R12Projects White Paper Part I

Oracle Applications
Release12.1.1
R12 Project Accounting
White Paper
GreenChain Software Solutions Pvt Ltd

www.greenchain.biz
GreenChain Software Solutions Pvt. Ltd.
Page 1 of 210
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
Introduction ............................................................................................................................................... 3
Create Project Template ........................................................................................................................... 4
Create Project ......................................................................................................................................... 17
Budgets ................................................................................................................................................... 19
Incur Expenditure.................................................................................................................................... 23
Project Status ......................................................................................................................................... 32
Allocations .............................................................................................................................................. 35
Integration with Purchasing and Payables ............................................................................................. 42
8.1 Purchase Requisitions .......................................................................................................................... 43
8.2 Purchase Orders ................................................................................................................................... 46
8.3 Supplier Invoices ................................................................................................................................... 54
9.
Integration with Oracle Time and Labor ................................................................................................. 56
10.
Integration with Inventory ................................................................................................................... 60
11.
Capital Projects .................................................................................................................................. 66
12.
Cross Charge ..................................................................................................................................... 82
13.
Overview of Oracle Project Billing ...................................................................................................... 92
14.
Customer Agreements ..................................................................................................................... 103
15.
Invoice Generation Process ............................................................................................................. 115
16.
Inter-Project Billing ........................................................................................................................... 128
17.
Processing Events ............................................................................................................................ 147
18.
Project Accounting Setup Steps ....................................................................................................... 149
19.
Define Organizations ................................................................................................................... 149
20.
Implementation Options ............................................................................................................... 153
21.
Project Accounting Periods .......................................................................................................... 160
22.
Define GL Periods for Projects .................................................................................................... 161
23.
Define Project Status ................................................................................................................... 162
24.
Define Budget Status ................................................................................................................... 164
25.
Define Budget Types ................................................................................................................... 166
26.
Define Budget Entry Methods ...................................................................................................... 167
27.
Define Resource Lists .................................................................................................................. 168
28.
Define Project Classifications ...................................................................................................... 169
29.
Define Service Types ................................................................................................................... 171
30.
Define Expenditure Categories .................................................................................................... 173
31.
Define Revenue Categories ......................................................................................................... 173
32.
Expenditure Types ....................................................................................................................... 174
33.
Define Non Labor Resources....................................................................................................... 176
34.
Define Transaction Sources......................................................................................................... 177
35.
Define Labor Costing ................................................................................................................... 179
36.
Define Burden Costs .................................................................................................................... 182
37.
Payment Terms ............................................................................................................................ 186
38.
Agreement Types ......................................................................................................................... 187
39.
Oracle Projects Lookups .............................................................................................................. 188
40.
Event Types ................................................................................................................................. 189
41.
How to Use Billing Extensions ..................................................................................................... 191
42.
Define Invoice Formats ................................................................................................................ 198
43.
Define Work Types ...................................................................................................................... 200
44.
Defining Derived Columns in PSI ................................................................................................ 201
45.
Define Control Actions ................................................................................................................. 203
46.
Multiple Choice Questions................................................................................................................ 204
47.
Frequently Asked Questions ............................................................................................................ 210
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1.
Introduction
Oracle Projects Suite combines multiple applications to work together to provide a complete enterprise
Project management solution. They give you a flexible approach to defining and managing your projects and
the people, schedules, deliverables, and finances associated with them.
Projects enable project managers to oversee their projects, assess progress against predetermined
milestones and budgets, staff their projects with appropriate talent, and quickly generate a wide variety of
reports. It also helps virtual and globally distributed project teams to efficiently communicate, collaborate,
and complete tasks.
Oracle Projects also gives corporate executives the ability to quickly see how projects are performing across
the enterprise. It enables them to drill down to areas of geographical interest or product specialization to
review projects that are potential problems or are in immediate need of additional attention.
Oracle Project Costing

Oracle Project Costing provides an integrated cost management solution for all projects and activities within
an enterprise. With Project Costing you can manage costs across currency and organizational boundaries.
Project Costing also acts as a central repository of project plans and transactions, processes project costs,
and creates corresponding accounting entries to satisfy corporate finance requirements.
Project Costing gives operations managers and finance managers complete and timely access to project
performance and resulting accounting impacts thereof. It also empowers line managers with timely, detailed
cost information to monitor project performance in a productivity-enhancing format, and enables financial
managers to track the total cost of running the business.
The key features of Oracle Project Costing are:
Versatile template-driven project definition
Multiple currency financial plan and budget creation
Diverse accrual and expenditure capture
Robust expenditure control, collection, and adjustment functionality, integrated
Powerful burdening functionality
Rule-based general ledger account functionality
Comprehensive reporting functionality with drilldown capability
Capable asset creation and CIP cost collection
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2.
Create Project Type
To create a new project, you find a template or an existing project that best matches your project needs,
copy the template or existing project, use Quick Entry to modify information unique to the new project, and
then modify or add tasks and any other project options that are required for your project definition.
The project type controls how Oracle Projects creates and processes projects, and is a primary classification
for the projects your business manages. You must set up at least one project type to create projects in
Oracle Projects. Project Types are user defined and are based on project class. There are three project
classes: Indirect, Capital and Contract.
N: Setup > Projects > Project Types
Field Name
Name
Class
Effective From
Service Type
Work Type
Administrative
Unassigned Time
Intercompany Billing
Organization
Planning
Description
Enter Project Type Name, which is unique
Select Indirect, Capital or Contract from the list.
Enter start date, from which project type will be effective
Select appropriate service type from list. A service type is a custom reporting
attribute that you assign to each financial task to represent activities that you want to
track for financial purposes. You can use service types to group tasks for custom
reporting
Select appropriate work type to represent a classification of work from list
Use this box to identify administrative indirect projects on which that you can create
administrative assignments in Oracle Project Resource Management
Enable this option if you want to track available resource time in utilization reporting
Choose this box if you want to use this project type for intercompany billing projects
Define a unique project type to identify organization projects used in organization
forecasting. Define project type for organization forecasting projects with a class of
indirect and then enable the Organization Planning check box.
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Sponsored
Enable this to fund projects with awards in Oracle Grants Accounting
Field Name
Burdened
Description
Indicates whether to burden raw costs charged to projects using this project type for
internal costing purposes
Schedule
The burden schedule to use as the default cost burden schedule. You enter a
schedule only if the project type is burdened. If the project type is burdened, this field
is required
Allow
Schedule Indicates whether you can override the default cost burden schedule when entering
Override
and maintaining 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 updates to the cost burden schedule on the projects and tasks. You
can enter this only if you enabled the Burdened check box.
Burden Cost Display and Accounting
Burden
cost
on Select if you want to store burden amount in the same expenditure item
same
expenditure
item
Account for Burden Select this option to store the burden amount in the same expenditure item, and
Cost components
additionally to show the burden cost on separate, summarized expenditures on a
separate project. Select a project and (optional) task that accounts for the
expenditure item.
Burden
Cost
as Select this option if you want to account for burden amounts as a separate
separate
expenditure item
expenditure item
Enable Accounting Select if you want to generate accounting entry for the total burdened cost. We need
for Total Burdened to submit additional concurrent program for generation of this entry.
Cost
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Field Name
Allow Cost Budget
Entry
Entry Method
Resource List
Allow
Revenue
Budget Entry
Entry Method
Resource List
Status Reporting
Resource List
Description
Enable the check box to enter other fields like entry method and resource list
Select Budget Entry Method from list based nature of business requirement. This will
be defaulted to all projects
Select Resource List, for which budgets will be entered
Indicates if you allow entry of revenue budget types. For contract projects, you must
enter a revenue budget for a contract project before it can accrue revenue and be
billed. For indirect and capital projects, you can choose to not allow entry of revenue
budgets
The default budget entry method for revenue budgets
The default resource list for revenue budgets
The 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
windows and project status reports, even when you have not baselined a budget for
the project. You typically select the same resource list as one of the resource lists
you use for budgeting. When you create a new project template from scratch, Oracle
Projects automatically creates a resource list assignment using this resource list.
Project Types > Classification
Field Name
Category
Description
Mandatory
Description
Assign classifications to group projects according to business needs. Classification
includes a class category and a class code. The category is a broad subject within which
you can classify projects. The code is a specific value of the category.
Select Classification Categories to group projects from the list, which can be selected for
project based on this type
Description for specified category will be displayed here
Enable this for all projects of this project type to be associated with selected category
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Enter values in this tabbed region if you want to set up budgetary controls and/or budget integration for the
project type.
Field Name
Allow Override
Project Level
at
Budget Type
Control Flag
Balance Type
Non Project Budget
Levels Project
Levels Tasks
Levels Resource
Groups
Levels Resources
Time
Phase
Amount Type
Time
Phase
Boundary Code
Description
Check this check box if you want to allow users to modify the default budgetary
control settings 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 cannot change the values at the project template or
project level
Select appropriate budget type from list, for which budgetary control is required. Only
one budget type can be selected for control purpose (Budgetary controls can be
enabled for cost budgets only.)
Check this check box to enable budgetary controls for the corresponding budget
type. (Budgetary controls can be enabled for only one budget type per project 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
This field is used to define top-down and bottom-up budget integration.
For Bottom-Up Budget Integration: Select a GL budget from LOV. LOV
displays budgets with a status of Open or Current.
For Top-Down Budget Integration: Select GL Funding Budget from list
For No Integration (Independent Budgetary Controls): Leave field blank
Select Absolute from the list for complete control
Select Absolute from the list for complete control
Select None or Default from Resource List from LOV based on business needs
Select None or Default from Resource List from LOV based on business needs
The system uses these values to calculate available funds. Select an Amount Type
to determine the beginning budget period.
The system uses these values to calculate available funds. Select a Boundary Code
to determine the ending budget period
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Field Name
Starting
Project
Status
Use Workflow for

Project
Status
changes
Use Workflow for
Budget
Status
changes
Description
Enter a starting project status for each project type you create. The starting project
status is used as default when, project template is created. 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 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.
Tick checkbox to initiate workflow based project status changes. Oracle workflow is
activated.
Tick checkbox to initiate workflow based budget status changes. Oracle workflow is
activated.
Once all details are entered in all the tab pages, save the record and close the window.
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3.
Create Project Templates
A standard project you create for use in creating other projects. You set up project templates that have
features common in the projects you want to create. Projects can not be created without template. Project
Templates are created from Project Types.
N: Setup > Projects > Templates
Press New button in the above window to enter template details.
Field Name
Operating Unit
Number
Name
Type
Organization
Long Name
Description
Status
Description
This will be defaulted. If MOAC is enabled, select OU from list
Enter template number for template. This is always manual
Enter project name for the project
Select Project Type from the list
Select project owning organization from list. Organizations are displayed based on
Organization Hierarchy selected in Implementation options window under Projects
Tab page.
Enter long name meaningful for all users in the company
Enter description to describe the project template
Initial status will be displayed, which will get changed either from Change Status
button or Oracle workflow depending on design
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To view other options available in the window, scroll down.
Now select the options one by one and design them.
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Field Name
Financials Structure
Workplan Structure
Deliverables
Description
Enable the check box for Project Accounting
Enable the check box for Project Management
Enable the check box for using Deliverables feature in PM
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. Additional tasks at same level can be created using
Create Peer Task Button. Subtasks can be created using Create Subtask button as shown above.
Field Name
Task Number
Task Name
Description
Trans Start Date
Trans Finish Date
Description
Enter unique number for task
Enter unique name for task
Enter meaningful description for task
Select start date for the task
Select end or finish date for task
Once all tasks are created, save the records and close the window. Select a task and click Options button
to see more details about the task and edit information about the task
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Field Name
Task Number
Task Name
Long Task Name
Trans Duration
Trans Duration
Task Manager
Organization
Service Type
Work Type
Allow Charges
Location
Address
Receive Inter-Project
Invoices
Description
Enter / edit task number for task
Enter / edit task name for task
Enter/ edit long task name for task
Enter transaction start date
Enter transaction end date
Select task manager, who is an employee. Task Manager can be same as Project
Manager or different
Select task owning organization from list
Edit service type defaulted from project type
Edit work type defaulted from project type
This will be enabled by default. This must be enabled for entering charges against
this task.
Select task location, where the task will be executed
Address will be displayed based on location selected
Enable this check box for implementing Inter Project Billing (Cross Charges)
Once all details about the task are entered, and then close all windows to come to project main page. Click
on Classifications option to enter details.
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Field Name
Category
Class Code
Code Description
Percentage
Description
Select Classification Categories to group projects from the list, which can be
selected for project based on this type
Select code from list based on business needs
This will be displayed based on definition
If this is active, then enter %
Once details are entered, close the window and come to main page. Click on Currency to view, change
project currency.
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.
Once details are entered, close the window and come to main page. Click on Key Members option to add
employees to the project.
Team members are also referred to as key members.
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Field Name
Employee Name
Employee Number
Role
Effective From
Effective To
Description
Select employee name from the list of employees. In case of new employee, job
must be assigned for an employee before selection as key member
Employee number is displayed based on employee name
Select the role of employee in the project from the list of roles
Enter the date from which employee is part of the project. The project start date will
be defaulted, which can be edited
Enter the end date, when employee is released from project
Additional Information
Use the Additional Information window to enter project-level values or default values.
Pipeline
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:
Field Name
Description
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Probability
Project Value
Expected Approval
Date
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.
The expected value of the project
The expected date of approval for the project
Candidate Score Weightings

Candidate scores define the level of importance of the availability, competencies, and job level of the
resource when matched to the specifications of a requirement. The weightings are used to calculate a score
for each resource identified by a resource search and for every candidate on your requirements. The score
helps you identify stronger candidate. A higher score indicates a better match.
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.
Organization Overrides Window
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.
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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.
Transaction Controls
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: Expenditure Category, Expenditure Type, Non-Labor Resource, Employee,
Scheduled Expenditure Only, Workplan Resources Only, Person Type
Cost burden schedule

A burden schedule is used to derive the total cost amount. You assign the cost burden schedule to a project
type that is burdened; this default cost burden schedule defaults to projects that use the project type; and
then from the project to the tasks below the project. You can override the cost burden schedule for a project
or a task if you have defined the project type option to allow overrides of the cost burden schedule.
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4.
Create Project
Once Project Template is ready, then we can create the Projects. Navigate to Projects window and click.
Select Template or Existing Project and click on FIND button.
Field Name
Number
Name
Long Name
Description
Select project template number for which project is created
Select project template name for which project is created
Select project template long name for which project is created
Press Find button, once any of the fields are entered. The template details will be displayed.
To Define New Project click on COPY TO (T) and enter Project Number and Project Name and Click on OK.
If we need more fields in Project Quick Entry, then we can add them while defining the Project Templates.
We can also decide whether these fields are mandatory or optional.
Field Name
Project Number
Project Name
Description
Enter actual project number for project
Enter actual project name for project
The new project is created automatically and can be viewed from the window. Click on Find button to see
the details about the project.
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Enter Number, Name, Project Owning Organization and Long Name. The options listed are dependent on
the project template. If any changes are required at project level, they can be modified now. Click on
Change Status button now.
Once all options are entered for a project, then we can change project status from Unapproved to Approved.
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5. Budgets
Budgets can be entered for a project provided it is enabled in Project Type. Open Budgets window and enter
either Project Number or Name and Budget Type. Click on Find Draft button to see if any budgets are
defined. Oracle defaults Entry Method and Resource List based on data provided in Project Types, Budget
Tab.
N: Budgets
Field Name
Project Number
Project Name
Budget Type
Version Name
Status
Change Reason
Description
Entry Method
Resource List
Description
Select project number of project, for which budget needs to be created
Select project name of project, for which budget needs to be created
Select Budget Type from list. It is possible to create budgets for multiple budget
types for a project
Enter any version name for the budget
Status is display field. It will be Working initially and can not be changed manually
Select change reason from list. This is required from second time onwards
Description for change reason is displayed
Entry method is defaulted. Edit if necessary
Resource List is defaulted. Edit if necessary
If we are entering budget first time, then click on Details button.
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Oracle displays Task Number and budget details, if they are already entered. Otherwise, they will be 0.00.
Click on Budget Lines button to enter amounts. Enter Budget Amounts, Save and Close
Field Name
Resource Alias
Effective Dates From
Effective Dates To
UOM
Quantity
Raw Cost
Burdened Cost
Description
Select Resource name, for which budget needs to be entered
Effective From is populated for selected task
Effective To is populated for selected task
Unit Of Measure is displayed as Currency
Enter quantity for selected resource name
Enter budget amount for selected resource name
Budget amount entered in Raw Cost will be populated. Do not edit the filed.
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Budget lines are entered for a given resource and amount type. Resource Alias is displayed based on
Resource List definition. Select the budget periods based on business requirements. Once data is entered,
close the window to come to main window. Once Budget is entered, it will be in Working Status. To Submit
Budget for Approval or Review, Click on Submit button.
When Budget is Submitted status, no changes are permitted. If any changes are necessary to this budget,
then change the status to Working by clicking the Rework button. To Baseline and freeze Budget, Click
on Baseline button.
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Once Budget is baselined, then Oracle automatically create next budget version in Working status and
baselined budget is moved to history. To find out Budget History, Click on History button.
We can see all versions created for this budget in History window. We can also copy the budget to another
budget.
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6.
Incur Expenditure
Costing in Oracle Projects
Costing Processes
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Pre-approved expenditure batches can have one of the following statuses:

Working The expenditure batch is not ready for review. You can enter timecards, usages,
miscellaneous transactions, burden transactions, inventory transactions, or work-in-process transactions
and modify their expenditures and expenditure items.

Submitted The batch is awaiting review. You can still retrieve the batch if you need to make
corrections.

Released The expenditure batch has been released for cost distribution. You can reverse
incorrectly entered expenditure items within the batch.
Note: You can choose Unreleased from the Status poplist in the Find Expenditure Batches window to
retrieve both Working and Submitted expenditure batches.
To create a new batch:

1. Navigate to the Expenditure Batches window.
2. Operating Unit. Enter the operating unit to which the expenditure batch belongs.
3. Batch. Enter a unique Batch name to identify this set of expenditures.
Tip: Choose a unique, identifiable, and memorable batch name. For example, a timecard batch name might
include your organization code, the letter T to indicate Timecards, and the week ending date.
4. Ending Date. Enter the expenditure Ending Date for the batch. If you enter a date that is not the last day
of an expenditure week, the system automatically updates the date to the next valid week ending date.
5. Description. Optionally enter a Description of the batch, or leave the field blank to use the name of the
expenditure type class.
6. Class. Choose the expenditure type class for this batch.
7. Reverse Expenditures In a Future Period. Optionally, check this check box to automatically reverse the
batch.
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8. Amounts. Optionally enter Control Totals and Control Count in the Amounts region. Use the Running
Totals and Counts and the Difference column to verify actual versus entered totals.
9. Choose Expenditures to enter the batch. The status of a new batch is always Working.
10. Enter the expenditures and expenditure items in the batch.
11. Save your work.
Field Name
Employee and
Organization
Control Total
Description
For time, enter an employee.
For asset usages, miscellaneous, and burden transactions, enter an employee or
organization.
For all other expenditures, enter an organization.
Note: When you enter an employee name, the Organization field is populated by default
with the organization to which the employee belongs. You can only update the
Organization value if you have the function security required to do so. If you do not have
the required function security, you must enter an expenditure belonging to the default
organization.
Optionally enter the total units of measure in the Control Total field. (Some companies
record the total units of measure on the paper expenditure report. Record that total in the
Control Total field.)
When you have entered all the expenditure items, you can compare the Control Total with
the Running Total, to verify your entries.
Oracle Projects validates expenditure item information as you enter it. For each expenditure item, enter the
following information:
Field Name
Expenditure
Item
Date
Project Number
Task Number
Assignment Name
Work Type
Expenditure Type
Non-Labor Resource
and
Non-Labor
Organization
Currency Fields
Quantity
Comment
Description
The date of the expenditure item
The Project Number to charge for this expenditure item
The lowest level Task Number to charge for this expenditure item
When Oracle Project Resource Management is installed, you can associate labor
with scheduled work assignments
You can choose any active work type. This field is required when the PA: Require
Work Type Entry for Expenditures profile option has a value of Yes
You can choose any expenditure type within the current expenditure type class
If the expenditure type class for the batch is Usages, enter the non-labor resource
and its owning organization. This enables you to track usage of company-owned
assets
You can optionally display and enter the currency fields
The quantity of units (the unit of measure is determined by the expenditure type). For
example, on a timecard, you can enter quantity in hours for professional labor
Optionally enter a free text Comment
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Once items are entered, then close the window and come main page. Notice the status of the batch now.
Now click on Submit/ Release buttons one by one to submit the batch for approval/ release for cost
distribution.
To Review the Expenditure Batches, Enter Required Information and Click on FIND button
(N) Expenditures > Pre Approved Batches > Review
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Expenditure batches can also be released from Review window. Once batch is released, then we need to
submit cost distribution and account the expenditure. This can be done in two ways.
1) Submit the following Concurrent Programs:
PRC: Distribute Labor Costs

PRC: Distribute Usage and Miscellaneous Costs
2) Submit the above programs from Expenditure Inquiry window using stream line process:: To find Project
Expenditure Items

(N) Expenditures> Expenditure Inquiry>Projects

Enter Required Information and Click on FIND button
4. To Distribute Costs Click on RUN REQUST button and Select Streamline Processes (The first two are
combination and must be selected together). Once checked, Click on OK to run the programs.
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5. Refresh to Clear Concurrent Program

6. To find output click on VIEW OUTPUT button
6. To find out put click on OUT PUT button
To find out Cost Distribution Lines

Click on ITEM DETAILS button Select Cost Distribution Lines and click on OK
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Once cost distribution is completed, we need to generate accounting events for the cost and then generate
accounting entries, transfer them to GL.
Submit Request (PRC: Generate Cost Accounting Events), Leave the parameters blank.
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Once the program is completed, verify the output and ensure that events are accounted.
Submit Request (PRC: Create Accounting), Leave Process Category Blank, but select Report: Details to see
output.
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7. Project Status
To Update Project Summary Amounts, Submit Request: PRC: Update Project Summary Amounts for a
Single Project
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Once the program is completed, we can verify the totals in PSI window.
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8. Allocations
Allocations are used to allocate overheads to direct costs. This is a three stage process:
Create the Allocation Rule Template
Generate the Allocation for a selected period
Release the Allocation for expenditures
N: Allocation
Field Name
Operating Unit
Name
Allocation Method
Allocation
Period
Type
Basis Method
Targets Selection
Description
OU will be defaulted.
Enter Unique name for Allocation Rule
For Allocation Method, select Full or Incremental

Full Allocate only once within the same GL or PA run period

Incremental Allocate several times within the same GL or PA run period
To identify amounts based on the General Ledger (GL) fiscal calendar or Projects
(PA) calendar.
Spread Evenly: The rule divides source pool amount equally among all
chargeable target tasks included in rule
Target % and Spread Evenly: Specify % of source pool that you want to
allocate to each target line. Rule calculates amount to allocate to line, and then
spreads results evenly among tasks
Prorate and Target % and Prorate: These two proration basis methods provide
precise control over how rule distributes source pool. Rule uses attributes set in
Basis window to derive rate at which source pool amount is apportioned among
target projects and tasks. For Prorate basis method, rule uses basis attributes to
apportion source amount among all tasks defined by rule. For Target % and
Prorate method, rule first uses target % to calculate amount to allocate to line,
and then goes on to apportion results among all tasks
Use Client Extension Basis: Another way to define percentages and basis is to
use Allocation Basis extension. If you use this extension, you cannot use the
Basis window
For Target Selection, select Operating Unit, Legal Entity, Business Group, or All.
This field specifies whether to select target projects from current operating unit only
(default), the current legal entity (the default legal context organization), the current
business group, or all project organizations in project hierarchy. The last three
options require cross-charge setup
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Defining the Sources

You can create the allocation pool from a fixed amount, open projects (including resources within a project),
Oracle General Ledger account balances, and projects defined by a client extension.
Important: Unless you define each source project and task individually, the results may change each time
you run the allocation. The rule accumulates the amounts for the source pool during a specific period of
time. The end date of that time period is based on the amount class. (The amount class is the period or
periods during which the amounts are accumulated and is set in the Sources window.) The start date is
determined by both the Allocation period type (either GL or PA, as set in the Allocation Rule window) and
Amount class
You must define at least one source. All source projects and tasks must be open and from the same
operating unit. This means that tasks must be the top or lowest level task. The exception report for the
allocation run lists any duplicate projects.

In the Allocation Rule window, choose Sources. The Sources window opens.
In the Allocation Pool % field, enter a percentage to specify how much of the source pool to allocate.
The default is 100%. Next, you specify the amounts that you want to include in the source pool.
(Optional) In the Fixed Source Amount field, enter an amount that you want to include in the source
pool.
For Amount Class, select from the list. The field name is preceded by GL or PA, depending on the
allocation period type you selected in the Allocation Rule window.
(Including project sources in the source pool is optional.) For Amount Type, select from the list of values.
Specify the projects whose amounts you want to include in the allocation pool. If you want to use
projects that are designated in the Allocation Source client extension, select Use Client Extension
Sources. If you want to use one or more projects that you designate, enter a number greater than 0 for
Line Num, You can enter project information in the following fields: Project Org, Project Type, Class
Category, Class Code, Project, Task. To exclude a line, select the Exclude check box on the appropriate
line.
Note: If the system does not display a list of values for Project and Task, it is possible that you entered a
combination of project organization, project type, class category, class code, or other attributes for which no
project (or task) exists. If you do not enter a task, the rule uses the amounts for all the tasks on the source
line. You can add columns (Project Name, Service Type, Task Name, and Task Org) to the Sources
window.
Target Selection When you select targets on the Targets window, you can select projects owned by the
entity. If you select Legal Entity, Business Group, or All, you must set up your system to use cross charge
and
Intercompany billing
Page 36 of 210
Field Name
None
Source Project and
Task
Source Project, Use
Client Extension for
Task
Use Client Extension
for Project and Task
Specific Project and
Task
Expenditure
Organization
Expenditure
Type
Class
Expenditure Type
Description
The PRC: Generate Allocations Transactions process does not create any offset
transactions
The rule creates reversing transactions for the source projects and tasks
The rule creates reversing transactions in specific tasks in the source project.
Specify the tasks in the Allocation Offset Tasks client extension
Use Client Extension for Project and Task
The rule creates reversing transactions in one project and one of its tasks, as
specified in the Project and Task fields
Select Expenditure Organization from list
Select Expenditure Type Class from list
Select Expenditure Type from list
Submit Request (PRC: Generate Allocations Transactions) and check the output
Page 37 of 210
To find Allocation Runs, Enter Required Information and Click on FIND button
(N) Allocations >Review Allocation Runs
Page 38 of 210
To find Transactions click on TRANSACTIONS button, To find Source Details click on SOURCE DETAILS
button, To Reverse an Allocation Run click on REVERSE button
Page 39 of 210
Click on Release Button and press OK to release allocations. Once released, then if required, we can
reverse the batch.
Page 40 of 210
Notice the run status after the reverse batch creation.
Use AutoAllocation Workbench to combine multiple allocation batches in one set.
Page 41 of 210
9. Integration with Purchasing and Payables

When Project-related transactions like PR, PO and Invoice are entered in Purchasing and Payables, project
information is entered in source document. Purchasing, Payables, and Projects carry project information
through document flow: from the requisition to the purchase order in Oracle Purchasing, to the supplier
invoice in Oracle Payables, and to the project expenditure in Oracle Projects.
PO and AP use Account Generator to determine default account number for each project-related distribution
line based on project information that you enter in the document. For this purpose, it is necessary to
customize the work flow (Account Generator) to populate accounts.
Projects is integrated with Purchasing and Payables applications using Commitments and Budgetary
Control. As part of the demonstration, Purchase Requisitions, Purchase Orders and Supplier Invoice are
entered. Seven transactions are entered as follows:

Unapproved Purchase Requisition

Approved Purchase Requisition
Unapproved Purchase Order
Approved Purchase Order
Supplier Invoice (Never Validated)
Supplier Invoice (Validated)
Supplier Invoice (Accounted)
The first six transactions appear as commitments in projects and seventh transaction as actual cost. In case
of commitments, there is no need to run any concurrent program except PRC: Update Summary Amounts to
view the balances in PSI window.
Purchase Requisitions and Purchase Orders must be entered as Expense Line Items. Project related
information Project Number, Task Number, Expenditure Organization, Expenditure Date and Quantity are
entered in Distributions area as shown below:
Page 42 of 210
8.1 Purchase Requisitions
Field Name
Number
Type
Preparer
Description
Status
Total
Num
Type
Item
Rev
Category
Description
UOM
Qty
Destination Type
Requester
Organization
Location
Subinventory
Source
Supplier
Site
Contact
Phone
Description
Enter requisition number based on company standards
Select Purchase Requisition from list
Employee attached to user ID is displayed here
Enter the requisition description here
Requisition status is displayed here and can not be changed
Oracle calculates the total from the lines and is displayed here
Enter line number in a sequential manner
Select line type from list, which are assigned Expense Item
Select item from list
Enter the value if applicable
Category is populated based on item selected
Description for item is defaulted. This can be edited, if necessary
Unit of measure for item selected is defaulted
Enter quantity to be ordered for this item
Expense Destination will be displayed
Preparer name is defaulted and can be edited
Select inventory organization from list. Only one value is defined
Select location from list. Only one value is defined
Leave this field blank
Select Supplier from the list
Select the supplier name from the list
Select supplier site if there are more than one site per supplier. Otherwise this will be
defaulted
Select contact details from the list if there are more than one otherwise this will be
defaulted
Leave this field blank
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Press Distributions Button and select the Project Tab Page to enter projects details.
Field Name
Num
Project
Task
Award
Expenditure
Type
Expenditure Org
Expenditure
Date
Quantity
Description
Enter requisition number based on company standards
Select Project number from list. Only approved projects are displayed here. The Project
Number is the project number incurring the charge from the requisition
Select lowest level task from list. The Task Number is the lowest level task incurring the
charge from the requisition
This field is empty
Select expenditure type from list. The Expenditure Type is an expenditure type classified
with an expenditure type class of Supplier Invoices
Select expenditure organization from list. The Expenditure Organization is the organization
that is ordering or has ordered the goods or services, which may be different from the
project owning organization
Oracle populates system date. Expenditure Item Date is the date that you expect to incur
the expense for the goods or services that you are requesting for a requisition
Requisition line quantity is defaulted here. But the quantity can be split into multiple lines.
We can select multiple projects and expenditures in one single PR.
Now close distributions window and come to main page.
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Now click on Approve button
Page 45 of 210
8.2 Purchase Orders

Once PR is approved, it is necessary to use Autocreate as per the process suggested by Oracle in flow
diagram. Otherwise it is not possible to select Expense destination for Inventory Items. So PO is created
using this. Remove Buyer from the search criteria as default buyer in PR may be different from what is
populated in this window.
PO can be created using Manual and Automatic options. Try both options for testing the cycle.
Page 46 of 210
Press Shipments button to view the shipments for a line. Make a note of Org (V1) displayed here. Use same
Org at the time of Receipt.
Project data is available in Distributions window. Press Distributions button and go to Project tab page.
Page 47 of 210
Field Name
Num
Project
Task
Award
Expenditure Type
Expenditure Org
Expenditure Date
Quantity
Description
Enter distribution number based on company standards
Select Project number from list. Only approved projects are displayed here. The
Project Number is the project number incurring the charge from the requisition
Select lowest level task from list. The Task Number is the lowest level task incurring
the charge from the requisition
This field is empty
Select expenditure type from list. The Expenditure Type is an expenditure type
classified with an expenditure type class of Supplier Invoices
Select expenditure organization from list. The Expenditure Organization is the
organization that is ordering or has ordered the goods or services, which may be
different from the project owning organization
Oracle populates system date. Expenditure Item Date is the date that you expect to
incur the expense for the goods or services that you are requesting for a requisition
Requisition line quantity is defaulted here. But the quantity can be split into multiple
lines.
Close all windows and come to the main page. Press Approve button to approve the PO.
Page 48 of 210
Once the PO is approved, then we can receive the material using PO Receipt window.
Page 49 of 210
Project related details (Project and Task) are available in Order Information tab page.
Once receipt is saved, note down the receipt number and then verify this in Receiving Transactions
Summary window. At this point of time, submit Create Accounting Program for PO Receipts and post them
to GL. In GL, source is Cost Management and category is Receiving.
Page 50 of 210
Material cost can be transferred to projects at to stages: at the time of receipt or invoice. Now we have
received the material and entered the PO Receipt. We can run Interface Supplier Cost Program from
projects to transfer the receipt accrual to projects. (Note: Accrue at Receipt must be checked for this even
for expense destination. This is possible by activating the option in Purchasing Options window for expense
items).
Page 51 of 210
Once the cost is transferred to projects, verify this from expenditure inquiry window. It possible to view PO
Receipt.
Page 52 of 210
Click on Item Details button and select PO Receipt option.
Page 53 of 210
8.3 Supplier Invoices
Field Name
Type
Supplier
Supplier Num
Site
Invoice Date
Invoice Num
Invoice Cur
Invoice Amount
Field Name
Validate
Cancel Invoices
Create Accounting
Description
Select Standard for normal invoices from suppliers. Select Prepayment for supplier
advance payments
Select Supplier name from list, for which invoice is created
Select Supplier number from list, for which invoice is created
Site is defaulted if only one site is defined for supplier or one site is selected as default
site
System date is populated as invoice date, but can be changed as necessary
Enter invoice number based on physical invoice submitted by supplier
USD is displayed as currency
Enter invoice amount as mentioned in the invoice
Description
Enable this check box to validate the invoice after creation
Enable this check box to cancel the invoice for any reason. This can be done anytime
after creation
Enable this check box to generate the accounting entry for invoice in the subledger.
This is enabled once invoice is validated
Page 54 of 210
We have entered all the transactions in PO and AP. Now we want to verify these transactions in Projects as
Commitments and Supplier Costs. Once invoice is validated and accounted, posted to GL, then we need to
run Interface Supplier Cost program to accrue cost to project.
Page 55 of 210
10. Integration with Oracle Time and Labor

Projects is integrated with OTL and time sheets can be migrated to projects from OTL after approval. For
this purpose OTL must be implemented and access must be given to all project team members. This is
applicable for employees and contingent workers. The process is as follows:

Employee enters the time sheet in OTL and submits for approval
Supervisor approves the time sheet after verification of hours. This can also be controlled through a
profile option where auto approval is also possible (PA: Auto Approve Time Cards)
Submit the concurrent program PRC: Transaction Import with Transaction Source: Oracle Time and
Labor
Time cards are available in Expenditure Inquiry window
Login to OTL and click on Time Cards. Click on Create Timecard button.
Enter project number, task number, expenditure type and hours per day. It is possible to enter multiple
projects in a day. Press Continue button to enter for multiple days. Once all details are entered, then press
Submit button for supervisor approval. The employee and supervisor relationship is already defined in
Define Employee window. If we want to change approver, we can also override approver. Templates can
also be kept ready to save time in data entry.
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One time card is submitted, and then status changes to Submitted as shown below. System will send
notification to supervisor for approval. It is possible to delete the time sheet using delete button.
Once time card is submitted for approval, login as supervisor and approve the time card. Once card is
approved by supervisor, then card status changes to Approved
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Now the time card is approved in OTL. This information needs to be transferred to Oracle Projects for
costing the labor hours. There are no additional steps within OTL.
Now switch over to Projects and submit the Concurrent Program. N) Transactions -> Import. The
expenditure batch name is automatically populated by Oracle. Verify the execution report output for results.
Page 58 of 210
After this verify the time card transactions in Expenditure enquiry window for a specific project.
Page 59 of 210
11. Integration with Inventory

Oracle Projects is integrated with inventory for issue and receipt of material for projects. These are entered
as miscellaneous transactions. Separate Transaction Types need to be created and kept ready. Login into
Inventory (Vision Services) responsibility to complete the transaction flow demonstrated below. The steps
are as below:

Identify Item (Material) to be issued to Projects (Ex: AS1084)

Verify onhand quantity of Item using onhand quantity window
Enter Miscellaneous Transaction (Issue to Project)
Enter Miscellaneous Transaction (Receipt to Project)
Launch Interface Manager (Cost Manager) to cost the transactions
Submit the Concurrent Request Set PRC: Interface Miscellaneous Inventory Costs from Inventory
Verify the expenditure items in the Expenditure Enquiry Window
Items -> Master Items
Item cost can be verified through Tools > Item Costs
Page 60 of 210
Now verify the quantity on hand to issue the material to the project. Enter details and press Find button.
On Hand, Availability -> On Hand Quantity
You can see on-hand quantity here. Details are available in Availability window as well.
Step 1: Enter Miscellaneous Transaction (Issue to Project)
Page 61 of 210
We need to select only those transaction types, which are related to Projects. In the LOV, we can see a * in
one of the fields. Enter Quantity, Account, Project, Task, Expenditure Type, Expenditure Org.
Step 3: Once material is issued, material costing must be performed. Launch Interface Manager (Cost
Manager) to cost the transactions
Setup -> Transactions -> Interface Manager
Usually the status would be inactive. In case it is active, that means the concurrent program is scheduled.
Go to View Requests window and Cancel the program. Then it becomes inactive again.
Launch the manager by clicking Tools -> Launch Manager Option. This opens the concurrent program
window. No parameters are required. Simply press submit button to run the program.
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Note that Cost Manager starts multiple Material Cost Transaction Workers Programs. These will get
completed after costing. But Cost Manager will remain Pending. We can stop Cost Manager using Cancel
Request button provided in the window. If we go to Cost Manager window, it will appear as Inactive. We
can activate this whenever required.
Step4: Now we need to transfer Manufacturing Costs to Projects.
Submit the concurrent program: Accounting Close Cycle -> Project Cost Transfers
There is no output for both the programs. However log is available for Cost Collection Manager to indicate
that it has selected the item cost.
Step 4: Switch to Oracle Projects now. Submit Transaction Import Concurrent Program. Note that Batch
Name is available for selection. This is generated during previous run.
Expenditures -> Transaction Import -> Import Transactions
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Ideally all details must be populated in the output. However number is visible in output.
Step 5: Verify the expenditure items in the Expenditure Enquiry -> Project Window
Now click on Item Details button to all distribution details and a/c heads. Note that the a/c entries will be
transferred by Cost Management to GL directly and no entries will be generated by projects.
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Note that Issue to project will increase the project cost and Receipts from Projects inventory will reduce the
project cost.
Page 65 of 210
12. Capital Projects

You use capital projects to capture the costs of capital assets you are building, installing, or acquiring. You
also use capital projects to create retirement adjustment assets that you associate with a group asset in
Oracle Assets. You use a retirement adjustment asset to capture the costs of removing, abandoning, or
disposing of assets you want to retire. You can set up capital projects to capture capital asset costs only,
retirement costs only, or to capture both capital asset costs and retirement costs.
Using Capital Projects to Create Capital Assets
You define and build capital assets in capital projects using information specified in the project work
breakdown structure (WBS). You define asset grouping levels and assign assets to the grouping levels to
summarize the CIP costs for capitalization.
You can review and adjust capital project costs before and after capitalization. For example, you can
allocate costs collected under common tasks to multiple CIP assets before you place them in service. You
can also account for additional costs incurred after capitalization, since Oracle Projects allows you to place
assets in service before completion of a project.
When a CIP asset is ready to be placed in service, you send the capital project amounts to Oracle Assets as
asset lines. Oracle Assets places the asset lines in a holding area where your fixed assets department can
post the capital costs in Oracle Assets as fixed assets. You can review detail transactions associated with
the asset lines in Oracle Projects and Oracle Assets. If necessary, you can reverse capitalize an asset in a
capital project.
Using Capital Projects to Process Retirement Costs
You capture retirement costs in a capital project by recording cost of removal and proceeds of sale amounts
to a task that is designated as a retirement cost task. To distinguish cost of removal and proceeds of sale
amounts, you must enter proceeds of sale amounts using expenditure types that you define to specifically
classify these amounts. Oracle Projects automatically classifies amounts for all other expenditure types as
cost of removal.
To associate retirement costs with a group asset in Oracle Assets, you create a retirement adjustment asset
in the capital project and identify it with a specific group asset. As with capital assets, you define asset
grouping levels and assign retirement adjustment assets to the grouping levels to summarize the retirement
cost amounts for posting to Oracle Assets.
When retirement activities are complete, you generate asset lines for the retirement cost amounts and send
the lines to Oracle Assets for posting as adjustments to the accumulated depreciation accounts for the group
assets. To communicate notice of an asset retirement to Oracle Assets, you can optionally initiate retirement
requests in Oracle Projects that are automatically passed to Oracle Assets.
Attention: To use Oracle Projects retirement cost processing windows and features, the value of the sitelevel profile option PA: Retirement Cost Processing Enabled must be set to Yes.
Creating a Retirement Adjustment Asset
You create retirement adjustment assets to collect cost of removal and proceeds of sale amounts for assets
associated with a group asset in Oracle Assets that you are retiring, removing, abandoning, or otherwise
disposing.
When you define a retirement adjustment asset in Oracle Projects, you must specify a valid Oracle Assets
group asset identifier as the target asset. You can create retirement adjustment assets and interface
retirement costs to Oracle Assets only for fixed assets that are classified as group assets in Oracle Assets.
To interface a retirement adjustment asset to Oracle Assets, you must specify a retirement date for the asset
in Oracle Projects.
Processing Retirement Requests
Page 66 of 210

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Oracle Applications

R12 Project Accounting

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Oracle Project Costing

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Create Project Type

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Enable this to fund projects with awards in Oracle Grants Accounting

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Project Types > Classification

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Non Project Budget

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Use Workflow for

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Create Project Templates

Press New button in the above window to enter template details.

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To view other options available in the window, scroll down.

Now select the options one by one and design them.

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Team members are also referred to as key members.

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Candidate Score Weightings

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Resource List Assignments

Cost burden schedule

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If we are entering budget first time, then click on Details button.

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Costing in Oracle Projects

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Pre-approved expenditure batches can have one of the following statuses:

To create a new batch:

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PRC: Distribute Labor Costs

(N) Expenditures> Expenditure Inquiry>Projects

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5. Refresh to Clear Concurrent Program

6. To find out put click on OUT PUT button

To find out Cost Distribution Lines

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Defining the Sources

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