1. Collaborative SIG Presentation: Projects to Profit Fundamentals
Becky Alvarez,
Rysigo Technologies Corp.
and
Wendy Lamar,
Rolta TUSC

2. Agenda
About the Presenters
Introduction
Configuration
Flow

3. Wendy Lamar Senior Management Consultant with Rolta TUSC
Over 13 Years Experience Implementing and Supporting Oracle Applications
OAUG Project SIG Development Liaison
Duties Include Gathering Customer ERs and Facilitating Prioritization and Communicating Those to Oracle Product Strategy

4. Becky Alvarez – Director of E&C Practice
WHAT WE DO
Rysigo Technologies Corp. provides Collaborative Work Management software and services.
STRATEGIC CONSULTING SERVICES
SPECIALIST AREAS
Business and Finance Transformation
Management Consulting
ERP, CRM and Analytics Reporting
Applications Management
Engineering and Construction
Professional Services
Energy and Utilities
Hi Tech / IT
Transportation
Oracle EBS, CRM, Primavera, OBIEE
Global Deployments, Shared Service Centers
Global Program Offices™
Project Centric Organizations
PRODUCTS
Collaborative Proposal Management
Collaborative Risk Management
Risk Management for Oracle Projects
70 years of collective experience designing, building and implementing
many of the Oracle Application is use today.

5. Where are we in the P2P Flow
Introduction
Where are we in the P2P Flow

6. Accounting to Financial Reports
Where are we now in P2P?
Quote to Cash
People to Paycheck
Start
Procure to Pay
Project to Close
Design to Build
Accounting to Financial Reports
End

8. How to Set Up Projects for P2P
Configuration
How to Set Up Projects for P2P

9. Configuration Define Payables Options for Discounts
Prorate Expense: Discount prorated across all distribution lines
Prorate Tax: Percentage of discount prorated across all tax distribution lines
System Account: Credits the total discount to the discount taken account defined in AP Financial Options
Prorate Expense: Oracle Payables automatically prorates discount amounts across
all invoice distribution lines. Oracle Payables credits discount amounts to the
invoice distribution line accounts unless the invoice is matched to a purchase order
with Accrue at Receipt enabled. In this case, Oracle Payables credits the discount
amounts to the price variance account defined on the purchase order. For accrual
basis accounting, Oracle Projects interfaces discount amounts for all project-related
invoice distribution lines with the destination type Expense to Oracle Projects. For
cash basis accounting, Oracle Projects interfaces the payment amount, minus the
discount amount.
• Prorate Tax: Oracle Payables automatically prorates a percentage of the discount
amount across the tax distribution lines. Oracle Payables credits only the percentage
of the discount amount equal to the percentage of the tax amount. Oracle Payables
does not prorate amounts to expense account lines. Oracle Payables credits the
remaining discount amount to the Discount Taken Account that you define in the
Financial Options window. For accrual basis accounting, Oracle Projects interfaces
discount amounts for project-related nonrecoverable tax invoice lines to Oracle
Projects. For cash basis accounting, Oracle Projects interfaces the payment amount,
minus the discount amount.
• System Account: Oracle Payables credits the total discount to the Discount Taken
Account that you define in the Financial Options window. Oracle Payables does not
distribute amounts to invoice distribution lines. For accrual basis accounting, Oracle
Projects does not interface discount amounts to Oracle Projects. For cash basis
accounting, Oracle Projects interfaces two expenditure items. One expenditure item
is for the payment amount minus the discount, and the other expenditure item is
for the amount of the discount. Together, the two expenditure items total to the full
amount of the cost.
Note: You can interface discounts associated with project-related
invoices to Oracle Projects before or after you interface the supplier
invoice to Oracle Projects.
PA: Allow Adjustments to Receipt Accruals and Exchange Rate Variance , page B- 39
Specify whether a you can adjust receipt, receipt nonrecoverable tax, and exchange
rate variance expenditure items in Oracle Projects when exchange rate variance
exists and you convert journals to another currency. For additional information, see:
Restrictions to Supplier Cost Adjustments, Oracle Project Costing User Guide.
• PA: Allow Override of PA Distributions in AP/PO, page B-15
Specify whether Oracle Purchasing and Oracle Payables pass user-entered account
segment values to the Account Generator workflow. If you want to enable users to
override generated accounts, then you must set this profile option to Yes and also
set the Replace Existing Value attribute in the Account Generator workflow to False.
The default value for the Replace Existing Value is False.
• PA: Default Expenditure Item Date for Supplier Cost, page B-41
Specify the source for the expenditure item date. Oracle Projects uses this profile
option when you run the process PRC: Interface Supplier Costs to determine the
expenditure item date for Oracle Purchasing receipts, invoice payments, and
discounts. In addition, Oracle Payables uses this profile option during the invoice
match process, and when you enter unmatched invoices, to determine the default
expenditure item date for supplier invoice distribution lines.
• PA: Default Expenditure Organization in AP/PO, page B-35
Specify the default expenditure organization for project-related information in

10. Configuration Profile Options
PA: Allow Adjustments to Receipt Accruals and Exchange Rate Variance
PA: Allow Override of PA Distributions in AP/PO
PA: Default Expenditure Item Date for Supplier Cost
PA: Default Expenditure Organization in AP/PO
PA: Allow Adjustments to Receipt Accruals and Exchange Rate Variance , page B-39
Specify whether a you can adjust receipt, receipt nonrecoverable tax, and exchange rate variance expenditure items in Oracle Projects when exchange rate variance exists and you convert journals to another currency.
• PA: Allow Override of PA Distributions in AP/PO, page B-15
Specify whether Oracle Purchasing and Oracle Payables pass user-entered account segment values to the Account Generator workflow. If you want to enable users to override generated accounts, then you must set this profile option to Yes and also set the Replace Existing Value attribute in the Account Generator workflow to False. The default value for the Replace Existing Value is False.

11. Configuration
Supplier Invoice and Project Related Purchasing Account Generators
Default Supplier Cost Credit Account
(PA System Options)
Interface AP & PO DFF Profile Options
PA: Transfer DFF with AP
Expense Reports, Vendor Invoices
PA: Transfer DFF with PO
Receipt Accruals
Prorate Expense: Oracle Payables automatically prorates discount amounts across
all invoice distribution lines. Oracle Payables credits discount amounts to the
invoice distribution line accounts unless the invoice is matched to a purchase order
with Accrue at Receipt enabled. In this case, Oracle Payables credits the discount
amounts to the price variance account defined on the purchase order. For accrual
basis accounting, Oracle Projects interfaces discount amounts for all project-related
invoice distribution lines with the destination type Expense to Oracle Projects. For
cash basis accounting, Oracle Projects interfaces the payment amount, minus the
discount amount.
• Prorate Tax: Oracle Payables automatically prorates a percentage of the discount
amount across the tax distribution lines. Oracle Payables credits only the percentage
of the discount amount equal to the percentage of the tax amount. Oracle Payables
does not prorate amounts to expense account lines. Oracle Payables credits the
remaining discount amount to the Discount Taken Account that you define in the
Financial Options window. For accrual basis accounting, Oracle Projects interfaces
discount amounts for project-related nonrecoverable tax invoice lines to Oracle
Projects. For cash basis accounting, Oracle Projects interfaces the payment amount,
minus the discount amount.
• System Account: Oracle Payables credits the total discount to the Discount Taken
Account that you define in the Financial Options window. Oracle Payables does not
distribute amounts to invoice distribution lines. For accrual basis accounting, Oracle
Projects does not interface discount amounts to Oracle Projects. For cash basis
accounting, Oracle Projects interfaces two expenditure items. One expenditure item
is for the payment amount minus the discount, and the other expenditure item is
for the amount of the discount. Together, the two expenditure items total to the full
amount of the cost.
Note: You can interface discounts associated with project-related
invoices to Oracle Projects before or after you interface the supplier
invoice to Oracle Projects.
PA: Allow Adjustments to Receipt Accruals and Exchange Rate Variance , page B- 39
Specify whether a you can adjust receipt, receipt nonrecoverable tax, and exchange
rate variance expenditure items in Oracle Projects when exchange rate variance
exists and you convert journals to another currency. For additional information, see:
Restrictions to Supplier Cost Adjustments, Oracle Project Costing User Guide.
• PA: Allow Override of PA Distributions in AP/PO, page B-15
Specify whether Oracle Purchasing and Oracle Payables pass user-entered account
segment values to the Account Generator workflow. If you want to enable users to
override generated accounts, then you must set this profile option to Yes and also
set the Replace Existing Value attribute in the Account Generator workflow to False.
The default value for the Replace Existing Value is False.
• PA: Default Expenditure Item Date for Supplier Cost, page B-41
Specify the source for the expenditure item date. Oracle Projects uses this profile
option when you run the process PRC: Interface Supplier Costs to determine the
expenditure item date for Oracle Purchasing receipts, invoice payments, and
discounts. In addition, Oracle Payables uses this profile option during the invoice
match process, and when you enter unmatched invoices, to determine the default
expenditure item date for supplier invoice distribution lines.
• PA: Default Expenditure Organization in AP/PO, page B-35
Specify the default expenditure organization for project-related information in

12. Configuration

13. Project Suite Considerations
When running the process ‘PRC: Interface Supplier Costs’ ensure that the following parameters are set to Yes:
Interface Supplier Invoices
Interface Receipt Accruals
Interface AP Discounts

14. Project Suite Considerations
All modules have a Create Accounting process that interfaces journal entries to Subledger Accounting. The parameters control interface to GL and posting of GL journal entry.
The Create Accounting process per module typically must complete successfully prior to interface of expenditure item to Project
Transactions create journal entries in the source module – cost collects in Project module

15. How Contract/Billable Projects are updated by POs
P2P Flow
How Contract/Billable Projects are updated by POs

16. P2P Process Flow

17. Create Requisition and/or PO
Requisition or PO Line is Entered Referencing:
Project
Task
Expenditure Item and Expenditure Organization
Account Generator Derives Default Charge Account, Accrued Liability (Inventory AP Accrual), and Variance Accounts

18. Create PO

19. Distribute to Project

20. Updates Committed Costs
Before
After

21. Receive Goods / Confirm Work
Receive Goods / Confirm Work - Accrue on Receipt Interfaces Cost to PO Price
Receiving Transaction Processor
Create Accounting for Receiving
DR Inventory or Expense Account OR CIP
CR Accrued Liability
PRC: Interface Supplier Cost Parameter ‘ Interface Receipt Accruals’ = YES

22. Receive Goods / Confirm Work

23. Match Vendor Invoice to PO
Vendor Invoice Match to PO - Variances are Interfaced to Project (New Expenditure Item)
Validate Vendor Invoice
Create Accounting
DR Accrued Liability
CR Accounts Payable
DR/CR Price Variance

24. Match to PO

25. Update Projects Before Supplier Invoice for Match against PO
After $5,000 Supplier Invoice Entered and Interfaced to Projects. Period to Date
and Inception to Date Costs increase by the invoice amount and the Commitment
is reduced by the invoice amount.

26. Pay Vendor Invoice
Pay Vendor Invoice - Discounts Taken are Interfaced to Project (New Expenditure Item)
Create Accounting
DR Accounts Payable
DR Discounts Taken**
CR Cash
PRC: Interface Supplier Cost Parameter ‘Interface Payment Discounts’ = YES
**Discounts Taken dependent upon AP configuration

27. How Capital Projects are updated by POs
P2P Flow
How Capital Projects are updated by POs

28. Capital Project to Assets Flow

29. Asset Charges – AP to PA
AP Distribution Line Charges Project and Asset Clearing Account:
Contract Project
Payables Interfaces the Cost to Oracle Assets for Capitalization and GL Accounting
Payables Interfaces the Cost to Oracle Projects for Cost Collection to the Project and Reporting; No GL Impact
Capital Project
Payables Interfaces the Cost to Oracle Projects for Capitalization, GL Account Generation, Project Cost Collection and Reporting. Journal Entry Sources are Payables and Assets.

30. Capital Project Create Capital Project Collect Costs against Project
Add Asset Definition including Asset Attributes at Project or Task
Collect Costs against Project
Distribute all Costs, Generate Cost Accounting Events, Create Accounting BEFORE Generating Asset Lines
Summarize your Project Data (Project Performance or Project Summary) BEFORE Generating Asset Lines

31. Project Asset Setup

32. Project Task Asset Line

33. Project Task Asset Setup

34. Capital Project
When Ready to Place the Asset in Service, Update the Asset Assignment with an Actual In Service Date (Current Period)
Run the PRC: Generate Asset Lines process to Create Summary Asset Lines
Adjust Lines, Associate Unassigned Lines
Auto Accounting Rules Determine Journal Entry
DR Asset
CR CIP

35. Update Asset Service

36. PRC: Generate Asset Lines Creates the Asset Line(s)

37. Capital Project Run the PRC: Interface Assets to Oracle Assets process
In Oracle Assets Review and Post Mass Additions
Monthly: Run Depreciation
Creates Accounting
Interfaces and Posts Journal Entry to GL

38. Interface Asset to FA

39. View Asset in FA after Additions

40. Contract Project Create Contract Project Collect Costs
Include Customer and Billing Setup
Collect Costs
Distribute Costs
Generate Cost Accounting Events
Create Accounting

41. Customer Invoice Flow

42. Revenue Recognition Flow

43. Contract Project - Revenue
Generate Draft Revenue based on Distribution Rule of Project
Release
Generate Revenue Accounting Events
Create Accounting
Transfers and Posts Journal Entry to GL
DR UBR
CR Revenue

44. Contract Project - Receivables
Generate Draft Invoice based on Distribution Rule of Project
Approve and Release
The next three steps can be combined in PRC: Submit Interface Streamline (Option XI)
PRC: Interface Invoices to Receivables
Autoinvoice Import
PRC: Tieback Invoices from Receivables

45. Q & A Wendy Lamar: lamarw@tusc.com
Becky Alvarez: