Projects

1. Projects Jennifer Reinhart

2. None of your business – and all of it

3. None of your business – and all of it • You want to focus on your business, not on running Oracle. But its important that the system be set up to fit your needs and that it enhances your work instead of impeding it • How do I fit what I do into what Oracle does? • How do I translate between business people / functions and the technical people / objects supporting them?

4. CLUE: Working People Commonly used to track employee time

5. CLUE: Working People Commonly used to track employee time Measured in hours

6. CLUE: Working People Commonly used to track employee time Measured in hours Must be associated to an employee

7. CLUE: Working People Commonly used to track employee time Measured in hours Must be associated to an employee This seems pretty simple – why should I ever need to buy a vowel? If you interface labor in, you may need technical assistance. If you charge your customer by the hours your people work, but you pay your employees by the day, or vice-versa Special overtime calculations

8. CLUE: Working People Commonly used to track employee time Measured in hours Must be associated to an employee Can be from OTL, entered in Projects, or interfaced in Oracle Terms Straight Time Overtime Expenditure Group The “batch” of timecards Status (working, submitted, released) is tracked here Expenditure The “timecard header” Has the employee name and week ending date Expenditure Item The “Timecard line” Has the project and task worked on, the day of the week, they type of work done, the department being charged

9. CLUE: Reimbursement Travel Costs Out of Pocket Costs

10. CLUE: Reimbursement Travel Costs Out of Pocket Costs Can be entered in Projects and sent to AP Can be entered in AP and sent to Projects Can be interfaced in Can have rules, such as requiring a receipt for a meal or hardware store purchase but not for plane tickets

11. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Answer #2 Answer #3

12. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Answer #3

13. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Steps in the process to create new items Answer #3

14. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Steps in the process to create new items Can track the labor used in production Answer #3

15. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Steps in the process to create new items Can track the labor used in production Can track Outside Processing costs Answer #3 WIP

16. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Steps in the process to create new items Can track the labor used in production Can track Outside Processing costs Answer #3 Cost based on the use of something Punches executed by a drill press Hours a machine is run Miles a truck is driven WIP

17. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Steps in the process to create new items Can track the labor used in production Can track Outside Processing costs Answer #3 Cost based on the use of something Punches executed by a drill press Hours a machine is run Miles a truck is driven Can set a cost per unit used WIP

18. CLUE: Objects You SellORHow They Are Made Answer #1 The actual items sold to customers Employees love counting them Answer #2 Steps in the process to create new items Can track the labor used in production Can track Outside Processing costs Answer #3 Cost based on the use of something Punches executed by a drill press Hours a machine is run Miles a truck is driven Can set a cost per unit used Can set a bill rate per unit used WIP Usage

19. CLUE: Suppliers Favorite Can be the result of a receipt against an expense PO WIP Usage

20. CLUE: Suppliers Favorite Can be the result of a receipt against an expense PO Can be an invoice related to an expense PO WIP Usage

21. CLUE: Suppliers Favorite Can be the result of a receipt against an expense PO Can be an invoice related to an expense PO Can be manually entered AP invoices Projects has drill-back functionality so you can see the invoice and related PO’s and receipts WIP Usage

22. CLUE: Catch-all for anything else What if it just doesn’t fit any of these? WIP Usage

23. CLUE: Catch-all for anything else Miscellaneous expenditure items are for anything that doesn’t fit one of the other categories. WIP Usage Miscellaneous

24. CLUE: Sharing the Cost, Actual or Estimated Answer #1 Actual cost incurred Spreads cost from a project, such as indirect labor, or from the GL, such as occupancy cost Answer #2 WIP Usage Miscellaneous

25. CLUE: Sharing the Cost, Actual or Estimated Answer #1 Actual cost incurred Spreads cost from a project, such as indirect labor, or from the GL, such as occupancy cost Creates new expenditure groups, expenditures, expenditure items on the target projects Can be based on period costs Can be reversed Answer #2 WIP Usage Miscellaneous

26. CLUE: Sharing the Cost, Actual or Estimated Answer #1 Actual cost incurred Spreads cost from a project, such as indirect labor, or from the GL, such as occupancy cost Creates new expenditure groups, expenditures, expenditure items on the target projects Can be based on period costs Can be reversed Example – line manager time split across projects based on the hours the departments worked, allocating R&D cost across related projects Answer #2 WIP Usage Miscellaneous

27. CLUE: Sharing the Cost, Actual or Estimated Answer #1 Actual cost incurred Spreads cost from a project, such as indirect labor, or from the GL, such as occupancy cost Creates new expenditure groups, expenditures, expenditure items on the target projects Can be based on period costs Can be reversed Example – line manager time split across projects based on the hours the departments worked Answer #2 Estimated cost Generates new cost based on rates WIP Usage Miscellaneous

28. CLUE: Sharing the Cost, Actual or Estimated Answer #1 Actual cost incurred Spreads cost from a project, such as indirect labor, or from the GL, such as occupancy cost Creates new expenditure groups, expenditures, expenditure items on the target projects Can be based on period costs Can be reversed Example – line manager time split across projects based on the hours the departments worked Answer #2 Estimated cost Generates new cost based on rates Can add cost to the labor / material expenditure item or can create new expenditure items Based on individual expenditure items Rates can be changed and the change can be applied going forward or retroactively Can optionally build one cost upon another WIP Usage Miscellaneous

29. CLUE: Sharing the Cost, Actual or Estimated Answer #1 Actual cost incurred Spreads cost from a project, such as indirect labor, or from the GL, such as occupancy cost Creates new expenditure groups, expenditures, expenditure items on the target projects Can be based on period costs Can be reversed Example – line manager time split across projects based on the hours the departments worked Answer #2 Estimated cost Generates new cost based on rates Can add cost to the labor / material expenditure item or can create new expenditure items Based on individual expenditure items Rates can be changed and the change can be applied going forward or retroactively Can optionally build one cost upon another such as charging procurement and overhead on material then charging G&A on the material and overhead but not procurement Example – back office time doesn’t vary based on plant labor WIP Usage Burden Miscellaneous

30. Summary – Cost • Labor, Material, ODC • All have a three-tier structure: expenditure group, expenditure, and expenditure item • Labor types require an employee on the expenditure, employee is optional on other types • Separate accounting rules for each type, plus within each type can have separate rules for direct, indirect, capital and for public, private • Which to use depends on • what other modules or outside systems you have • Data requirements, e.g. summarizing labor for privacy, summarizing other cost types to reduce record volume, methods for assigning cost rates • Labor can include straight time, overtime, and expense reports • Manufacturing can include inventory and WIP • Usages can apply to any kind of cost • Miscellaneous can be used if activity does not fit any other category

31. CLUE: Better accrue more of this than you incur in cost! Answer #1 Answer #2 WIP Usage Burden Miscellaneous

32. CLUE: Better accrue more of this than you incur in cost! Answer #1 Answer #2 WIP Usage Burden Miscellaneous

33. CLUE: Better accrue more of this than you incur in cost! Answer #1 “Work” revenue, accrued based on the cost expenditures Can be based on: Rates – e.g. bill my senior analyst at one rate and my standard analyst at another Markups – mark it up by X% Burdening – build up the total revenue with multiple rates Extension – Oracle provides a “stub” of code, into which you add your own custom rules Each method can have different values by project or task Answer #2 WIP Usage Work Revenue Burden Miscellaneous

34. CLUE: Better accrue more of this than you incur in cost! Answer #1 “Work” revenue, accrued based on the cost expenditures Can be based on: Rates – e.g. bill my senior analyst at one rate and my standard analyst at another Markups – mark it up by X% Burdening – build up the total revenue with multiple rates Extension – Oracle provides a “stub” of code, into which you add your own custom rules Each method can have different values by project or task Answer #2, when your revenue is not based directly on your cost “Event” revenue, accrued based on events Events have no cost, but can have revenue, billing, or both Used when revenue or billing is not based directly on cost, such as a milestone, or when its based on total cost, such as a performance bonus when actual cost is under budget. Can be entered manually or created via extension WIP Usage Work Revenue Burden Miscellaneous

35. EVENT TYPES Revenue Event Billing Event Revenue and Billing Event Write-Off Event Essentially a negative event, but can have separate accounting rules All Events “Have project, task, department, date on which the revenue or billing was earned, and an event type that is used for reporting and can be used to drive accounting Will be on the first revenue or billing after their completion date. This means they can be entered ahead of time, and only take effect at the proper time. Revenue Event WIP Usage Work Revenue Burden Miscellaneous

36. Revenue Structures • Revenue is separate from Invoicing • Raises the question of which counts as the sale • Adds flexibility to accrue before or after invoicing • Can be separate in time • Can be released manually or automatically, typically depending on volume • Revenue is created as a “draft” • Each project has a draft 1, 2, 3, etc • Each draft revenue has lines • One draft revenue line is related to either 1 event or some number of expenditure items via revenue distribution lines • The accounting credit is on the distribution line, the debit is at the revenue header and shared by all lines • The accounting debit is automatically divided between unbilled receivables and unearned revenue based on the relative amount of revenue and billing on the project

37. CLUE: Get Paid! Answer #1 Answer #2 Revenue Event WIP Usage Work Revenue Burden Miscellaneous

38. CLUE: Get Paid! Method #1 Method #2 Revenue Event WIP Usage Work Revenue Burden Miscellaneous

39. CLUE: Get Paid! Method #1 “Work” billing, generated based on the cost expenditures Can be based on: Rates – e.g. bill my senior analyst at one rate and my standard analyst at another Markups – mark it up by X% Burdening – build up the total revenue with multiple rates Extension – Oracle provides a “stub” of code, into which you add your own custom rules Each method can have different values by project or task Method #2 Revenue Event WIP Usage Work Revenue Burden Miscellaneous

40. CLUE: Get Paid! Method #1 “Work” billing, generated based on the cost expenditures Can be based on: Rates – e.g. bill my senior analyst at one rate and my standard analyst at another Markups – mark it up by X% Burdening – build up the total revenue with multiple rates Extension – Oracle provides a “stub” of code, into which you add your own custom rules Each method can have different values by project or task Method #2 “Event” billing, generated based on events Events have no cost, but can have revenue, billing, or both Used when revenue or billing is not based directly on cost Can be entered manually or created via extension Revenue Event WIP Usage Work Revenue Burden Miscellaneous

41. Invoice Structures • Invoicing is separate from Revenue • Raises the question of which counts as the sale • Adds flexibility to accrue before or after invoicing • Can be separate in time • Can be released manually or automatically, typically depending on volume • Invoices are created as “drafts”, which need to be approved and then released • Each project has a draft 1, 2, 3, etc • Each draft invoice has lines • One draft invoice line is related to either 1 event or some number of expenditure items • Event is linked directly to the invoice line • Expenditure items are linked to the invoice line via the revenue distribution lines • The accounting is all at the invoice header level, with one debit and a credit split between unbilled receivables and unearned revenue based on the relative amounts of revenue and billing on the project

42. The Complete Wheel I I I Event Invoice Work Invoice Ev E G Expense Report Write-Off Event CDL EI E Invoice Event ERDL Inventory WIP Revenue & Invoice Event Usage Revenue Event Misc Vendor Invoice Event Revenue Burden Work Revenue Allocations RI RDL R

43. Everyone starts with R, S, T, L, N, and E • Choices may or may not be obvious depending on your business and what you need to monitor to drive it • Consider how you incur cost, accrue revenue, and generate invoices • How will you measure growth, verify compliance, and compare projects if you need to decide between them? • Exception-based management can be very efficient, especially with high volume – setup choices should be conducive to finding exceptions • Consider whether the expected volume is manageable • Consider volume of projects per manager – will it be feasible for a deep-dive into each project every week/month? Or are large numbers of projects handled by a few people?

44. When you may want to buy a vowel • If you are not certain about an irreversible decision, or one that is difficult to modify • If you need to change something that normally cannot be changed • Sometimes the help you need is technical, such as when you have a special or complex calculation • Sometimes the help you need is business, such as deciding between high volume details and lower volume summaries.