Options for Business Units to Work with Projects

Business units can perform many business functions. A business function represents a business process or an activity that can be performed by people working within a business unit and describes how a business unit is used.

During implementation, you must configure the Project Accounting Business Function task if you want a business unit to be used for specific project units.

You can partition financial data using business units while sharing a single approach to project management across all business units. The following graphic shows two business units, one from the United Kingdom (UK) and one from the United States (US). These business units have the same research and development processes, so a single project unit is used by both business units to facilitate common project management practices.

Project Options

Following are project setup options for each business unit that you enable for use with Oracle Fusion Project Portfolio Management.

• To own projects or tasks, an organization must be classified as project and task owning organization, belong to the hierarchy (the tree and tree version name) associated with the business unit, and be active on the current date. The project type class must be permitted to use the organization to create projects.

• Project and task owning organizations are associated with the business unit to restrict the use of these organizations in project creation flow. You can specify the business unit for the project, then can select from only those project and task owning organizations that are associated with the selected business unit. A project can be associated with only one business unit.

• Project expenditure organizations to associate with the business unit to restrict which organizations can incur costs on the project. You can either use the same organization to incur expenses or select a different one as per your business requirements.

Project Costing Options

Following are the business unit project costing implementation options.

• Option to use either the default calendar from primary ledger calendar, or a different project accounting calendar to assign to the business unit. You can change this calendar until you copy the project accounting periods.

• Default asset book for assets in the business unit.

• Overtime calculations option.

• Day of the week when the expenditure cycle begins must be provided.

• Asset retirement processing option to capture and record the cost of removal and the proceeds of sale amounts for retiring an asset.

• Separation of duties option for entering and releasing expenditure batches to ensure accuracy and accountability of project costs.

• Conversion rate type is mandatory for converting the amount on cost transactions in this business unit from the transaction currency to the ledger currency.

Cross-Charge Transaction Options

Following are business unit cross-charge transaction implementation options.

• Transfer price currency conversion date type and rate type for the business unit.

• Borrowed and lent cross-charge transaction option for distributions to be created for cross-charge transactions between different organizations in the same business unit and legal entity.

• Borrowed and lent cross-charge transaction option for distributions to be created for cross-charge transactions between different business units in the same legal entity.

• Borrowed and lent cross-charge transaction option for distributions to be created for cross-charge transactions for a specific receiver business unit.

Project Units

Project units are associated with business units to restrict the business units that can handle project transactions. When a project unit isn't associated with a business unit, any business unit in your enterprise can process project transactions.

Customer Contract Management

You can configure customer contract management business function properties, such as currency conversion, cross-charge transaction, and billing options, for each contract business unit.

Reference Data Sharing

Assign sets to business units to determine how reference data is shared across applications. A business unit is a set determinant for the following objects:

• Project accounting definition, including set-enabled reference data such as project type.

• Project and contract billing, including set-enabled reference data such as invoice format.

• Project rates, including set-enabled reference data such as rate schedules.