EDU31E5Y - Project Billing Overview

7/24/2019 EDU31E5Y - Project Billing Overview

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Copyright 2006, Oracle. All rights reserved.

Oracle Project Billing Overview

Financial Applications Overview


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Objectives

After completing this module, you should be able to do thefollowing:

Describe the overall Project Billing Process

Describe all the information reuired for contractproject definition

Define an agreement and fund a project

!"plain fundamental revenue concepts and describe therevenue flow

!"plain fundamental invoice concepts and describe the

invoice flow

Briefly provide an overview of interproject billing

Describe the integration with Oracle Project #ontracts


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Agenda


Defining contract projects

Agreements and Funding

$evenue #oncepts and Flow %nvoice #oncepts and Flow

$evenue and %nvoice Accounting

%nterproject Billing

%ntegration with Oracle Project #ontracts


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Oracle Project Billing

Accrue $evenue

&enerate %nvoices

#ollect$eceivables in

Oracle$eceivables

'anage Bac(log) 'argin

Billing 'ethods

*ime ) 'aterials

Fi"ed Price

+ pent

+ #omplete

'ilestone

#ost$eimbursable

Automatic &eneration

Funding -imit 'gmt.

Online $eview ) Approval

Drilldown to Detail

*rac( ProjectBillings


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Agenda




$evenue #oncepts and Flow %nvoice #oncepts and Flow





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#ontract Projects

#ost

$evenue

Billing

ContractProjects

*rac(


7/66Copyright 2006, Oracle. All rights reserved.

Overview of Projects and *as(s

A project is a primary unit of wor( that can bebro(en down into one or more tas(s.

Project

*as( / *as( 0

*as( /.0*as( /./ *as( 0./ *as( 0.0

*as( /././ *as( 0.0.0*as( 0.0./



Overview of Project *emplates

*,Bid andProposal

*,#ell *ower#onstruction

*,$adio *ower#onstruction

Project *emplates Projects

1ou use project templates to create new projects. All projectsultimately originate from a template.



Project #lasses and Project *emplates

1ou must create at least one project template for every projectclass that your company uses.

Projects

Project #lass: #ontract

Project *emplate

*, #ost Plus#ost Plus

Project *ype



Defining Project *emplates

Project *emplate

Define a 2ew project

template

#opy an e"istingproject or project

template

Project *emplate

*here are two methods for creatingproject templates:



Defining Projects

#opy

#opy a project template or an e"istingproject to create a new project.



Project #lasses and Project *ypes

%ndirect

#apital

#ontract

Project #lasses Project *ypes

Bid and Proposal

Overhead

#onstruction

#ost Plus

Fi"ed Price



Billing %nformation *ab

Funding -evel

$eali3ed &ains and -osses !vent *ypes

Funding $evaluation %ncludes &ains and-osses

$evaluate Funding

Baseline Funding without Budget

First Bill Offset Days

Billing #ycle

%nvoice Formats

Bill $ate chedules 4 2on4-abor

Bill $ate chedules 4 -abor

Billing 5ob &roup

Billing %nformation



Billing Assignments *ab

Assign billing e"tensions tothe project type

Project *ype

#ontract Projects

*he e"tensions will apply to all projectsassociated with the project type



Distribution $ules *ab

Accrue revenue and bill as wor( occurs6or(76or(

Accrue revenue as wor( occurs, bill based on events6or(7!vent

Accrue revenue based on events, bill as wor( occurs!vent76or(

Accrue revenue and bill based on events!vent7!vent

Accrue revenue using the ratio of actual cost tobudgeted cost 8percent spent9, bill as wor( occurs

#ost76or(

Accrue revenue using the ratio of actual cost tobudgeted cost 8percent spent9, bill based on events

#ost7!vent

Accrue revenue and bill using the ratio of actual costto budgeted cost 8percent spent9

#ost7#ost

DefinitionDistribution

$ule

Distribution rules



#ustomers

1ou use customers defined in Oracle $eceivables for contract projects.

Oracle Project Billing

Oracle $eceivables

#ustomer



Default *op *as( #ustomer

Default *op *as(

#ustomer !nabled

Project

*as( / *as( 0

*he customer that you select as the

Default *op *as( #ustomer is the defaultcustomer for the top tas(s on the project.



Project #ontact %nformation

#ustomer 2ame: Port of Oa(land

#ontact -ast 2ame: -as(y

#ontact First 2ame: 5ohn

*itle: 'r. 5ob *itle: AP upervisor

Bill: 1es

hip: 1es

!"ample: Project #ontact %nformation on a contract project.



#urrency Options

%n the Billing tab of the #urrency window, you can:

!nable multi4currency functionality

elect the currency type8s9 to use for the revenuetransaction currency

elect the currency type8s9 to use for the invoiceprocessing currency

Define currency conversion attributes



$evenue in Foreign #urrency

Project

Project Functional

Project Funding

$evenue #urrencies

%nvoice *ransaction

%nvoice #urrency

Oracle Project Billing generates revenue in project, project functional andproject funding currencies while generating invoices in invoice

transaction currency.



Bill $ates

A bill rate is an amount or percentage that is applied to a unit 8of timeand materials9 to calculate revenue and invoicing.

1ou can specify the following bill rates in Oracle Projects:

2on4-abor Bill $ates

5ob Bill $ates

!mployee Bill $ates



#ustomer Billing $etention

%nvoiced Amount ;



Defining the $etention -evel and *erms

$etention at

project4level

$etention at

top4tas( level

For each project customer, you can define retention terms at either theproject level or the top tas( level.



Billable tatus #ontrol

1ou can control which transactions charged to theproject are billable and which are nonbillable.

Billable items can accrue revenue, can be invoiced andcan be reimbursed by the client.

2on4billable items do not accrue revenue, cannot beinvoiced and are not reimbursed by the client.

1ou can control billable items in two ways:

%dentify tas(s that are billable or nonbillable.

>se transaction controls to further control billable statusby person, category, type, and nonlabor resource.



Billable *ransaction #ontrol

In this ea!ple, A!y "arlin can charge la#or. Clerical la#or is not#illa#le. $illa#ility %or her other la#or charges is deter!ined %ro! the

tas& #illa#le stat's. (othing else is chargea#le )incl'sive control*.

-imit *o: !nabled 8%nclusive #ontrol9

1es

1es

#hargeable

#lerical

2on4clerical

!"penditure

*ype

-abor

-abor

!"penditure

#ategory

Billable!mployee

'arlin, Amy

'arlin, Amy

2o

*as( -evel


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Agenda




$evenue #oncepts and Flow

%nvoice #oncepts and Flow





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Overview of Agreements

#ustomer

?ard or oft -imit

for $evenue

?ard or oft -imit

for %nvoice

#urrency

Organi3ation

An agreement provides the funding for projects and tas(s.

Agreement

#riteria for Agreement Definition.


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Overview of Project Funding

Accrue$evenue

&enerate%nvoice

Project

Agreement

#reateBudget

1ou must fund a project before the project can accrue revenue and bebilled.


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!"ample: Agreements and Funding

*as( 0

*as( @./

*as( @././ *as( @./.0

*as( @.0*as( /./ *as( /.0

*as( @

Project B

*ime ) 'aterial

Project A

Bid ) Proposal

Project #

Fi"ed Price

Project D

#ost Plus

;/==;


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Agreements and Funding Process Flow

#reateAgreement

#reateProject

!nter Approved$evenue Budget

#reateFundingBaseline

&enerate$evenue

&enerate%nvoices

Funded#ontractProject


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&enerating %nvoices and $evenue Accrual

Accrue $evenue

&enerate %nvoices

!nter Agreementand Fund Project


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Agenda










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Project $evenue Overview

#ontract project revenue is the amount recogni3ed asincome to be received for wor( performed on a project.

$evenue received

6or( performedon a project


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'ethods of $evenue Accrual

Oracle Project Billing supports three basic methods ofrevenue accrual.

As4wor(4occurs #ost4to4cost !vent4based


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?ard -imit Processing Overview

1ou specify a hard limit for an agreement to limit revenueaccrual and billing of a project funded by that agreement tothe amount funded.

?ard limits can be set for both revenue and invoice or for

either revenue or invoice. 1ou specify whether to use hardlimits for an agreement in the Agreements form. Fundingcannot be reduced below the accrued revenue if hard limitfor revenue e"ists.


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$evenue Process Flow to &-

&- journal

import

&enerate revenue

accounting event

&eneratedraft revenue

$evenue4generated

e"penditure

items

$evenue4generated

events

Oracle&eneral -edger

&- journalentries

#ost4distributede"penditure

items

!vents

Adjustments

#reate accountingin Oracle ubledger

Accounting

*ransfer to&-


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$evenue Flow

P$#: &enerate Draft $evenue for a ingle Project

or

P$#: &enerate Draft $evenue for a $ange of Projects

P$#: &enerate $evenue Accounting !vents

P$#: #reate Accounting

P$#: *ransfer 5ournal !ntries to &-

8optional9

5ournal %mport

8Oracle &eneral -edger9

ubledger accounting processing flow for revenue


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&enerate Draft $evenue

P$#: &enerate Draft$evenue for a ingle

Project

P$#: &enerate Draft$evenue for a $ange of

Projects

ubmit processes togenerate draft revenue


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#reating $evenue Distribution -ines

*he &enerate Draft $evenue concurrent program creates revenuedistribution lines for each eligible e"penditure item and revenue event.

$evenue distribution line

#ost distribution line

!"penditure item

!"penditure

$evenue distribution line

$evenue event


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&enerate $evenue Accounting !vents

P$#: &enerate $evenueAccounting !vents

ubmit concurentprogram to generate

revenue accountingevents


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#reate Accounting

ubmit concurrentprogram to createaccounting for revenue

lines

Accounting entries in

Oracle ubledger Accounting

P$#: #reate Accounting

P$#: *ransfer 5ournal!ntries to &-


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$eview Project $evenue

ome of the details you can review in the $evenue $eview window are:

Project functional andrevenue transaction

currency

$evenue generationwarnings

Date the revenueaccounting event was

generated


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Detailed Accounting *ransactions

1ou can review detailed accounting transactions for revenue items inthe following windows:

$evenue -ines $evenue -ineDetails


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Ciew Accounting -ines

-ine *ype Account Debit #redit

-abor $evenue =/40=4/@=4==== /,EE.//

>nbilled

$eceivables

=/4===4/0@04==== /,EE.//

>nearned$evenue

=/4===40


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Accrue4*hrough Date

*he accrue4through date controls which billable e"penditure items andrevenue events are processed.

Accrue4through

date


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$eleasing $evenue

1ou can release revenue in the $evenue $eview window or when you

release a project invoice.

$evenue $eview6indow

%nvoice ummary6indow


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Agenda










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%nvoice #oncepts

!vents

Percent complete

'ethods of invoicing

Billing amounts

Accounting dates

?ard limit processing


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?ard -imit Processing for %nvoices

!"ample of %nvoice ?ard -imit

*as( @.= revenue budget ;/,=== Funded by an agreement with hard limit 1es

*his table presents the Billed !"penditure %temsG:

%nvoice 6arning: %nvoice has reached the hard limit.

/===*O*A-

nitsIty!"p *ype!mployee*as(


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Overview of Accounting Dates

All invoices are accounted for using these dates :

PA date: Date accounted for based on PA periods

&- date: Date accounted for based on &- periods


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$eview of Billing Amounts

!ach transaction has two billing amounts when processed:

$evenue amount

%nvoice amount

Both these amounts are calculated as follows:

$ate based Iuantity J Bill $ate

#ost mar(up $aw #ost J 8/ K 'ar(up9


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'ethods of %nvoicing

1ou specify the invoicing method based on the distributionrule that you select for the contract project.

upported Distribution $ules

Distribution $ule $evenue 'ethod %nvoicing'ethod

6or(76or( As46or(4OccursAs46or(4Occurs

6or(7!vent !vent7'ilestoneAs46or(4Occurs

#ost76or( As46or(4Occurs#ost4to4#ost

#ost7!vent !vent7'ilestone#ost7#ost #ost4to4#ost

!vent7!vent !vent7'ilestone!vent7'ilestone

!vent76or( As46or(4Occurs

#ost4to4#ost#ost4to4#ost

!vent7'ilestone


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Overview of %nvoice Flow

&enerate Draft %nvoice

$eview and Adjust %nvoice

Approve %nvoice

$elease %nvoice

%nterface %nvoice

Print %nvoice


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&enerating %nvoices

P$#: &enerate Draft%nvoices for a $ange

of Projects

P$#: &enerate Draft%nvoices for a ingle

Project

ubmit program to

generate invoice for asingle project.

ubmit program to runmultiple invoice

generation processes


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%nvoice4$elated etup teps

Define %nvoice Print 'ethodDefine %nvoice Formats

teps related to %nvoices


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Defining %nvoice Formats

An invoice format determines how Oracle Project Billing creates aninvoice line.

%ntercompany %nvoice Format

#ustomer %nvoice Format

*ypes of %nvoice Formats


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Defining %nvoice Print 'ethod

OracleProjects

Oracle$eceivables

1ou can print invoices either from Oracle Projects or from Oracle$eceivables. Oracle Projects interfaces invoices to Oracle $eceivables forprinting. *o print from Oracle Projects, you must write a custom program.

%nterface

%nvoice

%nvoice printing

program

#reate custominvoice

printing program


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%nterfacing %nvoices to Oracle $eceivables

Oracle Project Billing interfaces invoices to Oracle$eceivables.

1ou can use an %nterface treamline option to interfaceinvoices to Oracle $eceivables.

%n turn, Oracle $eceivables creates accounting in Oracleubledger Accounting.

OracleProjects

$eleasedinvoices

%nvoices

5ournalentries

Oracle$eceivables

Oracle&eneral-edger

Oracleubledger

Accounting


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%nvoice Flow to Oracle $eceivables

$eceivablesinterface

$evenuedistributed

costs

$eceivablesinvoices

&eneratedraft invoice

%nterface to$eceivables

*iebac( invoices

Approve7releaseinvoice

$eceivables

Auto%nvoice

Oracle$eceivables

!vents

Adjustments


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Ciewing %nvoices in Oracle $eceivables

Project 2umber

Draft %nvoice 2umber

Agreement 2umber

Project Organi3ation

Project 'anager

%n addition to information such as the %nvoice 2umber, %nvoice Date and*otal %nvoice Amount, you can uery on the above information in Oracle

$eceivables.


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Accounting *ransactions

OracleProjects

OracleubledgerAccounting

Oracle$eceivables

%nvoices

$evenueAccounting

%nvoice and$eceipt

Accounting

#ustomers

%nvoices

$eceipts

*ransfer to &-


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Agenda










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ProviderProject

$eceiverProject

#ollect#osts

%nterproject%nvoices

#osts

$eceivables%nvoice

Payables

invoice


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Agenda










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#ompleted

Deliverable

Deliverable *rac(ingystem

&enerate Delivery4based

billing event

Bill it

Oracle Project #ontracts Oracle Projects

6hen a deliverable is completed in Oracle Project #ontracts, itautomatically creates a billing event in Oracle Projects.


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ummary

%n this module, you should have learned how to:

Describe the overall Project Billing Process

Describe all the information reuired for contractproject definition

Define an agreement and fund a project !"plain fundamental revenue concepts and describe the

revenue flow

!"plain fundamental invoice concepts and describe the

invoice flow Briefly provide an overview of interproject billing

Describe the integration with Oracle Project #ontracts

Documents

EDU31E5Y - Project Billing Overview