How You Set Up Project-Driven Supply Chain

To set up Project-Driven Supply Chain, perform these tasks in the sequence listed below:.

Task	Required	Details
Opt in to the Project-Driven Supply Chain feature	Required	In the Offerings work area, enable the Project-Driven Supply Chain feature at the offering level for the Manufacturing and Supply Chain Materials Management offering.
Enable inventory tracking by project	Required	You can enable Oracle Projects integration on individual inventory organizations. Materials management transactions and manufacturing transactions will gather the project details. Here's how you enable individual organizations to track by project: In the Setup and Maintenance work area, go to the Manage Inventory Organizations task: Offering: Manufacturing and Supply Chain Materials Management Functional Area: Facilities (click Show All Tasks) Task: Manage Inventory Organizations Search for your inventory organization, and then click Manage Organization Parameters. Select the Enable inventory tracking by project option, a new option with this update, and then click Save and Close. Repeat steps 2 and 3 for additional inventory organizations, as required.
Set up the default expenditure types	Required	Review and maintain the set of expenditure types which will be the default to use in specific supply chain transactions supporting integration with projects. Here's how you set up your default expenditure types: In the Setup and Maintenance work area, go to the Manage Default Expenditure Types task: Offering: Manufacturing and Supply Chain Materials Management Functional Area: Facilities (click Show All Tasks) Task: Manage Default Expenditure Types On the Manage Default Expenditure Types page, select a default value for each of the fields. Click Save and Close.
Manage project organization classification	Required	You must classify each inventory organization that's enabled for project-driven supply chain as a project expenditure organization. Ensure that the organizations classified as project expenditure organizations belong to the hierarchy that you specified in the Configure Project Accounting Business Function task for the business unit. Here's how you complete this setup task: To classify inventory organizations, in the Setup and Maintenance work area, use the Manage Project Organization Classifications task. To add an organization to the hierarchy: In the Setup and Maintenance work area, click Search and search for the Manage Organization Trees task. In the Manage Organization Trees page, select the organization hierarchy and add the new inventory organization. Ensure that the starting organization is at a minimum the inventory organization or any other organization in the hierarchy above that. Click Actions > Flatten and flatten the HR organization. Click Actions > Set Status > Active. Run the Maintain Project Organization process.
Set up project attribute defaults	Optional	Set up the defaults for contract number, funding source, or any user-defined attributes. These attributes can be defaulted at five levels, with the most specific definitions being chosen first, and more abstract defaults selected if necessary.
Set up item level attributes	Optional	Specify the expenditure type that needs to default onto material transactions and for creating outside processing requisitions. You can also specify if the item is hard pegged at Project and Task Level and if you can use material from common supplies if sufficient inventory does exist in the project and task-specific inventory on-hand.
Set up resource level default expenditure type	Optional	Specify the default expenditure type for the resource transactions when they're interfaced to costing.
Manage orchestration process definitions Manage order lookups	Required	Prevent Order Management from sending order lines that include project details to Receivables. For more information, see the Set Up Projects in Order Management topic in the Implementing Order Management guide.
Manage order management extensions Manage processing constraints	Optional	Write your own Groovy script to process sales orders that include project details. Disable the processing constraint that prevents the Order Entry Specialist from updating a fulfillment line that includes project details. For more information, see the Import Your Project Details topic in the Implementing Order Management guide.
Import your project details	Optional	Import sales orders that include project details. Use REST API, a web service, or File-Based Data Import. For more information, see the Set Up Projects in Order Management topic in the Implementing Order Management guide.
Manage valuation structures	Conditional	To track inventory values by project and task, you must set up the valuation structure with project number and task number costing attributes.
Manage cost profiles	Conditional	To track inventory values by project and task, you must set up the cost profile with a valuation structure containing the project number and task number costing attributes. Note: You can't modify existing cost profiles with the new valuation structure. You can update an item cost profile with a new cost profile, which has a valuation structure containing project and task, only if the item cost profile isn't already used in transactions.
Manage valuation units	Conditional	If you use a manual valuation unit setup, you must set the valuation unit with a valuation structure containing the project number and task number costing attributes.
Manage project type cost exclusions	Conditional	Set up the project type for exclusion from cost collection. The cost collection setup would determine the following behavior: Project expenditure isn't interfaced to Oracle Project Portfolio Management from Oracle Cost Management. Commitment isn't recorded in Oracle Project Portfolio Management when using the project whose project type is excluded from cost collection. If there should be any cost of goods sold recognition for sale order issue to projects or not. If the project type associated to the project isn't excluded from cost collection, then a debit is recorded using a new accounting line type called Project Clearing, to facilitate charging the shipment cost as expenditure to the project. If the project type is excluded from cost collection, then cost of goods sold accounting will happen within Cost Management. In the Setup and Maintenance work area, go to the Manage Project Type Cost Exclusions task: Offering: Manufacturing and Supply Chain Materials Management Functional Area: Facilities (click Show All Tasks) Task: Manage Project Type Cost Exclusions Select the project types you want to exclude from cost collection and move them to the Cost Excluded list. Click Save and Close.