Real World Oracle Apps contains Oracle Apps related business cases / solutions from real implementation projects across the globe. If you need more information regarding any of the solutions described in this blog, please contact me at swathi00@yahoo.com
8. What is the use of Profile INV: Project Miscellaneous Transaction Expenditure Type?
This profile Governs the entry of expenditure types for project miscellaneous transactions.
Values that are available are:
User Entered (Default value): If the profile is set to User Entered, the user has to enter expenditure types for project miscellaneous transactions.
System derived from cost elements If the profile is set to this value, user cannot enter the expenditure types for project miscellaneous transactions.
9. Parameters that are to be given or can be used to verify if an organization is PJM enabled or not?
1. Organization has ‘Project Manufacturing Organization’ classification defined in Organization form.
2. Check that Project Cost Collection Enabled (check box) is enabled in Organization Parameters form under Costing Tab. This indicates whether subinventories can be associated with a given project and task.
3. And Enable Project References check box, located in the Project Manufacturing Parameters form, is also selected. So the cost collector process can transfer costs to project accounting.
10. How can we create User defined transaction types for a project?
At the time of creation of User defined transaction type we need to check the Project Check box.
11. What are the Project locators and common locators ?
Oracle Project Manufacturing reserves segment19 and segment20 of the Stock Locator key flexfield to store the project and task numbers.
Project Locator A project locator is a locator with a project or project and task reference. It is also a logical partition of a physical location. Project locators are used to track project hard pegged material. Project inventory needs to be stocked in a project locator and needs to be transacted in and out of a project locator. Since locators can be dynamically created, it is not necessary to predefine project locators.
A project locator must be tied to the same subinventory as its corresponding physical locator. For non-project Locators, physical_locator_id and inventory_locator_id are supposed to be same or physical_locator_id may be null , but inventory_locator_id is populated always.
Common Locator
A common locator is a locator without a project or project and task reference. It is also a
real, physical location. Common locators are used to track common (soft pegged)
material.
12. What is the common validation done for Project locators ?
The system validates the project and task segments of a locator based on the value of the
Project Control Level parameter you set up in Organization Parameter as described in the following
table –
Project Control = Null, Level Project Segment = Cannot enter any value, Task Segment = Cannot enter any value
Project Control = Project, Level Project Segment = Optional, Task Segment = If Project is entered, Task is optional. If Project is not entered, Task cannot be entered.
Project Control =Task, Level Project Segment = Optional, Task Segment = If Project is entered, Task is mandatory.If Project is not entered, Task cannot be entered.
1. What is PJM Manufacturing and what kind of industries it is employed in ?
Oracle Project Manufacturing supports companies in the Engineer-To-Order, Make-To-Order, Seiban, and Aerospace and Defense industries. These industries plan, track, procure, and cost based on project, contract, or Seiban numbers.
2. Project Setup
A project is a primary unit of work that you can break down into one or more tasks. You charge the transactions you enter in Oracle Projects to a project and a task. When you set up a project, you must set up the work breakdown structure (WBS), and enter project and task information.
After your project structure and budgeting have been defined in Oracle Projects, you need to define the Project Manufacturing parameters for your project.
3. What activities are involved during Project Manufacturing execution phase ?
The execution system addresses the inventory, shop floor, and procurement activities.
4. What are the diff. flows which can be performed for PJM org in Order Management ?
Oracle Project Manufacturing supports:
• Project Sales Orders Oracle Order Management enables user to link sales order lines to projects and project tasks.
• Project Return Material Authorization (RMA) Oracle Order Management enables user to process Project RMAs using the line type category ‘Return.’ Examples of the line types available are return for credit without receipt of goods, return for credit with receipt of goods, and return for replacement.
• Project Assemble-To-Order (ATO) and Pick-To-Order (PTO) Oracle Project Manufacturing enables user to use Oracle Configurator with Oracle Order Management with propagation of project and task on the configured
model, options, and included items. For ATO, the Final Assembly Schedule process creates a WIP Job with the configuration’s project and task.
• Project Drop Shipments You can specify a project and task on a sales order line and use drop shipment to automatically create a project purchase requisition. Drop-shipped materials ship directly from supplier to customer.
• Project Fulfillment Oracle Order Management and Oracle Shipping Execution support delivery-based shipping with user-definable picking rules for order fulfillment. After manufacturing is complete, finished goods are picked automatically from the project inventory upon pick release. You can also pick all items for a project and task.
• Project Order Import If you use external systems to capture order information you can use Order Import to import external sales orders or quotations, including project and task references.
5. What are the various activities which can be performed in WIP for PJM org ?
• Project WIP Jobs You can create WIP Jobs with project/task references. Project Manufacturing supports standard and non-standard WIP Jobs. You can create Standard Project WIP Jobs automatically.
• Project Outside Processing You can use existing outside processing functionality to support Project Outside Processing. The system transfers the project/task on the work order once the outside processed purchase requisition generates.
• Project Repair Orders You can link non-standard WIP Jobs to a project / task to capture project repair.
• Project Flow Schedules You can use flow schedules in a work order-less production environment.
6. What features are supported for Project Procurement ?
• Project Requisitions You can create requisitions with project/task references. You can define project requisitions for inventory and expense destination types.
• Project Purchase Orders You can create purchase orders with project/task references. You can define project purchase orders for inventory and expense destination types.
• Project Blanket Releases You can create purchase blanket releases with project/task references.
• Project RFQs You can create purchase Request For Quotations (RFQ) manually or auto-create an RFQ from a requisition.
7. What different types of Project Material transactions one can perform in Inventory ?
Tracking inventory by project and dealing with permanent and temporary transfers from one project to another or from common inventory to project inventory is essential for a project-based environment. Oracle Project Manufacturing supports:
• Project Inventory You can use project locators to segregate inventory by project. Purchase order receipt locators validate automatically for project purchase orders. You can reference existing project locators or dynamically create project locators upon receipt. The issue, back-flush, and completion locators validate automatically for project WIP jobs and associated material. Similar logic applies in processing flow schedules using work order-less completions.
• Project Material Transactions You can use existing material transactions such as Miscellaneous Issue/Receipt, Move Orders, PO Receipt, WIP Issue, WIP Return, and WIP Completion.
• Permanent Project to Project Transfers You can use project transfer transactions to transfer material from one project to another with appropriate transfer of inventory value.
• Temporary Project to Project Transfers You can use borrow payback transactions to borrow material from one project to another, and ensure payback against the original value.
• Common-to-Project and Project-to-Common Transfers You can use project transfer transactions to transfer material from common inventory to project inventory andvice versa, with the appropriate transfer of inventory value.
• Project Mass Transfers You can use the mass transfer wizard to initiate the mass transfer of material from one project to another based on criteria you define, with the appropriate transfer of inventory value.
• Consigned Material from Supplier You can perform implicit and explicit consumption of consigned items to demand/supply documents with project references, with appropriate transfer of inventory value into a project.
• The 11i customer model is build to handle the new requirements of CRM and e-commerce. These new requirements introduced new features and user interfaces for the 11i Customer Model
• The customer model is based on a new foundation that provides for a number of important new features in Release 11i+ and Release 12
• The 11i Customer Model handles customer types of organizations and people.
• Modify customer form to match against and link with global registry
• Establish global registry of organizations, people, locations, and the relationships among them
• Customer addresses do not have to be duplicated across operating units -- they can be created once then referenced by different operating units
• Provides foundation for linking suppliers and customers in future.
• AR customer modules do not expose all capabilities and attributes from new model
• Party Registry
Information about your different relationships are tied to one “source of truth” representation of the person or business A Party is anything that can enter into business relationships with another party
• Customer Addresses
Multiple parties can do business at one location Addresses are global, not specific to operating units Address validation using Vertex or Tax Ware information Flexible address formatting with seeded and custom formats
ADDITIONS : Create Mass Addition via EPI AP (eg: Computer Equipment, vehicle, land, Office furniture) Create Mass Addition via PA (EPI) Create Mass Addition via ADI Mass Addition (via PO with unit # greater than 1) Mass Addition (via PO with item #) Create Mass addition : Split a single invoice line to multiple assets Create Mass Addition : Merge different invoice line to one asset Create Mass Addition : Add to existing asset Update mass addition information : serial number, tag number Create Assets (post mass addition) Add assets to subledger in detail Add assets to subledger with quick addition Additions of monthly Service Units and Metres (length of Services line) -
New units and metres Relay units and metres Adding Inactive Service record
ADJUSTMENT Update descriptive information (eg description, serial number, model number, manufacturing number) Updating quantity and costs for Mass Property accounts through AP. Updating quantity for Mass Property accounts through other interfaces Process adjustments to prior year asset costs - asset-detail accounts e.g 472 - mass property accounts units and amount e.g. 475 Adjust NBV and accumulated depreciation
TRANSFER : Transfer assets between LOB Transfer assets between FA Book Transfer assets between Employee Transfer assets between Location Mass Transfer between LOB Mass Transfer between Employee Mass Transfer between Location
RECLASSIFICATION Reclassification (category)
RETIREMENT Retirement on single asset (by cost) Retirement on single asset with vintage pool Retirement on single asset (by unit) Mass Retirement by date place in service /vintage year Mass Retirement by location Mass Retirement by category Mass Retirement from spreadsheet (ECG) Mass Retirement by asset number Retirement reversal of a single asset by cost Retirement reversal of a mass property asset by units. e.g: 475 Asset-detail partial retirement FIFO retirement of mass property account Mass retirement of asset-detail - retire small tools and work equipment over 15 years Retiring Inactive Service record
DEPRECIATION Monthend closing – Depreciation Run Change Depreciation rate Review catch up depreciation calculation Run/review journal entry reserve report Add multiple depreciation rates - 3 decimal places Amortization of lease-hold account and computer software assets Perform back-dated depreciation
PROCESS JOURNAL ENTRIES Generate GL journal entries Review Asset Addition JE, Transfer JE, Adjustment JE, Retirement JE, Depreciation JE
REVALUATION Set up revaluation book Run Revaluation (Midcoast/LPL)
INQUIRE ASSETS Inquire assets based on category Inquire assets based on location Inquire assets based on employee Inquire assets based on asset number Inquire assets based on FA Book Inquire assets based on historical project # (ie serial #) Inquire assets based on storage tank unit # (ie. Manufacturer information) Drill down to asset source detail Cross referencing asset group e.g. Land and building, Calculate life-to-date, year-to-date and current month depreciation
YEAR END Plant Asset year-end Allocations Asset-detail Accounts:
1. allocate all miscellaneous costs within each 2. asset-detail account for current fiscal year.
Plant Asset year-end Allocations Mass Property Asset Account Allocations
1. allocate all current year miscellaneous costs to current year installed service sizes within regions. 2. allocate all current year miscellaneous costs to current year installed main sizes within regions. 3. allocate all current year miscellaneous costs to current year installed sales stations within regions
Option: Use Project Accounting to handle the costs. (common cost)
1. Primary Ledger can be associated with Multiple Secondary Ledgers 2. Primary Ledger can be assigned to Multiple Legal Entities 3. Primary Ledger can be assigned to Multiple Operating Units 4. An Operating Unit is tied to the Primary Ledger through the Legal Entity Context 5. Specific Balancing Segment Values are assigned to specific Legal Entities in the Primary Ledger 6. Payables supports the auto offset features wherein the Balancing Segment of the Trade Liability Acct will equal the Dist Acct’s Balancing Segment 7. Payables allows the selection of Balancing Segment values not assigned to the Legal Entity that owns the Operating Unit in the Distribution Window 8. Accordingly, it also allows the selection of the corresponding balancing segment when it builds the Trade Liability Account 9. Question: What is the specific purpose of assigning Balancing Segment Values to the Legal Entity in Accounting Manager Setup (as once assigned, the same value is not allowed to be selected for any other Legal Entity), if this value is usable for the Operating Unit(s) that does not have this Legal Entity Context?
Summary of key facts:
1. Common COA Structure used for Primary and Secondary Ledgers 2. Ledger shared by Multiple Legal Entities 3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed) 4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity Context 5. User preference set to Access Vision Operations OU by Default in Payables
Conclusion and Findings:
1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger does not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating Unit specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the link of the Primary Ledger 2. However, access to these Balancing Segment Values could be controlled through Security Rules being assigned to the Value Set and the Respective Responsibility 3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the common Ledger does not have assignment to it, what impact it has on the integrity of data when this access is otherwise allowed, except through Security Rules?
It’s difficult to get information when you need it:
Transactions come from many sources •Labor costs are captured in time entry systems •Supplier cost is captured in Accounts Payable •In many industries, the majority of cost is captured in manufacturing •Frequently Indirect and Overhead costs must calculated and applied manually
In order to manage to budget, you need to track outstanding commitments as well as amounts spent.
In a Global Environment, you have to process and translate foreign currency transactions and if you are sharing resources across organizations, you have to process intercompany adjustments to account for cost reimbursement and revenue sharing agreements.
For Capital Projects, you have to ensure that cost is allocated to assets appropriately and you have to track your different types of cost: Construction cost (CIP), Cost of Removal, and Proceeds of Sale.
How do you accomplish these things in a timely manner, Project Costing can help.
New Features for Oracle Project Costing:
•Capital Projects Enhancements –Create and Assign Assets using AMG –Automatically Allocate Indirect and Common Costs –Calculate Interest on CIP Cost –Periodically Group Cost and Assets for Capitalization –Automate Retirement Cost Processing •Labor Costing Enhancements •Cross-Charging Enhancements •Burdening Enhancements •MRC Schema Elimination •PO/AP Integration
Create and Assign Assets using API’s:
# To enable integration with external asset management systems, project asset API’s have been added to the Activity Management Gateway # The new API’s allow you to create, update and delete project assets and project asset assignments
Automatically Allocate Indirect and Common Costs:
It is sometimes necessary to apply cost to multiple assets. For example, if you are replacing wooden light poles with new steel ones and each pole is an asset, you need to distribute labor costs across the number of poles replaced. If all the poles are the same, you can just spread the cost evenly, but if some poles are longer than others, you may want to distribute based on the cost of the pole, recognizing that the longer poles no only cost more and require more time to install.
Project Costing now supports the predefined cost allocation methods displayed here. In the past, unless you were using a consulting solution, all indirect and common cost had to be manually allocated across assets.
The following new predefined allocation methods are now supported: •Spread Evenly •Actual Units •Standard Unit Cost •Estimated Cost •Current Cost •Client Extension
Periodically Group Costs and Assets for Capitalization:
Assets placed in service within a period and cost collected for the period can be grouped together for capitalization.
For repetitive jobs and phased projects, Project Costing has introduced Capital Event Processing. Assets placed in service within a period and cost collected for that period can be grouped together for capitalization.
Continuing our light pole example, if you placed 100 poles in service in January, you can now automatically assign all cost collected in January to those new poles and send the information to Fixed Assets to begin capitalization. In February, you repeat the process; the cost for February is associated with the new poles installed in February and sent to FA.
Process Retirement Costs:
Project Costing has added support for retirement cost processing. You can now track retirement costs by identifying retirement tasks and generating retirement asset adjustments to be sent to Fixed Assets. You can improve the accuracy of the adjustments by also tracking Proceeds of Sales. Let’s complete the light pole example, it you sale the old wooden poles for firewood, you can subtract the proceeds of these sales from the cost of removal when you generate the retirement asset adjustment lines.
Identify retirement assets: •Assign asset group number to project or task Identify retirement tasks Classify retirement costs •Use expenditure categories and/or expenditure types to track Costs of Removal and Proceeds of Sale Generate retirement asset lines and prorate common costs
Calculate Interest on CIP Costs:
We all know there is cost associated with funding a project. If you borrow money, you have to pay interest. If you invest your own funds, you lose dividends.
In many industries, you are allowed to capitalize all or a part of this cost. So Project Costing has added a feature that allows you to generate interest expenditure batches based on the open CIP balance.
Labor Costing Enhancements:
To reduce maintenance and overhead and pave the way for some future integration, Project Costing has redesigned the labor costing model. You now maintain rates in rate schedules and can enter rates by employee or by job. Labor Costing Rules define how labor cost is calculated. You can select a costing method of Rates or Client Extension. You can also apply cost multipliers to overtime expenditure types without implementing the overtime extension. Costing rules and rate schedules are then assigned to organizations. You are no longer required to enter an assignment for each employee. However, when necessary, you can enter overrides at the employee level. You can override the assigned rate schedule or you can enter an overriding rate value.
Cross Charge EnhancementsDescription:
Prior to Family Pack-K Rollup, cross charge transactions were converted to the reporting currencies of the Provider Operating Unit only. After Family Pack-K is installed, transactions are converted to the reporting currencies of both the Provider and Receiver Operating Units. An upgrade script is provided with this patch to convert existing cross charge transactions to the reporting currencies of both the Provider and Receiver Operating Units.
Burdening Enhancements:
Many customers reported that we needed to improve the burdening process; that moving from provisional to firm rates was taking too long and generating too much database volume. So we made the process smarter and we added an option that allows you to create incremental adjustments. When you modify a schedule we now track your changes and only mark the transactions impacted by those changes for recalculation. Ad if you choose to use the incremental option, we no longer reverse the original accounting entries; we just create incremental entries for delta amounts.
MRC Schema Elimination:
Oracle Projects now allows you to use a single responsibility to perform the following: •View amounts in Primary and Reporting Currency •Generate Reports in Primary and Reporting Currency •Interface Primary and Reporting amounts to GL
Supplier Invoice Adjustment:
Oracle Projects now allows you to adjust supplier invoice expenditures that are matched to accrue on receipt purchase order lines When the adjustment is interfaced from Oracle Projects to Oracle Payables, the following occurs: •Two New Invoice Distributions are created –A distribution created to reverse the accrual against the PO charge account –A distribution is created to record the expense with the adjusted project attributes •AP Generates Tax for the new Distributions
