Oracle_ProjectCostManagementDocumentation

Copyright © 2010, Oracle. All rights reserved.
Defining Projects for Costing

2 - 2
Objectives
After completing this lesson, you should be able to do the
following:
• Define a project and set options related to costing
• Define costing currency options
• Set transaction controls

2 - 3
Agenda
• Overview of Project Definition
• Costing-Related Project Information
• Controlling Expenditures

2 - 4
Overview of Projects and Tasks
A project is a primary unit of work that can be broken
down into one or more tasks.
Project
Task 1 Task 2
Task 1.2
Task 1.1 Task 2.1 Task 2.2
Task 1.1.1 Task 2.2.2
Task 2.2.1

2 - 5
Project Classes and Project Types
Indirect
Capital
Contract
Project Classes Project Types
Bid and Proposal
Overhead
Construction
Cost Plus
Fixed Priced

2 - 6
Overview of Project Templates
T,Bid and
Proposal
T,Cell Tower
Construction
T,Radio Tower
Construction
Project Templates Projects
Define default costing
information on project templates.

2 - 7
Organizing a Project Structure
Task 1.1
Middle Task
Project
Task 1 Top
Task
Task 2
Top Task and
Lowest Task
Task 1.2
Lowest Task
Task 1.1.1
Lowest Task

2 - 8
Basic Project Information
Project Organization
Project Name
Long Name
Project Number
Project Type
Project Status
Description
Public Sector
Access Level
Location

2 - 9
Quiz
A top task can also be considered a lowest task, if the task
does not have any child tasks.
a. True
b. False

2 - 10
Quiz
While entering project related information, you cannot enter the
project number because it is automatically generated by the
system.
a. True
b. False

2 - 11
Agenda

2 - 12
Burden Schedules for Costing
Burden costs (also referred to as indirect costs)
allocate overhead costs to projects to provide a more
accurate view of total cost.
Raw Cost + Burden Cost = Total Burdened Cost
Raw Cost x Burden Multiplier = Burden Cost

2 - 13
Organization Overrides
Timecard - Donald Gray
Expenditure Organization:
Services-East
Expenditure
Override Organization:
Services-West
Organization Override
Employee: Donald Gray
Destination Organization:
Services-West

2 - 14
Project Currency
Canadian Operating Unit
Project Functional Currency = CAD
Project Operating in India
Project Currency = INR
Project Operating in Japan
Project Currency = JPY

2 - 15
Currencies and Expenditures
Airfare
120.00 EUR
Transaction Currency
Swiss Operating Unit
190.43 CHF
Expenditure
Functional Currency
US Operating Unit
153.12 USD
Project
Functional Currency
80.27 GBP
Project Currency
Cross
Charge

2 - 16
Costing Currency Options
Project
Task 1
Task 1.2
Task 1.1
Implementation Options
for the project’s
operating unit
1. Task values
2. Project values
3. Currency
Implementation
Option values
Default project currency attribute hierarchy

2 - 17
Quiz
The currency that you define for a project cannot differ from the
functional currency of the operating unit that owns the project.
a. True
b. False

2 - 18
Agenda

2 - 19
Controlling Expenditures Overview
Project Status
Task Chargeable Status
Transaction Dates
Transaction Controls

2 - 20
Project Statuses
Use project statuses to control whether you can create new
transactions and whether you can adjust transactions on a project.
Create New Transactions
Adjust Transactions
Project status controls related to
transactions.
Assign project
status

2 - 21
Task Chargeable Status
Project
Task 1 Task 2
Task 1.2
No
Charges
Allowed
Task 1.1 Task 2.1
Task 1.1.1
No
Charges
Allowed
Task 2.1.2
Allow
Charges
Task 2.1.1
Allow
Charges
Disable the Allow Charges check box to
prevent new charges to tasks.

2 - 22
Transaction Dates
Start End
Time
Transaction Date Range
Expenditure Item Dates
must fall in this range.

2 - 23
Timecard
Expenditure Type:
Clerical
– Clerical -- Chargeable
– Airfare -- Not Chargeable
Expense Report
Expenditure Type:
Airfare

2 - 24
Exclusive and Inclusive Transaction Controls
Exclusive
– Limit to check box = Disabled
– By default, everything chargeable
– Specify non-chargeable charges
Inclusive
– Limit to check box = Enabled
– By default, nothing chargeable
– List what is chargeable

2 - 25
Allowable Charges for Each Transaction Control
Administrative
Expenditure Type
Labor
Labor
Expenditure
Category
Limit To: Enabled (Inclusive Control)
Chargeable
Employee
No
Yes
In this example, all employees can charge labor, except
Administrative labor cannot be charged. Nothing else is
chargeable (inclusive control).

2 - 26
Determining if an Item is Chargeable
Validate expenditure item date against
project and task transaction dates
Validate that the project status allows
new transactions
Validate that the task is chargeable
Validate transaction controls at task
and project levels
Call the transaction control extension
Validate Transaction
Standard
Validation

2 - 27
Quiz
To allow a user to adjust a transaction on a project, you must
assign the project a status with the status control ____ enabled.
a. Allow Actual Transactions
b. Create New Transactions
c. Adjust Transactions
d. Capitalized Interest

2 - 28
Summary
In this lesson, you should have learned how to:
• Create projects for use with Oracle Project Costing
• Set project options
• Explain the options for controlling expenditures

Oracle_ProjectCostManagementDocumentation

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