Browser version script Skip Headers

Oracle® Fusion Applications Project Management Implementation Guide
11g Release 1 (11.1.2)
Part Number E20384-02
Go to contents  page
Contents
Go to Previous  page
Previous
Go to previous page
Next

39 Project Costing Configuration: Manage Integration with Other Applications

This chapter contains the following:

Oracle Fusion Project Costing Integration with Oracle Fusion Applications: How They Work Together

Deriving Project-Related Accounts for Oracle Fusion Applications: Explained

Capturing Project Costs: Explained

FAQs for Define Purchasing Integration

FAQs for Define Payables Integration

FAQs for Define Inventory Integration

Oracle Fusion Project Costing Integration with Oracle Fusion Applications: How They Work Together

Oracle Fusion Project Costing fully integrates with Oracle Fusion Purchasing, Oracle Fusion Self Service Procurement, Oracle Fusion Receipt Accounting, Oracle Fusion Expenses, Oracle Fusion Payables, Oracle Fusion Inventory Management, and Oracle Fusion Cost Management and enables you to capture and transfer project-related transactions. For example when you purchase goods, the project information is carried from the requisition to purchase orders to supplier invoices to finally project expenditure items.

Oracle Fusion Project Costing also integrates with Oracle Fusion Assets to capture capital assets and retirement adjustment costs. Oracle Fusion Project Costing fully integrates with Oracle Fusion Subledger Accounting so that you can create accounting for your project-related transactions.

Implementing Oracle Fusion Payables

Implement Oracle Fusion Payables to enter project-related supplier invoices in Oracle Fusion Payables and to import project-related expense reports from Oracle Fusion Expenses. You use supplier and invoice information in Oracle Fusion Payables to create expenditure items for projects in Oracle Fusion Projects.

When the primary accounting method is accrual basis accounting, you transfer invoice distributions and payment discounts as actual costs. When invoices are matched to receipt accrual purchase orders, Oracle Fusion Supply Chain Management transfers invoice variances to Oracle Fusion Projects. For receipt accruals, Oracle Fusion Payables transfers discounts to Oracle Fusion Projects.

Implementing Oracle Fusion Purchasing, Oracle Fusion Self Service Purchasing, Oracle Fusion Receipt Accounting, and Oracle Fusion Cost Management

Implement Oracle Fusion Purchasing and Oracle Fusion Self Service Purchasing to enter project-related requisitions, requests for quotations, and purchase orders, and then report them as outstanding committed costs of requisitions and purchase orders on your projects.

Implement Oracle Fusion Receipt Accounting to create receipts against purchase orders. Thereafter, Oracle Fusion Cost Management transfers project-related receipt accruals as actual supplier costs. When the primary accounting method is accrual basis accounting, you transfer the costs associated with the receipt as actual costs. Oracle Fusion Cost Management transfers the variances for receipt accruals by accumulating the costs from Oracle Fusion Payables and then transfers them to Oracle Fusion Projects.

Implementing Oracle Fusion Inventory Management

Implement Oracle Fusion Inventory Management to order and receive items into inventory before assigning them to a project. You can capture project information for miscellaneous transactions and movement requests as you take items out of or receive items into Oracle Fusion Inventory Management. When you enter project-related transactions in Oracle Fusion Inventory Management, you enter the project information on the source transaction. Oracle Fusion Cost Management transfers project-related miscellaneous inventory issues and move orders to Oracle Fusion Projects.

Implementing Oracle Fusion Expenses

Employees and contingent workers can enter and submit expense reports. Oracle Fusion Expenses integrates with Oracle Fusion Payables to provide quick processing of expense reports for payment. You can create project-related expense reports in Oracle Fusion Expenses and transfer to Oracle Fusion Payables and then to Oracle Fusion Project Costing.

Implementing Oracle Fusion Assets

Implement integration with Oracle Fusion Assets to collect construction-in-progress and expense costs in Oracle Fusion Project Costing for each asset you are building. You can then update your fixed asset records when assets are ready to be placed in service or retired. In addition, you can perform retirement cost processing to capture retirement-work-in progress costs associated with the retirement of assets in Oracle Fusion Assets.

Implementing Oracle Fusion Subledger Accounting

Oracle Fusion Subledger Accounting is the single source of all internally derived accounting. Oracle Fusion Project Costing seamlessly integrates with Oracle Fusion Subledger Accounting for accounting costs. After the accounting events are generated in Oracle Fusion Projects, the subledger accounting entries are created and then transferred to the Oracle Fusion General Ledger.

For transactions imported from other Oracle Fusion applications, such as Oracle Fusion Payables, Oracle Fusion Receipt Accounting, and Oracle Fusion Cost Management, you can view accounting entries created in Oracle Fusion Subledger Accounting without navigating to the source application. For transactions imported from non-Oracle applications, you can view the accounts imported into Oracle Fusion Project Costing without navigating to the third-party application.

Deriving Project-Related Accounts for Oracle Fusion Applications: Explained

Account rules specify how the Account Combination is derived on subledger journal entry lines. You can specify the conditions under which a rule becomes applicable. Using this feature, you can develop complex rules for deriving accounts under different circumstances. Accounts imported from third-party applications or the Oracle Application Development Framework Fusion Desktop Integration are available as sources in Oracle Fusion Subledger Accounting.

You can optionally create account rules with your specifications. If you define an account rule for an account combination, then the rule determines each segment of the Accounting flexfield. If you define an account rule for a segment, then the rule determines the value for a single Accounting flexfield segment. You can use both segment and account combination rules to derive a single account. If you assign both types of account rules to a single journal line definition, then Oracle Fusion Subledger Accounting uses the account segment rules first and then takes the remaining values from the account combination rule.

Deriving Projects-Related Accounts

The only method to derive project-specific accounts is to use project sources in the accounting method. You define account rules to derive project-related accounts for the following Oracle Fusion applications:

You must update the account rules to derive project-specific accounting. Create project-specific rules by evaluating the Project Identifier. Derive a project-specific account combination or override a single account segment with a project-specific value. Use more than 100 project-specific sources to create mapping sets and account rule conditions. Examples of these sources include:

Capturing Project Costs: Explained

Capture project-related costs from both Oracle Fusion applications and third-party applications and then transfer them to Oracle Fusion Projects. You can even capture costs manually by creating uncosted, costed, and accounted transactions for third-party application sources in Oracle Fusion Project Costing.

Capturing Costs from Oracle Fusion and Third-Party Applications

Costs are created in internal and external applications and are then processed. The following table provides the various types of costs and their source applications.


Source Name

Type of Transactions

Oracle Fusion Expenses

Expense Reports

Note

They are imported from Oracle Fusion Payables as actual costs to Oracle Fusion Projects.

Oracle Fusion Payables

Supplier Invoices

Oracle Fusion Purchasing

  • Purchase Orders

  • Purchase Requisitions

Note

They are available as committed costs for reporting in Oracle Fusion Projects.

Oracle Fusion Receiving

Receipts

Oracle Fusion Inventory

  • Miscellaneous Transactions

  • Movement Requests

Oracle Fusion Cost Management

  • Expense-Based Receipts

  • Inventory Miscellaneous Transactions

  • Inventory Movement Requests

Oracle Fusion Project Costing

  • Costs in Unreleased Expenditure Batches

  • Adjustment Transactions

  • Unprocessed Transactions

Third-Party Applications

External Costs from Excel and Web services

Different type of costs from various applications are explained in the following image.

Capture Project Costs

Capture various types of costs from internal and external applications and then transfer them to Oracle Fusion Projects using the following methods:

The Cost Collection flex field helps you manage capturing product-specific attributes on actual cost transactions and cost commitment transactions. You can manage naming, validation, and ordering of these attributes within each of the documents that capture them such as expense reports, purchase orders. You can capture, store, display, search, and report project-related attributes in the transaction source applications.

FAQs for Define Purchasing Integration

Where do I provide project information for project-related requisitions and supplier invoices?

You enter project information at the distribution line level for project-related requisitions and purchase orders in Oracle Fusion Purchasing, and for project-related supplier invoices in Oracle Fusion Payables. For requisitions, the requisition distribution attributes default from what is specified during the implementation. For purchase orders, the purchase order attributes default from the purchase order line and the purchase order line attributes default from the purchase order header. The distribution level values are used for validation and import.

FAQs for Define Payables Integration

How can I validate distribution sets for projects information?

Oracle Fusion Projects performs validations on Oracle Fusion Payables distribution sets for payables invoices at the time you create the actual distribution set lines. It validates the project and task number during the invoice validation.

Distribution sets are typically used on recurring transactions, and the associated project does not have transaction controls. When you create a distribution set in Oracle Fusion Payables, the distribution set line is not validated against the project transaction controls in Oracle Fusion Projects because you do not enter an expenditure item date, which is required for transaction control validation. The expenditure item date is not provided because you use the distribution sets for an indefinite period of time.

FAQs for Define Inventory Integration

How can I define bill rates for inventory items?

You can enter cost markups in the nonlabor rate schedule instead of rates for expenditure types that are related to inventory items.

Alternatively, if you enter a bill rate for an expenditure type that relates to inventory items, then the base unit of measure for inventory transactions reported under the expenditure type must be the same as the unit of measure for the expenditure type. If the base unit of measure for an inventory transaction differs from the unit of measure for the expenditure type, the Generate Revenue process reports an error and does not process the transaction.