Project Financial Planning

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Project Financial Planning

Ian Boyling, ERP Director and Lead

Consultant

Prōject (EU) Ltd

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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

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• Oracle Financials and Projects

Consultant

• Global implementation

experience

• Cross Industry Experience

• Oracle Certified Professional

for 12 years

• Fin Mgt and Projects (1

st

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

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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

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Agenda

• Overview of Budgeting and Forecasting

• Budgeting and Forecasting Process Flow

• Building Budgets and Forecasts

• Generating Budgets

• Generating Forecasts

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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.

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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.

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Budget and forecast security

Responsibility-Based Security Role-Based Security Organization Authority Oracle Projects Security Mechanisms

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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.

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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

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Agenda

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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

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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

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Agenda

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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

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Add plan types

You can add multiple plan types.

Approved Revenue Budget Forecast Revenue Budget Approved Cost Budget Forecast Cost Budget Plan Types

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Planning options: plan settings

4. Generation Options 1. Plan Settings

2. Currency Settings

3. Rate Schedules

Flow for defining planning options

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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.

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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.

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Maintaining plan versions

Create budget plan version

Maintain Budget Versions Page Working Version

Submit, rework, and perform maintenance activities

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Agenda

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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

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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.

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Agenda

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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

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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

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Additional forecast generation sources

Additional sources you can use to generate forecast amounts.

Open Commitments Billing Events

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Generating forecast revenue

Oracle Projects calculates forecast revenue based on the revenue accrual method associated with the project, such as:

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Agenda

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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

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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.

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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

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Copying budget and forecast amounts within a

project

Copy

For example, copy a plan version from another plan version within the same project.

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Implementing budgeting and

forecasting

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Agenda

• Budgeting and Forecasting Setup

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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?

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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

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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

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Project performance reporting summarization

Summarization is a two-step process. Oracle Projects

Transaction Data

Base Summary Of Reporting Data

Summary Data by Organization

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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.

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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

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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.

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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)

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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.

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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

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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