Oracle Project Management Fundamentals ... - Prōject - Eu.com

Project Financial Planning Ian Boyling, ERP Director and Lead Consultant Prōject (EU) Ltd [email protected]

Agenda • Introduction to Prōject and Ian Boyling • Project Financial Planning – Options  Project Costing – Budgets and Forecasts  Project Management - Financial Plans • Financial Planning within Oracle Project Management - Overview

• Financial Plans  Plan Types  Create and Maintain

• Performance Reporting • Other Project Management touch points

Introduction to Prōject and Ian Boyling • Worlds first specialised partner for Projects • Financial Mgt Specialist • Only Oracle Gold partner in EMEA to have achieved the OBIEE and BI Apps specialism • Prōject were a UKOUG “Partner of the Year” award winner for Oracle E-Business Suite, Projects and Business Intelligence and Pub Sec 2012

• Oracle Financials and Projects Consultant • Global implementation experience • Cross Industry Experience • Oracle Certified Professional for 12 years • Fin Mgt and Projects (1st globally) Implementation Specialist • UKOUG Fin SIG Deputy Chair

Project Financial Planning - Options • Project Costing – Budgets and Forecasts  Core Forms

 Limited in Functionality  In System Queries limited • Project Management - Financial Plans  HTML Pages  Extensive functionality and planning options

 Additional comparative analysis with PJT

Managing budgets and forecasts

Agenda • • • • • •

Overview of Budgeting and Forecasting Budgeting and Forecasting Process Flow Building Budgets and Forecasts Generating Budgets Generating Forecasts Entering and Maintaining Budgets and Forecasts

Budgeting and forecasting

Model financial impact of planning alternatives.

Compare budget and forecast amounts to actuals.

Create budgets and forecasts to manage the financial performance of a project.

Plan types and plan versions Plan Type 1

Project Version 1

Version 2

Plan Type 2 Version 1

Version 2

Create multiple working and baseline versions for each plan type.

Budget and forecast security

Budgets and Forecasts

Oracle Projects Security Mechanisms

Responsibility-Based Security

Role-Based Security

Organization Authority

Budgetary controls and budget integration

Budgetary Controls

Budget Integration

Monitor and control expense commitment transactions for projects based on a project cost budget.

Integrate project budgets with budgets in Oracle General Ledger.

Optionally, implement and use budgetary controls and budget integration features.

Submitting budgets and forecasts and creating baselines Enter Budget/Forecast Rework Budget/Forecast Submit Budget/Forecast

Create Baseline

Flow for submitting budgets and forecasts and creating baselines

Agenda • • • • • •

Overview of Budgeting and Forecasting Budgeting and Forecasting Process Flow Building Budgets and Forecasts Generating Budgets Generating Forecasts Entering and Maintaining Budgets and Forecasts

Budget process flow 3

Budget Creation Options Generate

Direct Edit

1

Create Project

Copy Amounts

2

Create Initial Budget

7 Implement Change Document Financial Impact

4

Update Budget

Create Initial Budget Baseline

5

Adjust and Recalculate 6 Create Initial Forecast

8

Create Revised Budget Baseline

Forecast process flow Estimate to Complete (ETC) Sources

4

Average Of Actual Amounts Incurred

Change Open Billing Documents Commitment Events

Financial Workplan Plan /Staffing Plan

Work Quantity

3 Forecast Creation Options Direct Copy Edit Generate Amounts

Create Initial Budget Baseline

1

Create Initial Forecast (Automatic)

2

5

6

Update Forecast

Approve Forecast Adjust and Recalculate

Agenda • • • • • •

Overview of Budgeting and Forecasting Budgeting and Forecasting Process Flow Building Budgets and Forecasts Generating Budgets Generating Forecasts Entering and Maintaining Budgets and Forecasts

Plan types and plan versions Plan Type

Plan Versions

Plan Type

Plan Versions

Plan Type

Plan Versions

Original Baseline

Working Working Current Working Version

Plan Versions

Baseline #2 Current Baseline

You can have multiple plan types and plan versions for a project.

Add plan types Approved Revenue Budget Approved Cost Budget Forecast Cost Budget Forecast Revenue Budget Plan Types You can add multiple plan types.

Planning options: plan settings 1. Plan Settings 2. Currency Settings 3. Rate Schedules 4. Generation Options 5. Microsoft Excel Options Flow for defining planning options

Planning options: plan settings

Use resource list

Categorized, Project Level:

Labor

50,000.00

Supplies

25,000.00

No resource list

Uncategorized, Project Level:

Project

Equipment 25,000.00 You can choose to create categorized or uncategorized budgets and forecasts.

100,000.00

Planning options: planning levels for budgets and forecasts Project

Top Task 1

Task 1.1

Task 1.2

Top Task 2

Task 2.1

Task 2.1.1

Task 2.2

Task 2.1.2

Define the level of detail at which you enter plan amounts. For example, you can choose to enter amounts at the top task level.

Maintaining plan versions Maintain Budget Versions Page Working Version Create budget plan version

Submit, rework, and perform maintenance activities

Agenda • • • • • •

Overview of Budgeting and Forecasting Budgeting and Forecasting Process Flow Building Budgets and Forecasts Generating Budgets Generating Forecasts Entering and Maintaining Budgets and Forecasts

Generating budgets

Define budget generation planning options

PRC: Generate Financial Plan Amounts

New Budget Version

Run the concurrent program, PRC: Generate Financial Plan Amounts, to generate new budget versions.

Budget sources

Budget Sources Staffing Plan Workplan Financial Plan Optional: Open Commitments Optional: Change Documents Optional: Billing Events

Oracle Projects generates budgets from the source you specify in the planning options.

Agenda • • • • • •

Overview of Budgeting and Forecasting Budgeting and Forecasting Process Flow Building Budgets and Forecasts Generating Budgets Generating Forecasts Entering and Maintaining Budgets and Forecasts

Generating forecasts

Forecast generation sources PRC: Generate Financial Plan Amounts

Project forecast

You can use information from workplans and actual amounts to generate a forecast.

Generating forecast costs Oracle Projects calculates ETC quantity and cost based on the following criteria:

Staffing Plan

Workplan resources and financial plan

Average of actual transactions

Additional forecast generation sources

Billing Events

Open Commitments

Change Documents

Additional sources you can use to generate forecast amounts.

Generating forecast revenue

Oracle Projects calculates forecast revenue based on the revenue accrual method associated with the project, such as:

Cost-Based

Event-Based

Work-Based

Agenda • • • • • •

Overview of Budgeting and Forecasting Budgeting and Forecasting Process Flow Building Budgets and Forecasts Generating Budgets Generating Forecasts Entering and Maintaining Budgets and Forecasts

Entering amounts and editing plan versions Copy amounts from another plan version Edit the planning options

Edit plan amounts in the Edit Plan pages Download plan version to Microsoft Excel Enter and edit plan amounts.

Adjust amounts by a percentage

Examples of tasks you can perform while editing a plan version.

Integration with Microsoft Excel

Oracle WebADI

Oracle Projects Microsoft Excel

You can perform budgeting and forecasting activities in Microsoft Excel, and upload the data to Oracle Projects.

Copying budgets and forecasts

Copy Project or project template with budget/forecast

New project with budget/forecast

Copy existing budgets and forecasts when you create a project by copying a project template or project.

Copying budget and forecast amounts within a project

Copy

Version 1

Version 2

For example, copy a plan version from another plan version within the same project.

Implementing budgeting and forecasting

Agenda • Budgeting and Forecasting Setup • Extensions and Workflow

Budgeting and forecasting implementation steps Steps for Implementing Budgeting and

Required?

Forecasting Define financial plan types

Yes

Create additional period profiles

No

Create additional spread curves

No

Define budget change reasons

No

Implement integration with Microsoft Excel

No

Budgeting and Forecasting Implementation Steps (Page 1 of 2)

Budgeting and forecasting implementation steps Steps for Implementing Budgeting and Forecasting

Required?

Define additional budget types

No

Define additional budget entry methods

No

Implement budgetary controls

No

Implement budget integration

No

Implement client extensions for budgeting and forecasting

No

Implement workflow for budgeting and forecasting

No

Budgeting and Forecasting Implementation Steps (Page 2 of 2)

Implementation steps related to budgeting and forecasting

Related Steps for Implementing Budgeting and Required? Forecasting Define planning resources

No

Define resource breakdown structures

No

Define planning rate schedules

No

Related steps for implementing budgeting and forecasting

Project performance reporting

Project performance reporting summarization Summary Data by Organization

Summary Data by Project

Oracle Projects Transaction Data

Base Summary Of Reporting Data

Summarization is a two-step process.

Reporting by project

Financial Performance

Effort

Cost

Earned Value

Revenue

Billability

Billing and Collections

Example of the performance areas you can see on the overview page layout for each project type.

Reporting by task

Project

Actual Cost Task 1

Task 2

Task 3

Actual Revenue Financial Structure

Example of viewing financial information such as actual cost and actual revenue at the task level of a financial structure. These amounts are rolled up to the project level.

Reporting by resource 0 - RBS Version

1. Consulting East

1.1 Consultant

1.2 Amy Marlin Profitability

Effort

Cost

Example of viewing cost, profitability, and effort for resource Amy Marlin from a resource breakdown structure.

Periodic view April 2007

Cost

Revenue

Margin

(USD)

Margin

(USD)

May 2007 Cost

Revenue

You can use the Periodic View page to compare project performance reporting information for a specific calendar and currency across several months, quarters, or years.

To-date view

Prior Period Period-To-Date Quarter-To-Date Year-To-Date Inception-To-Date

Example of the available to-date views in which you can view financial information for a project through a particular point in time.

Other PJT Touch Points • Performance Reporting / Exception Reporting • Status Reporting

• Expenditure Inquiry • Project Lists • Work Plans vs Financial Plans • Deliverables • Change Control

• Project Resource Management • ........and of course, Business Intelligence possibilities • Endeca – Project Extensions

Endeca • Manage Potential Schedule Delays •

Warn Project Managers of late tasks before they affect project deadlines and budgets

•

Provide visibility to act on tasks behind schedule to keep project on track

• Reduce Project Administration Costs •

Identify tasks impacted by schedule and resource changes

•

Quickly and consistently update impacted tasks

• Focus Project Managers on Delivery •

Quickly identify and act on projects where costs are at risk of exceeding planned amounts

•

Alert users to project schedules requiring remedial or preventive actions

Endeca Mancini should have used Oracle Project Management!

Useful Links Prōject Web Site Chart of Accounts Oracle Scene Article

Oracle Projects Specialism Oracle Financial Management Specialism

EBS Blogs from Prōject Oracle E-Business Suite Training Courses and Events from Prōject

Oracle Projects Training from Prōject