Oracle EPM Project Financial Planning (PFP) – A First Look

March 20, 2013

Project Financial Planning (PFP)

Overview

Darren Garrett

Edgewater Ranzal

Randy Schmitz

Edgewater Ranzal

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PFP Background

Agenda

PFP Implementation Considerations

PFP Tour

Introductions

Q&A

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Focus

Services

People

Methodology

Customers

Partnership

About Edgewater Ranzal

15 Years

700+ clients

1000+ projects

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Dashboards & Scorecards, Profitability &

Cost Mgmt, Financial Analytics & Reporting,

Operational Analytics, What-if Analysis,

Query & Reporting, Visual Exploration

Financial performance, Legal,

Segment & Mgmt Reporting, Financial

Close

HFM Optimization, Performance Lab

SOX Compliance Support

Planning, Budgeting, Forecasting,

Workforce Planning, Capital Planning,

Project Planning, Campaign Planning,

Strategic Finance

Data Integration, Financial Data

Management, Data Warehousing, Master

Data Management, ETL Services,

Performance Tuning, Automation

Project/Program Mgmt, EPM

Road Maps, Application

Reviews, Business

Requirements, Process

Change, Documentation

Installation, Upgrades,

Migration, System

Monitoring, Backup and

Recovery, Disaster

Recovery, Load Testing,

Hardware Sizing

Consolidation

Business

Intelligence

Planning

Infrastructure

Training

Support

Services

Data

Services

Project

Management

Support Services - Project/Program

Mgmt, EPM Road Maps, Application

Reviews, Business Requirements,

Process Change, Documentation

Dashboards/Scorecards, Profitability Cost

Mgmt, Financial Analytics & Reporting,

Operational Analytics, What-if Analysis,

Query & Reporting, Visual Exploration

Our Services

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What is PFP?

• Oracle Planning Module

• Bridges the gap between the detailed projects an organization undertakes

and the overall corporate impact (resources)

• Provides organizations with:

o View into Asset and Resource Allocation

o Performance Monitoring

o Information regarding Return on Investment (ROI)

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Key Features of PFP

• Perform expense planning at detail level or account level (labor, material,

equipment)

• Allocate workforce resources and capital assets to projects

• Perform different types of revenue planning/revenue recognition based on the

type of Contract projects (Time and Material, Fixed Price, or Cost Plus)

• Ability to view the impact on financial statements from a project level or an entity

level (Profit and Loss, Cash Flow, key performance indicators [KPIs])

• Rank and approve projects based on a project score using financial measures

and subjective measures (net present value [NPV], return on investment [ROI],

payback, lifetime investment, risk assessment, strategic assessment, business

assessment, organization missions)

• Track the project approval flow

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Project Classifications

• Indirect o Administrative Projects

o Cost Impact

o Don’t generate Revenue

o Think “IT Projects”

• Capital o Long Term Investment Project

o Think “Construction”

• Contract o Work performed for a Customer

o Has both Revenue and Cost

o Types

o Time and Materials (T&M)

o Fixed Price

o Cost Plus

o Other

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Out of Box Artifacts

• Dimensions o Project Plan Type

• Account

• Project

• Project Element

o Workforce Plan Type

• Account

• Employee

• Job

o Capital Asset Plan Type

• Account

• Asset Class

• Asset Detail Property of Edgewater R

anzal

Out of Box Artifacts (cont.)

• Forms o Application Administration

• Global Assumptions and Drivers

• Grouped into Project, Workforce, and Capital

o Projects

• Used to create detailed project budgets and forecasts

• Grouped into Project Planning, Project Financing, Project Financial Statements,

and Project Supporting Forms.

o Workforce

• Used to create detailed workforce plans

• Grouped into Workforce Supporting Forms: Workforce Setup and Maintenance

and Workforce Project Usage and Analysis.

o Capital

• Used to create detailed capital asset plan

• Grouped into Capital Supporting Forms: Asset Setup, Maintenance, and Analysis

and Asset Project Usage

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Out of Box Artifacts (cont.)

• Business Rules o Calculate Expenses

o Calculate Revenues

o Calculate Financial statements and KPI’s

o Data Movement between Plan Types

• Task Lists o Administration

o Project Administration, Workforce Administration, and Capital Administration

o Project Planning and Analysis

o Propose New Contract Projects, Propose New Capital Projects, Propose New

Indirect Projects, Manage Existing Contract Projects, Manage Existing Capital

Projects, Manage Existing Indirect Projects, and Review Projects

o Workforce Planning and Analysis

o Workforce Planning and Workforce Analysis.

o Capital Planning and Analysis

o Capital Planning and Capital Analysis.

• Financial Analysis

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Out of Box Artifacts (cont.)

• Menus

• Smart Lists

• Reports o Funding Summary, Funding Summary for Project, Impact on Financial Statements,

Project Details, Project Cost Details, Project Labor Expense, Project Equipment

Expense, Project Material Expense, Project Revenue Details, Project Financial

Performance Overview for Current Year, Project Financial Performance Overview for

Current Year

• Roles o Business Unit Owner, Executive Sponsor, Internal Decision-Maker, Internal

Representative, Key Stakeholder, Project Accountant, Project Manager, Project

Sponsor/Project Director, Project Team Member, Stakeholder, Steering Committee,

Vendor

• Substitution Variables o CurYr, LastYr, NextYear, Yr3, Yr4, ThisMonth, CurScenario, CurVersion, ActVersion,

ForVersion, PlanVersion, Thisyear

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Templates

• Smart Lists o AssignmentLocation, Customer, FundingSource, PhysicalLocation, ProjectCostLevel,

ProjectManager, SkillSet

• Metadata Templates o Entity

o Project

o Asset Detail

o Employee

• Data Templates o Assumptions, Asset Depreciation and Amortization, Project Details, Project Actuals,

Employee Project Assignments, Asset Project Assignments, Project Material

Requirements, Existing Employee Data, Existing Major Asset Data Property of Edgewater Ranzal

PFP Tour

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PFP Implementation Guidelines

• Adding Dimensions o Difficult, but not impossible to add Dimensions

o Lots of interdependent objects (i.e., Forms, Calc Manager Rules, Cubes, etc.)

• Rationalization o Knowing what the PFP does out of the box and understanding what elements add

value

• Deletion of Objects o Hide, don’t delete

o Won’t inadvertently break functionality

• Renaming o Makes upgrading easier

o Ensures modifications aren’t overwritten

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Q&A

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Contacts

• Darren Garrett

• [email protected]

• Randy Schmitz

• [email protected]

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