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Copyright 2006, Oracle. All rights reserved.
Oracle Project Billing Overview
Financial Applications Overview
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Objectives
After completing this module, you should be able to do thefollowing:
Describe the overall Project Billing Process
Describe all the information reuired for contractproject definition
Define an agreement and fund a project
!"plain fundamental revenue concepts and describe therevenue flow
!"plain fundamental invoice concepts and describe the
invoice flow
Briefly provide an overview of interproject billing
Describe the integration with Oracle Project #ontracts
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow %nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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Oracle Project Billing
Accrue $evenue
&enerate %nvoices
#ollect$eceivables in
Oracle$eceivables
'anage Bac(log) 'argin
Billing 'ethods
*ime ) 'aterials
Fi"ed Price
+ pent
+ #omplete
'ilestone
#ost$eimbursable
Automatic &eneration
Funding -imit 'gmt.
Online $eview ) Approval
Drilldown to Detail
*rac( ProjectBillings
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow %nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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#ontract Projects
#ost
$evenue
Billing
ContractProjects
*rac(
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Overview of Projects and *as(s
A project is a primary unit of wor( that can bebro(en down into one or more tas(s.
Project
*as( / *as( 0
*as( /.0*as( /./ *as( 0./ *as( 0.0
*as( /././ *as( 0.0.0*as( 0.0./
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Overview of Project *emplates
*,Bid andProposal
*,#ell *ower#onstruction
*,$adio *ower#onstruction
Project *emplates Projects
1ou use project templates to create new projects. All projectsultimately originate from a template.
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Project #lasses and Project *emplates
1ou must create at least one project template for every projectclass that your company uses.
Projects
Project #lass: #ontract
Project *emplate
*, #ost Plus#ost Plus
Project *ype
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Defining Project *emplates
Project *emplate
Define a 2ew project
template
#opy an e"istingproject or project
template
Project *emplate
*here are two methods for creatingproject templates:
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Defining Projects
#opy
#opy a project template or an e"istingproject to create a new project.
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Project #lasses and Project *ypes
%ndirect
#apital
#ontract
Project #lasses Project *ypes
Bid and Proposal
Overhead
#onstruction
#ost Plus
Fi"ed Price
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Billing %nformation *ab
Funding -evel
$eali3ed &ains and -osses !vent *ypes
Funding $evaluation %ncludes &ains and-osses
$evaluate Funding
Baseline Funding without Budget
First Bill Offset Days
Billing #ycle
%nvoice Formats
Bill $ate chedules 4 2on4-abor
Bill $ate chedules 4 -abor
Billing 5ob &roup
Billing %nformation
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Billing Assignments *ab
Assign billing e"tensions tothe project type
Project *ype
#ontract Projects
*he e"tensions will apply to all projectsassociated with the project type
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Distribution $ules *ab
Accrue revenue and bill as wor( occurs6or(76or(
Accrue revenue as wor( occurs, bill based on events6or(7!vent
Accrue revenue based on events, bill as wor( occurs!vent76or(
Accrue revenue and bill based on events!vent7!vent
Accrue revenue using the ratio of actual cost tobudgeted cost 8percent spent9, bill as wor( occurs
#ost76or(
Accrue revenue using the ratio of actual cost tobudgeted cost 8percent spent9, bill based on events
#ost7!vent
Accrue revenue and bill using the ratio of actual costto budgeted cost 8percent spent9
#ost7#ost
DefinitionDistribution
$ule
Distribution rules
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#ustomers
1ou use customers defined in Oracle $eceivables for contract projects.
Oracle Project Billing
Oracle $eceivables
#ustomer
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Default *op *as( #ustomer
Default *op *as(
#ustomer !nabled
Project
*as( / *as( 0
*he customer that you select as the
Default *op *as( #ustomer is the defaultcustomer for the top tas(s on the project.
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Project #ontact %nformation
#ustomer 2ame: Port of Oa(land
#ontact -ast 2ame: -as(y
#ontact First 2ame: 5ohn
*itle: 'r. 5ob *itle: AP upervisor
Bill: 1es
hip: 1es
!"ample: Project #ontact %nformation on a contract project.
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#urrency Options
%n the Billing tab of the #urrency window, you can:
!nable multi4currency functionality
elect the currency type8s9 to use for the revenuetransaction currency
elect the currency type8s9 to use for the invoiceprocessing currency
Define currency conversion attributes
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$evenue in Foreign #urrency
Project
Project Functional
Project Funding
$evenue #urrencies
%nvoice *ransaction
%nvoice #urrency
Oracle Project Billing generates revenue in project, project functional andproject funding currencies while generating invoices in invoice
transaction currency.
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Bill $ates
A bill rate is an amount or percentage that is applied to a unit 8of timeand materials9 to calculate revenue and invoicing.
1ou can specify the following bill rates in Oracle Projects:
2on4-abor Bill $ates
5ob Bill $ates
!mployee Bill $ates
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#ustomer Billing $etention
%nvoiced Amount ;
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Defining the $etention -evel and *erms
$etention at
project4level
$etention at
top4tas( level
For each project customer, you can define retention terms at either theproject level or the top tas( level.
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Billable tatus #ontrol
1ou can control which transactions charged to theproject are billable and which are nonbillable.
Billable items can accrue revenue, can be invoiced andcan be reimbursed by the client.
2on4billable items do not accrue revenue, cannot beinvoiced and are not reimbursed by the client.
1ou can control billable items in two ways:
%dentify tas(s that are billable or nonbillable.
>se transaction controls to further control billable statusby person, category, type, and nonlabor resource.
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Billable *ransaction #ontrol
In this ea!ple, A!y "arlin can charge la#or. Clerical la#or is not#illa#le. $illa#ility %or her other la#or charges is deter!ined %ro! the
tas& #illa#le stat's. (othing else is chargea#le )incl'sive control*.
-imit *o: !nabled 8%nclusive #ontrol9
1es
1es
#hargeable
#lerical
2on4clerical
!"penditure
*ype
-abor
-abor
!"penditure
#ategory
Billable!mployee
'arlin, Amy
'arlin, Amy
2o
*as( -evel
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow
%nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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Overview of Agreements
#ustomer
?ard or oft -imit
for $evenue
?ard or oft -imit
for %nvoice
#urrency
Organi3ation
An agreement provides the funding for projects and tas(s.
Agreement
#riteria for Agreement Definition.
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Overview of Project Funding
Accrue$evenue
&enerate%nvoice
Project
Agreement
#reateBudget
1ou must fund a project before the project can accrue revenue and bebilled.
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!"ample: Agreements and Funding
*as( 0
*as( @./
*as( @././ *as( @./.0
*as( @.0*as( /./ *as( /.0
*as( @
Project B
*ime ) 'aterial
Project A
Bid ) Proposal
Project #
Fi"ed Price
Project D
#ost Plus
;/==;
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Agreements and Funding Process Flow
#reateAgreement
#reateProject
!nter Approved$evenue Budget
#reateFundingBaseline
&enerate$evenue
&enerate%nvoices
Funded#ontractProject
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&enerating %nvoices and $evenue Accrual
Accrue $evenue
&enerate %nvoices
!nter Agreementand Fund Project
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow
%nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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Project $evenue Overview
#ontract project revenue is the amount recogni3ed asincome to be received for wor( performed on a project.
$evenue received
6or( performedon a project
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'ethods of $evenue Accrual
Oracle Project Billing supports three basic methods ofrevenue accrual.
As4wor(4occurs #ost4to4cost !vent4based
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?ard -imit Processing Overview
1ou specify a hard limit for an agreement to limit revenueaccrual and billing of a project funded by that agreement tothe amount funded.
?ard limits can be set for both revenue and invoice or for
either revenue or invoice. 1ou specify whether to use hardlimits for an agreement in the Agreements form. Fundingcannot be reduced below the accrued revenue if hard limitfor revenue e"ists.
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$evenue Process Flow to &-
&- journal
import
&enerate revenue
accounting event
&eneratedraft revenue
$evenue4generated
e"penditure
items
$evenue4generated
events
Oracle&eneral -edger
&- journalentries
#ost4distributede"penditure
items
!vents
Adjustments
#reate accountingin Oracle ubledger
Accounting
*ransfer to&-
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$evenue Flow
P$#: &enerate Draft $evenue for a ingle Project
or
P$#: &enerate Draft $evenue for a $ange of Projects
P$#: &enerate $evenue Accounting !vents
P$#: #reate Accounting
P$#: *ransfer 5ournal !ntries to &-
8optional9
5ournal %mport
8Oracle &eneral -edger9
ubledger accounting processing flow for revenue
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&enerate Draft $evenue
P$#: &enerate Draft$evenue for a ingle
Project
P$#: &enerate Draft$evenue for a $ange of
Projects
ubmit processes togenerate draft revenue
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#reating $evenue Distribution -ines
*he &enerate Draft $evenue concurrent program creates revenuedistribution lines for each eligible e"penditure item and revenue event.
$evenue distribution line
#ost distribution line
!"penditure item
!"penditure
$evenue distribution line
$evenue event
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&enerate $evenue Accounting !vents
P$#: &enerate $evenueAccounting !vents
ubmit concurentprogram to generate
revenue accountingevents
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#reate Accounting
ubmit concurrentprogram to createaccounting for revenue
lines
Accounting entries in
Oracle ubledger Accounting
P$#: #reate Accounting
P$#: *ransfer 5ournal!ntries to &-
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$eview Project $evenue
ome of the details you can review in the $evenue $eview window are:
Project functional andrevenue transaction
currency
$evenue generationwarnings
Date the revenueaccounting event was
generated
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Detailed Accounting *ransactions
1ou can review detailed accounting transactions for revenue items inthe following windows:
$evenue -ines $evenue -ineDetails
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Ciew Accounting -ines
-ine *ype Account Debit #redit
-abor $evenue =/40=4/@=4==== /,EE.//
>nbilled
$eceivables
=/4===4/0@04==== /,EE.//
>nearned$evenue
=/4===40
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Accrue4*hrough Date
*he accrue4through date controls which billable e"penditure items andrevenue events are processed.
Accrue4through
date
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$eleasing $evenue
1ou can release revenue in the $evenue $eview window or when you
release a project invoice.
$evenue $eview6indow
%nvoice ummary6indow
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow
%nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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%nvoice #oncepts
!vents
Percent complete
'ethods of invoicing
Billing amounts
Accounting dates
?ard limit processing
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?ard -imit Processing for %nvoices
!"ample of %nvoice ?ard -imit
*as( @.= revenue budget ;/,=== Funded by an agreement with hard limit 1es
*his table presents the Billed !"penditure %temsG:
%nvoice 6arning: %nvoice has reached the hard limit.
/===*O*A-
nitsIty!"p *ype!mployee*as(
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Overview of Accounting Dates
All invoices are accounted for using these dates :
PA date: Date accounted for based on PA periods
&- date: Date accounted for based on &- periods
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$eview of Billing Amounts
!ach transaction has two billing amounts when processed:
$evenue amount
%nvoice amount
Both these amounts are calculated as follows:
$ate based Iuantity J Bill $ate
#ost mar(up $aw #ost J 8/ K 'ar(up9
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'ethods of %nvoicing
1ou specify the invoicing method based on the distributionrule that you select for the contract project.
upported Distribution $ules
Distribution $ule $evenue 'ethod %nvoicing'ethod
6or(76or( As46or(4OccursAs46or(4Occurs
6or(7!vent !vent7'ilestoneAs46or(4Occurs
#ost76or( As46or(4Occurs#ost4to4#ost
#ost7!vent !vent7'ilestone#ost7#ost #ost4to4#ost
!vent7!vent !vent7'ilestone!vent7'ilestone
!vent76or( As46or(4Occurs
#ost4to4#ost#ost4to4#ost
!vent7'ilestone
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Overview of %nvoice Flow
&enerate Draft %nvoice
$eview and Adjust %nvoice
Approve %nvoice
$elease %nvoice
%nterface %nvoice
Print %nvoice
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&enerating %nvoices
P$#: &enerate Draft%nvoices for a $ange
of Projects
P$#: &enerate Draft%nvoices for a ingle
Project
ubmit program to
generate invoice for asingle project.
ubmit program to runmultiple invoice
generation processes
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%nvoice4$elated etup teps
Define %nvoice Print 'ethodDefine %nvoice Formats
teps related to %nvoices
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Defining %nvoice Formats
An invoice format determines how Oracle Project Billing creates aninvoice line.
%ntercompany %nvoice Format
#ustomer %nvoice Format
*ypes of %nvoice Formats
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Defining %nvoice Print 'ethod
OracleProjects
Oracle$eceivables
1ou can print invoices either from Oracle Projects or from Oracle$eceivables. Oracle Projects interfaces invoices to Oracle $eceivables forprinting. *o print from Oracle Projects, you must write a custom program.
%nterface
%nvoice
%nvoice printing
program
#reate custominvoice
printing program
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%nterfacing %nvoices to Oracle $eceivables
Oracle Project Billing interfaces invoices to Oracle$eceivables.
1ou can use an %nterface treamline option to interfaceinvoices to Oracle $eceivables.
%n turn, Oracle $eceivables creates accounting in Oracleubledger Accounting.
OracleProjects
$eleasedinvoices
%nvoices
5ournalentries
Oracle$eceivables
Oracle&eneral-edger
Oracleubledger
Accounting
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%nvoice Flow to Oracle $eceivables
$eceivablesinterface
$evenuedistributed
costs
$eceivablesinvoices
&eneratedraft invoice
%nterface to$eceivables
*iebac( invoices
Approve7releaseinvoice
$eceivables
Auto%nvoice
Oracle$eceivables
!vents
Adjustments
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Ciewing %nvoices in Oracle $eceivables
Project 2umber
Draft %nvoice 2umber
Agreement 2umber
Project Organi3ation
Project 'anager
%n addition to information such as the %nvoice 2umber, %nvoice Date and*otal %nvoice Amount, you can uery on the above information in Oracle
$eceivables.
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Accounting *ransactions
OracleProjects
OracleubledgerAccounting
Oracle$eceivables
%nvoices
$evenueAccounting
%nvoice and$eceipt
Accounting
#ustomers
%nvoices
$eceipts
*ransfer to &-
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow
%nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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%nterproject Billing
ProviderProject
$eceiverProject
#ollect#osts
%nterproject%nvoices
#osts
$eceivables%nvoice
Payables
invoice
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Agenda
Oracle Project Billing Overview
Defining contract projects
Agreements and Funding
$evenue #oncepts and Flow
%nvoice #oncepts and Flow
$evenue and %nvoice Accounting
%nterproject Billing
%ntegration with Oracle Project #ontracts
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%ntegration with Oracle Project #ontracts
#ompleted
Deliverable
Deliverable *rac(ingystem
&enerate Delivery4based
billing event
Bill it
Oracle Project #ontracts Oracle Projects
6hen a deliverable is completed in Oracle Project #ontracts, itautomatically creates a billing event in Oracle Projects.
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ummary
%n this module, you should have learned how to:
Describe the overall Project Billing Process
Describe all the information reuired for contractproject definition
Define an agreement and fund a project !"plain fundamental revenue concepts and describe the
revenue flow
!"plain fundamental invoice concepts and describe the
invoice flow Briefly provide an overview of interproject billing
Describe the integration with Oracle Project #ontracts