11g Release 1 (11.1.4)
Part Number E20384-04
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Oracle® Fusion
Applications Project Management Implementation Guide 11g Release 1 (11.1.4) Part Number E20384-04 |
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This chapter contains the following:
Manage Planning and Billing Resource Breakdown Structures
Manage Reporting Resource Breakdown Structures
A planning resource breakdown structure is a list of valid planning resource formats available for financial and project planning and control. A resource format is a hierarchy of up to three resource types.
Before you can set up resource breakdown structures, you must set up the following:
Attributes for the predefined resource classes of labor, equipment, material items, and financial resources.
Inventory items, including item categories and item cost, if applicable.
Resource elements, such as event types, expenditure categories, expenditure types, jobs, organizations, people, revenue categories, roles, and suppliers.
Setting up planning resource breakdown structures is a three-step guided process. The following diagram illustrates the flow of planning resource breakdown structures as they are created and added to projects or project templates.
As shown in the diagram, the steps to set up planning resource breakdown structures include the following:
Define planning resource breakdown structure details
Select resource formats
Add planning resources
The last two steps shown in the diagram (add resource breakdown structures to a project or template and select the primary resource breakdown structure) occur during project or template definition.
Planning resource breakdown structure details include the following attributes:
Date range during which this planning resource breakdown structure is available to assign to projects
Project unit
Indicator that specifies whether resource changes are allowed at the project level
Important
If resource changes are not allowed at the project level, then all projects with the same planning resource breakdown structure share the same set of resources, and it is not possible to define additional resources in the context of an individual project. For example, new resources and resource formats that are added to a planning resource breakdown structure for one project are available to all projects with this planning resource breakdown structure.
If resource changes are allowed at the project level, then in addition to the resources defined centrally on this resource breakdown structure, you can add resources for an individual project that are not available to other projects with the same planning resource breakdown structure. However, resource formats are still shared between the projects.
You select resource formats to add to the planning resource breakdown structure.
Planning resource breakdown structures can have resource formats with up to three hierarchical levels of resource types, as shown in the following example:
Organization
Expenditure category
Named person
If you select a child resource format, the application automatically selects the parent. For example, if you select the resource format of organization-expenditure category-named person, the application automatically selects the organization-expenditure category format and expenditure category format.
The resource breakdown structure consists of one or more hierarchies of resource elements. An element is a resource type, such as an organization or job, or a combination of resource type and specified resource, such as the job of consultant or a person named Amy Marlin.
The following diagram shows examples of hierarchical levels of resource elements:
You can add planning resources to any level of the resource format. You are not required to add resources to every level.
For example, assume that your resource breakdown structure has a resource format with three hierarchical levels. The top level is organization, the second level is expenditure category, and the third level is named person. You can add an organization resource to the first level, an expenditure category resource to the second level, and a named person to the third level. Alternatively, you may add a named person to the third level only, and not add planning resources to the first two levels.
After you add planning resources to the resource breakdown structure, you can preview actual transaction associations to find out where actual transaction amounts would be mapped in the project plan, budget, or forecast.
You update the resource mappings with these planning resources for the planning resource breakdown structures that are used on the project plan and in project forecasts. When you update the mappings, the project performance reporting data are synchronized with the planning resource breakdown structure.
You designate one planning resource breakdown structure as the primary structure on a project. The primary planning resource breakdown structure is used for project planning.
Use a billing resource breakdown structure to manage billing controls.
You need only a single level billing resource breakdown structures to create billing controls.
Oracle Fusion Projects provides the following two predefined billing resource breakdown structures:
Control Billing: Provides a list of resources you can reference when creating billing controls on regular contracts.
Control Intercompany Billing: Provides a list of resources you can reference when creating billing controls on intercompany and interproject contracts.
You cannot create or delete these billing resource breakdown structures. You can edit the resource formats and specify the associated billing resources to meet the needs of your enterprise.
The resources you can create for planning and billing resource breakdown structures are determined by a combination of predefined resource classes and the resource format hierarchies you select for use.
Before creating planning or billing resources, you must select the resource formats and resource format hierarchies you want to use on your resource breakdown structure. For example, if you want to plan for project-related expenses such as air fare, then you must select resource format hierarchies created using the resource type Expenditure Type.
Also, as resource format hierarchies support up to three levels, selecting from the available hierarchies enables you to determine the granularity with which resources are created.
For example, for planning resource breakdown structures used for high-level or preliminary planning, you may decide to enable only the Resource Class resource format. You can then create and use planning resources representing the four resource classes: Labor, Equipment, Material Items, and Financial Resources.
To plan in greater detail, you may decide to use a two-level resource format hierarchy, such as Resource Class: Job or a three-level hierarchy such as Resource Class: Job: Named Person. You can then create a resource such as Labor: Electrical Engineer or Labor: Electrical Engineer: Chris Black.
Note
Selecting more granular resource formats automatically selects resource formats higher up within the same hierarchy. For example, if you select the resource format Expenditure Type: Named Person: Job, then the resource formats Expenditure Type: Named Person and Expenditure Type are automatically selected for use.
Resource classes influence the creation of planning and billing resources in the following ways:
Resource class as a resource format: As mentioned earlier, Resource Class is a resource type that is available for use within resource format hierarchies on planning and billing resource breakdown structures.
Predefined association with resource formats: For each resource format, you can create planning or billing resources based on certain resource classes. For example, if the resource format contains Job, then the only available resource class is Labor. However, if the resource format is Expenditure Category, then you can select any of the resource classes (Labor, Material, Equipment, and Financial Resources) when you create a resource.
Resource formats are predefined resource types or hierarchies of resource types. You create resources for planning or billing resource breakdown structures based on resource formats.
Following is a description of resource types and resource format hierarchies.
Resource formats are created based on the following predefined resource types.
|
Name |
Description |
|---|---|
|
Named Person |
Employee or a contingent worker who performs services for the deploying enterprise. |
|
Event Type |
Implementation-defined classification of events that determines the revenue and invoice effect of an event. |
|
Expenditure Category |
Implementation-defined grouping of expenditure types by type of cost. |
|
Expenditure Type |
Classification of cost assigned to each expenditure item. Expenditure types are grouped into cost groups (expenditure categories) and revenue groups (revenue categories). |
|
Item Category |
Categorization of inventory items that is used to track the aggregate consumption of material. |
|
Inventory Item |
An item that can be purchased or produced, and for which you can budget and track the costs associated with the consumption of the item. |
|
Job |
A set of duties to which an employee can be assigned. |
|
Organization |
Divisions, groups, cost centers, or other organizational units within a company. |
|
System Person Type |
Distinguishes employees and contingent workers. For example, assume that a project requires 100 hours of labor effort and you have resources only for 80 hours. You can plan 80 hours of employee time and 20 hours of contingent worker time on the project. |
|
Project Nonlabor Resource |
Implementation-defined asset or pool of assets. An asset may represent actual pieces of equipment whose time is consumed, or an asset whose output is consumed. |
|
Resource Class |
Higher-level grouping of planning resources, into labor, equipment, material items, and financial resources, that drives how resources are used. |
|
Revenue Category |
Implementation-defined grouping of expenditure types by type of revenue. |
|
Supplier |
A business or individual that provides goods or services, or both in return for payment. |
Resource formats consist of one resource type or a hierarchy of up to three resource types. Before you add planning resources to a planning or billing resource breakdown structure, you must select the resource formats you want to use. For example, you can add the resource formats Job, Job: Organization, and Job: Organization: Named Person to your resource breakdown structure.
The resource formats and resource format hierarchy determine how planning amounts roll up and are displayed when you view financial and project plans by resource structure. Thus, each resource format hierarchy represents a separate structure. For example, the resource format hierarchies Job: Expenditure Type: Organization and Organization: Expenditure Type: Job are distinct.
The Update Mapping process matches actual costs and revenue to the latest, saved planning resources for project planning and forecasting. Summarized actual costs and revenue are recalculated for project performance reporting.
Consider these points when using the Update Mapping process:
You can update resource mappings after you change resource formats or add resources, and save the resource breakdown structure.
Baseline project plan values are not affected by the Update Mapping process.
The Update Mapping process applies only if you do not allow resource changes at the project level.
Tip
If you allow resource changes at the project level, use the Update Actual Amounts action on the project plan to update the actual amounts for all tasks on the project plan. Use the process monitor to start the process to summarize project performance data for reporting.
After running the Update Mapping process, regenerate forecast versions to reflect the new actual costs.
You can track the cost impact of every resource that has been assigned to a project task and use the resource breakdown structure to view the breakdown of these costs. Oracle Fusion Projects associates the costs of the resources used for tasks with branches and levels in the resource breakdown structure. The process for determining the correct association is managed by rules of precedence.
Oracle Fusion Projects uses the following rules to associate cost amounts with resources:
Select the lowest level in the resource breakdown structure to which a transaction can map.
If there is only one level to which the transaction maps, the cost amounts are mapped to that level.
If the transaction maps to more than one level, Oracle Fusion Projects sums the precedence numbers for all resource types in the branch, and gives precedence to the resource element in the branch with the lowest sum.
If more than one branch has the lowest precedence number at the lower level, the application uses the precedence number of the next level up.
If the sum of precedence numbers is the same for more than one branch, precedence is given to the branch with the lowest number at the lowest level.
If one branch contains a user-defined resource type, precedence is given to the branch that does not contain a user-defined resource type.
Note
Oracle Fusion Projects gives more precedence to a lower precedence number. For example, a resource element with a precedence number of 1 is given precedence over a resource element with a precedence number of 10.
Rules of precedence are listed in the following table:
|
Resource Type |
Precedence in Labor Resource Class |
Precedence in Equipment Resource Class |
Precedence in Material Items Resource Class |
Precedence in Financial Resources Resource Class |
|---|---|---|---|---|
|
Named Person |
1 |
1 |
1 |
1 |
|
Project Nonlabor Resource |
3 |
3 |
3 |
3 |
|
Inventory Item |
5 |
5 |
5 |
5 |
|
Job |
6 |
6 |
6 |
6 |
|
Item Category |
8 |
8 |
8 |
8 |
|
Expenditure Type |
9 |
9 |
9 |
9 |
|
Event Type |
10 |
10 |
10 |
10 |
|
Expenditure Category |
11 |
11 |
11 |
11 |
|
Revenue Category |
12 |
12 |
12 |
12 |
|
Organization |
13 |
13 |
15 |
15 |
|
System Person Type |
14 |
14 |
14 |
14 |
|
Supplier |
15 |
15 |
13 |
13 |
|
Resource Class |
16 |
16 |
16 |
16 |
This example illustrates that precedence is given to the branch with the lowest number at the lowest level if the sum of precedence numbers is the same for more than one branch.
In this example, a time card transaction for a principle consultant who incurs travel expenses maps to two branches.
The first branch consists of two levels (1-Person Type: Employee and 1.1-Job: Principle Consultant). The highest level has a precedence number of 14, and the lowest level has a precedence number of 6, for a sum of 20 for the branch
The second branch also consists of two levels (2-Expenditure Category: Expenses and 2.1-Expenditure Type: Travel). The highest level has a precedence number of 11, and the lowest level has a precedence number of 9, for a sum of 20 for the branch.
The transaction cost amount is mapped to the Job: Principle Consultant resource element because it has the lowest number (6) at the lowest level.
No. Oracle Fusion Projects provides a set of predefined resource formats. You select resource formats as the basis for adding resources to planning and billing resource breakdown structures.
No. You cannot create billing resource breakdown structures. However, you can add billing resources to the two predefined billing resource breakdown structures, Control Billing and Control Intercompany Billing, as required.
A planning resource breakdown structure consisting of one resource format (resource class) with four associated planning resources: Labor, Equipment, Material Items, and Financial Resources.
A default planning resource breakdown structure is created automatically for each project unit. When you create a project template, it is selected as the primary planning resource breakdown structure. You can designate other planning resource breakdown structures as primary if required. However, you cannot remove the default planning resource breakdown structure from the project template or project.
A planning resource breakdown structure that is selected as the primary at the project template or project level. The primary planning resource breakdown structure is used for project planning.
When you create a project template, the default planning resource breakdown structure for the project unit is automatically added and set as primary. You can add additional planning resource breakdown structures to the template and set any one of them as primary. Projects inherit planning resource breakdown structures from the associated template. As with templates, you can add or remove planning resource breakdown structures and change the primary designation as required.
Planning resource breakdown structures provide a list of resource formats and associated planning resources that you can use for project and financial planning, and optionally, project reporting.
Billing resource breakdown structures are similar in organization to planning resource breakdown structures. However, only two predefined billing resource breakdown structures exist and they provide a restricted set of implementation-defined resource formats and billing resources that are used for invoicing and recognizing revenue for contracts.
Reporting resource breakdown structures provide a resource hierarchy consisting of resources, resource types, and other resource groupings, which is used for reporting on planning and actual amounts on a project. Also, unlike planning and billing resource breakdown structures, you can use reporting resource breakdown structures in allocation rules to determine the allocation source and basis amounts.
If you change the value of a resource type used in a resource combination, you must run the Refresh Resource Breakdown Structure Element Names process to refresh the value that appears in the combination. For example, assume you have a resource that includes the expenditure type named Telephone Charges in the resource combination. If you change the name from Telephone Charges to Communication Charges on the expenditure type setup page, the change will not appear in the resource combination until you run the Refresh Resource Breakdown Structure Element Names process.
Use reporting resource breakdown structures to view the rolled-up data in Oracle Fusion Project Performance Reporting. The structure provides a method for viewing planned and actual cost and revenue for a project by resource, resource type, and other resource groupings.
Reporting resource breakdown structure versions provide a history of resource breakdown structures used for resource reporting.
When a resource breakdown structure is created, a working version is automatically created. You can have only one working version at a time. You can make changes to the working version until you are ready to freeze it.
Only a frozen version can be associated with a project. When you freeze one version, a new working version is created on which you can make further changes.
When you freeze a resource breakdown structure version, that version becomes the current reporting version the next time project performance data is summarized. Although you can have multiple frozen versions, only one is used for current reporting at any given time.
All planning resource breakdown structures can be used for reporting.
In addition, you can build reporting resource breakdown structures based on the resource types and resources already defined in the system. Select the resource type and specify the associated resource for each level of the hierarchy. You can create up to ten hierarchical levels in a reporting resource breakdown structure. This is different than planning resource breakdown structures, which may contain up to three hierarchical levels.
The User Defined resource type enables you to define your own groups of resources. Select the User Defined resource type, enter a free-form definition of the group, and then create hierarchical levels that link the actual resource types and resources.
Enable the Use For Allocations option if you want to allocate costs with this reporting resource breakdown structure.
If you enable this option, you can select this reporting resource breakdown structure when defining source and target details for an allocation rule. In this situation, the reporting resource breakdown structure must be assigned to all source or target projects.
Planning resource breakdown structures provide a list of resource formats and associated planning resources that you can use for project and financial planning, and optionally, project reporting.
Billing resource breakdown structures are similar in organization to planning resource breakdown structures. However, only two predefined billing resource breakdown structures exist and they provide a restricted set of implementation-defined resource formats and billing resources that are used for invoicing and recognizing revenue for contracts.
Reporting resource breakdown structures provide a resource hierarchy consisting of resources, resource types, and other resource groupings, which is used for reporting on planning and actual amounts on a project. Also, unlike planning and billing resource breakdown structures, you can use reporting resource breakdown structures in allocation rules to determine the allocation source and basis amounts.
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