Oracle Project Accounting Concepts

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Oracle Project Accounting Concepts Introduction

Project Accounting is an activity based accounting system within the Oracle Financial Applications. The Project Accounting Structures are derived from the Internal Management and Reporting Requirements.

Both management and legal reports are necessary to support the mission of an Organization The Chart of Accounts Structures are derived from the Legal Reporting Requirements The Project Accounting Structures are derived from the Internal Management and Reporting Requirements

Project Accounting: Management Reports

• Project Reporting
  1. Costs and associated revenues reported by project and/or tasks, inception of project to date.
  2. Expenditure detail & summary reports.
  3. Project sub-ledger audit reports.
• Variance Analysis
  1. Compare budget to actuals for revenues & expenses.
  2. Track revenue cost budgets by resources.
• Activity Based Accounting
  1. Total resources charged to a project.
  2. Revenue, costs, budgets by work breakdown structure.
• Award Accounting - Awards are used in Oracle Grants Module which incorporates revenue and revenue recognition into Project Accounting.

Project Accounting Ledger

• The Projects/Grants Accounting Structures are derived from the Internal Management and Reporting Requirements.
• Project Accounting initializes a new subledger (Projects/Grants Accounting) in combination with Oracle General Ledger .
• The Sub-ledger incorporates activity based accounting.
• The data and reporting elements are expanded in sub-ledger eliminating the need for incorporating those structures in the General Ledger.

Limiting Functionality

• Develop and build structures from a top down approach
• Verify through a bottom up approach
• Higher maintenance: 1 Time 1 Knowledge transfer 1 Integration to other applications and products
• General Ledger structures are inherently inflexible especially for extraction of management reporting

Project Accounting Account Structure - POETA

• P - Project
• O - Organization
• E - Expenditure Type
• T - Tasks
• A - Awards or Source of Funds

Comparisons – GL to Projects/Grants

Oracle GL	Oracle Project/Grants Accounting
Balancing Segment (Business unit) Entities, Companies Foundation Project ( Project Number) Organization ( Org/dept.) Biology Department Natural Account (exp. type) Equipment Administrative salary Fund (source of funds) Unrestricted Grants/Awards Restricted Private	Project: Project Microbiology program Project Tasks Task 1: Water - Sewage Task 2: Water - Return Task 3: Water - Pure Org: (Entity charging to project) Biology Department Expenditure Type: Admin salaries Regular, Part time... Admin costs Materials Office, Lab Filtration Award/Source of funds(process driven) Unrestricted Grants/Awards Private

Work Breakdown Structures

• Project Managers may create as many tiers as needed to properly manage and report on projects
• Funding normally takes place at the TOP TASK
• Budgeting and Expenditure control takes place at LOWEST TASK
• Reporting may be accomplished at any level

Budget and Expenditures

• Controls
  1. Budgeting by Category or Type
  2. Funds Checking
     1. Absolute, Advisory, None
     2. Award, Task, Resource Group or Resource Level
  3. Funds checking levels defined for each project and award and may be modified prospectively

Comments

Links

• Related: ProjectAccounting, Project Billing, Project Contracts, Project Costing, Project Foundation, ProjectsSetup, Project Management, Project Resource Management, Projects Workflow, Portfolio Analysis, Subledger Accounting, Oracle Projects, General Ledger, Oracle Assets, Chart of Accounts

This Topic Is Referenced By These Topics:
Related Links: OracleAssets, OracleProjects, PortfolioAnalysis, ProjectAccounting, ProjectBilling, ProjectContracts, ProjectCosting, ProjectFoundation, ProjectManagement, ProjectResourceManagement, ProjectsSetup, ProjectsWorkflow, SubLedgerAccounting

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Collaborating Authors and Reviewers: BillDaley - 19 Mar 2007