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Defining Rate Schedules

You can define four types of rate schedules. The following table lists the four types of rate schedules and indicates how you can use each rate schedule type in Oracle Projects.

Note:

*If you select the option to use planning rates, then you can choose the cost and revenue rate schedules to use to generate amounts. If you do not select the option to use planning rates, then Oracle Projects automatically chooses the rate schedules that are used to calculate actual cost and revenue (bill) amounts.

*You must specify rate schedules for resource class. When Oracle Projects is unable to determine the actual or planning rates to apply in a calculation, Oracle Projects automatically applies rates from the default rate schedules you specify for resource class.

Note:

*Organization hierarchies provide a structure for the relationships between the organizations within your enterprise. They enable you to manage expenditure and reporting data and coordinate project-owning organizations. If your organization uses business groups, you can create project burdening organization hierarchies for each business group.

You define an organization hierarchy by telling Oracle Projects which organizations are subordinate to which other organizations. You can define one organization hierarchy or several, depending on the needs of your enterprise.

*The organizations and organization hierarchies of an enterprise are closely interrelated with the policies and procedures of that enterprise. To configure Oracle Projects to meet your business requirements, you must make critical implementation decisions regarding how you set up your organizations in Oracle Projects.

Organizations are departments, sections, divisions, companies, or other organizational units in your enterprise. You can gather collections of organizations into organization hierarchies. Organization hierarchies make it easier to manage expenditure and reporting data and coordinate the project-owning organizations within your enterprise.

The provider operating unit runs the process PRC: Tieback Invoices from Receivables, which automatically creates corresponding intercompany invoice supplier invoices ready to be interfaced to Oracle Payables in the receiver operating unit.

Note:

See step 6 below.

Intercompany Billing Processing FlowIntercompany billing processing requires the following steps:

The provider operating unit enters or imports cross charge transactions.

The provider operating unit distributes costs of the cross charges, which are identified as cross charge transactions by the cost distribution processes. Thedistribution of the costs is independent of revenue generation and are distributed even if revenue has not been generated.

The provider operating unit also imports project-related supplier costs from Oracle Purchasing and Oracle Payables and project-related expense report costs from Oracle Payables.

The provider operating unit runs the process PRC: Generate Intercompany Invoices for a Single Project, or the process PRC: Generate Intercompany Invoices for a Range of Projects, to generate draft intercompany invoices with the associated intercompany receivable and revenue accounts, and the transfer price.

The provider operating unit reviews, approves, and releases the intercompany invoices.

The provider operating unit interfaces the approved intercompany invoices to Oracle Receivables. You can include the following activities in this process:

Accounting for invoice rounding

Creation of receivable invoices including sales tax

The provider operating unit runs the process PRC: Tieback Invoices from Receivables, which automatically creates corresponding intercompany invoice supplier invoices ready to be interfaced to Oracle Payables in the receiver operating unit.

Use Oracle Receivables to print the invoice as well as to create accounting for Oracle Subledger Accounting.

If cost reclassification is enabled, the provider operating unit performs the following processing steps:

Runs the process PRC: Generate Cross Charge Accounting Events to generate accounting events for the provider cost reclassifications.

Runs the process PRC: Create Accounting to create accounting entries for the provider cost reclassification accounting events in Oracle Subledger Accounting. When you run the process in final mode, you can optionally choose to transfer the accounting to Oracle General Ledger. If you select this option, the create accounting process initiates Journal Import in Oracle General Ledger.

The receiver operating unit imports the intercompany supplier invoices into Oracle Payables. This import process calculates recoverable and non-recoverable tax amounts. Upon review and approval in Oracle Payables, the receiver operating unit runs the process Create Accounting to create subledger accounting entries for the supplier invoices in Oracle Subledger Accounting. When you run the process in final mode, you can optionally choose to transfer the accounting to Oracle General Ledger.

The receiver operating unit interfaces the supplier invoice to Oracle Projects, which pulls in the non-recoverable tax amounts as additional project costs.

(Optional) You can require the receiver operating unit to run additional customized processes to create additional accounting entries in Oracle Subledger Ac

Revenue

Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.

AccountDebitCredit

Unbilled Receivables and/or Unearned Revenue200.00

Revenue200.00

Note:

* Payroll

*Time & Labor.

There are many reports within Oracle Time & Labor to gather data about timecards entered through self-service and to gather data about timecards that you have transferred to the professional forms timecard window.

Note:

*Oracle Projects processes tasks based on their position in the structure. The three distinct positions are:

Top Task: A task whose parent is the project

Mid Task: A task that is not a top task or a lowest task

Lowest Task: A task that is at the bottom of the structure, without any child tasks

*You can configure transaction controls by the following:

Expenditure Category

Employee

Expenditure Type

Non-Labor Resource

Note:

*You define project classifications to group your projects according to categories you define. A project classification includes a class category and a class code. The category is a broad subject within which you can classify projects. The code is a specific value of the category.

*(see step 3 below)Defining class categories and class codes

To define class categories and class codes:

1.Navigate to the Class Categories and Codes window.

2.Enter a unique Class Category name and a Description.

3.Specify whether the class category is mandatory for every project you define.

Enable if all projects must have a code assigned to this class category. Do not enable if this class category is optional. If you do not enable this option, you cannot use this class category in your AutoAccounting rules.

4.Specify whether you want to use the class category in your AutoAccounting rules.

Suggestion: For each project, you can use only one code with one class category for use with AutoAccounting rules. If an AutoAccounting category already exists within a particular date range, assign an end date to the existing AutoAccounting category and then create a new one.

5.Specify whether you want to allow entry of only one class code with this class category for a project.

Note: Defining multiple class codes for one category for a project may affect reporting by class category; defining multiple class codes may cause your numbers to be included more than once.

6.Enter the Name, Description, and Effective Dates for each class code.

7.Save your work.

The Automatic Invoice Approve/Release Extension allows you to release invoices automatically as part of the Generate Draft Invoice process.

Incorrect:

Not E:

Generating Revenue Accounting Events

After you generate and release the revenue, you run the concurrent program PRC: Generate Revenue Accounting Events. The concurrent program determines default unearned revenue and unbilled receivables accounts using AutoAccounting and generates accounting events for Oracle Subledger Accounting.

Note: If you set the profile option PA: Interface Unreleased Revenue to GL to yes, then Oracle Projects automatically releases any unreleased revenue when you run the concurrent program PRC: Generate Revenue Accounting Events.

Oracle Projects uses predefined transaction sources to import project allocations and capitalized interest transactions that it generates internally.

Note:

*You can set this at the Inventory Organization level in the Project Manufacturing Parameters window, the Costing tabbed region. This allows WIP employee resources and Project straight time hours to be summarized as Straight Time Expenditure Type Class.

*expenditure type class

An additional classification for expenditure types that indicates how Oracle Projects processes the expenditure types. For example, if you run the Distribute Labor Costs process, OracleProjects will calculate the cost of all expenditure items assigned to the Straight Time expenditure type class. Formerly known as system linkage