8. Overview of Oracle Project Billing

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Project Billing Overview

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Title of Presentation

Presenter’s Name

Presenter’s Title

Overview of Oracle Project Billing

Presenter’s Name

Presenter’s Title

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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

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Contract Projects

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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

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Contract Projects

Project Classes and Project Types

Indirect

Capital

Contract

Project Classes Project Types

Bid and Proposal

Overhead

Construction

Cost Plus

Fixed Priced

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Contract Projects

Project Type Setups

• Project type setup steps specific to Contract Projects are:

Billing Information

Billing Assignments

Distribution Rules

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Contract Projects

Billing Information tab on Contract Project Types

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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

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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

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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

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Contract Projects

Basic Project Information

Project Organization

Project Name

Long Name

Project Number

Project Type

Project Status

Description

Public Sector

Access Level

Location

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Contract Projects

Assigning Customers

For Oracle employees and authorized partners

only. Do not distribute to third parties.

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Contract Projects

Customer at Top Task

Navigation : Options>Task Detail>Billing Information>Billing Setup

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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

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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

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Contract Projects

Burden Schedules for Revenue and Invoicing

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Contract Projects

Standard Bill Rate Schedule

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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.

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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

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Contract Projects

Cascading Billing Schedule Overrides (New R12.1 Feature) (contd…)

Updating the information at Task Level

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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).

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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.

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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

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Currency

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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

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Currency

Currency Screen in Projects

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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.

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Currency

Invoice In Any Currency

Create invoices in any currency as agreed

upon by the customer

Customer

Choose

currency

Create

invoices

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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

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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

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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.

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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

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Agreements and Funding

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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

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Process Flow of Agreements and Funding

Create

Agreement

Create

Project

Enter Approved

Revenue Budget

Create

Funding

Baseline

Generate

Revenue

Generate

Invoices

Funded

Contract

Project

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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

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Agreements Entry Screen

Agreement Screen with new R12.1 features that are marked in circles

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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.

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Project Versus Top Task Funding

Agreement

Top Task Top Task

Project-Level Funding Top Task Funding

Project

Agreement

Top Task Top Task

Project

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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.

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Revenue Budget

Version 1 Version 2

Budget 2

Budget 1

Version 1 Version 2

Create multiple budgets and multiple versions for each

plan type

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Creating Baselines

Enter Budget

Submit

Rework

Create Baseline

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Funding a Baseline Without a Budget

X Baseline Funding Without Budget

Optionally enable a

project to baseline

funding without budget

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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.

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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.

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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.

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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.

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Generating Revenue

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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

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Generating Revenue

Methods of Revenue Accrual

• Oracle Projects supports three basic methods of revenue accrual.

As-work-occurs Cost-to-cost Event-based

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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.

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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.

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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.

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Generating Revenue

Entering or Reviewing Events

Enter or review events

Top Task Top Task

Project

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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).

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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

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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

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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

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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

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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

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Generating Revenue

Revenue in Foreign Currency Setup – Project Customers

Invoice Transaction

Currency = CAD

(Project Functional

Currency = USD in this

example)

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Event Currency =

Invoice Transaction

Currency = 150,000 CAD in

this example

Generating Revenue

Revenue in Foreign Currency Revenue Event Creation

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Generating Revenue

Revenue in Foreign Currency Revenue Transaction Currency Review

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Amounts Displayed

in Project Currency

Unbilled Receivables

Amount in Project

Currency

Generating Revenue

Revenue in Foreign Currency Billing Workbench

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Generating Revenue

Revenue Flow

Generate Draft Revenue

Review Revenue

Release Revenue

Interface Revenue to GL

Tie back Revenue

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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

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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

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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

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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.

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Generating Revenue

Profile Options

PA: Interface Unreleased

Revenue to GL

Submit process to control

processing for revenue and

invoicing

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Generating Invoice

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Generating Invoice

Invoice Concepts

Hard limit processing

Accounting dates

Billing amounts

Methods of invoicing

Percent complete

Events

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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.

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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

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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

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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.

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Generating Invoice

Event Billing

• You enter events at either project-level or top-level tasks.

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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

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• 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

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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

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Generating Invoice

E-Business Tax Integration Setup – Application Tax Options

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Generating Invoice

E-Business Tax Integration Setup – Billing Workbench Invoice Details

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• 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

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• 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

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Generating Invoice

Customer Retention Billing

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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



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

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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



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

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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



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



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



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



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



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



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

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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



Generating Invoice

Invoice Line-Level Write-Off

101



Generating Invoice

Invoice Method at Top Task

Navigation : Options>Task Detail>Billing Information>Billing Setup

102



Generating InvoiceInvoice Concessions

103



Generating Invoice

Invoice Review in a New Interface

104



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



Interproject Billing

106




Interproject Billing Overview

Provider Project

Receiver Project

Collect Costs

Interproject

Invoices

Costs

Receivables

Invoice

Payables invoice

107




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




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




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.

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Additional Setup Steps

Defining Expenditure Types

Defining Agreement Types

Defining Billing Cycles

Defining Invoice Formats

111




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




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




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



Accounting for Revenue and Invoices

115




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




AutoAccounting Rules


SQL Statement ParameterConstant

Parameter Lookup Set

Parameter

Parameter

Lookup Set

Lookup Set

Lookup Set

117




AutoAccounting Rule Mapping


SQL Statement ParameterConstant

Intermediate Value

Lookup Set

Code Combination Segment

Lookup Set

Segment Value Segment Value

118




Assign Rules

Function

Function Transactions

Segment Rule Pairings

119




Contract Project Accounting

Oracle Projects

Oracle

General Ledger

Oracle

Receivables

Invoices

Revenue

Accounting

Invoice and

Receipt

Accounting

Customers

Invoices

Receipts

120




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




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




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




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.

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125



Thank You !

8. Overview of Oracle Project Billing

Documents