Project Financial Planning

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2 Project Financial Planning Ian Boyling, ERP Director and Lead Consultant Prōject (EU) Ltd

3 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

4 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 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

5 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

6 Managing budgets and forecasts

7 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

8 Budgeting and forecasting Model financial impact of planning alternatives. Compare budget and forecast amounts to actuals. Create budgets and forecasts to manage the financial performance of a project.

9 Plan types and plan versions Plan Type 1 Project Version 1 Version 2 Plan Type 2 Version 1 Version 2 Create multiple working and baseline versions for each plan type.

10 Budget and forecast security Budgets and Forecasts Oracle Projects Security Mechanisms Responsibility-Based Security Role-Based Security Organization Authority

11 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.

12 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

13 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

14 Budget process flow Budget Creation Options 3 Generate Direct Edit Copy Amounts Implement Change Document Financial Impact 7 Create Project Create Initial Budget Update Budget Adjust and Recalculate Create Initial Budget Baseline Create Initial Forecast 6 Create Revised Budget Baseline 8

15 Forecast process flow Estimate to Complete (ETC) Sources 4 Financial Plan Workplan /Staffing Plan Work Quantity Average Of Actual Amounts Incurred Change Documents Open Commitment Billing Events Forecast Creation Options Direct Edit Generate Copy Amounts 3 Create Initial Budget Baseline Create Initial Forecast (Automatic) Update Forecast Adjust and Recalculate Approve Forecast 6

16 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

17 Plan types and plan versions Plan Type Plan Type Plan Type Plan Versions Plan Versions Plan Versions Working Working Current Working Version Plan Versions Baseline #2 Current Baseline Original Baseline You can have multiple plan types and plan versions for a project.

18 Add plan types Approved Revenue Budget Approved Cost Budget Forecast Cost Budget Forecast Revenue Budget Plan Types You can add multiple plan types.

19 Planning options: plan settings 1. Plan Settings 2. Currency Settings 3. Rate Schedules 4. Generation Options 5. Microsoft Excel Options Flow for defining planning options

20 Planning options: plan settings Use resource list No resource list Categorized, Project Level: Labor 50, Supplies 25, Equipment 25, Uncategorized, Project Level: Project 100, You can choose to create categorized or uncategorized budgets and forecasts.

21 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 Task Define the level of detail at which you enter plan amounts. For example, you can choose to enter amounts at the top task level.

22 Maintaining plan versions Maintain Budget Versions Page Working Version Create budget plan version Submit, rework, and perform maintenance activities

23 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

24 Generating budgets Define budget generation planning options PRC: Generate Financial Plan Amounts New Budget Version Run the concurrent program, PRC: Generate Financial Plan Amounts, to generate new budget versions.

25 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.

26 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

27 Generating forecasts Forecast generation sources PRC: Generate Financial Plan Amounts Project forecast You can use information from workplans and actual amounts to generate a forecast.

28 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

29 Additional forecast generation sources Open Commitments Billing Events Change Documents Additional sources you can use to generate forecast amounts.

30 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

31 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

32 Entering amounts and editing plan versions Copy amounts from another plan version Edit the planning options Edit plan amounts in the Edit Plan pages Download plan version to Microsoft Excel Enter and edit plan amounts. Adjust amounts by a percentage Examples of tasks you can perform while editing a plan version.

33 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.

34 Copying budgets and forecasts Copy Project or project template with budget/forecast New project with budget/forecast Copy existing budgets and forecasts when you create a project by copying a project template or project.

35 Copying budget and forecast amounts within a project Copy Version 1 Version 2 For example, copy a plan version from another plan version within the same project.

36 Implementing budgeting and forecasting

37 Agenda Budgeting and Forecasting Setup Extensions and Workflow

38 Budgeting and forecasting implementation steps Steps for Implementing Budgeting and Forecasting Required? Define financial plan types Create additional period profiles Create additional spread curves Define budget change reasons Implement integration with Microsoft Excel Yes No No No No Budgeting and Forecasting Implementation Steps (Page 1 of 2)

39 Budgeting and forecasting implementation steps Steps for Implementing Budgeting and Forecasting Required? Define additional budget types No Define additional budget entry methods Implement budgetary controls Implement budget integration Implement client extensions for budgeting and forecasting Implement workflow for budgeting and forecasting No No No No No Budgeting and Forecasting Implementation Steps (Page 2 of 2)

40 Implementation steps related to budgeting and forecasting Related Steps for Implementing Budgeting and Forecasting Required? Define planning resources Define resource breakdown structures Define planning rate schedules No No No Related steps for implementing budgeting and forecasting

41 Project performance reporting

42 Project performance reporting summarization Summary Data by Organization Oracle Projects Transaction Data Summary Data by Project Base Summary Of Reporting Data Summarization is a two-step process.

43 Reporting by project Financial Performance Effort Cost Earned Value Revenue Billability Billing and Collections Example of the performance areas you can see on the overview page layout for each project type.

44 Reporting by task Project Actual Cost Task 1 Task 2 Task 3 Financial Structure Actual Revenue 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.

45 Reporting by resource 0 - RBS Version 1. Consulting East 1.1 Consultant 1.2 Amy Marlin Profitability Effort Cost Example of viewing cost, profitability, and effort for resource Amy Marlin from a resource breakdown structure.

46 Periodic view April 2007 Cost Revenue Margin (USD) May 2007 Cost Revenue Margin (USD) 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.

47 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.

48 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

49 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

50 Endeca Mancini should have used Oracle Project Management!

51 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

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