Overview of Project-Driven Supply Chain
Project managers and project accountants can use the Project-Driven Supply Chain solution to manage the costs of the supply chain processes in the context of projects without creating separate organizations for each project.
The integration of Oracle Project Portfolio Management and Oracle Supply Chain enables supply chain products to support project attributes, which allows the capture of supply chain costs as project expenditures. Project Number and Task Number are available to segregate and value the inventory, and support project-specific transactions that are based on rules in the Supply Chain Materials Management and Inventory Organization.
Project attributes are also added to supply chain execution documents such as purchase requisition, purchase order, sales order, transfer order, and manufacturing and maintenance work order. These project-specific execution documents follow the business rules that are defined for the project. Any transactions associated with these documents that create a commitment or actual cost to the project are captured with the project attributes to ensure that these costs are posted as expenditures to the project.
Here's the list of set up tasks in Project-Driven Supply Chain along with a brief description.
Set Up Task |
Is This Mandatory? |
Description |
---|---|---|
Opt in the Project-Driven Supply Chain feature |
Yes |
Enable the Project-Driven Supply Chain feature by opting in via the Manufacturing and Supply Chain Materials Management offering. |
Enable inventory tracking by project |
Yes |
Enable projects integration on individual inventory organizations via the Manage Inventory Organizations task under the Manufacturing and Supply Chain Materials Management offering. Materials management transactions and manufacturing transactions will gather the project details. Ensure that the organization is classified as project expenditure organization. |
Set up the default expenditure types |
Yes |
Review and maintain the default expenditure types to use in supply chain transactions that support integration with projects |
Manage orchestration process definitions |
Yes |
Prevent Order Management from sending order lines that include project details to Receivables. |
Here's the list of project costing specific tasks in Project-Driven Supply Chain along with a brief description.
Tasks |
Is This Mandatory? |
Description |
---|---|---|
Review approved commitments |
No |
Review approved requisition , purchase order, and transfer order project commitments. |
Perform adjustments |
No |
Perform adjustments on one or more expenditure items. |
Manage accounting |
No |
Review and validate accounting entries based on the settings for your accounting and project accounting periods, and the source accounting lines of debit and credit events. |
Manage burdening |
No |
Review the raw cost, burden cost, and burdened cost of each transaction. Create accounting for burden costs even when raw costs are accounted in a third-party application. Create and track accounting independently for raw costs, burden cost, and burdened cost. |