Overview of Projects in r12

Release 12 Oracle Projects Overview Angela Chen, PMP Principal Sales Consultant

Oracle Proprietary and Confidential Information

• Purpose: This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12.

• Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.


Enterprise and Project Insight

Resource Management

Accounting & Operations Collaboration

Project Management

Project Initiatives

Personalized Role-Based Views

Global Project

Repository

Global Project

Repository

Integration to E-Business Suite

Oracle Projects Suite

Portfolio Management

Sales Delivery

Research

Product Development

Information Technology

Construction

Marketing

Financials

HR

Time & Labor

Sales

Supply Chain

Documents

MS Project & Excel

Integration to Desktop Tools


Major New Release Projects Family Pack M (FP.M) released in May 2005

Project Selection Project Selection • Project Categorization • Project Prioritization • Selection • Reallocation

Work Resources Finances

Work Resources Finances

Project Planning Project Planning

Project Execution Project Execution Project Control Project Control

Project Reporting Project Reporting • Integrated Work &

Resource Planning • Project Budgeting • Enhanced workplan

definition • Financial and work

structures • Multiple resource

types and hierarchies

• Team Member Work Space • Deliverables • Contingent workers • Progress Reporting

• Enhanced Progress Collection

• Earned Value • Budget vs. Actual • Streamlined

Forecasting • Change Impact • Charge Backs • Enhanced Billing

• Project Performance

• Exception mgt. • Program mgt


“Everything is a Project”

R&D Facilities Mgt. Finance Internal IT Capital Projects New Products

E&C Communications

Utilities Professional/Business

Services Public Sector

Manufacturing Staffing

Life Sciences Home Building

Vert

ical

App

licab

ility

Horizontal Applicability

“In the future, all work will be project work” -Tom Peters


Proof Points 1 “Future killer applications for the enterprise are projected to be around

business activity monitoring, in helping to manage projects, for asset management, contract management and for managing vendors and suppliers.” Gartner [is] seeing a trend in its customers whereby almost everything today [is] a project with a beginning and an end.”

- Bob Hayward, Gartner August 2005

2 “In the first 17 years of PMP certifications through 2000, about 25,000 PMP certifications were awarded. In the five years since more than 100,000 were awarded; 25,000 in just the first 5 months of 2005.”

- The Project Management Institute, November 2005

3 “Ultimately, project based software solutions focus on managing an supporting project based business processes.”

- Ray Wang, Forrester, 2006

4 “Project management will increasingly be recognized as an enterprise core competence in its own right, in a wider range of companies and industries.”

- Capgemini Les Fontaines Future Trends Event , October 2005


Project Management Revenue Soars!

FY05 – FY06 38% Increase!


How Efficient Are You? Gartner 2005 APM 2005


Biggest Management Challenges of 2006

Source: Computerworld, 1/9/06, “What’s Next: Project Management”, Mary Brandel; Survey of 338 IT Executives

Managing Projects

33%

Budget Constraints

27%

Regulatory Compliance

13% Dealing with Mergers or

Acquisitions 11%

Managing Personnel

6%

Outsourcing 5%

Other 5%


Disconnected Information, Processes, and Systems

InvoicesInvoices & & ActualsActuals

Contractors

Management

Project Centric Dept

DeliverablesDeliverables

ProjectProject PlansPlans

Budgets Budgets && ForecastsForecasts

StandardsStandards & & ProcessesProcesses

RisksRisks

StrategyStrategy

ResourcesResources Business

Units


Project Management Continuum The Evolution of Project Management

Project Complexity

Team of One

On Site Teams

National Teams

Global Teams

Focus of R12

PMI Estimates*: • 16.5M Potential Global Practitioners • US $10 Trillion spent globally on projects each year

Source: Project Management Institute, Presentation to Oracle February, 2006

Proj

ect T

eam

Siz

e


Source: PWC, 9th Annual Global CEO Survey

Extent to which value creating activities increase complexity

Business Complexity Increasing

39

39

34

36

33

26

29

26

29

33

36

35

33

42

10

11

16

16

23

32

23

0 20 40 60 80 100

Outsourcing

Business ProcessLocalization

Offshoring

Strategic Alliances

New Product Launches

M&A

Expansion into NewTerritories

77% of global CEOs say the level of complexity in their organizations is higher than 3 years ago

Percent

Some Extent

Large Extent

Very Large Extent


Globalization Key to Competitiveness

• The World is Flat • R&D: Proctor & Gamble to source 50% of new product

ideas from global partners by 2010. • Design: Boeing designing navigation and landing gear

systems offshore in India. • Custom Application Development: Virtually everyone -

Oracle

“Our strategy is to work with global networks to leverage the best technologies on the planet.” – HP SVP Dick Conrad

Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is

this a good thing? Nearly two-thirds of the CEOs we surveyed are positive about the impact that globalization will have on their organizations over the

next three years. Source: 9th Annual Global CEO Survey – Globalization and Complexity; PwC 2006


Managing Complexity It’s About Simplification & Standardization

50% of senior executives say simplification is driving the Finance agenda.

33% Reducing reliance on spreadsheets

52% Optimizing the finance organization and its reporting structure

58% Adopting best practices

59% Standardizing and integrating finance systems

66% Standardizing policies and business rules

69% Standardizing operating practices and controls

Major Focus

Source: PWC Management Barometer


R12 Goals The Global Business Release

3

• Think Globally to make the right decisions •“I can make more informed decisions with a global view of customer / supplier / partner / operations”

• Work Globally to be more competitive •“My business will be more competitive with better support for work that crosses applications, divisions, and regions”

• Manage Globally to lower cost and increase

performance •“R12 makes it easier and less expensive for me to implement, manage, and scale global applications”


WORK GLOBALLY To Be More Competitive

WORK GLOBALLY To Be More Competitive

THINK GLOBALLY To Make the Right Decisions

THINK GLOBALLY To Make the Right Decisions

MANAGE GLOBALLY To Lower Cost & Increase

Performance

MANAGE GLOBALLY To Lower Cost & Increase

Performance

How Release 12 Contributes The Global Business Release

Subledger Accounting

Multi-Org Access Control (MOAC)

Standardized Data Model for MRC

Program Management

Portfolio Management XML Publisher

Fusion Middleware Performance Management

Supplier Cost Management

Subcontractor Payment Management Uptake

Revenue in a Foreign Currency

Oracle Projects Specific

BPEL


Release 12 Financial Initiatives (Projects Uptake)

• Subledger Accounting Uptake

• Multi-Org Access Control (MOAC)

• Legal Entity / Ledger Architecture

• Standard Data Model for Multiple Reporting Currencies – MRC Migration

• Budget Controls and Public Sector Accounting – Funds Management

• TCA Uptake

• eTax Uptake


Release 12 Projects Initiatives

• Supplier Cost Management • Improved Project Costing with Cash Basis Accounting

• Removal of Supplier Cost Adjustment Restrictions

• Mass Adjust Concurrent Processing

• Aids for Oracle Payables and Project Costing Reconciliation

• Flexible Derivation of Expenditure Item Date

• Subcontractor Payment Management Uptake

• Revenue in a Foreign Currency


Release 12 Financial Initiatives






• TCA Uptake

• eTax Uptake


• What is Subledger Accounting?

• SLA is an intermediate step between subledger products and

the Oracle General Ledger

• Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger

• Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model



Release 11i Accounting model and

transaction model are tightly integrated

Release 12.0 Accounting model is separated

from the transaction model

Subledger Products

Projects

Payables

Receivables

General Ledger

Subledger Products

Projects

Payables

Receivables


AR Rules & journal entries

PA Rules & journal entries

AP Rules & journal entries

General Ledger

Subledger Accounting Upgrade / Setup


• Infrastructure to centralize accounting setup • Subledger Accounting is the engine used to store the rules

for accounting transactions from various applications across the Oracle E-Business Suite

• Infrastructure to standardize accounting policies • Business users can extend predefined accounting rules or

create their own rules allowing organizations to react immediately to change.

• Extensible list of sources to derive accounts • Projects will be seeding over 300 sources to help customers

derive accounts and account descriptions




• Upgrade process seeds SLA with rules to automatically accept the accounts that Projects sends (derived from AutoAccounting)

• Existing Customers: • If the accounting provided in Release 11i is satisfactory, then

it is recommended that customers leave their AutoAccounting and SLA setups untouched.

• May utilize SLA setups if AutoAccounting did not fully meet their needs.


Release 11i Release 12

Subledger Accounting Flow Comparison for Expenditures

Enter or import expenditures

Distribute costs

Interface Costs to GL

Journal Import (Oracle GL)

Tieback Cost Distributions from GL Journal Import (Oracle GL)

Create Accounting

Generate Cost Accounting Events

Enter or import expenditures

Distribute costs


Release 11i Release 12

Generate Revenue for a Single/ Range of Projects

Review Revenue

Release Revenue

Interface Revenue to GL



Create Accounting

Generate Revenue Accounting Events

Generate Revenue for a Single/ Range of Projects

Review Revenue

Release Revenue

Subledger Accounting Flow Comparison for Revenue








• TCA Uptake

• eTax Uptake


Multi-Org Access Control

• Business Need • Companies are redesigning their support functions with the

intent of pulling out non-strategic overlapping tasks from their individual business units, enabling them to concentrate on core business

• These functions (previously non-strategic) now become

strategic and the core functions of a shared service center

• Multi-Org Access Control provides the foundation for meeting the shared service requirements by allowing the access to data across operating units from a single responsibility.


N. America

S. America

UK

France

Germany Data Entry Data Processing Reporting

Japan

Data Entry Data Processing Reporting





Structure Prior to Share Service Center


Shared Service Center Data Entry Data Processing Reporting

N. America

S. America

UK

France

Germany

Japan








Multi-Org Access Control

• Data Entry - Enter data for multiple operating units from a single responsibility

• Inquiry and Adjustments - Inquire and adjust data from multiple operating units from a single responsibility

• Processing and Reporting - Run concurrent programs and reports for multiple operating units from a single responsibility








• TCA Uptake

• eTax Uptake


Legal Entity Uptake

• Provides a clear and consistent legal entity model. • Strengthen the role of Legal Entity in Oracle

Applications Separate Legal Structure and Operations Structure

• Projects Uptake -

• Legal entity context derived from operating unit – no change from 11i


Ledger Architecture

Difference between SOB and Ledger SOB - A Set of Books was a general ledger with its associated

subledger books (AR. AP, etc.) and was self contained as to management, calendaring and reporting

• Ledger - general data - transactions and balances - for a particular

accounting entity • Benefits

• Explicit Accounting Modeling for Legal Entities • Cross/Multiple-Ledger Processing and Reporting • Management Reporting Efficiency • Rapid Close

• Single Data Source: Minimum Data Replication and Reconciliation

• Streamlined and Scalable High Volume Processes








• TCA Uptake

• eTax Uptake


Multiple Reporting Currency Migration

• Oracle Projects has eliminated • Set of Books Currency Selection during the Inquiry • MRC Columns in folders • Switching currency for the Project Functional Amount • Concurrent Programs for interfacing the MRC amounts to the Reporting Set

of Books/Ledger

• You can view the Multiple Reporting Currency (MRC) amounts in Projects by choosing the Alternate Ledger Currency from View Accounting

• Release 12 onwards, MRC amounts for new transactions in Projects

will be displayed from Sub-Ledger Accounting Module

Consistent approach in Alternate Ledger Currency amount calculation MRC calculation centrally managed

Key Benefits








• TCA Uptake

• eTax Uptake


• Budgetary Control API (commonly known as GL Funds Check API) is enhanced to provide better integration with other sub-ledger applications :

• Projects Impact:

• Uptake SLA for Encumbrance Accounting • Uptake new budgetary control API • Streamlined funds check data flow to minimize dependencies

Funds Management Uptake








• TCA Uptake

• eTax Uptake


• TCA a.k.a Oracle Trading Community Architecture is a model that includes:

• A global registry of organizations, people, addresses, and

the relationships among them • Public API’s for custom development • Support for Integration with 3rd party content providers

• Projects Impact:

• Migrate for RA_Views to HZ_Tables

TCA Uptake








• TCA Uptake

• eTax Uptake


• eTax a.k.a E-Business Tax is a tax engine includes: • Content Repository which contains rules and definitions

required to calculate tax • Record Repository which is the actual transaction tax data

required for auditing and reporting purposes • Services such as tax content, tax determination & tax

administration services

• Business Need: • Requirement to calculate taxes consistently for inter-

company transactions • Requirement to show taxes on Draft Invoices within Projects • Maintain consistency across e-Business Suite

eTax Uptake


• Setup via eTax (at the project level, expenditure type level, event level)

• Customer Invoicing

• Pass eTax tax code to AR on invoices/credit memos so that eTax can generate the appropriate tax lines.

• InterCompany Invoicing • Tax line generation through eTax supported on

Intercompany Invoicing. • Integration with Payables and Receivables

eTax Uptake


E-Business Tax Integration







• Flexible Derivation of Expenditure Item Date




Supplier Cost Management

• Since its inception, Oracle Payables modeled invoices with headers and distributions. Disadvantages … • Line item info on the physical document is not available in the

system. • Calculation of item charges is cumbersome because the item itself is

split across multiple distributions. • Approval and payment processing requires accounting and tax

creation.

• In Release 12, Payables is introducing a new entity called “Invoice Lines”. Advantages … • Line item info can be captured and accurately reflected in the

system. • Transaction processing is separate from accounting (SLA) and tax

(eTax) processing. • Variances will now be separate lines and distributions.

Oracle Payables Invoice Lines Entity

Invoice Supplier: Advanced Networks Invoice Num: 11111 Date: 13-JUN-2001 Line # Item Qty Unit Price 1 Computer 1 $1000 2 Printer 1 $500 3 Tax (10%) $150 _______________________________ Total $1650


Oracle Payables Invoice Workbench


Supplier Cost Management Projects Uptake • Improved Project Costing with Cash Basis

Accounting


• Supplier Cost Adjustment Accounting Performed by Oracle Projects

• New Mass Adjust Concurrent Process

• New Aids for Reconciling Supplier Cost with Other Products

• Removal of Pre-approved Batch Entry for Expense Report Entry in Projects


New Supplier Cost Audit Report


Supplier Cost Audit Report Runtime Parameters

Parameters available: All, Supplier Invoices, Expense Reports, Receipts, Payments


Expenditure Inquiry Find Window


Expenditure Inquiry

New columns available: Document Type PO Number Doc Distribution Type PO Line Number Invoice Number PO Distribution Number Invoice Line Number PO Price Type Payment Number PO Receipt Number Invoice Distribution Line Number


Invoice Workbench







• Flexible Derivation of Expenditure Date from Purchasing




Subcontractor Payment Management

• An integrated solution for services procurement used to model complex work contracts where advanced payment terms need to be considered during execution

• Commodities / Industries of Interest • Professional Services • Engineering and Construction • Aerospace and Defense • Public Sector


Subcontractor Payment Mgmt Business Flow

Apply Retainage Release Retainage Pay Advances Liquidate Advances

Author Contract

Invoice

Request to Subcontract Work

Source

Supplier

Supplier Reports Progress

Certify Progress/ Stage of Completion

Submit SOV Award Contract


• Commitment Reporting - Financing pay items, Retainage not shown as

commitments - Unmatched prepayments are displayed as

commitments • Budgetary controls – Retainage distributions

are not funds checked against the project budget.

Subcontractor Payment Management Projects Impact







• Flexible Derivation of Expenditure Date from Purchasing




• Support Revenue Revaluation in GL

• Calculate revenue including unbilled receivables and unearned revenue in revenue transaction currency

• Interface project revenue to Subledger Accounting for posting to General Ledger in project functional currency and in revenue transaction currency

Revenue in a Foreign Currency


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


Revenue in Foreign Currency Setup – Project Customers

Invoice Transaction Currency = CAD (Project Functional Currency = USD in this example)


Event Currency = Invoice Transaction Currency = 150,000 CAD in this example

Revenue in Foreign Currency Revenue Event Creation


Revenue in Foreign Currency Revenue Review

New columns added


For More Information… Metalink Information:

–http://metalink.oracle.com/ Oracle Product Documentation:

–http://www.oracle.com/technology/documentation/applications.html –All Projects Books republished!

–Oracle Projects Fundamentals (B25617-02) –Oracle Projects Implementation Guide (B25623-02) –Oracle Project Costing User Guide (B25618-02) –Oracle Project Billing User Guide (B25619-02) –Oracle Project Resource Management User Guide (B25620-02) –Oracle Project Management User Guide (B25621-02) –Oracle Project Portfolio Analysis User Guide (B25622-02) –Oracle Project Contracts Implementation Guide (B25715-01) –Oracle Project Contracts User's Guide (B25716-01) –Oracle Projects APIs, Client Extensions, and Open Interfaces Reference (B25624-02)

– Projects Collateral & Whitepapers: http://www.oracle.com/applications/projects/intro.html