Oracle Data Sheet

ORACLE DATA SHEET

ORACLE PROJECT COSTING

KEY FEATURES

EXPENDITURES

•

Enter expenditure batches

through online entry, data

import, or Microsoft Excel

•

Vary labor rates based on

employee, job, organization,

work type or location

BURDENING AND

ALLOCATIONS

•

Define and assign burden

multipliers

•

Define burden schedule and

versions

•

Distribute costs using auto-

allocation rules

TRANSACTION AND

BUDGETARY CONTROLS

•

Set up transaction controls

based on expenditure

category, expenditure type,

employee, or non-labor

resource

•

Budget at summary or

detailed level

•

Create budgetary controls to

check available project funds

with hard or soft controls

ADJUSTMENTS

•

Perform mass adjustments

•

Transfer or split expenditures

with audit trail

ASSET CAPITALIZATION

•

Define capital assets and

capitalize CIP asset costs

•

Process retirement costs and

proceeds from sale

INTEGRATION

•

Seamlessly integrate with

other Oracle applications

including Financials,

Inventory, Project

Manufacturing, and Time &

Labor

•

Integrate with third-party

applications through open,

standards-based architecture

Oracle® Project Costing helps you improve the bottom line of your

projects by integrating and controlling global project costs. You can

effectively manage project budgets, streamline processing, automate

resource sharing administration, and capitalize assets more

efficiently. Oracle Project Costing is an integrated part of Oracle

Projects suite, a comprehensive set of solutions that can help you

predictably and successfully deliver global projects by integrating,

managing and providing insight into enterprise project information.

Oracle Projects is part of the Oracle E-Business Suite, an integrated

set of applications that are engineered to work together.

Capture and Process Project Costs

Oracle Project Costing creates a single, up-to-date view of all your project costs by

streamlining the collection of raw costs from multiple enterprise applications,

seamlessly applying overhead costs, and creating accurate and timely accounting

entries for your finance department.

Oracle Project Costing enables you to capture costs according to your specific

business requirements. You can classify expenditures based on the type of cost

incurred on a project, such as administrative, overtime, or lodging. You can then

group the project costs into specific expenditure categories – such as Materials and

Labor – for increased visibility and control of project costs. With Oracle Project

Costing, you have multiple ways to enter project expenditures. You can enter

transactions directly or load from external transaction collection systems.

Load Project Costs from Subledger Applications

With seamless integration to other applications such as Oracle Payables, Oracle

Purchasing, and Oracle Inventory, you can easily aggregate project expenditures as

transactions are processed through standard business flows. In addition, the open,

standards-based architecture of Oracle applications enables you to capture data from

legacy or third-party systems.

Capture Costs in a Timely Manner with Self-Service Tools

Self-service applications facilitate the timely processing of documents, resulting in

an increasingly accurate determination of project costs. Oracle Time & Labor and

Oracle Internet Expenses enable your employees and contingent workers (temporary

workers such as consultants) to submit project-related timecards and expense reports

using a standard Web browser. Spreadsheet templates give your users the flexibility

to record entries away from the office and then submit them when they are back

online. By defining business rules for each document type, you can implement an

efficient and paperless document routing and approval process.

ORACLE DATA SHEET

You can also use self-service tools to streamline procure to pay procedures. Oracle

iProcurement allows your employees to enter purchase requisitions online and the

Oracle iSupplier Portal enables your suppliers to enter and inquire on their own

purchase order matched invoices.

Determine Your True Cost of Doing Business

Oracle Project Costing lets you track total project costs by applying a buildup of

burden costs to the raw costs, eliminating the need for end-of-month allocations of

indirect costs. Oracle Project Costing maintains date-effective schedules of burden

multipliers, so retroactive changes are processed automatically and a complete audit

trail is maintained. For each overhead component, you can assign various rates for

each cost type – you can have one set of overhead rates for labor and another for

materials. You can also vary rates by business unit, geography, or by the type of

project – including internal projects or contractual work.

When the allocation of indirect cost is preferred over the application of overhead

rates, robust allocation tool in Oracle Project Costing streamlines the process. You

can aggregate your indirect costs into a general ledger account or separate indirect

project, and then allocate the cost periodically across your direct projects and tasks.

You can define allocation rules for each business unit. The flexible allocation

workbench enables you to create and review draft allocations online – before you

release the final cost amounts to your financial systems.

Manage the Global Enterprise

With Oracle Project Costing, you can establish global project offices and shared

service centers while remaining flexible enough to support the myriad of regulations

and statutory requirements in the global marketplace.

Handle Transaction in Any Currency

Oracle Project Costing supports the need of your global workforce to incur

transactions, receive reimbursements, generate accounting entries, and review

project costs – all in different currencies. Besides using any currency defined in

your financial systems, you can configure different operating units or projects to use

specific currencies. When costs are allocated to projects, they are automatically

converted to the appropriate currency. The entire project team can better understand

their project costs by having a standard currency for comparison and analysis.

Streamline Resource Sharing Administration

Expand your employee resources by building virtual teams across organizational

boundaries. Using the cross charge feature in Oracle Project Costing, your

employees can work on projects owned by operating units, organizations, and legal

entities other than their own. Oracle Project Costing provides additional cost

controls for resource sharing across business units.

The powerful cross charge functionality in Oracle Project Costing provides a

solution for centralized project management, while allowing you to maintain your

employees in their respective organizations. This structure eliminates the need for

duplicate administrative efforts, because you define your HR records and cost rates

only once. While this feature provides flexible and powerful back-end processing,

Oracle Project Costing offers the

following benefits:

•

Monitor project performance -

Utilize timely, integrated cost

information to assure project

execution meets expectations

•

Capitalize on global

opportunities by linking

dispersed project teams to

meet work demands

•

Drive enterprise profitability -

Enable activity-based and

project-based management

capabilities to improve cost

performance

•

Evaluate expenditures -

Compare expenditures to

forecasts, budgets, and

revenue to track progress

and profitability

RELATED PRODUCTS

Oracle Project Costing is part of

Oracle Projects family of

applications:

•

Oracle Project Foundation

•

Oracle Project Planning and

Control

•

Oracle Project Resource

Management

•

Oracle Project Billing

•

Oracle Project Contracts

•

Oracle Daily Business

Intelligence for Projects

•

Oracle Project Portfolio

Analysis

•

Oracle Project Collaboration

You can further enhance the

capabilities of Oracle Project

Costing with:

•

Oracle Assets

•

Oracle Payables

•

Oracle Purchasing

•

Oracle Project Manufacturing

•

Oracle Product Lifecycle

Management

•

Oracle Time & Labor

•

Oracle Internet Expenses

RELATED SERVICES

The following services are

available from Oracle Support

Services:

•

Oracle E-Business Suite

Accelerators

•

Oracle On-Demand

•

Product Support Services

•

Update Subscription Services

•

Oracle Consulting Services

KEY BENEFITS

ORACLE DATA SHEET

the complexity is invisible to the end user. Employees enter project time and

expenses in the same way whether they are working on a project managed by their

own business unit or a business unit halfway around the world.

Oracle Project Costing provides you with the flexibility to determine how to account

for resource sharing activities, including transfer prices, multiple calendars, and

local currencies. This flexibility can help your enterprise address the disparate

accou

nting, legal, and tax requirements you encounter in a global work environment.

You can create borrowed and lent accounting entries to reflect cross charge

transactions, or create internal invoices for a more formalized paper trail.

Manage Your Project Costs

Oracle Project Costing enables you to easily monitor and control your project

spending. You can use transaction controls to limit the expenditures that users can

charge to specific projects using criteria such as expenditure category, employee, or

date range. These controls help prevent users from charging incorrect or excessive

costs to a project so that your projects can be as profitable as possible. For example,

you can create a transaction control to limit the types of transactions that contingent

workers can charge while still allowing your regular employees to incur those costs.

Budgetary controls help further manage your project costs by only processing

transactions if there are sufficient funds available in the project budget. You can set

p different control levels, which place hard or soft limits on what can be charged to

the project. For contingent workers, funds can also be controlled by the purchase

order agreement, ensuring that entered amounts never exceed the agreement

amounts. Budgetary control balances are automatically updated as transactions are

entered providing a real-time view of cost to date, outstanding commitments, and

available funds.

Easily adjust your project costs online, interface the adjustments to your financial

systems, and provide a historical audit trail of all activities. You can perform a wide

variety of adjustments – including correcting approved expenditures, changing the

billable status of expenditure items, recalculating raw or burdened costs, splitting

expenditure items, and transferring expenditures to another project.

To help you manage project costs, Oracle Project Costing provides detailed analysis

of how your actual costs compare to your project budget. Compare both actuals and

outstanding commitments to your original and current budgets, and drill down from

the summary of project costs to see the cost details at the task or transaction level.

By having aggregated and detailed project cost information in a single repository,

you can easily analyze cost trends and quickly identify any problem areas for all

levels of your project.

Boost Project Execution With Oracle Mobile Project Manager

Oracle Mobile Project Manager for Oracle E-Business Suite is a Smartphone

application that enables project managers and key team members to get up-to-the-

minute information on the latest key aspects of project information.

This is available at no additional cost to users of Oracle Project Costing licensed

product. With device integration, users can take action on the go by collaborating

ORACLE DATA SHEET

with customers via email, call, or text from within the application.

Capitalize Assets Efficiently

Oracle Project Costing provides robust functionality for capital-intensive industries

like construction or utilities. You can define capital assets and capture construction-

in-process (CIP) and expense costs for assets you are building, installing, or

acquiring. You can easily associate one or more assets to your project work

breakdown structure and place them into service separately as the project progresses.

Oracle Project Costing provides great flexibility to specify asset attributes –

including asset number, asset category, and date of service. Oracle Project Costing

can also allocate common costs across assets and summarize asset cost for reporting

and capitalization. When you are ready to place assets in service, you can

automatically generate asset lines from the CIP costs and send the lines to your asset

management system, such as Oracle Assets, to become depreciable and fixed assets.

Oracle Project Costing also captures the cost of asset removal and the proceeds of

sales for any assets you are retiring – for example, a utility company that replaces

existing light poles and sells them as firewood. When your retirement activities are

complete, you can automatically generate asset lines and send the lines to your asset

management system for posting as adjustments to asset depreciation. The tight

integration between Oracle Project Costing and Oracle Assets allows you to

eliminate redundant data entry and to seamlessly make adjustments to your assets –

even after capitalization.

Gain Insight into Project Costs

By having all project costs in a single global repository, Oracle provides the

comprehensive analysis you need to run your business. Leverage the robust

reporting capabilities in Oracle Project Costing to review expenditures for any

project at any level. Use expenditure reports to compare a project’s performance

against performance data for other projects within the same organization or across

organizations. For detailed cost data, you can review reports on expenditure

adjustments, expenditure batch status, expense reports, or missing timecards. Oracle

Project Costing also provides multiple reports for capital assets.

Oracle Daily Business Intelligence for Projects further extends your ability to

understand your business. It provides top-down enterprise metrics and analytics that

are based on detailed cost transactions across all your projects. You have a seamless

view of all your project costs so that you can drill down from an enterprise metric –

such as margin – to the specific project and transaction that drives that metric.

Oracle E-Business Suite—The Complete Solution

Oracle E-Business Suite enables companies to efficiently manage customer

processes, manufacture products, ship orders, collect payments, and more—all from

applications that are built on a unified information architecture. This information

architecture provides a single definition of your customers, suppliers, employees,

products—all aspects of your business. Whether you implement one module or the

entire Suite, Oracle E-

Business Suite enables you to share unified information across

the enterprise so you can make smarter decisions with better information.

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ORACLE DATA SHEET

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