Is Oracle Project Contracts a fit for your organization?

To understand if Project Contracts is the right fit for your organization, let us understand in detail its integration to other Oracle EBS modules:

Oracle EBS Integration:

• Provides several mechanisms to ensure timely delivery and receipt of products, services, and other contractual obligations.
• The Deliverable Tracking System (DTS) is the center of Contract Execution and is used to track all activities related to a contract.
• Deliverables can be inbound and outbound oriented, and can be internal or external.
• Examples of deliverables that can be tracked include planned receipt and shipment of items, mailing of an initial engineering drawing, or monthly submission of progress reports.
• The Deliverable Tracking System is integrated with other major components of the Oracle e-Business Suite, including Oracle Projects, Oracle Project Manufacturing, Advanced Planning and Scheduling, Oracle Internet Procurement, and Oracle Shipping Execution.
• This integration allows you to collect cost against a contract through projects and tasks, feed contractual demand into the planning system, create procurement documents such as purchase requisitions and purchase orders for direct-procured contract material and other items that are not sourced through planning, create shipment requests for shippable deliverables and track shipping and delivery statuses, generate billing events, and recognize revenue.
• All the manufacturing transactions take place at the project or project-task level depending on how the organization parameters are set, and if the project/project-task information is on the deliverable.
• Contract related information from the other products can also be viewed and tracked within the DTS with additional drill down capability.

Fitment and Suitability of Oracle Project Contracts for your organization:

• Project Contracts was designed and built primarily for Aerospace and Defence Industry. Enhancing its features or Web enabling it is on the current roadmap of Oracle Development
• Its powerful features is Contract creation, authoring and maintenance and handling Deliverables associated to the contract Lines (DTS)
• Funding association is at the Contract Line level and hence one contract can fund multiple related projects
• Billing integration is manual and the Application doesn’t call the Billing extension (for both Revenue and Billing)
• Sub Project associations can be modeled through the creation of a Master Project to represent the Contract and the associated projects created as Sub Projects
• Procurement integration is seamless based on Deliverables
• As an organization, you have to determine if you have any other similar modules / systems which provides project contract capabilities
• If not, then because of its powerful features and functionalities and its seamless integration with other EBS modules, you might want to consider implementing Oracle Project Contracts