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TRANSCRIPT
Project Financial Planning
Ian Boyling, ERP Director and Lead
Consultant
Prōject (EU) Ltd
Agenda
• Introduction to Prōject and Ian Boyling
• Project Financial Planning – Options
Project Costing – Budgets and Forecasts
Project Management - Financial Plans
• Financial Planning within Oracle Project Management - Overview
• Financial Plans
Plan Types
Create and Maintain
• Performance Reporting
• Other Project Management touch points
• Oracle Financials and Projects
Consultant
• Global implementation
experience
• Cross Industry Experience
• Oracle Certified Professional
for 12 years
• Fin Mgt and Projects (1st
globally) Implementation
Specialist
• UKOUG Fin SIG Deputy Chair
Introduction to Prōject and Ian Boyling
• Worlds first specialised partner
for Projects
• Financial Mgt Specialist
• Only Oracle Gold partner in
EMEA to have achieved the
OBIEE and BI Apps specialism
• Prōject were a UKOUG
“Partner of the Year” award
winner for Oracle E-Business
Suite, Projects and Business
Intelligence and Pub Sec 2012
Project Financial Planning - Options
• Project Costing – Budgets and Forecasts
Core Forms
Limited in Functionality
In System Queries limited
• Project Management - Financial Plans
HTML Pages
Extensive functionality and planning options
Additional comparative analysis with PJT
Managing budgets and forecasts
Agenda
• Overview of Budgeting and Forecasting
• Budgeting and Forecasting Process Flow
• Building Budgets and Forecasts
• Generating Budgets
• Generating Forecasts
• Entering and Maintaining Budgets and Forecasts
Budgeting and forecasting
Create budgets and forecasts to manage the
financial performance of a project.
Model financial
impact of planning
alternatives.
Compare budget and
forecast amounts to
actuals.
Plan types and plan versions
Version 1 Version 2
Plan Type 2
Plan Type 1
Version 1 Version 2
Create multiple working and baseline versions for each
plan type.
Project
Budget and forecast security
Responsibility-Based
Security
Role-Based
Security
Organization
Authority
Oracle Projects Security Mechanisms
Budgets and Forecasts
Budgetary controls and budget integration
Budgetary Controls
Monitor and control
expense commitment
transactions for projects
based on a project cost
budget.
Budget Integration
Integrate project budgets
with budgets in Oracle
General Ledger.
Optionally, implement and use budgetary controls
and budget integration features.
Submitting budgets and forecasts and creating baselines
Enter Budget/Forecast
Submit Budget/Forecast
Rework Budget/Forecast
Create Baseline
Flow for submitting budgets and forecasts and
creating baselines
Agenda
• Overview of Budgeting and Forecasting
• Budgeting and Forecasting Process Flow
• Building Budgets and Forecasts
• Generating Budgets
• Generating Forecasts
• Entering and Maintaining Budgets and Forecasts
Budget process flow
Implement
Change
Document
Financial Impact
Create
Initial
Budget
Baseline
Update
Budget
Create
Initial
Budget
Create
Project
Adjust and
Recalculate
Create
Revised
Budget
Baseline
Create
Initial
Forecast
7
1 2 4 5
6
8
Copy
Amounts
Generate
Direct
Edit
Budget Creation Options 3
Forecast process flow
Copy
Amounts
Generate
Forecast Creation Options
Direct
Edit
3
1 2 5 Create
Initial
Budget
Baseline
Create
Initial
Forecast
(Automatic)
Update
Forecast
Approve
Forecast
Adjust and
Recalculate
6
Estimate to Complete (ETC) Sources
Average
Of Actual
Amounts
Incurred
Workplan
/Staffing
Plan
Financial
Plan
Change
Documents
Billing
Events
Open
Commitment
4
Work
Quantity
Agenda
• Overview of Budgeting and Forecasting
• Budgeting and Forecasting Process Flow
• Building Budgets and Forecasts
• Generating Budgets
• Generating Forecasts
• Entering and Maintaining Budgets and Forecasts
Plan types and plan versions
Plan Type
Plan Type
Plan Type
Plan Versions
Plan Versions
Plan Versions
Original
Baseline
Working
Working
Current
Working
Version
Baseline
#2
Current
Baseline
Plan Versions
You can have multiple plan types and plan versions for a project.
Add plan types
You can add multiple plan types.
Approved
Revenue Budget
Forecast
Revenue Budget
Approved Cost
Budget
Forecast Cost
Budget
Plan Types
Planning options: plan settings
4. Generation Options
1. Plan Settings
2. Currency Settings
3. Rate Schedules
Flow for defining planning
options
5. Microsoft Excel Options
Planning options: plan settings
Uncategorized, Project Level:
Project 100,000.00
Categorized, Project Level:
Labor 50,000.00
Supplies 25,000.00
Equipment 25,000.00
No resource list Use resource list
You can choose to create categorized or
uncategorized budgets and forecasts.
Planning options: planning levels for budgets and forecasts
Project
Top Task 1 Top Task 2
Task 1.1 Task 1.2 Task 2.1 Task 2.2
Task 2.1.1 Task 2.1.2
Define the level of detail at which you enter plan
amounts. For example, you can choose to enter
amounts at the top task level.
Maintaining plan versions
Create budget plan version
Maintain Budget
Versions Page
Working Version
Submit, rework, and perform
maintenance activities
Agenda
• Overview of Budgeting and Forecasting
• Budgeting and Forecasting Process Flow
• Building Budgets and Forecasts
• Generating Budgets
• Generating Forecasts
• Entering and Maintaining Budgets and Forecasts
Generating budgets
New Budget
Version
PRC: Generate Financial
Plan Amounts
Run the concurrent program, PRC: Generate Financial Plan Amounts,
to generate new budget versions.
Define budget
generation planning
options
Budget sources
Budget Sources
Staffing Plan
Workplan
Financial Plan
Optional: Open Commitments
Optional: Change Documents
Optional: Billing Events
Oracle Projects generates budgets from the source
you specify in the planning options.
Agenda
• Overview of Budgeting and Forecasting
• Budgeting and Forecasting Process Flow
• Building Budgets and Forecasts
• Generating Budgets
• Generating Forecasts
• Entering and Maintaining Budgets and Forecasts
Generating forecasts
You can use information from workplans and actual
amounts to generate a forecast.
Project forecast PRC: Generate Financial
Plan Amounts
Forecast
generation
sources
Generating forecast costs
Oracle Projects calculates ETC quantity and cost based on the following
criteria:
Staffing Plan Workplan resources
and financial plan
Average of actual
transactions
Additional forecast generation sources
Additional sources you can use to generate forecast amounts.
Open Commitments Billing Events
Change Documents
Generating forecast revenue
Oracle Projects calculates forecast revenue based on the revenue accrual
method associated with the project, such as:
Cost-Based Event-Based Work-Based
Agenda
• Overview of Budgeting and Forecasting
• Budgeting and Forecasting Process Flow
• Building Budgets and Forecasts
• Generating Budgets
• Generating Forecasts
• Entering and Maintaining Budgets and Forecasts
Entering amounts and editing plan versions
Examples of tasks you can perform while editing a plan version.
Enter and edit plan
amounts.
Copy amounts from
another plan version
Edit the planning
options
Edit plan amounts in the
Edit Plan pages
Download plan version to
Microsoft Excel
Adjust amounts by a
percentage
Integration with Microsoft Excel
Oracle
WebADI
Oracle
Projects
Microsoft Excel
You can perform budgeting and forecasting activities in
Microsoft Excel, and upload the data to Oracle Projects.
Copying budgets and forecasts
Copy
Copy existing budgets and forecasts when you create a
project by copying a project template or project.
Project or project
template with
budget/forecast
New project with
budget/forecast
Copying budget and forecast amounts within a project
Copy
For example, copy a plan version from another plan
version within the same project.
Version 1 Version 2
Implementing budgeting and forecasting
Agenda
• Budgeting and Forecasting Setup
• Extensions and Workflow
Budgeting and forecasting implementation steps
Budgeting and Forecasting Implementation Steps (Page 1 of 2)
No Implement integration with Microsoft Excel
No Create additional spread curves
No Create additional period profiles
No Define budget change reasons
Define financial plan types
Steps for Implementing Budgeting and
Forecasting
Required?
Yes
Budgeting and forecasting implementation steps
Steps for Implementing Budgeting and Forecasting Required?
Define additional budget types No
Define additional budget entry methods No
Implement budgetary controls No
Implement budget integration No
Implement client extensions for budgeting and
forecasting
No
Implement workflow for budgeting and forecasting No
Budgeting and Forecasting Implementation Steps (Page 2 of 2)
Implementation steps related to budgeting and forecasting
Related steps for implementing budgeting and forecasting
Related Steps for Implementing Budgeting and
Forecasting
Required?
Define planning resources No
Define resource breakdown structures No
Define planning rate schedules No
Project performance reporting
Project performance reporting summarization
Summarization is a two-step process.
Oracle Projects
Transaction Data
Base Summary
Of Reporting Data
Summary Data by Organization
Summary Data by Project
Reporting by project
Financial Performance
Cost
Effort
Revenue
Earned Value
Billability
Billing and Collections
Example of the performance areas you can see on the overview page
layout for each project type.
Reporting by task
Project
Task 1 Task 2
Example of viewing financial information such as actual cost and actual
revenue at the task level of a financial structure. These amounts are
rolled up to the project level.
Financial Structure
Actual Cost
Actual Revenue
Task 3
Reporting by resource
0 - RBS Version
1. Consulting East
1.2 Amy Marlin 1.1 Consultant
Cost Effort Profitability
Example of viewing cost, profitability, and effort for resource Amy Marlin
from a resource breakdown structure.
Periodic view
Cost Revenue Margin
April 2007
Cost Revenue Margin
May 2007
You can use the Periodic View page to compare project performance
reporting information for a specific calendar and currency across several
months, quarters, or years.
(USD)
(USD)
To-date view
Prior Period
Period-To-Date
Quarter-To-Date
Year-To-Date
Inception-To-Date
Example of the available to-date views in which you can view financial
information for a project through a particular point in time.
Other PJT Touch Points
• Performance Reporting / Exception Reporting
• Status Reporting
• Expenditure Inquiry
• Project Lists
• Work Plans vs Financial Plans
• Deliverables
• Change Control
• Project Resource Management
• ........and of course, Business Intelligence possibilities
• Endeca – Project Extensions
Endeca
• Manage Potential Schedule
Delays
• Warn Project Managers of late tasks
before they affect project deadlines
and budgets
• Provide visibility to act on tasks
behind schedule to keep project on
track
• Reduce Project Administration
Costs
• Identify tasks impacted by schedule
and resource changes
• Quickly and consistently update
impacted tasks
• Focus Project Managers on
Delivery
• Quickly identify and act on projects
where costs are at risk of exceeding
planned amounts
• Alert users to project schedules
requiring remedial or preventive
actions
Endeca
Mancini should have used Oracle Project Management!
Useful Links
Prōject Web Site
Chart of Accounts Oracle Scene Article
Oracle Projects Specialism
Oracle Financial Management Specialism
EBS Blogs from Prōject
Oracle E-Business Suite Training Courses and Events from Prōject
Oracle Projects Training from Prōject