRC: interface invoices to receivables”. Once invoice is interfaced to AR, we have
to run “Auto Invoice Import Program”. Once we run this concurrent program I can
see invoice information in transaction workbench then we can query the invoices with
GL date. When I query the invoice, I can see the project no in Reference field.
• Run “PRC: Tieback Invoices from AR to Projects” to change status as accepted in
Receivables. Initially status is unapproved, approved, released, Transfer to
Receivables & accepted in Receivables.
• I interface invoice to the AR. While running “Auto Invoice Import Program”,
sometimes we are unable to see the invoice information in receivables. If that is the
case, we can see status as Rejected.

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PRC: Distribute Labor Cost/Distribute Processes:

When you run this concurrent program, it will generate debit account and amount. Amount
picks from the employee rate schedule. Debit accounting created based on Auto
Accounting.

PRC: Generate Cost Accounting Events:

When you run this concurrent program, it will generate credit account based on Auto
Accounting.

PRC: Create Accounting:

Transfer any expenditure (debit & credit accounts) from projects to GL.

When you run “PRC: Create Accounting”, if you get any error, again you run one more
concurrent program. i.e. “Validate Application Accounting Definitions” for the first time for
any machine.

PRC: Generate Draft Revenue for a Single Project:

It generates revenue based on the Distribution Rule. If distribution rule is cost/cost, revenue
is calculated is as follows.

Ex:

Revenue budget: 1,20,000

Cost budget: 1,00,000

Actual cost: 40 hours * 50$ = 2000

Revenue = revenue budget / cost budget * actual cost

120000/100000*2000 = 2400/-

It generates revenue based on the Distribution Rule. If distribution rule is event/event,

revenue is calculated is as follows.

Ex:

Revenue budget: 120000

Cost budget: 100000

Percentage of work completed: 20%

Revenue = % of work completed/100*Revenue Budget = 20/100*120000 = 24000/-

PRC: Generate Draft Invoices for a Single Project:

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It generates invoice.

PRC: Interface Invoices to Receivables:

It transfers invoice information from Projects to AR.

Project related Invoices status in AR:

1. Unapproved
2. Approved
3. Released
4. Transfer to Receivables
5. Accepted in Receivables

Auto Invoice Import Program:

Importing customer invoices from other modules to AR is called Auto Invoice Import
Program.

Ex: we can import the invoices from OM, Projects & Property management etc.

PRC: Tieback Invoices from Receivables:

It gets the invoice data from receivables to projects again.

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 Accounting Transactions
Revenue

Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate
general ledger accounts. AutoAccounting selects all of the AutoAccounting parameters for
each item or event, determines the account coding, validates the account coding against the
general ledger, and updates each revenue distribution line with the appropriate account.

Any items or events that fail in AutoAccounting are marked accordingly, and the associated
draft revenue is marked with a generation error. See: Overview of AutoAccounting.

Borrowed and Lent Revenue

Oracle Projects creates borrowed and lent revenue distribution lines for projects that use a
distribution rule of WORK and has borrowed and lent AutoAccounting rules enabled.

If borrowed and lent is enabled for labor, Oracle Projects creates borrowed and lent revenue
distribution lines for each labor expenditure item for which the employee organization is
different from the project organization.

If borrowed and lent is enabled for usage, Oracle Projects creates borrowed and lent revenue
distribution lines for each usage expenditure item for which the non-labor resource
organization is different from the project organization.

You can specify the percent to use for borrowed and lent revenue by setting the PA:
Borrowed Lent Percentage Amount profile option. For example, you company may have a
policy that a borrowing organization receives 20% credit for revenue, while the receiving
organization gets 80% of the revenue. Assuming your AutoAccounting setup credits the
revenue to the lending organizations, your borrowed and lent percentage is 20%.

Revenue

Oracle Projects creates these transactions during the revenue generation process.

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Invoice

When invoices are interfaced to Oracle Receivables, Oracle Projects runs AutoAccounting to
determine the appropriate general ledger accounts and Oracle Projects creates this entry when
the Interface Invoices to Oracle Receivables process is run.

Collections

Oracle Receivables creates this entry.

Examples of Revenue and Invoice Accounting Transactions

Example 1: Accrue prior to billing

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Example 2: Invoice prior to accrual

Example 3: Accrue prior to invoicing and invoice partial amount of work

Example 4: Pre-bill and accrue more than pre-bill

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Cost Accrual Accounting Entries

The implementation examples for cost accruals provided by Oracle Projects, generates the
following accounting entries for cost accruals:

Distribute costs (may be raw or burdened costs)

Generate Revenue

Project Closing Entries

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252
 PROJECT

Oracle AIM

o Oracle AIM is a methodology showing what tasks are required, in which order
it should be completed and what resource are required.
o Oracle AIM provides templates for all the tasks that require them
o The methodology is purpose build for Oracle applications and the detailed
deliverables produces are designed with the Oracle application products in
mind

Oracle AIM structure

o A phase is a chronological grouping of tasks. It enables a flexible way to

organize tasks, schedule major deliverables and deliver the projects
o A process is closely related to group of dependent tasks which meet a major
objective. A process is usually based on a common discipline
o A task is a unit of work, which results in a single deliverable. i.e. report,
schedule, code, or test results for example

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Oracle AIM phases

o An AIM project is conducted in phases that provide quality and control check
point to co-ordinate project activities that have a common goal
o During a project phase, project team will be executing tasks from several
processes
o Oracle AIM projects phases as follows:
✓ Definition
✓ Operations Analysis
✓ Solution Design
✓ Build
✓ Transition
✓ Production

Definition:
o Plan the project
o Review the organization’s business objectives
o Evaluate the feasibility of meeting those objectives under the time, resource
and budget constraints

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 o Emphasis is on building an achievable work plan and introducing it with
guidelines
o Strategies, objectives and approaches are determined for each AIM process
Operations Analysis:

o Project team develops business requirements

o Assess the level of fit between the business requirement and standard
application functionality
o Gaps are identified and corresponding solutions developed
o Solutions for gap evolve into detailed design during solution design

Solution Design:

o Develop the detailed design to meet the future business requirement

o Project team member creates detailed narratives of process solutions
developed during operations analysis
o Supporting business requirement may require building application extensions
to standard features
o The project team carefully, scrutinizes these solutions and chooses the most
cost effective alternatives
Build:

o Coding and testing of all customizations and other custom software

o Coding and testing of enhancements, data conversions and interfaces
o Policy and procedure changes relating to business process modifications are
developed
o Business system testing is performed to validate that the developed solutions
meet business requirements
Transition:

o Deploys the finished solutions into the organization

o Project team trains the end users
o Technical team configures the production environment and converts data
o Transition ends with the cutover to production, when end user start performing
their job duties using new system
Production:

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 o It marks the last phase of the implementation, and beginning of the system
support cycle
o The Information system personnel work quickly to stabilize the system and
begin regular maintenance
o Provide the ongoing support to the organization for the remaining life of the
system
o Compare the actual results to project objectives

Oracle AIM processes

o A process in AIM represents a related set of objectives, resource skills
requirements, inputs, deliverable outputs
o A task can belong to only one process
o Project team members are usually assigned to process according their
specialization and background
Project Management:

o Control & reporting, work management, resource management, quality

management and configuration management
o Project and phase planning, execution, control, reporting & completion
o Work management and resource management
o Quality management and configuration management
o Project management itself is a comprehensive process and has separate way to
handle it, i.e. PMBOK, Oracle PMJ etc
Business process architecture (BP):

o Provide the framework for combining change in business processes with

implementation of software applications
o It focuses on high-level business processes and operations generally applicable
to the organization
o Make business focused decisions either to change the current processes to
suite the application or to customize the application
Business requirement definition (RD):

o Define the business needs that must be met by the implementation project

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 o Develop a complete set of business requirement scenarios that can be used to
map business requirements to application functionality
o Analyze and identify the reporting requirement of the business
o Carefully, document audit and control requirements to satisfy financial and
quality policies
Business requirement mapping (BR):

o Ascertain the fitness for use of application features in satisfying detailed

business expressed at a business process step level
o Business requirement mapping encompasses the following areas:

• Mapping

• Business system testing

• Application setup
o Mapping is an iterative approach with the following objectives:

• Prove business process designs through demonstration

• Identify gaps in the application

• Propose feasible bridges to the gaps

Application and Technical architecture (TA):

o Define an information systems architecture to realize the business vision

o This process is divided in to two areas: - 1. Application Architecture 2.
Technical Architecture
o The process takes the business and information system requirements and
develops a blueprint for developing and configuring:

• Oracle, third-party, custom application

• Supporting application server environments

• Critical interfaces and data distribution mechanisms between

applications, servers, and sites

• Computing hardware, including servers and client desktop platforms

• Networks and communication infrastructure

Module design and Build (MD):

o Focus on the design and development of customizations to satisfy

functionality gaps identified during business requirement mapping (BP)

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 o Modification-Changes to the base Oracle Application code
o Extension- new forms, reports, programs, tables, interfaces and triggers that
add functionality without changing the base application code
o Configurable extension-addition to functionality through flex fields, alerts, and
other configurations provided by the application
Data Conversion (CV):

o Convert and test all necessary legacy data for the operation of new system
o Conversion approaches:

• Manual conversion

• Programmatic conversion with or without tools

• Automated data entry

Documentation (DO):

o Reference that shows the users how to use application functionality

o Set of procedures for using the application in response to day-to-day business
events
o Documents that describe the technical details of the application for the
maintenance staff
o Produce set of procedures for managing the system
Business System Testing (TE):

o Three main aspects of business system testing – planning, early introduction of

testing & CRP
o Business system testing does not address performance testing or the testing of
data conversion programs
Performance Testing (PT):

o Enables you to define, build, and execute a performance test

o To make decision on whether the performance is acceptable for the business
o Propose tactical or strategic changes to address the performance quality
shortfall
o Automated V/s Manual
o Types of performance testing

• System performance

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 • Module/code performance

• Hardware and Networks

Adoption and Learning (AP):

o Training prepares both users and administrators to assume on the tasks of

running the new application system
o Adoption and Learning impacts the following five major audiences:

• Executives

• Implementation project teams

• Functional managers

• Users

• Information technology groups

Production Migration (PM):

o To migrate the organization, system, and people to the new enterprise system
o Assessing readiness for transition to production
o Executing cutover to the new system
o Conduction post-production support

THE END

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