This chapter covers the following topics:
Oracle Project Billing provides you with the ability to define revenue and invoicing rules for your projects, generate revenue, create invoices, and integrate with other Oracle Applications to process revenue and invoices. Oracle Project Billing also integrates with Oracle Receivables.
Oracle Project Billing enables you to perform the following functions:
Enter project customers and contacts with whom you have negotiated and contracted project work
Enter agreements (contracts) from your customers and either:
fund projects with the agreements, or
apply receipts to agreements and fund projects with the advance amounts
Generate revenue using various methods including time and materials, percent complete, and cost plus
Create draft invoices from detail transactions and milestones for online approval by your project or accounting managers
Generate revenue accounting events and create accounting in Oracle Subledger Accounting
Report project revenue, invoice, and receivables status online and in reports
You specify project and task options to control how Oracle Project Billing processes your transactions. Use the Options region in the Projects, Templates window to specify the billing options for your projects and tasks:
The following table lists the billing options you can specify for your project and tasks:
| Billing Options | Description |
|---|---|
| Customers and Contacts | Use this option to specify your customers and contacts |
| Currency | Use this option to specify the billing currency conversion attributes |
| Billing | Use this option to specify the following for a project: - Distribution rule that determines the revenue accrual method and the invoice method for the project - Invoice formats - Retention withholding and retention billing formats - Funding rules - Other invoice information - Date-effective funds consumption |
| Billing Assignments | Use this option to assign a billing extension that creates revenue or billing events that suit your business needs |
| Credit Receivers | Use this option to define which employees receive credit for a project |
| Retention | Use this option to define retention terms for your project customer |
| Bill Rates and Discount Overrides | Use this option to define the following billing schedules for your project: - Standard billing schedules - Employee bill rate and discount overrides - Job bill rate and discount overrides - Labor multipliers - Job assignment overrides - Job billing title overrides - Non-labor bill rate and discount overrides |
For detailed setup instructions for each option, see: Billing Setup, Oracle Projects Fundamentals. For detailed setup instructions for billing implementation options, see: Implementation Options, Oracle Projects Implementation Guide.
Oracle Project Billing allows you to generate draft invoices and draft revenue using separate processes, which you can run at different times. To allow for different billing cycles and revenue accrual, Oracle Projects creates the accounting distribution lines during invoice and revenue generation.
During the AutoInvoice process in Oracle Receivables, the balance on the advance is reduced (if applicable). The default account that is credited with the invoice amount is either the unbilled receivables (UBR) account or the unearned revenue (UER) account, depending on whether you accrue revenue before or after you generate invoices.
You can apply advance receipts to an agreement using the Apply Receipt window. When you run the program PRC: Generate Draft Invoices, the program reduces the available advance balance associated with the agreement.
The following examples illustrate how Oracle Projects accounts for revenue transactions.
After an advance receipt is applied to an agreement, Oracle Receivables creates the prepayment entry. The following table shows an example of a prepayment entry that Oracle Receivables creates:
| Account | Debit | Credit |
|---|---|---|
| On Account Cash | 200.00 | |
| Prepayment | 200.00 |
Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.
Any items or events that fail in AutoAccounting are marked accordingly, and the associated draft revenue is marked with a generation error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.
| Account | Debit | Credit |
|---|---|---|
| Unbilled Receivables and/or Unearned Revenue | 200.00 | |
| Revenue | 200.00 |
When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.
The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:
| Account | Debit | Credit |
|---|---|---|
| Receivables | 200.00 | |
| Unbilled Receivables and/or Unearned Revenue | 200.00 |
The following table shows a Collections entry Oracle Receivables creates:
| Account | Debit | Credit |
|---|---|---|
| Cash | 200.00 | |
| Receivables | 200.00 |
The following table shows a prepayment matching entry that Oracle Receivables creates:
| Account | Debit | Credit |
|---|---|---|
| Prepayment | 200.00 | |
| Receivables | 200.00 |
The following examples shows accounting transactions for revenue accrual and billing.
The following table shows a revenue transaction entry prior to billing:
| Account | Debit | Credit |
|---|---|---|
| Unbilled Receivables | 200.00 | |
| Revenue | 200.00 |
The following table shows an invoice transaction entry prior to billing:
| Account | Debit | Credit |
|---|---|---|
| Receivables | 200.00 | |
| Unbilled Receivables | 200.00 |
The following table shows an invoice transaction entry prior to accrual:
| Account | Debit | Credit |
|---|---|---|
| Receivables | 200.00 | |
| Unearned Revenue | 200.00 |
The following table shows a revenue transaction entry prior to accrual:
| Account | Debit | Credit |
|---|---|---|
| Unearned Revenue | 200.00 | |
| Revenue | 200.00 |
The following table shows a revenue transaction entry prior to invoicing:
| Account | Debit | Credit |
|---|---|---|
| Unbilled Receivables | 200.00 | |
| Revenue | 200.00 |
The following table shows a partial invoice transaction entry:
| Account | Debit | Credit |
|---|---|---|
| Receivables | 100.00 | |
| Unbilled Receivables | 100.00 |
The following table shows a pre-bill transaction entry:
| Account | Debit | Credit |
|---|---|---|
| Receivables | 200.00 | |
| Unearned Revenue | 200.00 |
The following table shows an accrue more than pre-bill transaction entry:
| Account | Debit | Credit |
|---|---|---|
| Unearned Revenue | 200.00 | |
| Unbilled Receivables | 100.00 | |
| Revenue | 300.00 |