1
1For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
<Insert Picture Here>
Oracle E-Business Suite R12.1 Projects Essentials Implementation Boot
Camp Training Courseware
Project Billing Overview
For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
2
2For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
The following is intended to outline our general product direction. It is
intended for information purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing
decisions.
The development, release, and timing of any features or functionality
described for Oracle’s products remains at the sole discretion of Oracle.
3
3For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
<Insert Picture Here>
Title of Presentation
Presenter’s Name
Presenter’s Title
Overview of Oracle Project Billing
Presenter’s Name
Presenter’s Title
4
4For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Project Billing
Program Agenda
• Contract Projects
• Multi-Currency Billing
• Agreements and Funding
• Project Revenue
• Invoices
• E-Business tax
• Interfacing Invoices to Oracle Receivables
• Customer Retention Billing
• Interproject Billing
• Accounting for Revenue and Invoice
5
5For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
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6For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Overview of Contract Projects
• A contract project is used to track activities, cost, revenue, and billing for services
performed for and reimbursed by a customer.
Time and
Materials
Fixed
Price
Cost
Plus
Types of Contract Projects
7
7For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Project Classes and Project Types
Indirect
Capital
Contract
Project Classes Project Types
Bid and Proposal
Overhead
Construction
Cost Plus
Fixed Priced
8
8For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Project Type Setups
• Project type setup steps specific to Contract Projects are:
Billing Information
Billing Assignments
Distribution Rules
9
9For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Billing Information tab on Contract Project Types
10
10For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Billing Assignments Tab
Assign billing extensions to the
project type
Project Type
Contract Projects
The extensions will apply to all projects associated with
the project type
11
11For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Distribution Rules Tab
Distribution Rule Definition
Cost/Cost Accrue revenue and bill using the ratio of actual cost to
budgeted cost (percent spent)
Cost/Event Accrue revenue using the ratio of actual cost to budgeted
cost (percent spent), bill based on events
Cost/Work Accrue revenue using the ratio of actual cost to budgeted
cost (percent spent), bill as work occurs
Event/Event Accrue revenue and bill based on events
Event/Work Accrue revenue based on events, bill as work occurs
Work/Event Accrue revenue as work occurs, bill based on events
Work/Work Accrue revenue and bill as work occurs
12
12For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Contract Projects Flow
• A contract project is the primary billing unit at which you specify the following information:
• Basic Project Information
• Customers
• Revenue accrual method
• Billing method
• Billing cycle
• Other billing information
13
13For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Basic Project Information
Project Organization
Project Name
Long Name
Project Number
Project Type
Project Status
Description
Public Sector
Access Level
Location
14
14For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Assigning Customers
For Oracle employees and authorized partners
only. Do not distribute to third parties.
15
15For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Customer at Top Task
Navigation : Options>Task Detail>Billing Information>Billing Setup
16
16For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Invoice Formats Concepts
Formats control:
Creation of invoice lines whengenerating an as-work-occursinvoice. This includes:• How to summarize expenditure items into an
invoice line• Which fields to display on the invoice line• Order in which to display the fields on the
invoice line
• Formats for• Labor• Nonlabor• Retention
• Invoice formats defined during implementation
Can create formats to:
• Summarize at project or task level
• Summarize labor by category, job, employee, or site
• Summarize nonlabor by category, type, resource, or site
• Include text in invoice line
• Include bill rates, amounts, units
17
17For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Invoice Comment
• You can optionally enter a free form invoice comment to appear on the invoices you
generate for the project.
Invoice comment
Invoice
xxxx
xxyz
$xxx
$xxx
Thank you for
your order
18
18For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Burden Schedules for Revenue and Invoicing
19
19For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Standard Bill Rate Schedule
20
20For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Bill Rates and Discount Overrides
• You can assign and override a job’s standard bill rate for a project or lowest task by rate or
discount. When you override a job’s standard bill rate by rate override, the new job bill rate
becomes the job’s bill rate for this project or lowest task.
21
21For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Cascading Billing Schedule Overrides (New R12.1 Feature)
• You can now streamline the process of updating billing schedules information either for all tasks in a
project or for all subtasks of a task. When you update bill rate or burden schedule information at a
project level, you can choose to copy the updates to the project tasks. When you update the billing
schedules information for a summary task, you can choose to copy the updates to all subtasks. In
addition, when you choose a copy option, you can select whether to apply the updates to all tasks,
or to exclude tasks.
Updating the information at Project Level
22
22For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Cascading Billing Schedule Overrides (New R12.1 Feature) (contd…)
Updating the information at Task Level
23
23For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Billable Transaction Control
Limit To: Enabled (Inclusive Control)
Expenditure
Category
Expenditure
Type
Employee Chargeable Billable
Labor Marlin, Amy Yes Task Level
Labor Clerical Marlin, Amy Yes No
In this example, Amy Marlin can charge labor. Clerical labor is not billable. Billability for her other
labor charges is determined from the task billable status. Nothing else is chargeable (inclusive
control).
24
24For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects Credit Receivers
• You can assign credit for project revenue to employees using credit receivers.
• Credit receivers can be used for the following:
• Reporting. You can define custom reports to use with credit receivers.
• Transferring sales credit information to Oracle Receivables. You can use sales
credit information for sales commission reporting in Oracle Receivables.
25
25For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Contract Projects
Profile Options
PA: Licensed to Use Project
Billing
Set profile option to indicate if
Oracle Project Billing is licensed
PA: Maintain Unbilled
Receivables and Unearned
Revenue Balances
Set profile option to maintain unbilled
receivables and unearned revenue
balances
26
26For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
27
27For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Multi-Currency
• Multi-currency allows you to enter transactions in currencies different from the functional
currency of the expenditure operating unit.
• You can enable multi-currency billing for an operating unit and for a project.
Operating Unit
Project
Multi-Currency Billing
28
28For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Currency Screen in Projects
29
29For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Billing Transaction Currency
Type of Transaction Transaction Currency
Events (manual and automatic) Event transaction currency
Expenditures with markups or burden
multipliers (multi-currency billing enabled)
Expenditure transaction currency
Expenditures (multi-currency disabled) Project functional currency
Expenditures with bill rates Rate schedule currency
Expenditures with bill rate overrides Override currency
Expenditure with labor billing extension
that calculates the amount
Billing transaction currency provided by
the extension
For Oracle employees and authorized partners
only. Do not distribute to third parties.
30
30For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Invoice In Any Currency
Create invoices in any currency as agreed
upon by the customer
Customer
Choose
currency
Create
invoices
31
31For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Currency Attributes
• If you want the project customer to be billed in a currency other than the project currency,
enter the following currency attributes for the project customer:
• Rate type
• Rate date
• Exchange Rate
32
32For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Recalculating Invoice Currency
• To change the invoice currency, select an invoice that is eligible for recalculation and select
Recalculate. The Recalculate Invoice Currency window displays the following fields:
Project Currency The project currency
Invoice Currency The invoice currency you desire
Invoice Processing
Currency
The currency used to check against funding and
evaluate hard and soft limits.
Invoice Rate Type The rate type to be used for the invoice recalculation
Invoice Rate Date Date to be used for rate calculation
Invoice Rate The currency exchange rate
33
33For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
Funding Revaluation
• Funding revaluation allows you to periodically revalue your project funding, taking into
account the effects of currency fluctuations between funding and project functional currency.
34
34For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Currency
How To Revaluate Funding
PRC: Revaluate Funding for a
Range of Projects
PRC: Revaluate Funding for a
Single Project
Submit processes to
revaluate funding
35
35For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
36
36For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Overview of Agreements
Task 2
Subtask 3.1
Subtask 3.1.1 Subtask 3.1.2
Subtask 3.2Subtask 1.1 Subtask 1.2
Task 3
Project B
Time & Material
Agreement
Total $500K
Funded $300K
Project A
Bid & Proposal
Project C
Fixed Price
Project D
Cost Plus
$100K$50K
$50K $30K $70K
Task 1
$150K
37
37For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Process Flow of Agreements and Funding
Create
Agreement
Create
Project
Enter Approved
Revenue Budget
Create
Funding
Baseline
Generate
Revenue
Generate
Invoices
Funded
Contract
Project
38
38For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Defining an Agreement
Agreement
Funding
Project
Tasks Tasks
A hard or a soft limit for revenue and/or
invoice
Currency amount
Organization that owns the agreement
Customer: Bigmart
39
39For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Agreements Entry Screen
Agreement Screen with new R12.1 features that are marked in circles
40
40For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
New R12.1 Features in Agreements Entry Screen
• Start date: to more accurately control the duration of the agreement
• Customer order number and accounting reference: to track your customer’s
references for the agreement
• Billing sequence number: to control the order in which agreements are used for billing
purposes
• Advance Required checkbox: to control if an advance payment is required before
invoicing can occur
• 15 additional descriptive flexfield attributes (bringing the total to 25): to track any other
information
• Apply Receipt Button: to choose the receipts to associate with the Agreement.
• Unapply Receipt Button: to dissociate the receipts with the Agreement.
• View Receipts Button: to view available receipts of the customer
• A client extension is available to determine which customers are required to provide an
advance payment. Based on the outcome of the extension, the advance required flag will be
enabled or disabled.
41
41For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Project Versus Top Task Funding
Agreement
Top Task Top Task
Project-Level Funding Top Task Funding
Project
Agreement
Top Task Top Task
Project
42
42For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Allocating Funding Amounts
Project 1 Project 2 Project 3 Project 4
Agreement
+200
-100
+500
+100
+300
-200+100
-100
For example, one agreement
can fund many projects.
43
43For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Revenue Budget
Version 1 Version 2
Budget 2
Budget 1
Version 1 Version 2
Create multiple budgets and multiple versions for each
plan type
44
44For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Creating Baselines
Enter Budget
Submit
Rework
Create Baseline
45
45For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Funding a Baseline Without a Budget
X Baseline Funding Without Budget
Optionally enable a
project to baseline
funding without budget
46
46For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Defining Agreement Templates
• Agreement templates are used to fund project templates. One agreement template will
fund one project template. When the project template is copied to create a project, the
agreement template is, at the same time, copied to create an agreement that is funding the
new project.
47
47For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Creating a Project Using Quick Agreement Funding
1. Set up a project template and enter a customer name.
2. Set up an agreement template with the same customer name used in the project
template.
3. In the agreement template, fund the project template.
4. Create cost and/or revenue budgets for the project template.
5. Baseline the budgets.
6. Copy the project template to a new project.
48
48For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Date Effective Funds Consumption
• A new attribute on the Project Type form allows the customers to enable date effective funds
consumption. When this option is enabled, cost and event transaction dates must fall within the
agreement start and end dates to be billed against an agreement. In addition, transactions are only
billed against the agreement if the full transaction amount can be funded. This applies to both revenue
and invoice generation. When the option is not enabled, revenue generation supports partial billing for
transactions.
49
49For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Agreements and Funding
Defining Agreement Type Setup
• You define agreement types to help you distinguish internal agreements from those
with your external customers.
• You associate payment terms with your customer invoices to determine your
customer’s payment schedule. You specify payment terms when you define
agreement types and agreements in Oracle Projects. These payment terms are used
for each invoice that is funded by a particular agreement.
50
50For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
51
51For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Project Revenue Overview
• Contract project revenue is the amount recognized as income to be received for work
performed on a project.
Revenue received
Work performed
on a project
52
52For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Methods of Revenue Accrual
• Oracle Projects supports three basic methods of revenue accrual.
As-work-occurs Cost-to-cost Event-based
53
53For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Hard Limit Processing
Accrued revenue is the total amount of revenue accrued under the
funding limits.
For projects that hit a hard limit, Outstanding Revenue to Accrue =
Potential Revenue – Accrued Revenue
You can report the outstanding revenue amount by project using the
Potential Revenue Summary Report.
54
54For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Project Percent Complete
• Use the Percent Complete window to enter the percent complete for a project or task.
• Percent completion information is used for revenue accrual and billing, and for reporting
purposes. Oracle Projects does not calculate project or task percent completion, but uses
the percent complete amounts that you enter.
55
55For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue-Based Cost Accrual
• Cost accruals are the accounting transactions to account for expenses in the same
accounting period in which revenue is generated.
• In Oracle Projects, cost distribution and revenue generation are two separate processes.
Consequently, it is possible to account for expenses (costs) and revenue in different
accounting periods. You must determine your accounting procedures and setup to ensure
that you match expenses to revenue.
56
56For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Entering or Reviewing Events
Enter or review events
Top Task Top Task
Project
57
57For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Cost-to-Cost Revenue Calculations
• With cost-to-cost revenue accrual, revenue is calculated based on a ratio of actual costs to
budgeted costs.
• This method is typically a more conservative revenue accrual method than the as-work-
occurs method.
Basic Formula:
Revenue = Actual Cost x Total Budgeted Revenue
Total Budgeted Cost
• This method relies on up-to-date budgets and uses the current budget. The calculation is
performed at the level of funding (project level, top task level).
58
58For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Events with Cost-to-Cost Revenue Accrual
• The cost-to-cost revenue accrual method calculates revenue based on the actual cost of
work performed. Manual events are additional revenue not included in this ratio.
To account for manual events, the cost-to-cost formula is:
Revenue = ( AC × (BR – ER))
BC
AC = Total actual costs
BC = Total budgeted costs
BR = Total budgeted revenue
ER = Manual event revenue
• With this calculation:
• Total Revenue = Automated Revenue + Manual Event Revenue
59
59For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue in Foreign Currency Description
Pre-Release 12 Release 12
Post revenue to General Ledger in project
functional currency only
Post revenue to General Ledger via
Subledger Accounting in project functional
currency and invoice transaction currency
View Unbilled Receivables and Unearned
Revenue balances on Billing Workbench
in project functional currency only
View Unbilled Receivables and Unearned
Revenue balances on Billing Workbench
in project functional currency and project
currency
60
60For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Enable Multicurrency
Billing Box Checked
Invoice by Bill
Transaction
Currency Unchecked
Revenue Transaction
Currency = Project Functional AND
Invoice Transaction
Currency
Generating Revenue
Revenue in Foreign Currency Setup and Process
SETUP
Setup Customer
Invoice Currency
61
61For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Automated process
Generating Revenue
Revenue in Foreign Currency Setup and Process (contd…)
Record Transactions
Generate InvoiceGenerate Revenue
PROCESS
Interface Revenue to
Subledger Accounting
Interface Invoice to
Receivables
Interface Receivables
Invoice to
Subledger Accounting
Revalue Account
Balances in General Ledger
(AR/UBR/UER) at Period End
62
62For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue in Foreign Currency Setup – Project Billing Currency
<Enter slide
note>Option to Select
Revenue Transaction Currency
Enable Multi
Currency Billing
Box Checked
Invoice by Bill
Transaction Currency
Box Unchecked
63
63For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue in Foreign Currency Setup – Project Customers
Invoice Transaction
Currency = CAD
(Project Functional
Currency = USD in this
example)
64
64For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Event Currency =
Invoice Transaction
Currency = 150,000 CAD in
this example
Generating Revenue
Revenue in Foreign Currency Revenue Event Creation
65
65For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue in Foreign Currency Revenue Transaction Currency Review
66
66For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Amounts Displayed
in Project Currency
Unbilled Receivables
Amount in Project
Currency
Generating Revenue
Revenue in Foreign Currency Billing Workbench
67
67For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue Flow
Generate Draft Revenue
Review Revenue
Release Revenue
Interface Revenue to GL
Tie back Revenue
68
68For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Generating Draft Revenue
PRC: Generate Draft Revenue
for a Single Project
PRC: Generate Draft Revenue
process for a Range of Projects
Submit processes to generate
draft revenue
69
69For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Reviewing Project Revenue
• You use the revenue review windows to review detailed information about project revenue.
• You can view the following information:
• Amount
• Revenue category
• Event description
• Information about the distribution lines of a revenue item
• Agreement providing the revenue funding
• Date the revenue was interfaced to Oracle GL
• Distribution warnings encountered while generating draft revenue
70
70For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Revenue Process Flow to GL
Tieback revenue
GL journal
import
Interface to
General Ledger
Generate
draft revenue
Cost-
distributed
expenditure
items
Events
Adjustments
Revenue-
generated
expenditure
items
Revenue-
generated
events
Oracle
General Ledger
GL
interface
GL journal
entries
71
71For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Extensions
Cost Accrual Billing Extension
Revenue-Based Cost Accrual
Extension
To extend the revenue and
billing functionality, you can
optionally implement client
extensions.
72
72For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Revenue
Profile Options
PA: Interface Unreleased
Revenue to GL
Submit process to control
processing for revenue and
invoicing
73
73For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
74
74For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Invoice Concepts
Hard limit processing
Accounting dates
Billing amounts
Methods of invoicing
Percent complete
Events
75
75For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Hard Limit Processing for Invoices
• Example of Invoice Hard Limit
• Task 3.0 revenue budget = $1,000
• Funded by an agreement with hard limit = Yes
• Additional eligible items exist, but none of them with bill amount for $60 or less.
• This table presents the “Billed Expenditure Items”:
Task Employee Exp Type Qty Units Bill Amount
3.1 Marlin Professional 6 Hrs 380
3.2 Gray Field Equip 5 Days 60
3.3 Marlin Professional 6 Hours 560
TOTAL 1000
Invoice Warning: Invoice has reached the hard limit.
76
76For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Overview of Accounting Dates
All Invoices are accounted for using these dates :
• GL date: Date accounted for based on GL periods
• PA date: Date accounted for based on PA periods
77
77For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Methods of Invoicing
• You specify the invoicing method based on the distribution rule that you select for the
contract project.
Supported Distribution Rules
Distribution Rule Revenue Method Invoicing Method
Work/Work As-Work-OccursAs-Work-Occurs
Work/Event Event/MilestoneAs-Work-Occurs
Cost/Work As-Work-OccursCost-to-Cost
Cost/Event Event/Milestone
Cost/Cost Cost-to-Cost
Event/Event Event/MilestoneEvent/Milestone
Event/Work As-Work-Occurs
Cost-to-Cost
Cost-to-Cost
Event/Milestone
78
78For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Percent Complete
• You can enter the percent complete for a project or task. Percent completion information is used for
revenue accrual and billing, and for reporting purposes. Oracle Projects does not calculate project or
task percent completion, but uses the percent complete amounts that you enter.
• The Percent Complete window includes the following features:
• You can maintain percent complete information at all levels of the work breakdown structure
(WBS), including at the project level.
• Percent complete history is maintained by the system.
79
79For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Event Billing
• You enter events at either project-level or top-level tasks.
80
80For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
E-Business Tax Integration Description
• Oracle E-Business Tax is a
• Centralized tax application
• Single source for tax content and rules
• Oracle Projects is integrated with Oracle E-Business Tax to:
• Utilize the common tax engine
• Uptake common tax terminology and lists of values
81
81For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
• Single application for setup and maintenance
• Setup the tax classification codes and projects tax default hierarchy using one single application.
• Utilize the common tax engine for tax code determination on project invoices.
• Improved tax processing for internal invoices
• Subscribe the provider and receiver operating units to the tax regime with Configuration for Taxes
and Rules as Common Configuration.
• Define the tax setup only once for the Global Configuration Owner.
Generating Invoice
E-Business Tax Integration Benefits
82
82For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
E-Business Suite Applications
Oracle E-Business Tax
Tax Partner
Interface APIs
Services
Tax
Content
Services
Tax
Determination
Services
Tax
Administration
Services
Partner
Tax Content
Interface
Tax Content
Transaction Tax DataTransaction Data
Content
Repository
Record
Repository
Partner
Tax Services
Interface
Tax Services
Oracle E-Business Tax: Integration
Generating Invoice
E-Business Tax Integration Setup and Process
83
83For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
E-Business Tax Integration Setup – Application Tax Options
84
84For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
E-Business Tax Integration Setup – Billing Workbench Invoice Details
85
85For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
• Tax Regime
• Define tax regime.
• Subscribe the provider and receiver operating units with Configuration for Taxes
and Rules as Common Configuration in Oracle E-Business Tax.
• Tax Setup
• Define tax setup for the tax regime with Configuration Owner as Global
Configuration in Oracle E-Business Tax.
Generating Invoice
E-Business Tax Integration Setup – Internal Invoices
86
86For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
• E-Business Tax
• Oracle Projects depends on Oracle E-Business Tax for the following:
• Setup projects tax default hierarchy
• Tax engine for tax code determination on project invoices
Generating Invoice
E-Business Tax Integration Dependencies and Interactions
87
87For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Customer Retention Billing
88
88For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Implementing Billing Retention
Setting Up Billing Implementation Options
Defining and Enabling AutoAccounting for Revenue and Billing
Defining Invoice Formats
Accounting for Unbilled Retention
89
89For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Invoice Flow to AR
AR interface
Revenue
distributed costs
AR invoices
Generate
draft invoice
Interface to
Receivables
Tieback invoices
Approve/release
invoice
AR AutoInvoice
Oracle Receivables
Events
Adjustments
90
90For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Generating Invoices
PRC: Generate Draft Invoices for
a Range of Projects
PRC: Generate Draft Invoices for a
Single ProjectSubmit process to generate
invoice for a single project.
Submit process to run
multiple invoice generation
processes
91
91For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Interfacing Invoices to AR
• Oracle Projects interfaces invoices to Oracle Receivables.
• This flow uses the same type of processes as costing and revenue: Interface, Import,
and Tieback.
• You can use an Interface Streamline option to interface invoices to AR.
Oracle Projects
Released
invoices
Invoices
Journal entries
Oracle
ReceivablesGeneral
Ledger
92
92For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Implementing Oracle Receivables for Oracle Projects Integration
• Oracle Projects interfaces with Oracle Receivables to process your invoices and track
customer payments.
• Oracle Projects predefines all of the information required for the Oracle Receivables
AutoInvoice program to process Oracle Projects invoices.
Oracle
ReceivablesOracle Projects
93
93For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Defining Receivables System Options
• If you have installed the standalone version of Oracle Projects, system parameters provide
default values required for customer entry.
• Use the System Options window to view and update the system options used by Oracle
Receivables.
Oracle Projects System
Parameters
94
94For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Defining Transaction Types for Invoice Processing
• Oracle Projects generates draft invoices and uses Oracle Receivables features to post them to
Oracle General Ledger, and maintain and track customer payments on them.
• Oracle Receivables uses transaction types to determine whether the transaction generates an
open receivable balance and whether it posts to Oracle General Ledger.
95
95For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Defining Salesreps for Sales Credit
• When you interface Oracle Projects invoices to Oracle Receivables, Oracle Projects assigns
a primary salesrep to the invoice and interfaces sales credit lines for the invoice based on the
project’s credit receivers.
• Oracle Projects assigns the project manager on the project as the primary salesrep as long
as the project manager is defined as a salesrep in Oracle Receivables.
96
96For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Billing Adjustments
• Billing adjustments include the following classes of adjustments:
Adjustments during invoice review
Adjustments to existing revenue and invoices
Adjustments at project completion
97
97For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Invoice Cancellation
• You can cancel a released invoice.
• When you cancel an invoice:
A credit memo is created.
All expenditure items billed on the original invoice return to an
unbilled state.
The receivables account is reduced, the unbilled receivables account
is increased, or the unearned revenue is reduced upon interface to
AR.
98
98For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Invoice Write-Offs
• You can write off part or all of an invoice that cannot be collected. Use this feature for bad
debts.
• When you write off an invoice, a write-off invoice is created (with a crediting amount) with the
amount prorated across invoice items.
• The following table shows the resulting accounting transactions:
Function Application Account DR CR
Invoice write-
off
Oracle Projects Invoice write-off (bad debt) 100
Receivables 100
99
99For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Regenerating Invoices, Revenue and Cost
• You can regenerate adjusted revenue and invoice amounts from the Invoice Summary
window for a single project.
Click the Run button.
Click the Regenerate or Delete Invoices option.
Click the OK button.
A Streamline Request is submitted
to the Concurrent Manager.
100
100For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Invoice Line-Level Write-Off
101
101For Oracle employees and authorized partners only. Do not distribute to third parties.
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Generating Invoice
Invoice Method at Top Task
Navigation : Options>Task Detail>Billing Information>Billing Setup
102
102For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating InvoiceInvoice Concessions
103
103For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Invoice Review in a New Interface
104
104For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Generating Invoice
Client Extensions
Billing Extensions
Labor Billing Extension
Retention Billing Client Extension
Automatic Invoice Approve/Release Extension
AR Transaction Type Extension
Output Tax Extension
105
105For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
106
106For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Interproject Billing Overview
Provider Project
Receiver Project
Collect Costs
Interproject
Invoices
Costs
Receivables
Invoice
Payables invoice
107
107For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Define Provider and Receiver Projects
Define Provider
Projects
Define a provider project to perform work on the lowest task of a
receiver project. The project must be a contract project but
cannot use an intercompany billing project type. You can define a
provider project in any operating unit that has been identified as
a provider operating unit.
Define Receiver
Projects
Define a receiver project for inter-project billing so that work on
some or all of the chargeable, lowest tasks is performed on
separate projects.
108
108For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Interproject Billing Processing Flow
Interface IP
Invoice to
Receivables
Generate Draft
Interproject (IP)
Invoice
Approve & Release
Draft IP
Invoice
Invoice automatically
created in
Receiver OU Payables
Run Tieback
from
Receivables
Update PSI
Interface Supplier
Invoices
to Projects
Approve AP
Invoice/Transfer
to GL
AP Invoice
Import
View Costs on
Receiver
Project/Task
Enter Expenditures
on Provider
Project
109
109For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Defining Interproject Billing
• To establish an interproject relationship the following tasks must be performed:
A provider and receiver project must be created.
The provider assigns the receiver as its internal customer (Customers and
Contacts).
The receiver must allow interproject invoices (Task Options).
The provider and receiver must enable their respective provider and receiver
roles.
The provider must identify valid receivers.
The receiver must identify valid providers.
110
110For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Additional Setup Steps
Defining Expenditure Types
Defining Agreement Types
Defining Billing Cycles
Defining Invoice Formats
111
111For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Defining an Internal Supplier and Customer
• In Oracle Payables, define a supplier for interproject billing transactions. Payables invoices will
be sent to this internal supplier during the Tieback Invoices from Receivables process.
• For this supplier, you define supplier sites for each operating unit.
• In Oracle Receivables, define a customer for interproject billing transactions. This internal
customer generates interproject invoices.
112
112For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Implement Interproject Billing Extensions
Provider and Receiver
Organizations Override
Extension
Internal Payables Invoice
Attributes Override Extension
Submit process to override
the payables invoice
attributes.
Submit process to enforce
and maintain your business
rules .
113
113For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Interproject Billing
Define the Supplier Invoice Charge Account
• In Oracle Payables, you must modify the Supplier Invoice Charge Account process so that it
returns a generic cost account for internal invoices.
• You can use different supplier types to differentiate between regular and internal invoices.
You can further differentiate internal invoices between intercompany and interproject invoices
by specifying the appropriate invoice source for Projects intercompany invoices and
interproject invoices.
114
114For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
115
115For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
AutoAccounting
• The AutoAccounting feature in Oracle Projects derives values for account combinations based
on project information for all accounting transactions in Oracle Projects.
• Consequently, the way you organize your chart of accounts affects your implementation data.
116
116For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
AutoAccounting Rules
AutoAccounting Rules
SQL Statement ParameterConstant
Parameter Lookup Set
Parameter
Parameter
Lookup Set
Lookup Set
Lookup Set
117
117For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
AutoAccounting Rule Mapping
AutoAccounting Rules
SQL Statement ParameterConstant
Intermediate Value
Lookup Set
Code Combination Segment
Lookup Set
Segment Value Segment Value
118
118For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
Assign Rules
Function
Function Transactions
Segment Rule Pairings
119
119For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
Contract Project Accounting
Oracle Projects
Oracle
General Ledger
Oracle
Receivables
Invoices
Revenue
Accounting
Invoice and
Receipt
Accounting
Customers
Invoices
Receipts
120
120For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
Unbilled Receivables and Unearned Revenue
Revenue accrual and invoicing do not usually occur at the same time.
You can:
• Accrue revenue before invoicing
• Invoice before revenue accrual
Unbilled receivable is revenue accrued in excess of billing.
Track as an asset to be converted later into a receivable asset.
Unearned revenue is billing in excess of revenue.
Track as a liability to be decreased later by a revenue transaction.
121
121For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
Accounting for Revenue and Billing
Implement revenue AutoAccounting functions to determine the revenue accounts
interfaced to Oracle General Ledger
Oracle General
Ledger
Example: Time &
Materials Project
Labor Revenue
Usage Revenue
Revenue
122
122For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
Realized Gains and Losses
PRC: Interface Revenue to
General Ledger
Submit processes to create a
separate accounts for realized
gains and realized loss
accounts
123
123For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
Accounting for Revenue and Invoices
Invoice Rounding
• When currencies are converted, it is necessary to round figures to the nearest currency
unit. When an amount is converted from currency A to currency B (and rounded to the
nearest unit), then converted back to currency A, a rounding difference can occur. This can
occur during the following sequence of events:
1. You generate a project invoice in invoice processing currency
2. Oracle Projects then converts the invoice to the invoice currency (if it is different
from the invoice processing currency).
3. Oracle Receivables converts the invoice to the functional currency for posting to
General Ledger.
124
124For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
125
125For Oracle employees and authorized partners only. Do not distribute to third parties.
© 2009 Oracle Corporation – Proprietary and Confidential
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