Oracle Project Accounting/Contracts Presentation Integration Overview

OKE is an acronym for Oracle Project Contracts What does OKE stand for? OKE is an acronym for Oracle Project Contracts O Oracle K Contracts (legal abbreviation for) E Engineer to Order

Reporting and Analysis OKE Project Scope Defining, implementing, and training employees on standard processes and technology for integrated contract execution and management Converting active contract data Converting contract data related to active Construction projects from legacy system and Oracle Purchasing to OKE (8 Construction Projects) Scanning those contracts and related documents and saving them to Documentum Processes: Technology: Business Document Management Contract Execution Requisition/ Purchase Order Project Closeout Contract Change Management Reporting and Analysis

OKE is... OKE is not... What is OKE? A repository for contract financials and reporting information A structure for executing and managing contracts and their related documents (e.g. letters of intent, business documents, and change orders) A tool to link to contracts and business documents in Documentum OKE is not... A tool for contract creation--you cannot print out your final contract from OKE Generating additional work Intuitive--it will take some practice to get used to its functionality

How will you benefit from OKE? Benefits How will you benefit from OKE? Consistent contract processes and technology Automated reminders to facilitate contract compliance Single data entry point for contract information One version of the truth Real-time access to comprehensive contract data in a single contract repository Enhanced reporting capabilities Compliance with Sarbanes-Oxley Act Intensive use of Oracle Workflow for approval authorizations How many of you have waited on contracts because of Legal review? Have you heard…Well, Richard does it this way, but Jack prefers to….? Has any one seen the Parent Guarantee for the project? How many times have you tracked down binders and sifted through tens of pages to find what you are looking for? Have you heard, “Jeff Hill can get you that information.”

Background Systems view

High-level Execution/Management Process Contract Execution Enter letter of intent and contract information in OKE Utilize approval workflows Access contract documents via Documentum Business Document Management Business Document Management Send and receive business documents Enter business document information in OKE Access business documents in Documentum Contract Execution Requisition/ Purchase Order Project Closeout Describe each of the 6 major components of OKE: Contract Execution Business Document Management Purchase Order Change Management Project Closeout Report and Analysis Mention that we will cover each one of these in-depth over the next 2 days. Requisition/Purchase Order Initiate requisitions via OKE Import and autocreate requisitions into POs in Oracle Purchasing Change Management Change Management Enter trends, internal contract adjustments, and change orders Reporting and Analysis Project Closeout Closing contracts and the project Reporting and Analysis Inquire on contract data Run contract reports

Integration Points of OKE with Other Systems Documentum Document Images Oracle Project Contracts OKE is integrated with three other applications Documentum Oracle Project Accounting Purchasing OKE integrates with Documentum to store Business Document images, contract images, and change orders OKE integrates with Project Accounting to store contract/project financials. For example, when change orders are completed in OKE, the change in financials is reflected in Project Accounting. OKE integrates with Oracle Purchasing to requisitions items for contracts. You will no longer use Oracle Purchasing to requisition items. Instead, all requisitions are done in OKE and then imported by the Buyer from OKE to Purchasing. Trends Requisitions Oracle Project Accounting Commitments Oracle Purchasing Oracle Accounts Payable Actuals

Coding happens at the lowest level task only What is a Project? A Project is a body of work to which costs are charged and tracked A Project can be made up of one or many tasks, which identify the specific breakdown of the project work The hierarchy of tasks is called the Work Breakdown Structure (WBS) Coding is the writing of project and task or account distribution information on an invoice, purchase order, requisition, timesheet or expense report so the document and its accounting is entered correctly in the system. Coding happens at the lowest level task only Project Task 1 Task 2 Task 1.1 Task 1.2 Task 2.1 Task 2.2

What is a Project Template? A Project Template is a pre-defined WBS structure that can be copied and modified to create new projects Mirant has various groups of templates/projects

Template Example - Construction Tasks 00 Indirect Accounts 01 Sitework & Demolition 02 Concrete Sub- Tasks 000 Home Office Administrative Charges 010 Site Prep, Grading & Improvement 020 Powerhouse Concrete Lowest Level Sub-Tasks for 020 0200000 Boilerhouse HRSG Slabs 0203000 Turbine / Generator Equipment Foundation 0204000 Misc. Powerhouse Equipment Foundations

What is a Parent Project? Organization of multiple sub-projects under a primary project Allows inquiry across sub-projects Parent (Master) Creating a parent project and associating sub-projects with it At the direction of a project manager, the Project Control Group (PCG) sets up a parent project like any other project, except enters “Parent Project” in the Type field (rather than Capital, Administrative, etc.). The PCG sets up the sub-projects to be associated with the parent project. The association to the parent project is made in the Classifications region of each sub-project by selecting “Parent Project Number” in the Category field and then selecting the project number of the parent project in the Class Code field. The PCG can associate a sub-project with a parent at any point during the project life-cycle. It is not necessary to make the association at the time the project is created. There may be special considerations with the integration between Oracle Project Accounting and Oracle Project Contracts. Sub- Projects BusinessDev Finance Ops & Maint Equipment Construction Tasks Business Development Tasks Finance Tasks Operations & Maintenance Tasks Equipment Tasks Construction Tasks (Cost Codes)

Changes in Project Accounting Example - Contract to PO Mirant agrees to buy engineered equipment from a vendor for $35M. Oracle Project Contracts Oracle Purchasing Oracle Project Accounting Contract Deliverables Tracking System Requisition PO Commitments Project Status Inquiry (PSI) in Project Accounting Board Approved Project Budget Forecast to Complete Forecast at Completion Project Budget Commitments Actuals Variance BD Construction Finance O&M Equipment $ X $40M $ X $35M $ X $0M $ X $0M $ X $35M $ X $5M Parent $40M $35M $0M $0M $35M $5M (Updated Nightly) (Updated Weekly) (Updated Nightly)

Changes in Project Accounting Example - Invoice Vendor sends Mirant a progress billing for $10M. Oracle Purchasing Oracle Payables Oracle Project Accounting PO Invoice Actuals Project Status Inquiry (PSI) in Project Accounting Board Approved Project Budget Forecast to Complete Forecast at Completion Project Budget Commitments Actuals Variance BD Construction Finance O&M Equipment $ X $40M $ X $25M $ X $10M $ X $0M $ X $35M $ X $5M Parent $40M $25M $10M $0M $35M $5M (Updated Nightly) (Updated Weekly) (Updated Nightly)

Changes in Project Accounting Example - Trend Mirant realizes the equipment may cost $40M instead of $35M. Oracle Project Contracts Oracle Project Accounting Trend Deliverables Tracking System Forecast to Complete Project Status Inquiry (PSI) in Project Accounting Board Approved Project Budget Forecast to Complete Forecast at Completion Project Budget Commitments Actuals Variance BD Construction Finance O&M Equipment $ X $40M $ X $25M $ X $10M $ X $5M $ X $40M $ X $0M Parent $40M $25M $10M $5M $40M $0M (Updated Nightly) (Updated Weekly) (Updated Nightly)

Changes in Project Accounting Example - Change Order Mirant and Vendor agree the equipment will cost $39M. Oracle Project Contracts Oracle Purchasing Oracle Project Accounting Trend Change Order Deliverables Tracking System PO Commitments Project Status Inquiry (PSI) in Project Accounting Board Approved Project Budget Forecast to Complete Forecast at Completion Project Budget Commitments Actuals Variance BD Construction Finance O&M Equipment $ X $40M $ X $29M $ X $10M $ X $0M $ X $39M $ X $1M Parent $40M $29M $10M $0M $39M $1M (Updated Nightly) (Updated Weekly) (Updated Nightly)