Collaborative SIG Presentation: Projects to Profit Fundamentals

1. Collaborative SIG Presentation:Projects to Profit Fundamentals Becky Alvarez, Rysigo Technologies Corp. and Wendy Lamar, Rolta TUSC

2. Agenda • About the Presenters • Introduction • Configuration • Flow

3. Wendy Lamar • Senior Management Consultant with Rolta TUSC • Over 13 Years Experience Implementing and Supporting Oracle Applications • OAUG Project SIG Development Liaison • Duties Include Gathering Customer ERs and Facilitating Prioritization and Communicating Those to Oracle Product Strategy

4. Becky Alvarez – Director of E&C Practice WHAT WE DO STRATEGIC CONSULTING SERVICES SPECIALIST AREAS • Engineering and Construction • Professional Services • Energy and Utilities • Hi Tech / IT • Transportation • Oracle EBS, CRM, Primavera, OBIEE • Global Deployments, Shared Service Centers • Global Program Offices™ • Project Centric Organizations PRODUCTS • Collaborative Proposal Management • Collaborative Risk Management • Risk Management for Oracle Projects 70 years of collective experience designing, building and implementing many of the Oracle Application is use today. becky.alvarez@rysigo.com Rysigo Technologies Corp. provides Collaborative Work Management software and services. Business and Finance Transformation Management Consulting ERP, CRM and Analytics Reporting Applications Management

5. Introduction Where are we in the P2P Flow

6. Where are we now in P2P? Quote to Cash People to Paycheck Start Procure to Pay Project to Close Design to Build Accounting to Financial Reports End

8. Configuration How to Set Up Projects for P2P

9. Configuration • Define Payables Options for Discounts • Prorate Expense: Discount prorated across all distribution lines • Prorate Tax: Percentage of discount prorated across all tax distribution lines • System Account: Credits the total discount to the discount taken account defined in AP Financial Options

10. Configuration • Profile Options • PA: Allow Adjustments to Receipt Accruals and Exchange Rate Variance • PA: Allow Override of PA Distributions in AP/PO • PA: Default Expenditure Item Date for Supplier Cost • PA: Default Expenditure Organization in AP/PO

11. Configuration • Supplier Invoice and Project Related Purchasing Account Generators • Default Supplier Cost Credit Account • (PA System Options) • Interface AP & PO DFF Profile Options • PA: Transfer DFF with AP • Expense Reports, Vendor Invoices • PA: Transfer DFF with PO • Receipt Accruals

12. Configuration

13. Project Suite Considerations • When running the process ‘PRC: Interface Supplier Costs’ ensure that the following parameters are set to Yes: • Interface Supplier Invoices • Interface Receipt Accruals • Interface AP Discounts

14. Project Suite Considerations • All modules have a Create Accounting process that interfaces journal entries to Subledger Accounting. The parameters control interface to GL and posting of GL journal entry. • The Create Accounting process per module typically must complete successfully prior to interface of expenditure item to Project • Transactions create journal entries in the source module – cost collects in Project module

15. P2P Flow How Contract/Billable Projects are updated by POs

16. P2P Process Flow

17. Create Requisition and/or PO • Requisition or PO Line is Entered Referencing: • Project • Task • Expenditure Item and Expenditure Organization • Account Generator Derives Default Charge Account, Accrued Liability (Inventory AP Accrual), and Variance Accounts

18. Create PO

19. Distribute to Project

20. Updates Committed Costs Before After

21. Receive Goods / Confirm Work • Receive Goods / Confirm Work - Accrue on Receipt Interfaces Cost to Project @ PO Price • Receiving Transaction Processor • Create Accounting for Receiving DR Inventory or Expense Account OR CIP CR Accrued Liability • PRC: Interface Supplier Cost Parameter ‘ Interface Receipt Accruals’ = YES

22. Receive Goods / Confirm Work

23. Match Vendor Invoice to PO • Vendor Invoice Match to PO - Variances are Interfaced to Project (New Expenditure Item) • Validate Vendor Invoice • Create Accounting DR Accrued Liability CR Accounts Payable DR/CR Price Variance

24. Match to PO

25. Update Projects Before Supplier Invoice for Match against PO After $5,000 Supplier Invoice Entered and Interfaced to Projects. Period to Date and Inception to Date Costs increase by the invoice amount and the Commitment is reduced by the invoice amount.

26. Pay Vendor Invoice • Pay Vendor Invoice - Discounts Taken are Interfaced to Project (New Expenditure Item) • Create Accounting • DR Accounts Payable • DR Discounts Taken** • CR Cash • PRC: Interface Supplier Cost Parameter ‘Interface Payment Discounts’ = YES **Discounts Taken dependent upon AP configuration

27. P2P Flow How Capital Projects are updated by POs

28. Capital Project to Assets Flow

29. Asset Charges – AP to PA • AP Distribution Line Charges Project and Asset Clearing Account: • Contract Project • Payables Interfaces the Cost to Oracle Assets for Capitalization and GL Accounting • Payables Interfaces the Cost to Oracle Projects for Cost Collection to the Project and Reporting; No GL Impact • Capital Project • Payables Interfaces the Cost to Oracle Projects for Capitalization, GL Account Generation, Project Cost Collection and Reporting. Journal Entry Sources are Payables and Assets.

30. Capital Project • Create Capital Project • Add Asset Definition including Asset Attributes at Project or Task • Collect Costs against Project • Distribute all Costs, Generate Cost Accounting Events, Create Accounting BEFORE Generating Asset Lines • Summarize your Project Data (Project Performance or Project Summary) BEFORE Generating Asset Lines

31. Project Asset Setup

32. Project Task Asset Line

33. Project Task Asset Setup

34. Capital Project • When Ready to Place the Asset in Service, Update the Asset Assignment with an Actual In Service Date (Current Period) • Run the PRC: Generate Asset Lines process to Create Summary Asset Lines • Adjust Lines, Associate Unassigned Lines • Auto Accounting Rules Determine Journal Entry DR Asset CR CIP

35. Update Asset Service

36. PRC: Generate Asset Lines Creates the Asset Line(s)

37. Capital Project • Run the PRC: Interface Assets to Oracle Assets process • In Oracle Assets Review and Post Mass Additions • Monthly: Run Depreciation • Creates Accounting • Interfaces and Posts Journal Entry to GL

38. Interface Asset to FA

39. View Asset in FA after Additions

40. Contract Project • Create Contract Project • Include Customer and Billing Setup • Collect Costs • Distribute Costs • Generate Cost Accounting Events • Create Accounting

41. Customer Invoice Flow

42. Revenue Recognition Flow

43. Contract Project - Revenue • Generate Draft Revenue based on Distribution Rule of Project • Release • Generate Revenue Accounting Events • Create Accounting • Transfers and Posts Journal Entry to GL DR UBR CR Revenue

44. Contract Project - Receivables • Generate Draft Invoice based on Distribution Rule of Project • Approve and Release • The next three steps can be combined in PRC: Submit Interface Streamline (Option XI) • PRC: Interface Invoices to Receivables • Autoinvoice Import • PRC: Tieback Invoices from Receivables

45. Thank You Becky Alvarez, Director E&C Practice Rysigo Technologies Corp. becky.alvarez@rysigo.com Join us for a Project to Profit Q&A follow up and a drawing for a FREE Wii Console & Game Today (Wednesday) 3:00pm The Peabody Hotel Tower 2, Business Suite 21111

46. Q&A Q & A Wendy Lamar: lamarw@tusc.com Becky Alvarez: becky.alvarez@rysigo.com